Chile: UF and UTM, what are these 2 acronyms?

Let's talk a bit abount Unidad de Fomento (UF) and Unidad Tributaria Mensual (UTM), two indicators you must know.

14/05/2017, updated 11/08/2025

INFO

2025 Current Values: UF is approximately $39,000 Chilean pesos, while UTM values range from $67,000-68,000 pesos depending on the month. These values change regularly - always verify current rates at SII.cl for official amounts.

In Chile, you will frequently encounter two crucial financial indicators: UF and UTM. Both correspond to specific amounts in Chilean pesos and play important roles in the Chilean economic system.

Understanding these indicators is essential for expats dealing with real estate, banking, taxes, and government services.

UF: Unidad de Fomento

What is UF?

UF stands for "Unidad de Fomento" (Development Unit), Chile's inflation-adjusted monetary unit created in 1974. It serves as a stable value reference that automatically adjusts for inflation, protecting both consumers and businesses from currency devaluation.

Key Characteristics:

  • Daily Updates: UF value changes daily based on inflation calculations
  • Inflation Protection: Automatically adjusts to maintain purchasing power
  • Official Management: Managed by SII (Servicio de Impuestos Internos)
  • Current Value (2025): Approximately $39,000 Chilean pesos

Where You'll Encounter UF

Real Estate Sector:

  • Property purchase/sale prices
  • Rental agreements for premium properties
  • Property valuations and assessments
  • Real estate investment calculations

Financial Services:

  • Mortgage loans and interest rates
  • Bank fees (e.g., 0.0025 UF for bank statement downloads)
  • Investment products and bonds
  • Insurance policies and premiums

Business and Services:

  • Long-term service contracts
  • Professional fees for lawyers, accountants
  • Premium subscription services
  • International school tuition fees

Example Calculation (2025): If a property costs 5,000 UF: 5,000 UF × $39,000 = $195,000,000 Chilean pesos

UTM: Unidad Tributaria Mensual

What is UTM?

UTM stands for "Unidad Tributaria Mensual" (Monthly Tax Unit), created in 1974 as Chile's official tax and administrative reference unit. Unlike UF, UTM is specifically designed for government transactions and tax calculations.

Key Characteristics:

  • Monthly Updates: UTM value changes monthly based on Consumer Price Index (CPI)
  • Administrative Focus: Used exclusively for government and tax purposes
  • Official Management: Managed by SII (Servicio de Impuestos Internos)
  • Current Value (2025): Ranges from $67,000-68,000 Chilean pesos per month

2025 UTM Values by Month:

  • August 2025: $67,429
  • February 2025: $67,294
  • March 2025: $68,034
  • April 2025: $68,306
  • May 2025: $68,648

Where You'll Encounter UTM

Tax and Legal Matters:

  • Income tax bracket calculations
  • Fine amounts for legal violations
  • Court fees and legal procedures
  • Tax penalties and administrative sanctions

Government Services:

  • Patent and trademark registration fees (INAPI)
  • Municipal permits and licenses
  • Professional registration fees
  • Immigration service charges

Administrative Transactions:

  • Government contractor payments
  • Public service fines
  • Professional license renewals
  • Official document fees

Example Calculation (2025): If a fine is 2 UTM in March 2025: 2 UTM × $68,034 = $136,068 Chilean pesos

UTA (Unidad Tributaria Anual - Annual Tax Unit) = UTM × 12 Used for annual tax calculations and larger administrative fees.

Practical Tips for Expats

Official Value Sources

Primary Source: SII Official Website

You can also look at the Central Bank of Chile indicators.

Important Considerations

Contract Verification:

  • Always verify current values when signing contracts
  • Ensure the UF/UTM value converted in pesos matches the official rates at the contract date
  • Be aware of the date when UF/UTM values are locked in contracts

Timing for Payments: UTM Payments are mostly for payments to adminstration. Make sure to complete the payments within 2-3 weeks, otherwise you will have to pay the difference

For Different Expat Situations

Real Estate Transactions:

  • Properties often priced in UF for inflation protection
  • Mortgage calculations typically use UF rates
  • Rental prices may be in UF for long-term leases or high-end properties

Business Operations:

  • Government permits and licenses calculated in UTM
  • Tax obligations (like income tax brackets) are calculated in UTM
  • Professional services often quote in UF

Legal and Administrative:

  • Court fees and fines are calculated in UTM
  • Immigration fees do not use any of these but are calculated in USD, with a USD/CLP rate updated once a month.

Quick Reference (2025)

  • 1 UF ≈ $39,000 Chilean pesos (varies daily)
  • 1 UTM ≈ $67,000-68,000 Chilean pesos (varies monthly)
  • 1 UTA = 12 UTM (annual tax unit)
WARNING

Always Verify Current Values: UF and UTM rates change regularly. For any significant transaction, check the official SII website for the exact value on your transaction date.

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