From the town of Lirquén in the Biobío Region, Finance Minister Jorge Quiroz presented a series of economic measures contained in the National Reconstruction Law bill announced by President José Antonio Kast, to be submitted to Congress in the coming days.

The initiative aims to accelerate reconstruction in areas affected by wildfires in the Ñuble, Biobío, and Valparaíso regions while simultaneously stimulating economic recovery and strengthening institutions that enable investment and job creation across the country.

"Money does not appear from nowhere. It is generated when there is work, when there is investment, and when the economy grows. That is why we have proposed tax measures oriented toward recovering investment and providing greater tax certainty," Minister Quiroz explained.

He also indicated that the bill proposes advancing gradually on measures to boost private investment. "Chile has defined tax rates, but often there exists uncertainty regarding how regulations are applied. This ultimately discourages investment. What we want is to restore confidence and respect for the legal framework so that investment projects return," the minister added.

He further stated: "The idea is to advance in a gradual reduction of taxes that will reactivate private investment. If the private sector gains confidence in this path, investment can begin to recover even before the full tax cuts are implemented."

The bill also includes implementation of a macroeconomic employment subsidy aimed at supporting formal job creation and protecting employment. "We will implement a macroeconomic employment subsidy—the largest employment support program implemented in the last 30 years," Finance Minister Quiroz stated.

He elaborated: "This subsidy will allow employers to recover a portion of the payroll contributions they pay for their workers, incentivizing formalization and providing targeted support to small and medium-sized enterprises."

Key Measures:

• CLP 400 billion in additional reconstruction funding: The maximum financing of the Temporary Emergency Fire Fund (FET-Incendios, created following the 2024 Viña del Mar wildfires) will be increased by CLP 400 billion to address the effects and respond to needs arising from the wildfires that affected the Ñuble and Biobío regions in January 2026.

• 0% VAT on housing for 12 months to improve housing access: Currently, 100,000 new homes remain unsold, coexisting with a quantitative housing deficit of 500,000 units. At the regulatory level, structural measures are being implemented to reduce housing costs. However, swift sales of existing stock are also needed. VAT on new housing sales will be eliminated for 12 months.

• Formal employment subsidy to protect jobs: To protect employment at risk of job loss and informality, a macroeconomic subsidy will be created—frictionless and with no access barriers—to support employers in paying payroll contributions for formally contracted workers.

• Reduction of bureaucracy and streamlining of permits to unlock investment.

• Elimination of property contributions for seniors' primary residences: Fulfilling a campaign pledge, property contributions will be eliminated for owners over 65 years of age on their primary residence.

• Reduction of the IDPC statutory rate: The corporate tax rate for medium and large enterprises will be reduced from 27% to 23%, aligned with OECD averages, to incentivize investment.