The priest has ten days to appeal against the judgement, the Archdiocese of Concepción announced on Wednesday.
Almost two years ago, the cleric was suspended due to the allegations of abuse, Chilean media reported.
His case was then handed over to the Roman Dicastery for the Doctrine of the Faith.
In canon law, dismissal from the clergy is the maximum penalty for serious offences committed by consecrated persons.
According to media reports, the abuser performed an exorcism on his cousin in 2021 on the premises of the parish where he was working at the time.
The family of the victim reported the priest to the police, which was later followed by reports from other women.
The perpetrator was considered a specialist in exorcisms and healing rites in the archdiocese of Concepción.
He was also a member of the diocesan committee for the prevention of abuse and support for those affected.
He was appointed to this position by the then Archbishop of Concepción, the current Archbishop of the capital Santiago de Chile, Fernando Chomalí Garib.