Chile activates reconstruction fund and passes housing tax break after severe frontal system

Chile's government is moving forward with a multi‑track reconstruction effort after the extreme frontal system that devastated the Atacama and Los Ríos regions. The newly approved National Reconstruction Law includes a temporary exemption of value‑added tax (IVA) for new homes, reducing buyers' costs by roughly 6‑7 %. The measure is intended to stimulate the housing market and aid families rebuilding after the disaster.

The Ministry of Finance has also activated the National Reconstruction Fund, allowing individuals and companies to donate cash, goods or construction services with associated tax incentives. The fund will channel contributions for rebuilding damaged infrastructure and equipment for up to two years, while the government compiles a portfolio of reconstruction projects to guide private investment.

Recovery teams, such as the mountain‑rescue Socorro Andino, reported ongoing challenges in the high‑altitude zones, highlighting the need for sustained resources and better coordination between public and private actors to complete the response and reconstruction.