Family business succession planning under the Chilean Reconstruction Law by Anguita Osorio.
One-year window with a 50% cut to the donations tax of Law 16.271, no court approval required.
Donations at Half the Tax: One Year to Order the Succession
The Reconstruction Law opens a one-time window: lifetime donations to children, spouse and other forced heirs pay half the tax of Law 16.271, by public deed and with no court approval. The window lasts one year from publication. For family businesses it is the most relevant opportunity of the whole package: transferring shares or equity rights at half the cost, through a simpler process.
This page covers the donations window in four steps: what Congress approved and why removing court approval matters, the conditions that frame the benefit, why it is the decisive opportunity for family businesses, and what to prepare now so the deed can be signed early in the window. It closes with frequently asked questions and the official sources.
What Congress approved
A one-time 50% cut, by public deed and without court approval.
For one year, lifetime donations to children, the spouse and other forced heirs, as well as beneficiaries of the "cuarta de mejoras" share, pay half the tax of Law 16.271 on inheritances, allocations and donations. The benefit applies once, requires a public deed and dispenses with "insinuación judicial", the prior authorization a judge must grant to donations under the general rules. Removing that step makes the transfer cheaper and much faster: the process no longer runs through the courts.
Half the tax, once
The donation pays 50% of the tax that Law 16.271 would normally levy. It is a one-time benefit tied to the window, not a permanent change to the donations regime.
Family beneficiaries
Children, spouse and the other forced heirs, plus beneficiaries of the "cuarta de mejoras". The benefit is designed for succession within the family, not for transfers to third parties.
Public deed, no court
The donation is executed by public deed and does not require court approval. What today demands a judicial proceeding becomes a notarial act with the tax already paid.
The benefit is generous, but it does not come unconditioned. Four rules frame how far it reaches.
The conditions
A cap, a clawback, regulated financing and payment before the deed.
- Cap: half of the donor’s estate
The donated assets cannot exceed half of the donor’s estate. The window allows advancing the succession, not emptying the estate in life.
- Clawback if the donee sells within 3 years
If the donee disposes of the assets within the following 3 years, part of the benefit is lost through the tax basis of the sale. Donating as a step before an immediate sale erodes the advantage.
- Regulated loans from the donated companies
The law allows financing the tax with loans granted by the very companies whose shares or equity rights are being donated, under specific regulation. That opens a financing route when the family’s wealth is concentrated in the company.
- The tax is paid before the deed
The tax is assessed and paid before the public deed is executed. Liquidity must be resolved in advance: the deed closes the operation, it does not open it.
Read together, those rules point at one scenario above all others: the succession of the family business.
Why it is the key opportunity for the family business
Planned succession at half the cost versus unplanned succession at full cost.
Most family businesses in Chile transfer through inheritance, without planning: the tax falls in full, at the worst possible moment, on heirs who must value the company, agree among themselves and raise liquidity while running the business. The window inverts that scene. It allows transferring shares or equity rights in life, at half the tax, with the founder leading the process, the valuation agreed and the liquidity arranged before signing.
Planned donation within the window
Half the tax of Law 16.271, paid on a date the family chooses. The founder decides what is transferred, to whom and under which governance. Public deed, no court proceeding, and financing routes regulated in the law itself.
Unplanned inheritance
The full tax, due at a moment nobody chose. The heirs inherit undivided interests, must agree on valuation and control, and often need to extract liquidity from the company precisely when it is most vulnerable.
The window rewards those who arrive prepared. And preparing takes months, not days.
What to prepare now
Four workstreams to open before the law is published.
- Value the assets: the tax, the cap of half the estate and the family agreements all rest on a defensible valuation of the shares or equity rights.
- Define what is donated and to whom: which assets, in what proportions and with which balance among heirs, keeping the one-time nature of the benefit in view.
- Review bylaws and shareholder agreements: preemptive rights, qualified majorities and pledges over shares can block or delay the transfer if they are discovered late.
- Resolve liquidity: the tax is paid before the deed, so the source of funds, including regulated loans from the donated companies, must be defined in advance.
The window runs for one year from the first day of the second month following publication in the Official Gazette. The sound strategy is to sign at the start of the window, not at the end: valuations, corporate approvals and financing take time, and a queue at the close is a foreseeable risk.
Planning the succession of a family business?
We advise on corporate structuring, shareholder agreements and the succession of shares and equity rights. Reviewing bylaws, valuation and liquidity now leaves the deed ready for the opening of the window.
Corporate practiceFrequently asked questions
The questions families raise most often about the window.
How do I pass my company to my children while paying less tax?
For one year from publication of the Reconstruction Law, lifetime donations to children, spouse and other forced heirs pay half the Ley 16.271 tax, by public deed and without judicial insinuación. It allows ordering the succession of shares or equity rights at half the ordinary cost, capped at half the donor's estate and with conditions if the donee sells within 3 years.
Who can receive a donation with the 50% reduction?
The donor’s children, spouse and other forced heirs (legitimarios), plus beneficiaries of the "cuarta de mejoras" share. The reduction applies once per beneficiary and cuts in half the tax that Law 16.271 levies on the donation.
How long does the window last?
One year, counted from the first day of the second month following publication of the law in the Official Gazette. The law has not yet been published and the exact date is uncertain, so the deadline must be tracked against publication, not against a calendar date.
Is court approval required to donate under this regime?
No. Donations under the benefit do not require "insinuación judicial", the prior court authorization that donations need under the general rules. A notarized public deed suffices, which makes the process significantly cheaper and faster.
What happens if the donee sells the assets soon after?
If the donee disposes of the assets within the following 3 years, part of the benefit is lost through the tax basis of the sale. The regime rewards donation as a succession act and penalizes using it as a step before an immediate sale.
How and when is the reduced tax paid?
The tax is assessed and paid before the public deed of donation is executed, so liquidity must be arranged in advance. The law allows financing it with loans granted by the very companies whose shares or equity rights are being donated, subject to regulation.
Official sources
Informational content, updated as of July 2026. It does not constitute legal advice for a specific case.
Transform Your Legal Challenges into Competitive Advantages
Discover how our innovative approach can drive your business
