CONFIRMED: You can live in Chile for up to 6 years WITHOUT paying income tax ๐จ๐ฑ๐จ๐ฑ๐จ๐ฑ
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 โextension of this period.โ
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!