End of real estate taxes for seniors over 65: who would qualify, since when and what to check today in your property

Early in the morning on July 16, 2026, after twelve hours of intense debate, the Senate approved the bill that exempts seniors over sixty five years of age from paying real estate taxes. This measure is part of the government's so called mega reform or national reconstruction plan, which seeks, among other points, to alleviate the tax burden on the primary residence of this age group. Although the favorable vote in the Upper House represents a significant advance, it is essential to understand that this initiative is not yet current law and must overcome new constitutional procedures.

The estimated universe of initial beneficiaries would be around 400 thousand people. The proposal establishes that the exemption would be invocable exclusively regarding the taxpayer's habitual residence, allowing its application on a single property nationwide. The Executive's stated intention is that this benefit, which would later advance towards gradual universality according to public finances, comes into force during the second semester of 2026, compensating affected municipalities through the Common Municipal Fund.

What requirements does the project establish to access the exemption?

Although the final text may still undergo modifications in the Chamber of Deputies, the core of the benefit approved so far establishes the following copulative conditions:

What to check today in your property? The risk of ownership

The blind spot that many are unaware of is the requirement of registered ownership. For a person aged sixty five or older to invoke this future exemption, they must appear as the registered owner of the property. Unfortunately, the housing reality in regions like Ñuble and Biobío reveals that thousands of older adults live in properties that, strictly legally speaking, are not in their name.

It is extremely common for grandparents to live their entire lives in the house that was in the name of their own deceased parents without ever having processed the effective possession, or to live on lands acquired informally through mere assignments of rights or unregistered sales. If this is your case, when the law comes into force, the Internal Revenue Service will simply reject the benefit because, for the State, you are not the owner.

What to do according to your property profile?

The preventive recommendation is not to wait for the law to be published. Real estate regularization processes are slow and can take more than a year. Review your current situation according to these three profiles:

• Profile A (Property in the name of a deceased relative): If you inhabit the house of your parents or a deceased spouse, you must immediately initiate the effective possession process. Without it, the domain will not pass to your name.
• Profile B (Irregular purchase or without deed): If you bought the land by word of mouth, only with a promise, or have a piece of land in a complex succession that you have occupied for more than five years, you must evaluate a sanitation process (Decree Law two thousand six hundred ninety five) before National Assets. You can check if you meet the requirements using our free sanitation test.
• Profile C (Properly registered property): If the current domain certificate of the Real Estate Conservator is in your name, you are ready. You only have to wait for the promulgation of the law and keep up to date with your review of tax calculation.

Bill timeline

What else does the mega reform include?

The territorial exemption is only one aspect of a broader project. The government initiative also includes the reduction of taxes to other segments, adjustments in the First Category Tax proposing a progressive reduction towards 2029, and structural changes in the reintegration of the tax system. Due to the magnitude of these modifications, opposition sectors have already warned of their intention to submit requirements before the Constitutional Court, adding an extra layer of uncertainty regarding the final promulgation deadlines.

If your property maintains valid historical debts today, remember that the benefit would apply towards the future. For old debts or ongoing embargoes, we recommend reviewing the processes of statute of limitations for taxes and risk of auction by the General Treasury of the Republic, or the mechanisms to recover overpaid taxes if applicable.

Tell us your situation and we will tell you what applies.