France tax treaty Chile : your property in France

France first (article 6). Chile also taxes it once the 3-year rule for foreigners has passed, then grants a credit for the tax paid in France (article 22 § 2 a), within the 35% caps of article 41 A.

A foreigner is taxed only on Chilean-source income during the 3 years following arrival, unless the SII grants an extension. Your French rental income is therefore not taxed in Chile during that period. Note your arrival date precisely.

In principle yes, if you were tax resident in France for at least 2 consecutive years and meet the 10-year deadline or the free-disposal condition. The BOFiP accepts it for a national of a third State protected by a non-discrimination clause, and article 23 § 1 is one. It applies only once. Have your notary confirm this point or request a ruling before the sale.

Yes, on the same conditions. With no French tax, you will have no credit to apply. If Chilean tax applies, it remains due in full.

Not according to the text: article 17 no. 8 b of the LIR covers properties located in Chile. The SII applies first-category tax and the global complementary tax to property located abroad, after the 3-year period for foreigners.

This point is not confirmed. The treaty does not mention these contributions and we have not found a position from the SII. Have your Chilean adviser validate how they are treated.

Yes, if your French properties are worth more than €1.3M net on 1 January. The treaty leaves this right to France (article 21 § 1).

France taxes your French properties, and your other assets if the heir has been resident in France for at least 6 of the last 10 years. Chile adds a tax on this asset only if you are Chilean or if, as a foreigner, you bought it with Chilean funds. French tax is then credited against Chilean tax.

The SCI does not change the French taxation of rental income. It removes the €150,000 exemption on resale, the shares remain taxable in France (article 13 § 2 b) and the LIR treats controlled foreign entities separately. The anti-abuse clause of the MLI also allows a treaty benefit to be denied when it was obtained through an arrangement of which this is one of the principal purposes. To be reviewed with a tax specialist in both countries.