How inheritance tax works in Chile
Chile taxes each heir's net assignment from 1% to 80 UTA up to 25% past 1,200 UTA. Spouses, children, ascendants and descendants each enjoy 50 UTA free; distant collaterals get 5 UTA.
Kinship surcharges layer on the computed tax: none for direct family, 20% more for second-to-fourth-degree collaterals, 40% more for distant and unrelated heirs.
Gifts follow the same scale through lifetime donations. Returns file within two years of death with three annual instalments available.
Tax rates at a glance
- Entry rate
- 1%To 80 UTA
- Top rate
- 25%
- Close free slice
- 50 UTA
- Collateral free
- 5 UTA
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
FamiliesInvestorsHigh earnersExpatsFamily offices
Watch out for
- Per-assignment taxation rewards splitting. More close heirs at lower bands beat fewer heirs climbing toward 25%.
- Surcharges punish distance steeply. A 25% band becomes 35% effective for unrelated heirs after the 40% top-up.
- Gifts and inheritances share one logic. Lifetime donations use the same bands, so early gifts at low bands beat late ones.
- Instalments help liquidity but not liability. Three yearly payments ease cash flow while interest and surcharges run.
Frequently asked questions
Does Chile have inheritance tax?
Yes, 1% to 25% per heir with 50 UTA free for close family and surcharges to 40% extra for distant heirs.
Are gifts taxed in Chile?
Yes, lifetime donations follow the same 1% to 25% scale with the same thresholds and surcharges.
When must succession file?
Within two years of death, with payment in up to three annual instalments available since 2020.