New law facilitates the implementation of the emergency housing and urban works plan

May 2, 2023

The new regulation also seeks to improve the procedures before the Municipal Works Department.

On April 25, 2023, Law No. 21,558 was published in the Diario Oficial, which introduces various amendments to several regulatory bodies, enabling the implementation of the Housing Plan and facilitating the execution of urban works.

The main new features include the following:


Modification to the General Law of Urbanism and Construction

  • A fourth case is added to the subdivision and urbanization process regulated in Article 65 on voluntary urbanizations executed in public spaces or inside a property by its owner.
  • Article 70 incorporates the voluntary transfer of land for circulation, green areas, sports and recreational activities, and equipment with municipal authorization.
  • Article 129 is modified, incorporating that the Directorate of Municipal Works after the definitive reception, in the urbanizations carried out by SEREMIS of housing and verified the letter of safeguard, will proceed to the “authorization of sales and adjudications of lots before the urbanization is executed and received, or to the issuance of certificates of previous information of them”.
  • Article 183 gives the possibility to the intercommunal or metropolitan regulatory plans to “establish additional conditions for urbanization or equipment, as well as conditions associated with works that contribute to environmental care and environmental considerations of sustainable development related to mitigation and adaptation to climate change“, being these conditions enforceable in the cases indicated by the law.


Amendment to the Law approving the New Real Estate Co-ownership Law

Article 60 is amended with respect to public interest condominiums, eliminating the limitation that established that the number of parking spaces may not be less than one parking space for each two units destined for housing, and establishes complementary regulations to this amendment.


Modification of the Law that Reduces or Eliminates Tax Exemptions

  • The fifth transitory article on the right to credit of construction companies is amended, which will come into effect on January 1, 2027.
  • Taxpayers who have requested the respective building permit prior to April 30, 2023, may deduct 0.65 of the Value Added Tax debit in respect of sales and general construction contracts of such works, and extends this benefit to construction companies that comply with the requirements set forth in the law.
  • It incorporates that for the purposes of this tax law, it will be understood that the construction work will be “initiated once the layouts have been made and the excavations contemplated in the project plans have begun”.
  • It establishes the amount that construction companies will be entitled to deduct from their mandatory social security payments, and the amount of the benefit that construction companies have for sales of VAT exempt housing to beneficiaries of housing subsidies, and establishes other benefits in the law.


Amendment to the Law Establishing a Simplified Procedure for the Regularization of Self-Construction Housing

The terms and requirements for obtaining building permits and definitive reception are modified, and it is stated that the provisions of Article 70 of the General Law of Urbanism and Construction will not be applicable to them.


Modification to the Law that Establishes a Procedure for the Regularization and Regularization of Land Lots

  • It establishes the obligation to individualize the polygons of land to be released from public use in the plan presented in the regularization request.
  • Irregular settlements with respect to which the disaffection and replacement of public spaces has been authorized, will be disaffected from public use as from the definitive reception of the total or partial urbanization works of the settlement, which will be transferred to SERVIU to be destined to the corresponding programs.


For more information please contact our group azRealEstate:

Álvaro Rosenblut | Partner |

Valentina Palma | Associate |

Te podría interesar