Chile gives new arrivals a three-year head start. If you're a foreigner who becomes resident or domiciled in Chile, you're taxed only on Chilean-source income for your first three years, counted from the day you enter the country. Your foreign dividends, interest, rent and pensions stay outside Chilean tax until the window closes.
This guide covers Chilean personal tax for the 2026 tax year (the calendar year): the three-year rule, the 183-day residence test, income tax rates, freelancing, crypto, social security, treaties and visas.
The key question is simple. Is your income earned in Chile, or does it come from abroad? For your first three years, almost everything follows from the answer.
What's changed: the withholding on freelance fee receipts (boletas de honorarios) rose to 15.25% in 2026 and will be 16% in 2027 and 17% in 2028. The monthly cap for pension and health contributions is 90 UF in 2026 (87.8 UF in 2025). Under the 2025 pension reform (Law 21.735), employer contributions are rising each year, but what you pay as an employee hasn't changed. The National Reconstruction and Economic and Social Development bill was cleared by the Constitutional Court on 2 October 2026. It had not been published in the Diario Oficial by 16 October 2026, so it's not yet in force. As sent to Congress, it would exempt the main home of owners aged 65 or over from property tax, end the 10% tax on gains from listed Chilean shares, cut the donations tax by half for a year and open a repatriation window for undeclared foreign assets at 10% (7% if the money comes to Chile). Approved, not yet in force.
👉 Dirección de Presupuestos: financial report on the National Reconstruction bill (in Spanish)
📋 Chile tax at a glance for 2026
Topic | Details |
|---|---|
Tax year | The calendar year. The return is filed in April of the following year |
Tax system | Worldwide income for residents and people domiciled in Chile. Foreign newcomers are taxed only on Chilean income for their first three years |
Income tax rates | 0% to 40%. The first 13.5 UTA a year (about CLP 11.7 million) is tax free |
All-in on a US$100k salary | About 20.5% (CLP 98 million, single, including pension, health and unemployment insurance) |
Foreign income | Untaxed for your first three years. Taxed from year four, with credits for foreign tax |
Crypto gains | Taxed in Global Complementario on the income scale, about 14.6% on a US$100k gain |
Wealth and inheritance | No wealth tax. Inheritance tax of 1% to 25%, with surcharges for distant relatives and non-relatives |
Residence at a glance | Getting in: easy (more than 183 days in any 12 months). Leaving: moderate, because domicile can survive your departure |
Double tax treaties | 37 in force, including the UK, the United States, Spain, Canada and Japan |
US dollar figures use CLP 980 to US$1. The Banco Central de Chile's observed dollar rate was CLP 984.09 on 16 October 2026. Annual peso amounts use the November 2026 UTA of CLP 869,280, because the tax year uses the December value, which isn't out yet.
👉 Banco Central de Chile: observed dollar rate and UF (in Spanish)
👉 SII: UTM and UTA values for 2026 (in Spanish)
The three-year rule for new arrivals
Why do investors and retirees look at Chile? Because article 3 of the Income Tax Law (Ley sobre Impuesto a la Renta) switches off tax on foreign income for newcomers.
Image 1 — foreign income stays outside Chilean tax for 3 years
The rule says that a foreigner who takes up domicile or residence in Chile is subject, for the first three years counted from entry into Chile, only to the taxes on Chilean-source income. Once the window closes, you're taxed on your income from anywhere in the world.
Taxed during the three years: pay for work you do in Chile, fees for services performed in Chile, rent from Chilean property and profits from a Chilean business.
Untaxed during the three years: dividends from foreign companies, interest on foreign accounts, rent from property abroad, gains on foreign assets and foreign pensions.
The clock: it runs from the day you enter Chile, not from the day you become resident. The SII's example is entry on 1 March of year 0, with worldwide income taxed from 2 March of year 3.
The Regional Director of the SII (Servicio de Impuestos Internos, the tax authority) can extend the period "in qualified cases". It's discretionary, so plan on three years.
Two points catch people out. First, the rule is about where income comes from, not where it's paid. Under article 10, income from activities carried out in Chile is Chilean-source, so remote work done from Santiago for a foreign employer is taxed in Chile from the start. Second, the SII's guidance says that during the three years you aren't treated as a Chilean resident for tax treaty purposes, so you may not be able to use Chile's treaties in that period.
