Guides · Chile
Key Facts
- — Article 3 of Chile’s Income Tax Law exempts new foreign residents from tax on foreign-source income for three years from entry into Chile.
- — The three-year foreign-source exemption period may be extended by the Regional Director of the SII in qualified cases.
- — Chilean tax residency is triggered by physical presence exceeding 183 days in any rolling 12-month period.
- — Chile’s Global Complementary Tax applies progressive rates up to 40% on worldwide income after the exemption period.
- — Chile’s standard Value-Added Tax (IVA) rate is 19% on most goods and services as of 2026.
- — Chile’s annual property tax for residential properties ranges from 0.893% to 1.042% of the fiscal assessed value.
Three-Year Foreign-Source Exemption
Newly resident individuals who are not Chilean nationals are taxed only on Chilean-source income during the first three years following the establishment of domicile or residence in Chile, under the Income Tax Law (ITL). This exemption covers all foreign-source income categories, including dividends, interest, capital gains and business profits arising abroad, which are outside the Chilean tax net during that period.
Article 3 of the Income Tax Law counts the three years from the date of entry into Chile, not from the later date on which domicile or residence is formally established. Practical guidance sources state that no separate filing is required to obtain the initial three-year exemption, but foreign-source income should be reported as exempt in the annual tax return once worldwide reporting starts.
Under Article 3 of the Income Tax Law, the Regional Director of the Servicio de Impuestos Internos (SII) may extend the three-year foreign-source exemption period for newly resident foreigners in qualified cases. Article 3 allows the Regional Director to extend the period in qualified cases, with no fixed statutory maximum; approval is discretionary.
Tax Residency Rules
Chilean tax residency is commonly determined by a 183-day rule, whereby staying more than 183 days in a 12-month period generally leads to tax residency, triggering the three-year foreign-source exemption clock under Article 3. After the initial three-year period for newly resident foreigners, worldwide income becomes subject to Chilean taxation under the general rules.
Chilean tax residency is triggered when an individual is physically present in Chile for more than 183 days (continuous or not) within any rolling 12-month period; either residence or domicile is sufficient to subject the person to Chilean tax on worldwide income (subject to the newcomer exemption).
During the three-year newcomer exemption, foreign salaries, foreign rental income, foreign dividends, foreign pensions and foreign capital gains are treated as foreign-source income and remain outside the Chilean tax net, while only Chilean-source income is taxed. Once the foreign-source exemption window ends, foreign-source income for Chilean residents is generally taxed on a cash basis, meaning when it is received, unless Chile’s controlled foreign company rules require earlier inclusion.
Global Complementary Tax Brackets
Chile’s Impuesto Global Complementario (Global Complementary Tax) applies progressive rates up to 40% on individuals’ worldwide income once the foreign-source exemption period has expired. The Chilean tax authority issued a circular on inflation adjustments to the Global Complementary Tax brackets for 2026, with an exempt bracket up to CLP 11,265,804.00 in annual income.
No official figure has been published for the full 2026 Global Complementary Tax bracket table (all bands and exact marginal rates) from an official SII English-language source. Chile taxes residents on worldwide income after the grace period, with progressive personal rates and distinct treatment for business income, employment income and capital gains.
Second-Category Tax on Salaries
Chile applies an Impuesto de Segunda Categoría (Second-Category Tax) on salaries and wages as a withheld tax on employment income, which integrates with the Global Complementary Tax in the annual return. No official figure has been published for the current specific percentage rates and bands of the Second-Category Tax on salaries in 2026 in the sources retrieved.
Foreign-source salaries are explicitly cited as outside the Chilean tax net during the three-year exemption window for new residents. Once the exemption ends, such salaries become subject to Chilean taxation under the general rules.
VAT and Registration
Chile’s standard Value-Added Tax (IVA) rate is 19% on most goods and services; this rate is widely cited as the prevailing general VAT rate as of 2026. Every business carrying out taxable commercial activities in Chile must register with SII and commence activities from its first taxable transaction, with no revenue threshold and no small-business opt-out; this registration covers VAT (IVA) registration as well.
