Both individuals and companies that own real estate will be able to request the review and correction of appraisals that do not adjust to their reality.
On June 16, 2025, the Internal Revenue Service (SII) published a minute that introduces measures to modernize the administration of the Land Tax.
These modifications -some of which are effective immediately– broaden the taxpayers’ faculties to review and question the tax appraisal of their real estate, which could result in a lower tax burden associated with this tax.
The most relevant aspects are explained below:
- Extension of the powers to claim tax appraisals.
Within the framework of the Tax Obligations Compliance Law, the SII informed that the grounds for requesting a review of the tax appraisal have been expanded. Until now, taxpayers could only claim for the causes established in the current regulations. With this modification, it is now possible to challenge any element that affects the tax value of the real estate property, including the value assigned to the land and buildings.
This change opens the possibility of reviewing appraisals that do not reflect the construction, use or commercial reality of the property, and that have a direct impact on the amount of taxes to be paid.
2. Greater impartiality in the review process.
As of 2026, claims filed with the SII will be evaluated by units other than those that participated in the determination of the original appraisal.
3. Elimination of the commercial factor in Santiago Centro.
As of 2025, the so-called “commercial factor” that was applied in the appraisal of offices and premises located in downtown Santiago will be eliminated. This factor, which increased the tax burden in areas with high commercial activity, will cease to be applied, benefiting more than 3,400 properties with reductions that could reach up to 50% in their contributions, starting in the second half of 2025.
What are the specific implications of these measures?
Both individuals and companies that own real estate will be able to request the review and correction of appraisals that do not adjust to their reality, allowing them to reduce the tax burden of this tax.
For more information please contact our Tax team:
Rodrigo Albagli | Partner | ralbagli@az.cl
Álvaro Rosenblut | Partner | arosenblut@az.cl
Andrea Bobadilla | Director Tax Group | abobadilla@az.cl
Javiera Melo | Associate | jmelo@az.cl
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