Chile Capital Gains Tax Guide 2026 — Ganancias de Capital

Overview of Capital Gains Taxation in Chile

Chile treats capital gains as ordinary income for tax purposes. There is no separate capital gains tax (CGT) regime — capital gains are included in the taxpayer's annual income and taxed under the Global Complementario (IGC) at progressive rates from 0% to 40%, or under the Corporate Tax (IDPC) at 25% if the gains are realised by a business entity. The system features an inflation adjustment (corrección monetaria) that adjusts the cost base for inflation, ensuring only real gains are taxed.

The tax treatment depends on the nature of the asset (securities, real estate, other personal property), the taxpayer's status (habitual trader vs occasional investor), and the holding period in certain cases. Unlike many countries, Chile does not distinguish between short-term and long-term gains for the purpose of rate differentiation — both are included in the same progressive schedule. However, the inflation adjustment implicitly favours longer holding periods (higher inflation adjustment to the cost base).

Habitual Gains — Taxed at IGC Progressive Rates (0–40%)

• Definition of habitual: A taxpayer is considered a habitual securities trader if they engage in frequent transactions with the intention of making a profit. The SII (Servicio de Impuestos Internos) considers factors such as frequency of trades, volume of transactions, use of credit for trading, and whether trading constitutes the taxpayer's primary source of income.
• Taxation: Habitual gains are treated as ordinary income and included in the IGC tax base, taxed at progressive rates from 0% to 40%. The taxpayer reports the net gain (sales proceeds minus inflation-adjusted cost base) as ordinary income on Form 22 during the Operación Renta.
• Deductible losses: Capital losses from habitual trading are deductible against trading gains. If net losses exceed gains in a given year, the excess may be carried forward and offset against future trading gains (subject to limitations). However, losses from non-habitual transactions cannot offset ordinary income.

Non-Habitual Gains on Securities — 10% Flat Tax

• Scope: Non-habitual capital gains (ganancias de capital no habituales) from the sale of securities (shares, bonds, mutual funds, ETFs) may be subject to a 10% flat tax as an alternative to inclusion in the IGC. This applies to taxpayers who are not in the business of trading securities and who have occasional gains from securities transactions.
• Election: The taxpayer may choose between including the gain in the IGC (progressive rates) or paying the 10% flat tax. The election is made at the time of filing the annual tax return — the taxpayer should evaluate which option results in the lower tax liability. For high-income earners in the top IGC brackets, the 10% flat tax is generally preferable.
• Conditions: To qualify for the 10% rate, the securities must have been held for at least 1 year. For shares acquired before 2024, a transitional rule may apply. The gain is calculated as the difference between the sale price and the inflation-adjusted purchase price.
• Exclusions: The 10% flat tax does not apply to gains from: real estate sales, derivatives, commodities, cryptocurrencies (which are treated as habitual gains for most taxpayers), or securities issued by related parties. These gains remain subject to the standard IGC treatment.

Inflation Adjustment — Corrección Monetaria

One of the most important features of Chile's capital gains tax system is the inflation adjustment (corrección monetaria). The cost base of any asset is adjusted for inflation from the date of acquisition to the date of sale using the CPI (Índice de Precios al Consumidor) or the UF (Unidad de Fomento) variation, as applicable. This ensures that only real gains (gains above inflation) are subject to tax.

• How it works: If you bought shares for CLP 1,000,000 in 2020 and sell them for CLP 1,300,000 in 2026, with cumulative inflation of 30% over the period, the inflation-adjusted cost base is CLP 1,300,000. The taxable gain is CLP 0 — all the nominal gain is attributable to inflation.
• Impact on effective tax: The inflation adjustment significantly reduces capital gains tax in a high-inflation environment like Chile (which has historically experienced 3–10% annual inflation). For long-held assets, the inflation adjustment can eliminate or substantially reduce the taxable gain.
• Documentation: The taxpayer must document the purchase date, purchase price, and applicable inflation index (CPI or UF variation) for the period. The SII publishes the relevant indexation factors.

