Property Tax Bill

Benefits for Seniors and Postponement of 2026 Revaluation

On October 28, 2025, the Executive presented to Congress Message No. 244-373, a bill that modifies property tax through three axes: expansion of benefits for seniors, postponement of the 2026 revaluation, and adjustments to the Common Municipal Fund. The initiative has been classified as requiring “immediate discussion” (6 days of processing in the Lower Chamber, to then be assessed by the Senate) and its urgency is framed in the context of the presidential elections in November, 2025.

These same provisions had already been proposed in a broader bill (Bulletin 17725-05) resubmitted in August 2025, which additionally included reforms to the SME regime, monotax, and other tax aspects. The Executive chose to process the property tax measures separately to accelerate their approval.

Expansion of Benefits for Seniors

The main modification corrects a regulatory gap in Law No. 20,732. Currently, seniors lose the reduction benefit when the fiscal appraisal of their property increases, even though their income remains constant. The bill establishes that when a senior qualifies by income (under 30 UTA annually, equivalent to USD $26,500 approx.), but is excluded by the appraisal of their property, they will be entitled to a reduction that guarantees property tax does not exceed 5% of their annual income.

This modification recognizes that increases in fiscal appraisals do not necessarily reflect greater tax-paying capacity. It is estimated that approximately 120,000 seniors will benefit from this adjustment, adding to 1,144,354 currently exempt and 189,644 with existing reduction, according to the bill’s presentation. The measure is particularly relevant in areas where appraisals have increased significantly more than pensions.

Postponement of 2026 Non-Agricultural Revaluation

The bill postpones until 2027 the revaluation of non-agricultural real estate scheduled for 2026. This decision responds to methodological deficiencies identified in previous processes. The Internal Revenue Service formed in September 2025 a panel of experts from the real estate and academic sectors to improve the methodology, increasing transparency and predictability of the process.

For companies with properties in fixed assets, the postponement stabilizes the property tax base during 2026, facilitating budget projections and avoiding abrupt adjustments. However, it is a temporary measure: the 2027 revaluation will be executed under improved methodology and could incorporate accumulated valuation adjustments, depending on the expert panel’s conclusions.

Property-owning taxpayers will maintain current fiscal appraisals during 2026, providing certainty for next year’s planning. However, they should anticipate that the 2027 revaluation will operate under renewed methodological parameters whose specific effects will depend on the real estate market variables considered.

Modifications to the Common Municipal Fund

The bill modifies contributions to the Common Municipal Fund for Las Condes (increase from 65% to 80% in property tax and from 65% to 70% in commercial licenses) and Lo Barnechea (incorporation into the 65% contribution regime). The increases will be gradual (five percentage points annually) and seek to offset the fiscal cost of expanded benefits for seniors, maintaining fiscal neutrality. This provision does not directly impact individual taxpayers or companies, but rather constitutes an adjustment in municipal finances.

Effective Date and Considerations

If approved, the modifications for seniors will take effect on January 1, 2026, applying to that fiscal year’s property tax. Municipal adjustments will take effect from the year following publication in the Official Gazette, with staggered increases.

The Executive’s strategy of presenting a focused bill, separating these provisions from the broader bill under consideration, seeks to ensure approval in the context of a tight electoral calendar. The urgency of immediate discussion reflects the political priority assigned to these modifications. For taxpayers, it is relevant to monitor both bills, as the broader one contains substantial modifications to business taxation and other aspects that could impact medium-term tax planning.

Note: This article is for informational and educational purposes regarding the bill under consideration. It does not constitute specific legal advice. To evaluate the impact on your wealth situation or explore any of these topics in greater depth, contact us.