Learn about the major changes in the 2026 Tax Megareform, its transitional measures, benefits, and key dates for businesses and individuals.
The 2026 Tax Megareform combines permanent changes to the tax system with transitional measures of limited application, several of which include deadlines that begin upon the law’s publication.
Notable among these are benefits for donations, the regularization of foreign assets and income, housing, historical tax balances, and federal and municipal tax debts.
Below, we answer the main questions about these measures and their implementation deadlines. This content is general and informative in nature; it is based on the draft legislation and may change until the law is published and the SII issues its regulations and instructions; it does not constitute legal or tax advice for a specific case.
What transitional measures does the 2026 Tax Megareform include?
- Among the main transitional measures are:
- 50% reduction in the gift tax.
- Temporary VAT exemption on the first sale of certain homes.
- Voluntary declaration of assets and income held abroad.
- 10% substitute tax on certain historical balances of the FUR, STUT, and excess withdrawals from the FUT.
- Waiver of interest and penalties, and payment plans for certain tax debts.
- Regularization of certain municipal debts.
When do the deadlines for the transitional measures begin?
The deadlines generally begin upon publication of the law, although each measure has specific rules: some take effect upon publication, while others take effect on the first day (or first business day) of the following month, or on the first day of the third month following that date.
The main application periods include:
- 180 days: debt forgiveness and payment plans offered by the General Treasury of the Republic.
- 8 months from the date of publication of the law: substitute tax on FUR, STUT, and excess withdrawals from the FUT, which must be reported and paid simultaneously.
- 12 months from the first day of the third month following the month of publication: voluntary declaration of assets and income held abroad.
- 12 months from the first day of the month following publication: settlement of certain municipal debts.
- 1 year from the first day of the month following publication: reduction in the gift tax.
- 1 year from the first business day of the month following publication: temporary VAT exemption on the first sale of certain residential properties.
What does the temporary reduction in gift tax entail?
The reform provides for a one-time 50% reduction in gift tax for each donor.
The measure applies to certain gifts granted by public deed during the period of validity and exempt from the judicial registration process. Only donations to statutory heirs (children, ascendants, and surviving spouse or civil partner) and to beneficiaries of the donor’s “cuarta de mejoras” are eligible, and the donated amount may not exceed 50% of the donor’s total estate; the donor must prove that they retain assets worth at least twice the amount donated. This provision is effective for one year, beginning on the first day of the month following the publication of the law.
Can undeclared assets and income held abroad be regularized?
Yes. The reform provides for a special procedure allowing certain taxpayers domiciled, resident, established, or incorporated in Chile to voluntarily declare assets and income held abroad that were not previously declared in a timely manner.
The regime imposes a one-time, substitute tax of 10% on the declared market value. The rate may be reduced to 7% if the assets are actually brought into the country within a maximum period of 3 years and remain invested in Chile for at least 5 years, representing at least 80% of the total declared amount.
The window to take advantage of this mechanism is 12 months, beginning on the first day of the third month following the publication of the law.
What assets are eligible for the regularization of foreign assets?
The program covers, among other things, assets and income held abroad—including cryptoassets and assets held through corporations, trusts, or agents—acquired before January 1, 2026, along with the income generated from them up to the date of the tax return.
Eligibility for this benefit is subject to specific requirements and exclusions: taxpayers who have been served with a summons, assessment, or tax collection order prior to January 1, 2026, regarding these assets; those who have been convicted or sentenced for tax crimes or money laundering; and assets located in high-risk jurisdictions as defined by the FATF are excluded. Its application must be analyzed on a case-by-case basis.
What happens to historical balances in the FUR, STUT, and excess FUT withdrawals?
The reform establishes voluntary mechanisms to consider the final taxation of certain historical balances as fulfilled through a one-time, substitute tax of 10%.
The regime provides for mechanisms regarding FUR and STUT balances as of the end of the 2025 or 2026 fiscal year—adjusted, in the case of STUT, to a cap based on the balance in the RAI registry—as well as for excess FUT withdrawals pending allocation as of that same date. The option may be exercised in whole or in part and without entitlement to the associated tax credits, which are extinguished. The tax must be reported and paid within 8 months of the law’s publication.
Is there a temporary VAT exemption for the first sale of residential properties?
Yes. A temporary VAT exemption is established for the first sale of certain homes that meet the requirements set forth in the reform.
The measure applies to homes that have received final approval from the Municipal Works Department as of the date of the law’s publication, with no limits on value, square footage, or number of units. Deeds executed between April 22, 2026, and the effective date of the law that have been subject to VAT are also eligible, with the seller entitled to request a refund by proving that the VAT was passed on to the buyer. The exemption is valid for one year, beginning on the first business day of the month following the month in which the law is published.
What benefits are available for settling tax debts?
The General Treasury of the Republic may grant payment plans for certain tax debts due by December 31, 2025, for individuals and micro, small, and medium-sized enterprises (MSMEs).
The program provides for the waiver of interest and penalties, up to 100% of the interest and 80% of the penalties in the case of lump-sum payment, and up to 95% of the interest and 75% of the penalties in the case of an installment agreement. Payment plans may include up to 48 equal and consecutive monthly installments, with a minimum down payment of 10% of the original principal and a maximum of three payment plans per taxpayer. Failure to comply with the payment plan will void it and reinstate the original interest and penalties.
The measure will remain in effect for 180 days from the publication of the law.
What measures are in place to settle municipal debts?
An extraordinary procedure is established to settle unpaid municipal debts owed by individuals and legal entities (vehicle registration fees, business licenses, sanitation fees, and other fees under the Municipal Revenue Law) accrued within the three years prior to January 1, 2026.
The benefit includes a 100% waiver of interest and fines, with the adjusted principal amount to be paid. Once the application is submitted, the municipality will issue a decision within 30 business days, and payment must be made within the following 12 months (36 months in the case of sanitation fees), with the option to pay in installments.
The measure will remain in effect for 12 months, starting on the first day of the month following the law’s publication.
Which transitional measures should be reviewed with the greatest urgency?
Measures with short deadlines require special attention, particularly:
- The 10% substitute tax on FUR, STUT, and excess withdrawals from the FUT, with an 8-month deadline.
- The TGR payment plans and waivers, valid for 180 days.
- The regularization of assets and income held abroad, with a 12-month window.
- The regularization of municipal debts, with a 12-month window.
- The reduction in the gift tax, effective for one year.
- The temporary VAT exemption on the first sale of certain homes, also effective for one year.
What Should Companies, Investors, and Individuals Evaluate?
Given that several of these measures are in effect for a limited time, it is advisable to assess in a timely manner whether any of them apply to the taxpayer’s specific situation.
In particular, it is advisable to review assets held abroad, historical tax balances, donations, real estate transactions, and tax or municipal debts, taking into account the specific requirements and deadlines of each regime.
For more information on these topics, please contact:
Rodrigo Albagli | Partner | ralbagli@az.cl
Álvaro Rosenblut | Partner | arosenblut@az.cl
