Chile Tax Rates
Chile operates a progressive tax system administered by the Servicio de Impuestos Internos (SII). The country levies personal income tax through progressive brackets with a top rate of 40%, a 27% corporate income tax under the general regime, and a 19% value-added tax. Chile is known for its relatively transparent and stable tax system, and is a member of the OECD. The tax framework includes a unique corporate integration system that provides credits for corporate taxes paid when dividends are distributed to shareholders.
Top Income Tax Rate
40%
Corporate Tax Rate
27%
VAT / Sales Tax
19%
Capital Gains Tax
40%
Detailed Tax Information
Income Tax Brackets
Chile imposes a progressive personal income tax (Impuesto Global Complementario or IGC) with eight brackets ranging from 0% to 40%. The first bracket (up to 13.5 UTA) is exempt. Employees are also subject to a second-category tax (Impuesto Único de Segunda Categoría) that is withheld at source using the same bracket structure on a monthly basis. Residents are taxed on worldwide income, with foreign tax credits available. Key deductions include pension contributions (mandatory 10% of income plus commissions), health insurance contributions, mortgage interest (with limits), and approved savings instruments (APV). The system integrates corporate and personal taxation through a credit mechanism.
| Income Range | Tax Rate |
|---|---|
| CL$0 – CL$8.8M | 0% |
| CL$8.8M – CL$19.5M | 4% |
| CL$19.5M – CL$32.5M | 8% |
| CL$32.5M – CL$45.5M | 13.5% |
| CL$45.5M – CL$58.5M | 23% |
| CL$58.5M – CL$78.0M | 30.4% |
| CL$78.0M – CL$201.5M | 35% |
| CL$201.5M+ | 40% |
Corporate Tax
Chile has two corporate tax regimes. The general regime (Régimen Semi-Integrado) imposes a 27% corporate income tax, with shareholders receiving a 65% credit for corporate taxes paid when dividends are distributed and taxed at the personal level. The Pro-SME regime (Régimen ProPyme) imposes a 25% rate on small and medium enterprises with annual revenue up to 75,000 UF (approximately CLP 2.7 billion), with full integration of corporate and personal taxes (100% credit). Under ProPyme, businesses can use a simplified cash-basis accounting method. Companies must make monthly provisional tax payments and file an annual return. Transfer pricing rules follow OECD guidelines.
Standard Rate
27%
Small Business Rate
25%
Capital Gains Tax
Capital gains in Chile are generally treated as ordinary income and taxed at the individual's marginal rate (up to 40%) under the Global Complementary Tax. However, important exceptions exist: gains from selling shares with sufficient stock market presence (presencia bursátil) are subject to a single 10% tax instead of being added to ordinary income. Gains on real estate are generally taxable as ordinary income, with an exemption for the primary residence up to 8,000 UF. Non-habitual gains (ganancias de capital no habituales) may qualify for a single tax rate instead of progressive rates. Non-residents are subject to a 35% withholding tax on Chilean-source capital gains.
Short-Term Rate
40%
Long-Term Rate
40%
Rate
40%
VAT / Sales Tax
Chile levies a 19% value-added tax (IVA) on most goods and services. Exports are zero-rated, allowing exporters to recover input IVA. Exempt activities include most financial services, education, healthcare, public transportation, and residential rental. Chile does not have a reduced IVA rate; most goods and services are either taxed at 19% or exempt. Digital services provided by foreign companies to Chilean consumers are subject to IVA at 19% (implemented in 2020). Monthly IVA returns are required, and electronic invoicing is mandatory for most taxpayers.
Standard Rate
19%
Cryptocurrency Tax
Chile does not have specific cryptocurrency legislation, but the SII has clarified that crypto transactions are subject to existing tax rules. Gains from buying and selling cryptocurrency are treated as income and subject to personal income tax at progressive rates up to 40%. If crypto transactions constitute a habitual business activity, income is taxed as commercial profits. Crypto gains may potentially qualify for capital gains treatment under certain conditions. Taxpayers must report crypto holdings and transactions in their annual tax return. Chile has been developing regulatory frameworks for crypto assets, and the SII has been increasing enforcement.
Tax Treaties
Chile has approximately 35 double taxation agreements in force, one of the most extensive networks in Latin America. The Chile-US tax treaty entered into force in 2024 after many years of negotiation. Chilean treaties generally follow the OECD model and typically reduce withholding rates on dividends to 5-15%, interest to 4-15%, and royalties to 5-15%. Chile is a founding OECD member from Latin America (joined 2010) and actively participates in the BEPS Inclusive Framework. The country exchanges information under the Common Reporting Standard.
Treaty Network
35
Double taxation agreements
Major treaty partners:
Key Details
Relocate to Chile
See how much you could save by moving here from your current country.
+$6K
Tax in United States
$24K
24.4% effective
Tax in Chile
$19K
18.5% effective
You Save
24.1%
less tax annually
US Citizens: Important Note
US citizens are taxed on worldwide income regardless of residence. You'll still need to file US taxes, though the Foreign Earned Income Exclusion and Foreign Tax Credit may reduce your liability.
