Does Kast Evade Taxes in Chile by Using Offshore Tax Havens and a Network of Hotels in Miami?

Original article: ¿Kast elude o evade el pago de impuestos en Chile mediante paraíso fiscal y red de hoteles en Miami?

Is Kast evading taxes in Chile? He allegedly does so with schemes designed to erase his financial footprint, while ordinary citizens pay taxes even when buying bread or food.

Many products in Chile are subject to VAT, meaning a 19% tax is added to their value. This money theoretically belongs to everyone, as it funds state operations and societal services.

Individuals cannot deduct this tax since they are not businesses.
Entrepreneurs and small to medium-sized enterprises, which qualify as businesses, must also pay this tax to the Internal Revenue Service, declaring and paying it monthly based on each sale.

In contrast, Kast has been avoiding this payment by relocating family-owned companies outside of Chile, directly into tax havens—contrary to what one would expect from someone who self-identifies as a patriot.

Although Kast has declared since at least 2017 that he ceased participating «directly and indirectly» in his family’s businesses, historical records—through complex corporate structures—still position him as a key player in a scheme that could allow him to continue avoiding taxes in Chile by transferring previously operating companies abroad.

A key entity was tracked: Latin American Real Estate Co. S.A., based in Panama, which in 2024 absorbed the Chilean company Inversiones Internacionales La Florida Limitada, responsible for managing the family’s hotel assets in the United States. This was confirmed by Chilean media outlets Interferencia and El Ciudadano.

Through this mechanism, the hotels that the Kast family owned in Florida transferred to the control of the Panamanian company: Hotel Collins, Tamiami Hotel, Orlando Hotel and University Center Hotel.

These hotels in Miami would be part of a network aimed at «hiding wealth,» allowing for continuing investments in hotels abroad with the taxes not paid in Chile. This route serves to obscure José Antonio Kast’s financial footprint in a complex «sum and subtraction,» especially since his involvement in the Panama Papers came to light.

All these maneuvers were reflected in a merger that took place in 2024, where a total capital of US$ 45,914,682.50 was declared under the Panamanian company.

With this corporate structure, the Kast group would effectively exit Chile from a tax perspective, avoiding taxation on these businesses within the country and using that «savings» to make new real estate investments in Miami, informally referred to as «laundering Chilean taxes.»

Tax Laundering?

The term «tax laundering» does not formally exist in law, but it could conceptually involve money laundering if certain conditions are met:

• Illegitimate origins of funds: if the money comes from tax evasion, which is a crime in many countries.

Stages of Money Laundering:

• Placement: the evaded money enters the financial system via a tax haven.
• Concealment: multiple transactions are conducted to distance the funds from their origin.
• Integration: the money is invested in legitimate assets (like hotels) to create an appearance of legality.

Additionally, the media outlet Contra Pauta recently revealed another corporate web related to Kast in Chile, under Inversiones Bravo SpA:
https://contrapoderchile.cl/inversiones-bavaro-spa-la-secreta-sociedad-de-jose-antonio-kast-de-4-mil-millones-que-fundo-cuando-era-diputado/

According to records and journalistic investigations, since at least 2003, the family has established other companies in Panama linked to their assets, including Foods & Merchandising Investments Inc., Austral Inversiones S.A., as well as Latin American Real Estate Investment Co. S.A..

The 2024 merger officially transferred control of the hotels in the United States from Chilean companies to the Panamanian company, consolidating international investment flows within an offshore scheme.

The Panamanian lawyer Rolando Candanedo Deneken (also referred to as Rolando Candanedo Navarro) appears as president and secretary of the Panamanian company, adding an additional layer of formal interposition that could complicate identifying the ultimate beneficiaries.