👉 Income Tax Law (Decree Law 824), articles 3, 4, 10, 50 and 52 (Ley Chile, in Spanish)
👉 SII Circular 63 of 2021: the residence test and the three-year rule (in Spanish)
When you become tax resident in Chile
Under article 8 of the Tax Code, you're resident if you stay in Chile, continuously or not, for more than 183 days in total within any 12-month period. The window rolls, so it can straddle two calendar years.
Residence starts on day 184, not on 1 January. Every day you're physically in Chile counts, including the days you arrive and leave. Before day 184, Chilean income is taxed as a non-resident's, through the Additional Tax (impuesto adicional). From that day, it's taxed on the resident scale.
Domicile is a separate test. It means living in Chile with the intention of staying there. The three-year rule applies whether you become resident or domiciled, and its clock runs from your entry either way.
How you stop being resident
Leaving Chile ends residence once you're no longer present for more than 183 days in a 12-month window. Domicile is stickier. Under article 4 of the Income Tax Law, being absent doesn't end your Chilean domicile if you keep the main seat of your business in Chile, directly or through others. The SII expects evidence that your main business interests have moved abroad.
Chile has no wealth tax. We found no exit tax for individuals.
Income tax rates for 2026
Residents pay Global Complementario, a progressive tax on their total income for the year. Employees pay the same scale monthly through payroll, as the second category single tax (impuesto único de segunda categoría), using bands in UTM.
Chile income tax rates for residents in 2026
Taxable income (UTA a year) | About (CLP) | Rate |
|---|---|---|
Up to 13.5 | Up to 11.7 million | 0% |
13.5 to 30 | 11.7 to 26.1 million | 4% |
30 to 50 | 26.1 to 43.5 million | 8% |
50 to 70 | 43.5 to 60.8 million | 13.5% |
70 to 90 | 60.8 to 78.2 million | 23% |
90 to 120 | 78.2 to 104.3 million | 30.4% |
120 to 310 | 104.3 to 269.5 million | 35% |
Over 310 | Over 269.5 million | 40% |
Source: Income Tax Law, article 52. Peso amounts use the November 2026 UTA of CLP 869,280. The monthly employee table uses the same bands in UTM.
Gains on shares of listed Chilean companies sold on the stock exchange are taxed at a flat 10% under article 107. The reconstruction bill, as sent to Congress, would remove that rate (approved, not yet in force).
👉 SII: monthly employee tax tables for 2026 (in Spanish)
Worked example
You're single, resident in Chile and earn CLP 98 million in 2026 (about US$100k), or about CLP 8.17 million a month.
Pension (10% plus a 0.46% AFP commission) and 7% health are charged on pay up to 90 UF a month (about CLP 3.71 million). Unemployment insurance of 0.6% applies up to 135.2 UF. Together that's CLP 8.16 million a year, and it isn't taxed.
Your taxable pay is about CLP 7.49 million a month, which falls in the 30.4% band. Your income tax is about CLP 11.9 million for the year.
Your all-in bill is about CLP 20.1 million, or 20.5% of your salary. If you qualify as foreign technical staff and keep your pension scheme abroad, Law 18.156 lets you and your employer opt out of Chilean social security (except work-accident cover). Income tax alone would then be about 14.7%.
👉 Law 18.156: social security exemption for foreign technical staff (Ley Chile, in Spanish)
Freelancing in Chile
Freelancers and independent professionals issue electronic fee receipts (boletas de honorarios). Chilean clients that keep accounts withhold 15.25% of each receipt in 2026. If your clients are abroad, you account for the tax yourself.
At the April return, you can deduct your actual costs or a flat 30% of your gross fees, capped at 15 UTA (about CLP 13 million). Under the flat 30% option, your social security contributions can't be deducted as well. The rest is taxed in Global Complementario.
Contributions are worked out on 80% of your gross fees, capped at 12 times the monthly limit (1,080 UF in 2026). They cover pension, disability and survivors' insurance (1.49% for those paying through the tax return), health at 7%, and work-accident cover. In total they come to roughly 20% of that base, and they're paid out of the amounts withheld.
