Chile: Inheritance

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Last Updated: Feb 18, 2009

Inheritance tax and law

INHERITANCE TAX (Impuesto a las Herencias, Asignaciones y Donaciones)

Inheritance, gifts and donations taxes are payable by the heirs and beneficiaries. The tax rates vary according to the degree of relationship and the value of the inheritance.

Heirs and beneficiaries are classified into the following categories:

Category I: spouse, direct descendants, direct ascendants, adoptive descendants, adoptive ascendants
Category II: siblings, nephews and nieces, aunts and uncles, first cousins
Category III: any other person

The tax base is the net value of each heir’s inheritance. Annual Taxable Units (ATU) are used as the basis for valuation. Taxable Units are adjusted monthly according to the variation of the cost-of-living index. The Annual Taxable Unit (ATU) for tax year 2008 is CLP451,824 (US$753).

INHERITANCE TAX
	TAX RATE ON DIFFERENT CATEGORIES
TAX BASE, ATUS	I	II	III
Up to 80 ATU	1%	1.2%	1.4%
80 ATU – 160 ATU	2.5%	3%	3.5%
160 ATU – 320 ATU	5%	6%	7%
320 ATU – 480 ATU	7.5%	9%	10%
480 ATU – 640 ATU	10%	12%	14%
640 ATU – 800 ATU	15%	18%	21%
800 ATU – 1,200 ATU	20%	24%	28%
Over 1,200 ATU	25%	30%	35%
Source: Global Property Guide

Category I heirs (spouses, legitimate ancestors, natural or adoptive parents, legitimate children and legitimate descendants) are entitled to an exemption of 50 tax units. In case of Category II heirs (siblings, half-siblings, and other relatives up to the fourth degree), the tax-exempt amount is fixed at 5 tax units. Category III heirs (any other person) do not receive any tax exemption.

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