Relocation intelligence

🇨🇱 Moving to Chile: tax, residency and cost of living

Progressive income tax on employment income (Impuesto Unico de Segunda Categoria) with eight brackets from 0 to 40 percent, denominated in tax units (UTM monthly, UTA annually). Mandatory social contributions are deducted before the tax base.

Thinking of moving to Chile? Here is the tax, residency, property and quality-of-life picture in plain numbers, with sources.

Key facts

Top income tax
40%
Corporate tax
27%
Capital gains
40%
Wealth tax
No
Inheritance tax
Yes
Cost of living index
41
Safety
5/10
Internet quality
8/10
Visa-free destinations
177
Foreigners can own property
Yes
Residency in
6 months
Citizenship in
5 years

Taxes

Employees pay the IUSC, a monthly progressive tax in UTM units (brackets 0/4/8/13.5/23/30.4/35/40 percent). The 2026 UTM value is about CLP 69,751 (January) to 71,649 (August); UTA equals 12x UTM. No wealth tax; inheritance tax up to 25 percent applies.

Residency and visas

Residency is relatively accessible; permanent residence typically after 2 years of temporary residence, naturalisation after 5 years. No golden visa or citizenship by investment.

Property ownership

Foreigners may freely buy residential property; land in border zones is restricted and requires authorisation.

Cost of living and quality of life

Stable economy, excellent internet and good healthcare, but higher costs in Santiago and rising crime; high seismic risk.

Passport and mobility

Strong passport (177 destinations visa-free, Henley rank 15). Chile participates in the US Visa Waiver Program.

Why people move to Chile

  • Strong passport and international access

    Chile is the only South American country in the US Visa Waiver Program and its passport grants visa-free or visa-on-arrival access to 177 destinations (Henley 2026, rank 15).

  • Three-year foreign-income exemption

    Newly arrived foreigners are taxed only on Chilean-source income for their first three years, with a temporarily reduced SME corporate rate of 12.5 percent (2025-2027) as an added benefit.

Honest trade-offs

  • Fiscaal inwoners betalen na drie jaar belasting over hun wereldwijde inkomen, met een progressief toptarief van 40 procent op arbeidsinkomen.
  • Verplichte werknemersinhoudingen zijn hoog: samen ongeveer 18 tot 20 procent van het brutoloon (AFP pensioen 10 procent plus commissie, gezondheid 7 procent, werkloosheid 0,6 procent), begrensd op 90 UF per maand.
  • De veiligheidssituatie is verslechterd, met stijgende criminaliteit in Santiago; de Numbeo veiligheidsindex voor Chili ligt rond de middenmoot.
  • Chili ligt in een van de seismisch actiefste zones ter wereld, met regelmatig zware aardbevingen en tsunamirisico langs de kust.
  • Buitenlanders mogen woningen bezitten, maar grond in grensgebieden is beperkt (Decreto Ley 1.939) en vereist speciale toestemming.

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Sources

Other destinations

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