Chile transfers $170 bn mining royalty and new tax fund to municipalities

On Tuesday the Chilean Subsecretary of Regional Development (SUBDERE) began transferring the third installment of the mining royalty to 309 municipalities, bringing the total disbursement for 2026 to about $170 billion. Of this, $41.2 billion is allocated to the Mining Communes Fund for 45 communes to compensate mining‑related externalities, and $128.7 billion goes to the Territorial Equity Fund for 302 communes to reduce budget gaps.

SUBDERE chief Sebastián Figueroa highlighted that more than $56.6 billion is being injected directly into municipal budgets, with $13.7 billion for the Mining Communes Fund and $42.9 billion for the Equity Fund. In parallel, the government is accelerating a work‑group with mayors to design a new municipal fund financed by a 1.5 % corporate tax premium introduced in the ongoing "mega‑reform". One‑third of this premium would create a fund for qualifying municipalities, but mayors have expressed uncertainty about revenue forecasts and the criteria for beneficiary communes.