Foreign asset regularization advisory under the Chilean Reconstruction Law by Anguita Osorio.
Voluntary declaration, 10% or 7% single tax, effects and exclusions of the 12-month window.
Foreign asset regularization: a 10% or 7% rate
The Reconstruction Law creates a voluntary regime to declare assets or income held abroad, or held in Chile through foreign structures, acquired before 1 January 2026. The window runs for 12 months and opens on the first day of the third month following publication of the law.
This page covers the regime in five stops: what can be declared and at which base, the conditions behind the reduced 7% rate, the effects a good-faith declaration produces, the exclusions that leave certain persons and assets out, and the preparation worth starting before the window opens. It closes with the frequent questions and the official sources.
What the regime allows
A voluntary declaration of assets acquired before 1 January 2026, taxed once at 10% of commercial value.
The regime lets taxpayers declare assets or income held abroad, and also assets or income located in Chile but held through foreign structures, provided they were acquired before 1 January 2026. The declaration pays a single tax of 10% on the commercial value of what is declared. It is a different tool from the substitute tax on accumulated profits, which targets historical balances inside Chilean companies.
Assets abroad
Assets or income held outside Chile and acquired before 1 January 2026 can enter the regime through a voluntary declaration.
Foreign structures
The regime also covers assets or income located in Chile but held through foreign entities or structures, a frequent case in family and investment vehicles.
Base and rate
The single tax is 10% of the commercial value of the declared assets or income. A reduced 7% rate exists for assets that are brought into and stay invested in Chile.
That reduced rate is the design choice that deserves the most analysis before opting in.
The reduced 7% rate
Three points less in exchange for bringing the assets into Chile and keeping them invested for 5 years.
The 7% rate applies when the declared assets are physically brought into the country and remain invested in Chile for at least 5 years. The saving is real, but it is paid for with a permanence commitment. The right comparison is not 10% against 7% in the abstract, but what each option means for the liquidity and investment plans of the owner.
General rate: 10%
Applies to the declaration with no additional conditions: the assets can stay abroad or move freely after the tax is paid. It makes sense when the owner values flexibility, keeps an investment strategy outside Chile or does not want to commit capital for 5 years.
Reduced rate: 7%
Requires bringing the assets physically into the country and keeping them invested in Chile for at least 5 years. It makes sense when the owner already planned to repatriate, when the assets will fund local projects, or when the 3-point saving outweighs the cost of locking the capital in.
Whichever rate is chosen, the value of the regime lies in the effects the declaration produces.
What effects it produces
A good-faith declaration extinguishes liabilities and starts a 12-month clock on SII audit powers.
The declaration does not only pay a tax: it closes fronts. Made in good faith, it extinguishes the liabilities associated with the declared assets and puts a defined horizon on the tax authority review.
- It extinguishes tax liabilities: the taxes that the undeclared assets or income would have triggered are replaced by the single tax paid.
- It extinguishes foreign-exchange liabilities linked to the assets, a relevant front when the funds moved outside the formal exchange market.
- It extinguishes corporate liabilities associated with the structures through which the assets were held.
- The SII audit powers over what was declared lapse 12 months after payment of the tax: past that point, the declared position is settled.
Those effects, however, are not available to everyone nor for every asset.
Exclusions and limits
The regime closes its door to certain persons and to assets in high-risk jurisdictions.
Who and what stays out
- Persons formally charged or convicted of certain crimes cannot use the regime.
- Assets located in jurisdictions classified as high risk cannot be included in the declaration.
- The exclusions demand a case-by-case review before filing: verifying the personal situation of the declarant and the jurisdiction of each asset is part of the preparation, not an afterthought.
Since the window opens on the first day of the third month after publication, there is useful time to arrive prepared.
What to prepare now
Three workstreams that can start before the law is published.
- Inventory structures and accounts
Map every foreign structure, account and asset that could enter the declaration, including assets in Chile held through foreign vehicles. An incomplete inventory weakens the good-faith declaration and the protection it grants.
- Document origin and valuation
Gather the documentation that supports the origin of the assets and their commercial value, which is the tax base of the regime. Valuations take time and are easier to build before the window opens than against the clock.
- Model the general versus the reduced rate
Compare 10% with flexibility against 7% with repatriation and 5 years of permanence in Chile, asset by asset. The answer depends on the liquidity, investment plans and family situation behind each structure.
The regime is one of the three time-limited windows of the law. The full picture, including the substitute tax and the donations discount, is in the Reconstruction Law guide.
Frequently asked questions
The questions that come up most often about the regime.
Can I bring money or investments I hold abroad into Chile without trouble with the SII?
The Reconstruction Law creates a 12-month voluntary regime to declare foreign assets or income acquired before January 1, 2026, paying a single 10% tax on commercial value (7% if the assets enter and remain invested in Chile for 5 years). A good-faith declaration extinguishes the associated tax, foreign-exchange and corporate liabilities, with exclusions for persons indicted or convicted of certain crimes.
Which assets can be regularized?
Assets or income held abroad, and also assets or income located in Chile but held through foreign structures, provided they were acquired before 1 January 2026. The declaration is voluntary and the single tax is computed on the commercial value of what is declared.
When does the window open and how long does it last?
The window runs for 12 months and opens on the first day of the third month following publication of the law in the Official Gazette. The law has not been published yet, so there is no exact start date: the term counts from publication, which could take weeks or a few months.
What is the difference between the 10% and the 7% rate?
The general rate is 10% on the commercial value of the declared assets or income, with no further conditions. The reduced 7% rate applies when the assets are physically brought into the country and remain invested in Chile for at least 5 years. The 3-point saving is paid for with a permanence commitment that should be modeled before opting in.
Which liabilities does it extinguish?
A declaration made in good faith extinguishes the tax, foreign-exchange and corporate liabilities associated with the declared assets or income. In addition, the SII audit powers over what was declared lapse 12 months after payment of the tax.
Who is excluded?
Persons formally charged or convicted of certain crimes are excluded from the regime, and assets located in high-risk jurisdictions cannot be included. The exclusions call for a case-by-case review before filing the declaration.
Official sources
- Bulletin 18.216-05, legislative record (Senate of Chile)
- Text approved by Congress per Chamber of Deputies official letters No. 21.252 and 21.412 and Senate official letter No. 245/SEC/26.
Informative content, updated as of July 2026. It does not constitute legal advice for a specific case.
Evaluating the regularization?
The tax compliance practice reviews the structures and assets involved, documents origin and valuation, and models the general rate against the reduced one before the window opens.
See tax complianceTransform Your Legal Challenges into Competitive Advantages
Discover how our innovative approach can drive your business
