Educational information only, not tax advice. Rules and figures change — confirm your situation with a qualified Chile tax professional before filing.
Chile · Chile · Short-term rental taxes
Short-Term Rental Taxes in Chile
STR income in Chile is taxed as First Category income under the Servicio de Impuestos Internos (SII), with residents paying progressive Global Complementary Tax (0–40%) and non-residents paying a flat 35% Impuesto Adicional, plus 19% VAT on furnished rentals.
The 30-Second Answer
- All rental income is classified as First Category income (rentas de capital) by the Servicio de Impuestos Internos (SII) and must be declared annually on Formulario 22 by April 30.
- Chilean tax residents (183+ days in Chile in a 12-month period) pay the Impuesto Global Complementario at progressive rates of 0–40%; non-residents pay a flat 35% Impuesto Adicional on gross rental income.
- Furnished short-term rentals trigger 19% IVA (VAT); unfurnished rentals are VAT-exempt — this distinction is critical for Airbnb-style hosts.
- DFL 2 properties (under 140 m², up to two per owner) may qualify for a rental income tax exemption — check eligibility with a Chilean tax professional before assuming it applies.
Deductions
Expenses You Can Deduct Against Rental Income
Actual costs incurred to generate rental income are generally deductible against First Category taxable income in Chile.
Expenses must be directly linked to generating taxable rental income. Non-resident owners subject to the 35% Impuesto Adicional are generally taxed on gross income with limited deduction access unless operating through a Chilean entity. Always retain invoices (boletas/facturas) as supporting documentation for the SII.
Filing Calendar
Key Dates & Filing Calendar
Chile's tax year runs January 1 – December 31; the annual income tax return is filed in April of the following year.
Non-resident owners who do not have a Chilean RUT or local representative may face withholding obligations. Engage a local accountant or representative (mandatario) before your first rental.
Servicio de Impuestos Internos (SII) — sii.cl; Formulario 22 filing rules confirmed for tax year 2025 (filed April 2026).
Tax Treatment
Resident vs. Non-Resident: Two Very Different Tax Paths
Your residency status determines which tax regime applies — the rates differ dramatically, so understanding your status is the first step.
Impuesto Global Complementario (Residents)
Progressive tax for Chilean tax residents
- Rental income is added to all other worldwide income and taxed at progressive rates from 0% to 40%
- A First Category Tax (FCT) credit of 25% paid at the entity level can be credited against the Global Complementary Tax
- Actual deductible expenses reduce the taxable base, potentially lowering the effective rate significantly
- Declared annually on Formulario 22 by April 30
0–40% progressive rate
Impuesto Adicional (Non-Residents)
Flat 35% tax for non-resident foreign owners
- A flat 35% Impuesto Adicional applies to Chilean-source rental income remitted or credited abroad
- Tax is generally withheld at source by a Chilean paying agent or property manager
- Limited deductions available unless income flows through a Chilean entity subject to FCT
- Non-residents must appoint a Chilean representative (mandatario) and obtain a RUT for compliance
35% flat rate on gross income
Depreciation
Depreciation of Rental Property Assets in Chile
The SII sets normal useful-life periods for fixed assets; straight-line depreciation is standard, with accelerated options available.
| Asset | Typical write-off period | Notes |
|---|---|---|
| Residential building (factory/commercial) | 20–40 years | SII normal useful life; straight-line method standard |
| Furniture & fittings | 7 years (approx.) | Accelerated depreciation (1/3 of normal life) available for new or imported assets if normal period ≥ 3 years |
| Trucks / vehicles | 7 years | SII standard; accelerated method may apply |
| Heavy machinery | 15 years | SII standard normal useful life |
SMEs with annual sales below approximately USD 2.8 million and companies below approximately USD 3.8 million may qualify for faster or even instantaneous depreciation methods under Chilean tax law. Confirm current thresholds with the SII or a Chilean accountant.
When a depreciated asset is sold, any gain attributable to prior depreciation deductions may be subject to recapture as taxable income under Chilean income tax rules. Consult a Chilean tax adviser before disposing of rental property assets.
IVA (VAT) on Furnished Rentals
19% IVA: The Hidden Tax on Furnished Short-Term Rentals
Chile does not have a dedicated tourist/lodging tax, but furnished rentals — including Airbnb-style STRs — are subject to 19% IVA (VAT), which is a major compliance obligation.
Unlike many countries with a separate hotel or tourist tax, Chile applies its standard IVA (Impuesto al Valor Agregado) of 19% to furnished property rentals. Unfurnished rentals are VAT-exempt. Most Airbnb-style STRs are considered furnished and therefore VAT-applicable.
19% IVA on furnished STR income (plus income tax on net/gross rental profit)
Servicio de Impuestos Internos (SII) — sii.cl; VAT on furnished rentals confirmed by SII FAQ and propiedadesaysen.com (2026).
| Booking type | Who collects & remits | What it means for your books |
|---|---|---|
| Furnished STR (Airbnb-style) — IVA 19% | Host must register with SII, issue boletas/facturas, and remit IVA monthly via Formulario 29 | Add 19% IVA on top of your nightly rate; track separately and remit monthly — it is not your income |
| Unfurnished long-term rental | No VAT obligation; income tax only | No IVA to collect or remit; declare net rental income on annual Formulario 22 |
Chile does not currently have a national tourist tax or city-level lodging tax like the US transient occupancy tax. The primary indirect tax exposure for STR hosts is IVA on furnished rentals.