On US$100k of fees (CLP 98 million), income tax is about CLP 10.4 million and contributions about CLP 8.9 million: roughly 19.6% all-in.
The three-year rule doesn't help freelancers working from Chile. Services you perform in Chile are Chilean-source income, whoever pays you.
👉 SII: 15.25% withholding on fee receipts in 2026 (in Spanish)
👉 Superintendencia de Pensiones: contributions for independent workers (in Spanish)
Crypto, investments and pensions
How is crypto taxed in Chile? The SII says gains from buying and selling crypto are taxable income and must be declared.
If you hold crypto personally, not in a business, the gain is taxed only in Global Complementario (or the Additional Tax if you're not resident), when you receive it.
The gain is the sale price minus your cost, adjusted for inflation between purchase and sale.
Crypto held in a business pays first category tax as well, with a credit against Global Complementario.
There's no special rate or holding-period relief, so a US$100k gain costs about 14.6% on the income scale.
Dividends from Chilean companies carry a credit for the company's first category tax. The reconstruction bill, as sent to Congress, would gradually reduce the part of that credit that has to be given back. On a US$1m portfolio of foreign investments, with US$40k of dividends and US$40k of gains, you'd pay nothing during your first three years. From year four the same income would cost about 10.7%.
Foreign pensions follow the same pattern: untaxed for three years, then taxed in Global Complementario, subject to any treaty with the paying country.
Inheritance and gift tax
Chile taxes inheritances and gifts at 1% to 25% on a sliding scale in UTA, with the scale raised by 20% for more distant relatives and 40% for non-relatives. Spouses, parents and children have an exempt band of 50 UTA for inheritances. For a foreigner's estate, assets abroad are included only if they were bought with money from Chile.
👉 SII: do I have to declare and pay tax on crypto gains? (in Spanish)
👉 SII: how the crypto gain is worked out and which taxes apply (in Spanish)
👉 SII: Law 16.271 on inheritance, legacy and gift tax (in Spanish)
Social security
Employees pay 10% of pay into a private pension account (AFP), plus the AFP's commission. New members are placed with AFP Uno, which charges 0.46%, from 1 October 2025 to 30 September 2027. Health insurance costs 7% of pay, to Fonasa (the public fund) or a private Isapre. Both are charged on pay up to 90 UF a month in 2026.
On an open-ended contract you also pay 0.6% unemployment insurance, on pay up to 135.2 UF a month. The employer pays the rest, including the disability and survivors' insurance and the new contributions under the 2025 pension reform.
👉 Superintendencia de Pensiones: contribution caps for 2026 (in Spanish)
👉 Superintendencia de Pensiones: compulsory pension contributions (in Spanish)
👉 Superintendencia de Pensiones: new members and AFP Uno's 0.46% commission (in Spanish)
👉 Superintendencia de Pensiones: unemployment insurance rates (in Spanish)
👉 Superintendencia de Salud: the 7% health contribution, Fonasa or Isapre (in Spanish)
Double tax treaties
Does Chile have double tax treaties? Yes. The SII lists 37 treaties in force, including with the UK, the United States (since 2024), Spain, France, Italy, Ireland, Canada, Mexico, Brazil, Argentina, Australia, Japan, China and the UAE. There's no treaty with Germany.
👉 SII: double tax treaties in force (in Spanish)
Long stays and the lack of a nomad visa
Chile has no digital nomad visa. Visitors (permanencia transitoria) can stay up to 90 days, extendable once by 90 more, and may not do paid work, apart from occasional activities the migration service authorises.
To live in Chile you need a temporary residence permit, usually for up to two years and renewable. The categories include paid work, investors, and retirees and people with their own income (jubilados y rentistas). None is designed for remote workers.
👉 Servicio Nacional de Migraciones: visitors and paid work (in Spanish)
👉 Servicio Nacional de Migraciones: temporary residence categories (in Spanish)
Who is Chile good for?
How does Chile compare for different kinds of mover? Ratings are relative to the 150+ countries TaxPilot covers, based on 2026 rules and the all-in cost including compulsory contributions.
