Taxes in Chile

Preparing documents and money to pay taxes in Chile.

Taxes For Residents Of Chile

You become tax resident in Chile if you spend more than six months in-country or are domiciled in Chile. If you are a nonresident, you pay taxes in Chile only on your income generated within the country.

Chile taxes on worldwide income. But, as a new resident, you will pay tax only on Chilean income for the first three years, which can be extended for an additional three years.

Chile does not tax pensions, retirement benefits, or social security.

The sales tax (known as IVA) is 19%, and applies to many valueadded items. While you may structure your affairs to minimize other taxes here, you won’t escape IVA.

For wage earners, the regular income tax is graduated between 0% and 40%. Here’s a snapshot of the tax table, represented in U.S. dollars, at today’s exchange rate of 620 pesos per U.S. dollar. These are monthly income figures (exclusive of retirement and pension income):

Income Taxes in Chile
From To Tax Percentage
 $                 –  $        938.00 0%
 $        938.00  $    2,084.00 4%
 $    2,084.00  $    3,473.00 8%
 $    3,473.00  $    4,863.00 14%
 $    4,863.00  $    6,252.00 23%
 $    6,252.00  $    8,336.00 30%
 $    8,336.00  $  10,420.00 36%
 $  10,420.00 And Up 40%

Business tax is 20% of net profits. Capital gains are taxed at a flat rate of 20%, while the inheritance tax is graduated from 1% to 25%.

Retire Overseas Now

Sign up for our free daily dispatch Overseas Opportunity Letter and immediately receive our FREE research report on the best places to live and retire overseas today.

Each day you will discover the absolute best places to retire, buy property, and live for less overseas. 

We Value Your Privacy. Guaranteed.

More from Chile...