Chile: residency and the new-resident tax exemption
ChileAmericasOverview
Chile taxes residents on worldwide income, but Article 3 of its Income Tax Law makes an exception for foreigners: in the first three years after they enter Chile and take up residence, only Chilean-source income is taxed. Foreign salaries, dividends, interest and gains stay outside Chilean tax for that period.
The exemption suits founders and investors who want a base in a stable, well-connected country while their income still comes from abroad. Plan the exit or the long-term structure before year three ends, because from then on worldwide income is taxable at rates up to 40%.
Immigration is separate and runs through the Servicio Nacional de Migraciones (SERMIG) under the 2022 Migration Law. Redomiciled coordinates with licensed Chilean immigration lawyers and accountants.
Chile temporary residence
Chilean temporary residence (Residencia Temporal) is granted for up to two years, renewable, under Law 21.325 of 2022 and Decree 177 of 2022. Applications are filed online from outside Chile through the SERMIG portal, and the applicant enters Chile once approved.
The subcategories most relevant to our clients are rentista (people living on passive income such as rents, dividends or pensions), investor (a qualifying investment in Chile, with a sponsorship route through InvestChile) and remunerated activities (work for a Chilean employer, or self-employment). SERMIG publishes no fixed income minimum for rentistas; the income must be stable and documented.
After the qualifying period on temporary residence, holders can apply for permanent residence. The tax exemption starts from entry into Chile once the person takes up domicile or residence, so the immigration and tax timetables should be planned together.
Who it suits
Founders with foreign companies and clients
Three years of residence without Chilean tax on foreign profits and dividends.
Investors planning a liquidity event
Gains on foreign assets during the exemption are outside Chilean tax.
Families wanting a long-term Latin American base
Permanent residence and, later, citizenship are available.
Requirements
- Required
Application from abroad
Filed online through SERMIG before travelling.
- Required
Passport and criminal record certificate
Apostilled; police certificate typically recent.
- Required
Proof of the qualifying basis
Passive income, investment or a Chilean contract, depending on the subcategory.
- Required
Domicile or residence in Chile
Needed to start the tax exemption; residence generally follows 183 days in a 12-month period.
- Depends on your case
Extension request to the SII
Only if you want the exemption beyond three years.
- Legal basis, immigration
- Law 21.325 (2022) and Decree 177 of 2022As of 2026-10-27 · [4]
- Legal basis, tax exemption
- Income Tax Law, Article 3, second paragraphAs of 2026-10-27 · [1]
- Exemption length
- 3 years from entry, extendable in qualified casesAs of 2026-10-27 · [1]
- Chilean nationals returning
- Not eligibleAs of 2026-10-27 · [1]
- Treaty status during the exemption
- Not treated as Chilean resident for tax treaties, per SII guidanceAs of 2026-10-27 · [3]
- Top personal tax rate after exemption
- 40%As of 2026-10-27 · [3]
Timeline
- 1Plan the three yearsMap income, gains and the exit or long-term structure before arrival.
- 2Apply for temporary residenceOnline from abroad through SERMIG.
- 3Enter Chile and registerObtain the RUT tax number and take up residence.
- 4Exemption periodChilean-source income only for three years from entry.
- 5Extension or worldwide taxationRequest an extension in qualified cases, or move to worldwide taxation.
Questions
Does Chile have a tax holiday for new residents?
Yes. Foreigners who take up residence are taxed only on Chilean-source income for three years from entering Chile. The SII Regional Director can extend the period in qualified cases.
What happens after three years?
Unless an extension is granted, you are taxed on worldwide income like any Chilean resident, at progressive rates reaching 40%.
How do I apply for Chilean residency?
Online from outside Chile through SERMIG, under the temporary residence subcategory that fits you, such as rentista, investor or remunerated activities.
How long is Chilean temporary residence granted for?
Up to two years, renewable, under Law 21.325 of 2022 and Decree 177 of 2022. After the qualifying period on temporary residence, holders can apply for permanent residence.
Banking in our network
We do not publish institution names: the right partner depends on your profile, and each institution keeps its own view on who it will serve.
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No partner institution in our network is based here; companies and residents here are introduced to partners in other jurisdictions.
Sources
- 1.Ley sobre Impuesto a la Renta, Article 3, retrieved 2026-10-27
- 2.Consultores ID: tax residence in Chile and the 183-day rule, retrieved 2026-10-27
- 3.Círculo Verde: how tax residence is defined in Chile, retrieved 2026-10-27
- 4.SERMIG: investors and related personnel (subcategory 13), retrieved 2026-10-27
- 5.Golden Harbors: Chile temporary resident visa 2026, retrieved 2026-10-27
Reviewed by the Redomiciled team on .
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