Chile · Tax on foreign income
Does Chile tax foreign income? A guide for Americans
Short answer
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.
What you'd pay, by situation
| Retiree on US income $0 in your first 3 years; later years not worked out | 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. |
|---|---|
| Remote worker paid from the US $0 on short stays; about $4,270 a year on $60,000 if you live here | 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. |
| Working for a local employer 0–40%; the first about $985 a month is tax-free | Local pay is taxed monthly from day one, and your employer withholds it. |
Checked against the law The 183-day test, the 3-year rule, the wage scale and the treaty rules.
Not yet verified Paying the wage tax yourself, and the treaty's start date.
How it 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.
Taxes in Chile, with worked examples → The full Chile guide →
Questions people ask
Does Chile tax US Social Security and pensions?
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.
Remote worker paid from the US in Chile: what would I pay?
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 in Chile: what would I pay?
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.