South America
Chile tax rates 2026
Residents are taxed on worldwide income, but new residents pay tax only on Chilean-source income for their first three years.
Worldwide (residence-based)
Last verified
The taxes
| Personal income (top) | 40%Progressive up to 40% (Impuesto Global Complementario). New residents are taxed on Chilean-source income only, for their first 3 years. |
|---|---|
| Corporate income | 27% |
| Capital gains | Taxed as income, up to 40%. Listed shares with market presence are taxed at 10%. |
| VAT / IVA | 19% |
| Dividends (WHT) | 35% additional tax, with a partial 27% corporate credit |
| Interest (WHT) | 4% / 35% |
| Royalties (WHT) | 15% / 30% |
| Social security (employee) | About 20% (AFP pension and health, capped) |
| Social security (employer) | About 4% or more (unemployment insurance, plus a new pension-reform employer contribution now phasing in) |
| Wealth tax | None |
| Inheritance / estate | Progressive, up to 25% |
| Property tax | Impuesto Territorial, known as contribuciones, at roughly 1% or more of fiscal value |
| Other | The 2025 pension reform adds gradual employer contributions. |
How the system works
- Tax system
- Worldwide (residence-based)
- Foreign income
- Taxed (worldwide)
- Taxes by citizenship
- No
- Exit tax
- No
- CFC rules
- Yes
- CRS
- Participating
A special regime for new arrivals
Article 3 of the Ley de Impuesto a la Renta says new foreign residents are taxed only on Chilean-source income for their first three years, counted from entry. The SII Director Regional can extend that period in qualified cases, and there is no statutory cap on how long the extension can run.
Rates checked July 2026: the top marginal income tax rate, the standard VAT rate and the main corporate rate.
Ways to relocate to Chile
The residency and citizenship routes that lead here, weighed against the tax picture above.