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🇨🇱 Taxes in Chile · Rates and residency

Taxes in Chile

A progressive personal income tax, a moderate corporate rate and clear rules for foreigners in their first years in the country.

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0-40%personal income tax
25%corporate income tax
19%VAT

Chile taxes residents on their worldwide income, but foreigners get a transition period: for the first three years they pay tax only on income earned in Chile.

Who becomes a tax resident

You become a resident for tax purposes if you spend six consecutive months in Chile within one calendar year, or more than six consecutive months across two consecutive calendar years.

Transition period for foreigners

Foreigners working in Chile pay tax only on Chilean-source income for the first three years. After that, worldwide income is taxed on the progressive scale.

On a free consultation we will go through your situation and work out how much tax you would pay in Chile.

Main tax rates in Chile

Progressive personal income tax

The rate on personal income runs from 0 to 40%. The final amount depends on the size of the income.

Corporate income tax

Companies pay corporate income tax at 25%.

VAT of 19%

The standard rate of value added tax in Chile is 19%.

Property and inheritance tax

Non-residential property - 1.2-1.4%, agricultural - 1%, residential - 0.98%. Inheritance tax runs from 1 to 25%.

FAQ

When does a foreigner become a tax resident of Chile?
When they spend six consecutive months in the country within one calendar year, or more than six consecutive months across two consecutive calendar years.
Is a foreigner's income from abroad taxed?
For the first three years of working in Chile, no - only Chilean-source income is taxed. After that, worldwide income is taxed too.
What is the VAT rate in Chile?
The standard VAT rate is 19%.
How much corporate income tax does a company in Chile pay?
The corporate income tax rate is 25%.

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