DFL 2: 5% single tax on economic housing rentals from 2027

Law No. 21,850 creates a single, optional 5% tax on the gross rent of economic housing (DFL 2) of up to 90 m², from each person's third unit onward and for companies whose only business is renting such units. It applies to rents from 01-01-2027, and the SII has already published the draft circular that implements it.

In brief

What it is: a single, optional tax of 5% on gross rent, with no deductions, for economic housing units of up to 90 m² leased to unrelated parties. It replaces the First Category tax and the final taxes on that income.

Who it is for: individuals from their third economic housing unit onward (article 24 bis), and companies and sole proprietorships whose only business is renting (article 24 ter).

Since when: rents accrued or received from 01-01-2027. It is first reported in the 2028 annual income tax return.

Transitional window: anyone who buys a new economic housing unit of up to 140 m² within twelve months of the law's publication can also opt in. According to the SII draft, this covers purchase agreements signed between 17-10-2026 and 17-10-2027.

Status: the law is in force. The SII published draft circular Id 3445, open for public consultation until 17-11-2026. Anything taken from that draft is flagged as such.

Legislation · Law No. 21,850, article 3 (new second paragraph of article 1 and Title II bis of DFL No. 2) and transitional articles nine (No. 1) and eighteen, published in the Diario Oficial on 17-10-2026

Verified on 09-11-2026

1. What changes and what does not

Article 3 of Law No. 21,850 adds to DFL No. 2 of 1959 a Title II bis, «Del impuesto único a la renta de “Pequeñas Viviendas Económicas”», with two articles: 24 bis, for individuals, and 24 ter, for legal entities and sole proprietorships.

What does not change: each individual's two oldest economic housing units keep the Title II benefits of DFL 2. One of them is that rent is non-taxable income (article 15). In the draft's words, owning three or more economic housing units «no impide hacer uso de dichos beneficios respecto de las dos viviendas que tengan la fecha más antigua de adquisición».

What is new: from the third economic housing unit onward, rent was taxed under the general rules. From 2027 it can instead pay the 5% single tax. The law allows owners of three or more economic housing units to opt, «respecto de la tercera vivienda económica en adelante», for article 24 bis.

2. Individuals: article 24 bis

Statutory requirements:

Economic housing unit from the third onward, with a built area of no more than 90 m².
Leased to unrelated parties as defined in article 17 No. 8 of the Income Tax Law.
Not assigned to a sole proprietorship. If it is, article 24 ter applies.
Also eligible: parking spaces and storage units at the same address and included in the same lease, even if they have a separate property roll number. Their area is not added to the 90 m².

Base and rate: 5% on the «importe bruto de dichas rentas, determinadas según el respectivo contrato, sin deducción alguna». According to the draft, gross rent includes improvements, property taxes and other agreed payments that benefit the owner. VAT, where applicable, is not included.

How it is reported, according to the draft:

Annually, on Form 22 in April.
The option is exercised every year and may cover all or some of the qualifying units. Once exercised, it cannot be changed for that year. Anything left out is taxed under the general rules.
If the owner has no domicile or residence in Chile, the person paying the rent must withhold the 5% (article 74 No. 4 of the Income Tax Law), report it on Form 50 within the first twelve days of the following month and file Sworn Statement 1946.
If a requirement stops being met during the year, the single tax only covers the period in which it was met.

3. Companies and sole proprietorships: article 24 ter

Who: the legal entities that own economic housing, whatever the number of units, and the individuals who assigned units to their sole proprietorship, from the third onward. According to the draft, entities without legal personality, such as co-ownerships or investment funds, cannot opt in.

Additional requirements:

Exclusive business purpose of renting qualifying economic housing. The law also allows investments «estrictamente necesarias para el mantenimiento o preservación de flujos de caja» and the sale of the units.
The option is notified in the notice of start of activities. Taxpayers with another active business, or who closed a business without the certificate under article 69 of the Tax Code, cannot opt in.

Monthly provisional payments: the law sets them at the 5% rate divided by 12, that is, 0.4167% of gross rent each month. The draft states it as «0,4%».

Joining from day one, according to the draft: anyone currently renting who was not required to file a notice of start of activities and wants to be in the regime from 01-01-2027 must file that notice by 31-03-2027. If filed later, the regime starts on 01-01-2028.

Exit:

If it earns any other income, it returns to the general rules for all its income from 1 January of that year.
It may also leave voluntarily.
In both cases it cannot re-enter.

Other effects: there is no right to the VAT refund under article 27 bis. According to the draft, amounts distributed to owners subject to letter A) or letter D) No. 3 of article 14 are recorded in the REX register as income on which tax has been paid.

4. The transitional window: new homes of up to 140 m²

Transitional article eighteen lets anyone opt for the same tax who, «dentro del plazo de doce meses contado desde la publicación de la presente ley», buys new economic housing units of up to 140 m².