Property Gains — Over UTM 8,000 Threshold

• General rule: Capital gains on the sale of real estate are included in the IGC and taxed at progressive rates (0–40%). However, gains on the sale of the taxpayer's primary residence may be exempt (see property tax guide).
• UTM 8,000 threshold: Gains exceeding approximately 8,000 UTM (about CLP 528 million in 2026) on non-habitual property sales are specifically subject to IGC progressive rates. Below this threshold, the gain may be exempt (if conditions are met) or subject to the 10% flat tax option depending on the circumstances.
• Inflation indexing for property: The cost base of real estate is adjusted for inflation using the CPI variation between the date of acquisition and date of sale. Capital improvements can also be added to the cost base (with their own inflation adjustment).

No ST/LT Distinction

Chile does not distinguish between short-term and long-term capital gains for tax rate purposes. All gains, whether held for 1 day or 10 years, are included in the same progressive IGC schedule (0–40%) or subject to the 10% flat tax on non-habitual securities gains if the holding period exceeds 1 year. The effectively longer holding periods benefit from greater inflation adjustment of the cost base, which reduces the real gain subject to tax. Additionally, certain special rules may apply to gains realised within 1 year of acquisition for securities — these may be treated as habitual gains more readily by the SII.

Cryptocurrency and Digital Asset Gains

• Tax treatment: The SII has issued binding rulings classifying cryptocurrencies as intangible assets. Gains from the sale of cryptocurrencies are generally treated as habitual income (subject to IGC progressive rates), as most crypto traders engage in frequent transactions. The SII has not issued specific guidance on the 10% flat tax applicability to crypto gains.
• Reporting: Cryptocurrency transactions must be reported on Form 22. The SII has increased scrutiny of crypto transactions and requires taxpayers to report holdings and transactions. Foreign crypto exchanges may also report to the SII under automatic information exchange agreements.
• Mining and staking: Income from cryptocurrency mining and staking is treated as ordinary business income, taxed at IGC rates (or IDPC for business entities). Expenses related to mining (equipment, electricity) are deductible against mining income.

FAQs

Do I pay tax on capital gains if I reinvest the proceeds?

Generally, yes — there is no general rollover relief in Chile, except for the primary residence exemption (gain can be rolled over if reinvested in a new primary residence within 1 year). For securities, reinvesting sale proceeds does not defer or eliminate the tax on gains. Each sale is a taxable event independent of how the proceeds are used.

How do I calculate the inflation adjustment for shares bought in different years?

For shares acquired in multiple tranches, each tranche has its own cost base and inflation adjustment period. The FIFO (First-In, First-Out) method is generally used to determine which shares are sold. The cost base of each tranche is adjusted for inflation from the purchase date of that tranche to the sale date using the CPI variation.

Can I offset capital losses against salary income?

No. Capital losses from non-habitual securities transactions can only offset capital gains from securities. They cannot offset salary income, rental income, or business income. Losses from habitual trading (if you are classified as a habitual trader) may offset ordinary income, as they are treated as business losses.

What is the tax on foreign capital gains (gains on foreign stocks)?

Gains on foreign securities (stocks listed on foreign exchanges) are subject to the same rules as gains on Chilean securities. If the taxpayer is a Chilean resident, the gain is included in the IGC (progressive rates) or may qualify for the 10% flat tax on non-habitual gains (subject to the >1 year holding period). Foreign taxes paid on the gain may be creditable against Chilean tax under Chile's double tax treaties or unilateral foreign tax credit rules.

Are dividends from capital gains?

No. Dividends are distributions of profits and are taxed separately from capital gains. Dividends received by Chilean residents are included in the IGC base with a credit for the corporate tax paid (IDPC). Capital gains from the sale of shares represent the increase in value of the shares themselves. The two are treated as distinct income categories under Chilean tax law.

Disclaimer

This guide provides general information about Chile's capital gains tax rules as of 2026. Tax laws, rates, thresholds, and treatments are subject to change. The classification of a taxpayer as habitual or non-habitual depends on specific facts and circumstances. Always consult a qualified Chilean tax advisor (contador auditor) or the SII for advice specific to your situation. InvestmentKit does not provide tax advice.