Top Alternative Investments For Diversification
One of my New Year's resolutions was to further diversify my asset portfolio. On the real...
Read moreYou 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):
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%.
One of my New Year's resolutions was to further diversify my asset portfolio. On the real...
Read moreMexico is still North America... and it can be helpful to remind ourselves of this fact when we think about the big picture of Latin America. What this means in practice is that this country is as close as you can get to being "overseas" while remaining very near the United States and Canada. You can even drive from California, Arizona, New Mexico, and Texas to several of our favorite spots in Mexico. This is a big plus for retirees...
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