CONFIRMED: You can live in Chile for up to 6 years WITHOUT paying income tax 🇨🇱🇨🇱🇨🇱

We have just improved the lives of everyone thinking of moving to Chile

Many of you know that Chile offers a 3-year exemption on foreign income for those who move to the country

However, what many don't know is that, according to paragraph 2 of article 3 of the income tax law, there was a provision for an “extension of this period.”

But when we asked lawyers, accountants, and immigrants, no one knew how it worked, no one knew anyone who had obtained it. It was a big unknown.

Furthermore, it was unclear whether the benefit began on the date of obtaining tax or legal residence.

In fact, nothing was clear.

Well, we coordinated with our lawyer to make a public inquiry to the Chilean Internal Revenue Service, and now everything is clear to everyone. This public inquiry has been answered and can now be used as a basis for anyone who wants to apply for this extension.

The response:

In this regard, it is hereby informed that this rule only applies to persons who do not have Chilean nationality and is counted from the first day they acquire domicile or from the moment they acquire residence, whichever occurs first.

The extension must be requested before its expiration date, and for the purposes of granting it, the predominant factor to be considered is that which allows determining the taxpayer's lack of intention to settle in Chile, which is up to the Regional Directors to determine, a matter of fact that must be proven and verified by these units.

IN OTHER WORDS: The main factor in guaranteeing the extension is the immigrant's lack of intention to settle permanently in Chile.

This is a criterion that may also be the focus of another public consultation... for now, our recommendations based on best practices in international taxation would be:

1) Keep renewing temporary residence, do not obtain permanent residence
2) Maintain active legal residence in another country
3) Make frequent visits to another country
4) Maintain a property in your name in another country to maintain these ties
5) If you have a business, keep the company operational in another country

The main focus is for Chile to see that you do not intend to live there forever... and then you can live there tax-free for up to 6 years!

With this point clarified, Chile now becomes much more attractive for those seeking a solid medium-term base.

What other questions do you have about this regime? Share them and we will set up another public consultation to get even more details!

But remember this do not apply for digital nomad performing work in the country. Receiving money from abroad while working in Chile = chilean source. :)

would have to be properly structured with foreign entities and receiving passive income instead of registring as freelancer or employee, yes!

Yeah, but CFC rules applies when passive income is >10% of the income or >20% of the total assets, cracking down the majority if not all common structures

company has active operating income

but the receipt to you is via dividends (passive)

but ofc thats def not something every nomad can pull off

would require at minimum having real employee to the company

hello everyone!! 🙂 I'll be in Santiago for a couple of weeks between nov and dic, doing workations and I wonder what would be the go-to website/service to look for a flat where to stay, other than booking.com and airbnb ? Do you have any reccos or perhaps you know someone who's renting their flat? :0

Thanks a lot! ❤️

Booking and airbnb are the best ones in Chile. There are not another relevant websites.