Chile

{"ftc_utility":"high","fbar_trigger_notes":"US expats in Chile are required to open local bank accounts for payroll and everyday transactions. Chilean peso accounts at local banks (BancoEstado, Santander Chile, BCI, etc.) will frequently exceed the USD 10,000 FBAR threshold. FBAR filing (FinCEN 114) is required annually if aggregate foreign account balances exceed USD 10,000 at any point during the year. FATCA reporting under Form 8938 applies at higher thresholds.","ftc_utility_reason":"Chile taxes residents on worldwide income (after the 3-year exemption period) at rates up to 35%, which equal or exceed US federal rates in upper brackets. The Foreign Tax Credit is highly useful for long-term residents to offset Chilean income tax paid against US federal tax liability on the same earned income, particularly once the FEIE exclusion limit is exhausted.","presence_day_count_notes":"Chile does not impose strict day-count visa requirements that would prevent the 330-day physical presence test. Most long-stay visas (temporary residency, subject visa) allow continuous presence. US citizens working in Chile can typically satisfy the 330-day rule without complications. Chilean tax residency triggers after 6 months in-country, which does not conflict with FEIE qualification.","typical_qualifying_method":"either","housing_exclusion_available":true,"physical_presence_test_applies":true,"estimated_housing_exclusion_usd":18000,"local_tax_rate_on_earned_income":0.23,"bona_fide_residence_test_applies":true}

{"pension_income":{"notes":"Foreign pension income received by Chilean tax residents is taxed under the Global Complementary Tax at progressive rates up to 35% once the initial 3-year foreign income exemption period has lapsed. Chilean domestic AFP (Administradora de Fondos de Pensiones) pension withdrawals are also taxed under progressive rates with certain deductions available.","tax_rate":0.35,"locally_taxed":true},"social_security":{"notes":"Under the US-Chile tax treaty (in force 2024), US Social Security benefits paid to a Chilean resident are taxable in Chile under pension income rules. Chile's domestic law would treat these as foreign pension income subject to Global Complementary Tax. The treaty limits source-country (US) taxation to 15% on Social Security if the recipient is a Chilean resident.","locally_taxed":true,"treaty_protection":true},"roth_distributions":{"notes":"Chile does not recognize the Roth distinction. Qualified Roth distributions may still be treated as foreign-source income and taxed under progressive rates once the 3-year new resident exemption has expired. Treaty treatment of Roth accounts is not explicitly addressed and depends on SII interpretation.","locally_taxed":true},"us_401k_ira_distributions":{"notes":"Chile and the US signed a tax treaty that entered into force in 2024. Under the treaty, US pension distributions (including 401k and IRA) paid to a Chilean resident may be taxed in Chile as pension income at progressive Global Complementary Tax rates up to 35%. The treaty generally assigns primary taxing rights over pensions to the country of residence. Pre-treaty, distributions were taxed as foreign income subject to full progressive rates after the 3-year foreign income exemption period expired.","tax_rate":0.35,"locally_taxed":true,"treaty_protection":true}}

{"rate":0.35,"notes":"Capital gains in Chile are generally taxed as ordinary income at progressive rates up to 35% for individuals. Certain gains on publicly traded shares sold on formal exchanges may qualify for a reduced 10% rate or exemption depending on holding period and transaction type.","details":{"tax_type":"Capital Gains Tax","country_name":"Chile","country_iso_code":"CHL","source_references":["PwC Chile Tax Summaries","Servicio de Impuestos Internos (SII)","Chile Income Tax Law (Ley sobre Impuesto a la Renta)"],"last_verified_date":"2026-06-03","general_description":"Chile does not have a standalone capital gains tax law. Gains are generally folded into the income tax regime. Gains on publicly traded shares transacted on a Chilean stock exchange by habitual sellers or traders are taxed at 10%. Non-habitual sellers disposing of listed shares may be exempt if specific conditions under Article 107 of the Income Tax Law are met. Real property gains are subject to a 10% tax on the appreciation above the acquisition value adjusted for inflation, with an exemption on the first UF 8,000 (roughly USD 330,000) of gain per person per life. Gains on non-listed assets are taxed as ordinary income at progressive rates up to 35%.","corporate_capital_gains":{"rate":0.27,"tax_treatment":"Corporate capital gains are generally taxed as part of ordinary business income under the First Category Tax at 27% (for companies under the semi-integrated regime). Gains on listed shares may benefit from the 10% flat rate under Article 107."},"individual_capital_gains":{"rate":0.35,"tax_treatment":"Individuals taxed at progressive Global Complementary Tax rates up to 35% on gains from unlisted assets. Listed share gains taxed at 10% flat when sold on recognized exchange. Real property gains taxed at 10% with a lifetime exemption on the first UF 8,000 of gain. Habitual traders in any asset class may face full progressive rate treatment.","real_property_rate":0.1,"reduced_rate_listed_shares":0.1,"real_property_lifetime_exemption_usd":330000}}}

{"notes":"Chile uses an integrated tax system. Dividends paid from a Chilean company to resident individuals are subject to Global Complementary Tax at progressive rates up to 35%, with a credit for the First Category Tax (FCT) already paid at the corporate level (27% under semi-integrated regime, where only 65% of the FCT is creditable for residents). Dividends paid to non-resident individuals or foreign entities are subject to a 35% Additional Withholding Tax, also with a partial credit for FCT paid. Under the attributed income regime (available to certain closely held companies), income may be taxed at the shareholder level regardless of actual distribution.","rates":[{"rate":0.35,"type":"progressive","notes":"Top marginal rate under Global Complementary Tax for resident individuals receiving dividends, with partial credit for 27% corporate FCT already paid (65% creditable under semi-integrated regime)."},{"rate":0.35,"type":"withholding","notes":"Additional Tax withheld at 35% on dividends paid to non-residents, with partial credit for FCT. Effective additional tax burden is approximately 9.45% on top of the 27% FCT under semi-integrated regime."},{"rate":0.15,"type":"withholding","notes":"Reduced 15% Additional Tax rate may apply to residents of countries with a tax treaty with Chile, subject to treaty terms (e.g., US-Chile treaty sets 15% or 5% depending on ownership threshold)."}]}