As the tax year closes and the obligation to file the Annual Income Tax Return (Form 22) approaches, it is essential for foreign individuals who work or have worked in Chile — known as expatriates — to understand their tax obligations before the Chilean Internal Revenue Service (SII).

Who must file an income tax return in Chile?

All taxpayers must file a return if they:

• Are residents or domiciled in Chile;

• Have earned income from Chilean and/or foreign sources, depending on their tax situation;

• Are in an employment relationship and, in addition to their salary, receive other income; or

• Provide professional services independently within the country.

Tax Residence vs. Domicile (Article 3 of the Chilean Tax Code)

• Resident: A person who stays in Chile for more than 183 days, whether consecutive or not, within a 12-month period.

• Domiciled: A person who has their center of vital interests in Chile, even if they have not surpassed 183 days of stay.

Being a resident or domiciled in Chile means being subject to the general tax regime on Chilean-source income, and potentially on foreign-source income after a three-year period (Articles 3 and 59 of the Income Tax Law).

Taxation of Expatriates in Chile

• During their first 3 years in Chile, expatriates are taxed only on their Chilean-source income.

• After this period, if they retain their residence status, they will also be subject to taxation on their foreign-source income (with applicable limits if a double taxation treaty exists).

What must be declared?

• Employment income (salaries, bonuses, allowances).

• Professional fees for services rendered.

• Exempt or non-taxable income, which must still be reported (e.g., per diem allowances not constituting income, if requirements are met).

• Foreign income, when applicable based on residence and tax status.

Double Taxation Treaties

Chile maintains treaties with countries such as:

• Spain, France, Mexico, the United States, Canada, Brazil, the United Kingdom, among others.

These treaties may:

• Eliminate double taxation;

• Establish tax residency criteria;

• Allow the use of foreign tax credits.

Recommendations

• Verify whether you qualify as a resident or domiciled taxpayer in Chile.

• Assess whether your foreign income must be included in your return.

• Use your provisional tax ID (RUT) if you do not yet have a definitive one.

• If you are outside Chile, you can still file your return online using a Tax Password (Clave Tributaria) or Unified Password (Clave Única).

• Review if you can apply foreign tax credits according to Article 41 A of the Income Tax Law.

Filing deadline for 2025

The 2025 tax filing process (for income earned in 2024) will take place in April 2025, with specific deadlines depending on whether the return results in a refund, a tax payment, or is a no-movement filing.

To avoid errors and penalties, professional tax advice is highly recommended. If you are an expatriate in Chile or a foreigner with income from Chile, we can help you determine your tax status and ensure full compliance with your obligations.