The Government has announced a Bill for National Reconstruction and Economic and Social Development, which includes a package of reforms structured around five pillars: reconstruction, reactivation of the construction sector, formal employment, tax changes, and regulatory streamlining. Below is a summary of the key measures:

1. Emergency Reconstruction Fund: Extended to the Ñuble and Biobío regions. It will be financed through temporary mechanisms such as a reduction in the donations tax, capital repatriation, and substitute taxes.
2. Temporary 50% reduction in Donations Tax: For 12 months, donations to family members will be subject to only 50% of the tax (Law No. 16,271), fully creditable against inheritance tax. The judicial authorization requirement (a procedure that generally requires court approval) is eliminated, and no more than 50% of total assets may be donated.
3. Capital repatriation (10% or 7% rate): A voluntary 12-month system to declare foreign assets or income, subject to a single substitute tax of 10%. The rate is reduced to 7% if the assets are repatriated within 3 years and remain invested in DFL2 real estate or in securities under Article 107 of the Income Tax Law (LIR)—including shares, mutual funds, and Chilean investment funds with significant stock market presence (adjusted presence)—for at least 8 years.
4. Temporary VAT exemption on new housing: For 12 months, an optional VAT exemption applies to the sale of new housing units with partial or final occupancy permits at the time of publication of the law.
5. Reduction of the invalidation period for sectoral permits: Shortened from 2 years to 6 months, mainly benefiting the energy, mining, public works, and construction sectors.
6. Tax credit for formal employment: A tax credit equivalent to 15% of gross wages for workers earning between 7.8 and 12 UTM (approximately CLP 530,000 to CLP 816,000), creditable against provisional monthly payments (PPM), VAT, and First Category Tax.
7. Expansion of the DFL2 regime.
8. Reduction of the First Category Tax (IDPC) from 27% to 23% and system “re-integration”: Gradual reduction of the IDPC rate: 27% (2026), 25.5% (2027), 24% (2028), and 23% (2029). The system will be gradually re-integrated, reaching full integration in the 2030 tax year. In this context, a temporary 15% substitute tax is introduced to convert credits subject to restitution into credits without such obligation.
9. Tax stability for strategic investments: A rule is established to ensure that significant investments in strategic sectors—such as mining, technology, and energy—are not affected by future tax changes, providing greater legal certainty and competitiveness to attract investment.
10. Elimination of property taxes for individuals over 65: Individuals aged 65 and over are exempt from paying property taxes on their primary residence (limited to one property nationwide).
11. Reimbursement of expenses due to judicial annulment of environmental permits (RCA): An expedited mechanism is created to reimburse expenses when an approved environmental permit is later revoked or annulled by the courts, operating as a form of insurance for project developers.
12. Moratorium on tuition-free higher education expansion: The admission of new institutions into the tuition-free system (Law No. 21,091) is suspended for 4 years.
13. Reinstatement of non-taxable income treatment for certain stock market gains: The regime is reinstated for gains obtained from the sale on the stock exchange (among other mechanisms) of shares, mutual funds, and investment funds with high stock market presence (adjusted presence), provided they meet the requirements set out in Article 107 of the LIR, eliminating the current 10% tax.
14. Substitute tax on balances in tax records: A substitute tax is established on balances held in tax records (similar to the former “ISFUT” or “ISIF”).