Platforms
How Airbnb & Other Platforms Handle Chilean Tax
Platforms may collect IVA in some cases, but hosts remain ultimately responsible for SII compliance — always verify what your platform is and is not remitting.
| Platform | Reports your income | Collects the local lodging tax | Annual earnings summary |
|---|---|---|---|
| Airbnb | Shares host data with tax authorities in some jurisdictions; Chilean SII data-sharing arrangements should be verified directly with Airbnb | May collect and remit IVA in Chile in some cases — verify in your Airbnb account settings | Annual earnings summary available in host dashboard; not a substitute for SII-compliant boletas/facturas |
| Booking.com / Vrbo | Platform-level reporting varies; assume SII may request data | Generally does not collect Chilean IVA on behalf of hosts — host must self-remit | Transaction history available in host portal; host must issue own tax documents |
Hosting on Multiple Platforms?
If you list on Airbnb, Booking.com, and Vrbo simultaneously, you must aggregate all rental income across platforms for your annual Formulario 22 declaration. Each platform's earnings count toward your total taxable income and your IVA obligation. Keep separate records per platform and reconcile monthly.
OECD/DAC7-Style Reporting in Chile
Chile is an OECD member and participates in international tax information exchange. While DAC7 is an EU directive, Chile's SII has increasing data-sharing arrangements with foreign tax authorities. Non-resident hosts should assume their platform income may be visible to their home country's tax authority.
Airbnb Help Center (airbnb.com/help); SII data-sharing obligations — sii.cl; propiedadesaysen.com (2026).
Illustrative P&L: Resident Host, Furnished STR
Example only — Chilean peso amounts are illustrative for a Santiago apartment earning ~CLP 12,000,000/year. Not tax advice.
Record-Keeping
Stay Audit-Ready: What to Keep and for How Long
The SII can audit up to 3 years of returns (or longer in cases of fraud); keep all rental income and expense records organised and accessible.
| Keep | How long | Why |
|---|---|---|
| Boletas / facturas (invoices issued and received) | 6 years minimum | SII requires documentary evidence of all income and deductible expenses |
| Booking records (platform statements, guest contracts) | 6 years | Proof of rental income amounts and dates for Formulario 22 and IVA returns |
| Bank statements showing rental deposits | 6 years | Corroborates declared income; SII cross-references financial institution data |
| Property purchase documents, DFL 2 certificates (if applicable) | Indefinitely | Needed to substantiate depreciation base, DFL 2 exemption claims, and capital gains calculations on sale |
| Formulario 22 and Formulario 29 filed copies | 6 years | Evidence of timely and correct filing; required if SII opens a review |
Non-resident owners must appoint a Chilean mandatario (representative) who can receive SII correspondence and act on your behalf. Failure to have a local representative can result in missed notices and penalties.
Estimator
Short-Term Rental Tax Estimator
Plug in your bookings and costs to see your likely taxable position.
Your Numbers
Total short-term-rental income, before costs.
Allowable running costs, mortgage interest, depreciation and platform fees.
Your top income-tax band, as a percentage.
Estimated tax owed
Income tax on your net rental profit at your marginal rate.
Illustrative estimate. A simplified model to orient you — it is not tax advice. Confirm your situation with a qualified local professional.
Sources & notes
This page is for educational purposes only and does not constitute tax advice. Chilean tax law changes frequently — always verify current rates, thresholds and forms with the SII (sii.cl) or a qualified Chilean tax professional before filing.
- Servicio de Impuestos Internos (SII) — sii.cl — Official Chilean tax authority. Source for Formulario 22, IVA rules, First Category Tax, Impuesto Global Complementario, Impuesto Adicional rates, and depreciation schedules.
- Propiedades Aysén — Chile Rental Income Tax Guide (2026) — Detailed guide covering resident vs. non-resident tax treatment, VAT on furnished rentals, DFL 2 exemptions, and RUT requirements. propiedadesaysen.com/en/blog/chile-rental-income-tax-foreign-owners/
- Expat Focus — Chile Property Letting Guide (2025) — Summary of Chilean lease law, tax rates for residents and non-residents, and VAT on furnished rentals. expatfocus.com/chile/guide/chile-property-letting
- PwC Worldwide Tax Summaries — Chile Corporate Deductions — Source for depreciation useful-life periods (heavy machinery 15 years, trucks 7 years, factory buildings 20–40 years) and accelerated depreciation rules. taxsummaries.pwc.com/chile/corporate/deductions
- The Latin Investor — Buying and Renting Out in Chile (2026) — Market data on Santiago STR occupancy, non-resident tax impact on yields, and gastos comunes. thelatinvestor.com/blogs/news/chile-buy-rent-out
Questions
Frequently Asked Questions: STR Taxes in Chile
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