☑️ Who is Chile good for? Tax ratings for expats in 2026
Expat profile | Chile rating | Why |
|---|---|---|
Employees | Moderate | About 20.5% all-in on a US$100k salary (CLP 98 million): 10.46% pension, 7% health and 0.6% unemployment insurance on capped pay, then income tax up to 35%. It sits just over the 20% line, and about 19.9% at CLP 930 to the dollar. Foreign technical staff who keep a pension scheme abroad can opt out of Chilean contributions, which would bring it to about 14.7%, but that exemption is limited to particular roles, so it isn't counted. |
Freelancers (self-employed) | Good | About 19.6% all-in on US$100k of fees: income tax after the 30% expense allowance (capped at 15 UTA), plus about 19.9% in contributions on 80% of your fees, capped at 1,080 UF a year. The three-year rule doesn't help, because work done in Chile is Chilean income. |
Retirees | Good | 0% on a US$40k foreign pension plus US$20k of foreign investment income for your first three years, because foreign income is outside Chilean tax. From year four it's about 6.9%. Not Excellent, because Chile charges inheritance tax of 1% to 25%. |
Crypto gains | Good | About 14.6% on a US$100k gain. Individuals pay only Global Complementario on crypto gains, with no social security, but there's no special rate or holding-period relief. It's close to the 15% line. |
Investment income | Excellent | Foreign dividends, interest and gains are untaxed during your first three years under article 3 of the Income Tax Law. From year four, the US$1m portfolio would cost about 10.7% (Good). There's no wealth tax. |
Digital nomad visa | Poor | Chile has no digital nomad visa. Visitors get up to 90 days, extendable once, and may not do paid work. Long stays need a temporary residence permit in another category, such as the one for retirees and people with their own income. |
Filing and deadlines
Your 2026 income is declared on Form 22 in the April 2027 tax season (Operación Renta). The general deadline is 30 April. Residents must file if their income for Global Complementario is above 13.5 UTA. Once the three-year window closes, foreign income counts towards that figure.
If your only income is a salary from one employer, the monthly withholding is final and you don't need to file. Freelancers file every year, because that's when contributions are settled and any surplus withholding is refunded.
👉 SII: practical guide to the 2026 income tax return (in Spanish)
Frequently asked questions
Does Chile tax foreign income for new residents?
Not for the first three years. A foreigner who becomes resident or domiciled in Chile is taxed only on Chilean-source income for three years from entry into Chile. The SII can extend this in qualified cases. After that, worldwide income is taxed.
When do you become tax resident in Chile?
You're resident once you've spent more than 183 days in Chile, continuously or not, within any 12-month period. Residence starts on day 184. Domicile, meaning living in Chile with the intention of staying, is a separate test.
What are the income tax rates in Chile in 2026?
Residents pay 0% on the first 13.5 UTA a year (about CLP 11.7 million), then 4%, 8%, 13.5%, 23%, 30.4% and 35%, reaching 40% above 310 UTA. Employees pay the same scale monthly through payroll.
Is remote work for a foreign employer taxed in Chile?
Yes, if you do the work in Chile. Income from activities carried out in Chile is Chilean-source, so the three-year rule doesn't cover it. Your salary is taxed on the normal scale once you're resident.
How is crypto taxed in Chile?
If you hold crypto personally, gains are taxed only in Global Complementario, on the 0% to 40% scale, when you receive them. The gain is the sale price minus your inflation-adjusted cost. Crypto held in a business also pays first category tax.
How many double tax treaties does Chile have?
The SII lists 37 treaties in force, including with the UK, the United States, Spain, Canada, Japan and Australia. During your first three years under the article 3 rule, the SII doesn't treat you as resident for treaty purposes.
Where to go next
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Important information
This article is general information and does not constitute tax, legal, immigration or financial advice, and does not create a client relationship. Tax outcomes depend on travel history, income sources, treaty status and the law applying to the relevant year. Rates, thresholds and regimes change, and some measures described may be proposed rather than enacted; this article reflects our understanding as at the date of publication. Obtain advice from a suitably qualified professional before acting or refraining from action.
