Temporary 50% Reduction of the Gift Tax: a window for estate reorganization
July 8, 2026
The Bill on National Reconstruction and Economic and Social Development being discussed in Congress introduces, on a one-time basis and for a period of only 12 months, a 50% reduction of the gift tax.
If approved, it will be a concrete opportunity to advance family estate planning, which requires an evaluation that goes beyond tax considerations.
1. What it consists of
- 50% reduction of the gift tax, on a one-time basis per donor, for gifts made by public deed within the 12 months following the publication of the law.
- Beneficiaries: only the donor’s potential forced heirs and beneficiaries of the fourth of improvements (spouse, children, etc.), unless the donor has none.
- Removes the requirement for prior judicial approval, simplifying and speeding up the process.
- Cap: the amount donated under the benefit may not exceed 50% of the donor’s net worth, as evidenced by a sworn statement filed with the SII (Chilean IRS).
- Financing of the tax: the tax may be paid using loans from the same donee companies or related companies, without triggering the penalty tax on disallowed expenses.
2. Beyond tax matters: an integral planning approach
The benefit reduces the tax cost associated with the gift. However, the decision to transfer estate assets to the next generation should not be made on that basis alone.
Before moving forward, the transaction should be analyzed as part of an integral estate planning process, which should also consider:
- Family and company governance: clear administration rules, and analysis of the advisability of having a family protocol or shareholders’ agreement.
- Preparation of the next generation: the capacity, interest, and maturity of the donees to take on ownership or management of the assets, and mechanisms for gradual involvement.
- Donor’s situation: analyzing the donor’s political and economic rights after the gift.
- Balance among heirs: to avoid future conflicts among heirs.
Consistency with the will and the existing corporate structure, so that the gift fits harmoniously with the estate’s structure and defined succession planning.
The 12-month period afforded by the rule allows it to be analyzed carefully and comprehensively, taking into account the relevant tax, corporate, and family governance aspects, before making any decision.
At BOS Abogados we can support you throughout this evaluation and implementation process.
Informational summary; this does not constitute legal advice. The bill is still in progress and may change before enactment.
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