Foreign businesses without domicile or residence in Chile that undertake taxable activities (other than simplified digital services) must register for VAT by filing Form 4415 and appointing a Chilean tax representative, providing incorporation documents, representative ID, business address, and bank details; registration is normally required within two months of starting taxable activities.
For non-resident digital service providers, Chile operates a Simplified Tax Regime via an SII digital VAT portal (available in English and Spanish), with zero registration threshold and returns due monthly or quarterly by the 20th of the following month; registration must occur from the first taxable supply. Recent updates to Chile’s digital VAT rules for non-resident providers introduced new procedures effective 25 October 2025, requiring foreign platforms and marketplaces to register immediately once supplying taxable services and to file monthly or quarterly returns through the simplified portal.
Property Tax and Capital Gains
Chile’s annual property tax (contribuciones) for residential properties ranges from 0.893% to 1.042% of the fiscal assessed value (avaluo fiscal), as of the first semester of 2026. For residential properties, Chile applies an exemption threshold at an avaluo fiscal of CLP 60,030,710 (approximately UF 1,507) below which no property tax (contribuciones) is payable, as of first semester 2026.
For non-residential, non-agricultural property the SII sets the annual rate at 1.204 percent of the assessed value, separate from the residential band structure. Capital gains on the sale of real estate property in Chile may be exempt from income tax up to 8,000 UF (approximately USD 360,000), subject to statutory conditions.
A practical guide notes that the 8,000 UF capital gains exemption for real estate applies equally to foreign natural persons, provided they meet all five legal conditions (e.g., holding period, property use). No official figure has been published for the exact CLP equivalent of 8,000 UF on a specific date from an official SII source; practical sources approximate it at about USD 360,000 as of early 2026.
Guidance on Chilean capital markets notes that capital gains on shares and securities may be taxed differently depending on whether the securities are publicly traded and the holding period, but foreigners generally face similar capital gains rules to Chilean nationals. No official figure has been published for a single flat tax rate on capital gains from shares for foreigners; treatment is regime-dependent (e.g., stock exchange listing, special regimes) in the legal and practice-guide sources consulted.
Treaty Network and Non-Residents
Chile has a network of tax treaties, Non-resident individuals in Chile are generally taxed only on Chilean-source income, most commonly through withholding under the Additional Tax, which is 15 percent on engineering, technical and professional services under Article 59 No. 2, instead of the progressive global complementary tax scale.
Foreign sellers of Chilean real estate are subject to the same capital gains regime (including the 8,000 UF exemption) as Chilean nationals, rather than a separate non-resident property gains tax. Chilean tax practice guides state that foreign sellers of Chilean real estate are subject to the same capital gains regime (including the 8,000 UF exemption) as Chilean nationals, rather than a separate non-resident property gains tax.
RUT and Filing Steps
Chile issues an individual tax identification number known as RUT (Rol Único Tributario), which foreigners must obtain to interact with the tax system, including registering with SII and filing annual returns; practical immigration guides treat RUT as a prerequisite for tax compliance. No official figure has been published for the exact step-by-step procedure and forms numbers to obtain a RUT as a foreigner from an official SII English-language page in the sources consulted; practical guides only summarise the requirement.
A provisional RUT for foreigners without Chilean residence is obtained by appearing in person at the competent SII office with a valid passport (with Chile entry stamp), proof of purpose (e.g., job offer, lease, company documents), Chilean address, and completed Form F4415; the process is free of charge, and the RUT is typically assigned immediately or within up to 5 business days. For foreigners with visas, a standard RUT registration at SII is usually completed by submitting Form 4415 with supporting documents at the relevant SII office, after which the RUT is recorded in the system within 24–48 hours, and the definitive certificate can be downloaded from sii.cl; there is no official fee for RUT assignment.
Chile’s Servicio de Impuestos Internos (SII) uses Form 22 as the standard annual income tax return for individuals, which residents file to settle Global Complementary Tax after withholding and to declare exempt or foreign-source income where required. Migrago’s 2026 guidance for foreigners explains that during the first three years of domicile in Chile, there is no obligation to declare foreign-source income, but from the fourth year such income must be included in the annual tax declaration.