Purchase agreement signed with unrelated parties. According to the draft, no other title qualifies, such as a swap, a capital contribution or a payment in kind.
New: no prior transfer of ownership. If the buyer sells it, the next owner cannot opt in.
Deadline, according to the draft: purchase agreements signed «entre el 17 de octubre de 2026 y el 17 de octubre de 2027, ambas fechas inclusive», even if registered later.
Rents pay the single tax from 01-01-2027. According to the draft, rent between 17-10-2026 and 31-12-2026 is taxed under the general rules.
The other rules of articles 24 bis and 24 ter apply insofar as they do not contradict the transitional article; for example, the exclusive business purpose and provisional payments for companies.

	Permanent regime (arts. 24 bis and 24 ter)	Transitional window (transitional art. 18)
Floor area	Up to 90 m²	Up to 140 m²
Unit	New or used, bought or inherited	New, with no prior transfer of ownership
How it is acquired	Any title	Purchase from an unrelated party only
Deadline to buy	No deadline	Purchases from 17-10-2026 to 17-10-2027 (draft)
Rents taxed at 5%	From 01-01-2027	From 01-01-2027

Mind the 90 and 140 m²: 90 m² is the cap of the permanent regime; 140 m², the cap of the transitional window for new homes. They do not mix.

5. Is it worth it? A simple way to compare

The single tax applies to gross rent. The general regime taxes income after expenses, at each owner's own rate. The useful comparison is 5% of gross rent against your marginal rate × (rent − expenses).

Illustrative example, not your case: rent of M$ 450 a month (M$ 5,400 a year).

Single tax: M$ 270 a year.
General regime: with expenses of M$ 1,620 and a 10% marginal rate, the tax on that income is M$ 378. With a 5% marginal rate, it is M$ 189.

In general, the 5% pays off more the higher the owner's marginal rate and the lower the deductible expenses. For a company the decision is different: the exclusive business purpose means the company can do nothing else, which often means setting up a new company.

6. What to review now

Count your economic housing units per person and sort them by registration date. The two oldest stay in the usual regime. A co-ownership share counts as a whole unit.
Measure: up to 90 m² in the permanent regime; up to 140 m² in the transitional window, for new homes only.
Check your tenants: there is no single tax with related parties.
If you plan to buy to let: the transitional window closes on 17-10-2027 according to the draft and requires buying a new unit from an unrelated seller.
If you rent through a company: assess the exclusive business purpose before 31-03-2027, which according to the draft is the deadline to join from 01-01-2027.

7. Frequently Asked Questions

Do my first two DFL 2 homes pay this tax?

No. They keep the Title II benefits, including rent as non-taxable income. The single tax is for the third unit onward.

Can I deduct property taxes or mortgage interest?

No. The law says it applies to gross rent «sin deducción alguna». According to the draft, the property tax on the unit cannot be credited against this tax either.

Do you have to choose the single tax every year?

Individuals, yes: they opt each year on Form 22, for all or some units, according to the draft. Companies under article 24 ter join with their notice of start of activities and stay until they leave the regime.

Does it work if I rent to a relative's company?

It depends on whether it is a related party under article 17 No. 8 of the Income Tax Law. If it is, there is no single tax.

What if the owner lives outside Chile?

They can still opt in. According to the draft, the person paying the rent withholds the 5% and pays it on Form 50.

Can my property company opt in?

Only if its sole business is renting qualifying economic housing. If it has another active business, it cannot.

8. Sources and regulations

Law No. 21,850, «Para la Reconstrucción Nacional y el Desarrollo Económico y Social», published in the Official Gazette on 17-10-2026. Article 3 (new second paragraph of article 1 and Title II bis of DFL No. 2), transitional article nine, No. 1 (in force from 01-01-2027) and transitional article eighteen.
DFL No. 2 of 1959, on the Housing Plan (text in Decree No. 1,101 of 1960, Ministry of Public Works).
SII draft circular Id 3445, on the amendments made by Law No. 21,850 to DFL No. 2, open for public consultation until 17-11-2026. It is a draft, not a binding rule: the final text may change.

Let's discuss your case

If you or your company rent out more than two DFL 2 homes, or plan to buy new homes to let before 17-10-2027, it is worth organising the portfolio and comparing both regimes before 01-01-2027. See our consulting and planning service, or write to us on WhatsApp or through our contact form.

Tax Reform 2026 in Chile: Law No. 21,850, what changes and with what deadlines — the full picture, with the law's timetable.
VAT on housing 2026: one year without VAT on the first sale, only for what was already finished — the temporary VAT exemption on the first sale of new homes.
From 27 % to 23 %: the four calendars of the first category tax reduction — the rate companies pay outside this regime.
Substitute tax 2026: eight months to regularize FUR, STUT and excess withdrawals — the other 2026 decision for companies with retained earnings.
Tax assessment: the SII will have to publish how it calculates its contributions, and with that, it can be reviewed — property taxes, which this tax does not let you deduct.

This English version is a courtesy translation, machine-assisted and reviewed in part. The Spanish version prevails. Literal quotations of Chilean law are kept in Spanish, as a translation of statutory text would not be authentic. Figures and deadlines were verified against the Diario Oficial text of Law No. 21,850 of 17 October 2026. Dates are shown as day-month-year.