Law No. 21,850 was published on Saturday, October 17, 2026, and its first provisions will take effect on November 1.
On Saturday, October 17, Law No. 21,850 on National Reconstruction and Economic and Social Development was published in the Official Gazette. Its measures take effect in stages, and several establish limited-time windows that will not be repeated. Below, we review the main measures according to their effective dates.
- Effective November 1, 2026
- Tax credit for exporters of knowledge-based services. A tax credit against First-Category Income Tax equivalent to 15% of their employees’ wages, which increases to 20% for companies located in rural regions or municipalities within the Metropolitan Region, with an annual cap of 75 UTM per employee.
- SII Audits. The SII may cross-reference personally identifiable information with all State Administration agencies for audit purposes.
- Sence Training Credit. The rate is reduced from 1% to 0.7% of taxable wages, and the maximum funding will be 80%, 50%, or 15% of the training cost, depending on whether the employee’s wages are up to 25 UTM, between 25 and 50 UTM, or greater than 50 UTM.
2. Effective December 1, 2026
- VAT on New Homes. For one year, the first sale of new homes will be exempt from VAT, with no limit on value or square footage, provided they have received final municipal approval prior to October 17, 2026. Subsequent deeds based on a preliminary agreement entered into within the specified period are also eligible, and those who paid VAT after the bill was introduced in Congress may claim the exemption and request a refund.
- Gift Tax. A one-time 50% reduction per donor applies to gifts to statutory heirs and assignees of a quarter share of improvements, granted by public deed through November 30, 2027, with a cap of 50% of the donor’s net worth. Additionally, the judicial claim procedure is eliminated.
3. Repatriation of Capital in 2027
Between January 1 and December 31, 2027, assets held abroad that were acquired before 2026 may be declared by paying a one-time tax of 10%, which is reduced to 7% if the assets are brought into the country and remain invested in Chile for at least five years.
4. Regularization Windows
- FUR and STUT. A one-time, substitute tax of 10% on FUR and STUT balances and excess withdrawals as of December 31, 2025, or 2026. This option expires on June 17, 2027.
- Debts Owed to the Treasury. For a period of 180 days, individuals and micro, small, and medium-sized enterprises (MSMEs) will be able to settle debts due as of December 31, 2025, with a waiver of up to 100% of interest and 80% of penalties for lump-sum payments, or up to 95% and 75%, respectively, for payment plans of up to 48 installments.
5. Structural Changes Beginning in 2027
- First-Category Income Tax. It will be gradually reduced from 27% to 25.5% in 2027, 24% in 2028, and 23% starting in 2029.
- Refunds. The refund of First Category Tax credits is eliminated, with a transitional refund of 30% and 20% for credits generated in 2027 and 2028.
- Stock market capital gains. These are no longer subject to the 10% flat tax and are now classified as non-income.
- Tax Stability. A new tax stability regime for 10, 15, or 20 years is established for investments of at least USD 50 million, both foreign and domestic, with a 1.5% surcharge on the First Category tax rate.
- PPM Pro Pyme. The reduction from 0.25% to 0.23% takes effect only as of January 1, 2029.
Since several of these windows have short deadlines, we recommend reviewing the situation of each company and its partners in advance.
You can review the published law here:
Official Gazette Link | Law No. 21,850 | October 17, 2026
For more information regarding the law, please contact:
Rodrigo Albagli | Partner | ralbagli@az.cl
Álvaro Rosenblut | Partner | arosenblut@az.cl
Stephanie Cruz | Legal & Business Director | scruz@az.cl
Vicente Martínez | Senior Associate | vmartinezw@az.cl
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