Common Mistakes and Comparisons
A common documented mistake by foreigners is failing to declare worldwide income on the Chilean annual tax return once the three-year exemption ends, either continuing to treat foreign-source income as exempt indefinitely or omitting foreign bank and brokerage income, which frequently triggers SII reviews and audits. Another frequent error for foreign individuals and companies is not registering Inicio de Actividades and VAT from the first taxable transaction, incorrectly assuming a minimum turnover threshold similar to EU systems; Chilean practice is to require registration from the first sale, and SII can reclassify unregistered activity retroactively.
Foreign digital providers commonly err by delaying VAT registration until reaching a sales volume in Chile, but Chile’s non-resident digital VAT regime imposes registration from the first Chilean consumer sale, with a zero threshold and simplified portal registration; platforms that fail to do so risk assessments and penalties. Compared with Argentina, Chile offers a clearer newcomer exemption: Chile provides a 3-year (extendable to 6) foreign-source income exemption for new residents, whereas Argentina taxes residents on worldwide income without a similar fixed-term exemption and applies personal income tax rates up to 35%; both countries apply VAT around 21% in Argentina vs 19% in Chile, but Chile requires VAT registration from the first transaction.
Frequently Asked Questions
How long are foreigners exempt from Chilean tax on foreign income? Newly resident foreigners are taxed only on Chilean-source income for the first three years after establishing domicile or residence. This exemption covers all foreign-source income, such as dividends, interest, and capital gains. The period can be extended by the SII Regional Director in qualified cases, up to a total of six years.
What is the 183-day rule for tax residency in Chile? You become a Chilean tax resident if you are physically present in Chile for more than 183 days, continuous or not, within any rolling 12-month period. Once you meet this threshold, you are subject to Chilean tax on worldwide income, but the three-year foreign-source exemption for newcomers applies from your date of entry.
What is the maximum income tax rate in Chile? Chile’s Global Complementary Tax applies progressive rates up to 40% on individuals’ worldwide income once the foreign-source exemption period has expired. For 2026, the exempt bracket is up to CLP 11,265,804 in annual income. No official full bracket table has been published.
What is the VAT rate in Chile? Chile’s standard Value-Added Tax (IVA) rate is 19% on most goods and services. This rate is widely cited as the prevailing general VAT rate as of 2026. Businesses must register for VAT from their first taxable transaction, with no revenue threshold.
What is the property tax rate in Chile? Chile’s annual property tax (contribuciones) for residential properties ranges from 0.893% to 1.042% of the fiscal assessed value (avaluo fiscal) as of the first semester of 2026. There is an exemption threshold at an avaluo fiscal of CLP 60,030,710, below which no property tax is payable.
How do foreigners get a RUT in Chile? Foreigners must obtain a RUT (Rol Único Tributario) to interact with the tax system. A provisional RUT is obtained by appearing in person at an SII office with a valid passport, proof of purpose, Chilean address, and completed Form F4415. The process is free, and the RUT is typically assigned immediately or within up to 5 business days.
| Item | Rate/Amount | Source/Date |
|---|---|---|
| VAT (IVA) | 19% | Golden Harbors, Jul 2026 |
| Property tax (residential) | 0.893%–1.042% of assessed value | Propiedades Aysén, Apr 2026 |
| Property tax exemption threshold | CLP 60,030,710 (approx. UF 1,507) | Propiedades Aysén, Apr 2026 |
| Capital gains exemption on real estate | 8,000 UF (approx. USD 360,000) | Chambers, Apr 2026 |
| Global Complementary Tax top rate | 40% | Relovida, Aug 2026 |
| Non-resident withholding on fees | 35% | Expat.cl, Jun 2026 |
Sources: Chambers Global Practice Guides, Migrago, Arrive.now, Relovida, Armenian Lawyer, Orbitax, Golden Harbors, Propiedades Aysén, SII, Lappa, Avalara, Sovos, Global VAT Compliance, Oficinavirtual.cl, Lofwork, Dahua Legal, Ministry of Finance, Biblioteca del Congreso Nacional, Defensor del Contribuyente, DeterminedAI, Expat.cl, Extranjeriachile.com, TramitarCL.
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