Tax system in Chile
Chile taxes residents on worldwide income after a three-year foreign-income holiday for newcomers. Salary bands run 0% to 40%, with the top starting near CLP 21.5 million monthly taxable.
Companies pay 27% semi-integrated with only 65% creditable, so non-treaty dividends total 44.45%. Small firms pay a temporary 12.5% through 2027 with full integration.
Listed-share gains pay a 10% single tax, homes enjoy 8,000 UF lifetime shelter, succession runs 1% to 25%, and VAT is 19%. No wealth tax exists.
Tax rates at a glance
- Income tax
- 0% - 40%Progressive
- Wealth tax
- 0%
- Inheritance tax
- 1% - 25%
- Capital gains tax
- 10% / bands
- Corporate tax
- 27%
- Dividend tax
- 35% / credit
- VAT
- 19%
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
EmployeesExpatsInvestorsFoundersCross-border groups
Watch out for
- Chile is not low-tax for high salaries. The 40% top plus pension, health and unemployment layers makes top pay firmly taxed.
- The 44.45% dividend total surprises founders. Semi-integration strands 35% of company tax as final cost for non-treaty owners.
- The 2026 rate-cut bill is filed, not law. Price structures at 27% corporate and partial integration until parliament votes.
- Newcomer holidays need domicile timing. The three-year foreign-income window starts with residence, not with arrival day.
Frequently asked questions
Is Chile a high-tax country?
For top salaries and non-treaty dividends, yes: 40% income tax and 44.45% combined dividends. Small firms and listed investors face gentler lanes.
Does Chile have a wealth tax?
No. The 2022 proposal was rejected, though a 2% luxury tax hits aircraft, yachts and expensive cars.
Which taxes matter most in Chile?
The main ones are Global Complementario bands with social charges, 27% semi-integrated corporate tax, 10% listed gains, 1% to 25% succession and 19% VAT.