Chile — Tax: Tax Residency

Key facts

• A person who stays in Chile, continuously or not, for periods totalling more than 183 days within any 12 months is resident, counted from the 184th day.
• A foreigner who establishes domicile or residence is taxed only on Chilean-source income for the first three years from entry, then on worldwide income; the Regional Director may extend the period in qualified cases.
• The three-year benefit is reserved for foreigners; Chileans returning are taxed on worldwide income from the start.
• Domicile is not defined in tax law; the SII applies Civil Code article 59, residence accompanied by the intention to remain.
• During the three years the person is not treated as a Chilean resident for double tax treaty purposes.
• A foreigner with under three years of domicile or residence does not pay tax on disposing of property abroad.

Steps

1. Determining Tax Residency Status — To determine tax residency status, individuals must keep a record of their stay in Chile, including dates of entry and exit, and proof of income and expenses.
2. Obtaining Tax Residency — To obtain tax residency, individuals must submit an application to the Chilean Internal Revenue Service (Servicio de Impuestos Internos, SII), along with required documentation, such as proof of income and expenses, and a certificate of stay in Chile.