Chile · Taxes
Chile taxes for US citizens
Source-checked27 sources, 25 officialHow we checkIn brief
New residents pay no Chilean tax on foreign income for their first 3 years. Pay for work done in Chile is taxed, but short stays paid from the US are covered by the tax treaty.
In short: what you'd pay in Chile
Retiree on US income
US Social Security is taxed only in the US. Your private pension and interest aren't taxed in Chile for your first 3 years; after that, they are.
Ballpark: $0 in your first 3 years; later years not worked out
Remote worker paid from the US
Up to 183 days in 12 months, with a US employer, your pay stays US-taxed. Once you live here, Chile taxes pay for work done here.
Ballpark: $0 on short stays; about $4,270 a year on $60,000 if you live here
Working for a local employer
Local pay is taxed monthly from day one, and your employer withholds it.
Ballpark: 0–40%; the first about $985 a month is tax-free
Checked against the lawThe 183-day test, the 3-year rule, the wage scale and the treaty rules.
Not yet verifiedPaying the wage tax yourself, and the treaty's start date.
How Chilean tax works
- Tax residence: more than 183 days in Chile in any 12 months, in one stay or several.
- What's taxed: residents pay on worldwide income, but newcomers pay only on Chilean income for 3 years. Work done in Chile is Chilean income.
- US tax treaty: in force since 2024. Short stays paid by a US employer stay US-taxed, and Social Security is taxed only in the US.
- Your US return: you still file every year. Chilean tax may be credited against US tax; see a tax adviser.
- Social Security agreement: the US and Chile have one, in force since 2001, so you usually pay into one system.
Sources (7)
Links
- Decreto Ley 824, Ley sobre Impuesto a la Renta (texto consolidado BCN)
- Decreto Ley 830, Código Tributario (texto consolidado BCN)
- SII: Convenios internacionales para evitar la doble tributación
- US–Chile income and capital tax convention, signed 4 Feb 2010
- SSA POMS GN 01701.005: totalization agreements in force
- IRS: US citizens and resident aliens abroad
- IRS: foreign tax credit, how to figure the credit
Nine worked examples, 2026
The retiree has $30,000 of Social Security, a $40,000 private pension and $20,000 of interest. The 365-day rows assume your first year as a resident.
| Who | Days in Chile | Chile income tax | US income tax, before credits |
|---|---|---|---|
| Remote employee, $60,000 | 90 | $0 | $5,020 |
| Remote employee, $60,000 | 182 | $0 | $5,020 |
| Remote employee, $60,000 | 365 | $4,270 | $5,020 |
| Remote employee, $150,000 | 90 | $0 | $24,734 |
| Remote employee, $150,000 | 182 | $0 | $24,734 |
| Remote employee, $150,000 | 365 | $32,442 | $24,734 |
| Retiree, $90,000 | 90 | $0 | $8,348 |
| Retiree, $90,000 | 182 | $0 | $8,348 |
| Retiree, $90,000 | 365 | $0 | $8,348 |
Don't add the two columns: credits and the foreign earned income exclusion can cut the US part.
Still being checkedShort-stay tax without the treaty, and the retiree's tax from year 4.
Sources (17)
Legal basis and exact figures
- Residence: resident after more than 183 days in Chile, continuous or not, within any 12 months (Código Tributario art 8 N°8). A foreigner who becomes resident or domiciled is taxed only on Chilean-source income for the first 3 years from entry, extendable by the Regional Director (LIR art 3); worldwide afterwards. Income from activities carried out in Chile is Chilean-source whoever pays it (art 10).
- $0 employee rows: only under treaty art 15(2): 183 days or less in any 12-month period, a non-Chilean employer, and no Chilean permanent establishment bearing the pay. Without the treaty, domestic law would tax the allocation by the Impuesto Único or the 35% non-resident tax (LIR art 60); which one is unresolved.
- 365-day employees: Impuesto Único de Segunda Categoría (LIR art 43 N°1), month by month: monthly salary converted at CLP 992.48, divided by each 2026 month's UTM, on the scale 0% to 13.5 UTM, then 4/8/13.5/23/30.4/35%, and 40% above 310 UTM: $4,269.77 on $60,000; $32,442.14 on $150,000. No Chilean social contributions deducted. With no Chilean withholding agent, the employee self-pays on Form 50 (SII).
- Retiree: non-resident at 90 and 182 days: no Chilean source (LIR arts 3, 10). At 365 days: within 3 years of entry, all foreign-source, so 0 for 2026. From year 4 the private pension and interest fall under Global Complementario; not computed. US Social Security stays US-only (treaty art 18(3)).
- Other rates: Global Complementario for tax year 2026 uses the Dec 2025 UTA of CLP 834,504: exempt to 13.5 UTA, 40% above 310 UTA. Boletas de honorarios withholding 15.25% in 2026, 16% in 2027, 17% from 2028 (a prepayment).
- US side: US–Chile convention signed 4 Feb 2010, in force 19 Dec 2023, applies from 1 Jan 2024; totalization agreement in force since 1 Dec 2001 (SSA POMS). US figures are federal income tax before the exclusion and credits; employee FICA is extra ($4,590 on $60,000; $11,475 on $150,000). No totals.
- Rates: CLP 992.48 per $1, Banco Central dólar observado (13 Nov 2026).
Links
- Decreto Ley 824, Ley sobre Impuesto a la Renta (texto consolidado BCN)
- Decreto Ley 830, Código Tributario (texto consolidado BCN)
- SII: Impuesto Único determinado por el propio trabajador (Formulario 50)
- SII: UTM, UTA, IPC 2026
- SII: UTM, UTA, IPC 2025
- SII: Aumento gradual de retención de honorarios
- SII: Convenios internacionales para evitar la doble tributación
- Banco Central de Chile: Indicadores diarios, dólar observado
- US–Chile income and capital tax convention, signed 4 Feb 2010
- Exchange of notes 2023 amending the US–Chile convention
- SSA POMS GN 01701.005: totalization agreements in force
- IRS: 2026 inflation adjustments
- IRS: US citizens and resident aliens abroad
- IRS: foreign earned income exclusion
- IRS: foreign tax credit, how to figure the credit
- IRS: FICA tax rates (Topic 751)
- IRS Publication 915: Social Security benefits
Other Chile guides
Every rule with its legal source.
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