Countries › Chile › Guide › 8. Immigration › Relocating staff to Chile: tax residence, the 3 year foreign income relief, wage tax, the foreign technician pension exemption and social security agreements

Relocating staff to Chile: tax residence, the 3 year foreign income relief, wage tax, the foreign technician pension exemption and social security agreements

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Last verified: 2026-10-26 · Status: Stable

Tax residence in Chile follows days, not visas: more than 183 days in any 12 month period makes a person resident, but a foreigner who settles in Chile is taxed only on Chilean source income for the first 3 years, extendable by the SII in qualified cases. Salaries are taxed monthly by employer withholding on a progressive scale from 0 percent up to 13.5 UTM to 40 percent above 310 UTM, while non residents paid for scientific, cultural or sporting work in Chile bear a flat 20 percent withheld before they leave. Foreign technical staff who keep a foreign pension can be exempted from Chilean pension contributions under Ley Nº 18.156 and recover AFP balances, and Chile has 27 bilateral social security agreements plus the Ibero American multilateral convention that let seconded staff stay in their home system.

USD figures use the Central Bank rate of CLP 986.58 per US dollar published in the Diario Oficial of 23 October 2026 (CVE 2891564). UTM amounts use the SII value of CLP 72,151 for October 2026 (CLP 72,440 from November 2026) and UTA amounts CLP 865,812. Conversions are for orientation only.

Key facts

Days in Chile within any 12 months that make a person tax resident	183 daysCódigo Tributario art. 8 Nº 8, as of 2026-10-26 · in force
Years during which a newly resident foreigner is taxed only on Chilean source income	3 yearsDL Nº 824 art. 3, as of 2026-10-26 · in force
Monthly employment income taxed at 0 percent	13.5 UTMDL Nº 824 art. 43 Nº 1, as of 2026-10-26 · in force
Top marginal rate on employment income	40 %DL Nº 824 art. 43 Nº 1, as of 2026-10-26 · in force
Monthly income above which the top rate applies	310 UTMDL Nº 824 art. 43 Nº 1, as of 2026-10-26 · in force
Withholding on non residents paid for scientific, cultural or sporting work in Chile	20 %DL Nº 824 art. 60, as of 2026-10-26 · in force
Additional tax on other Chilean source income of non residents not covered by art. 58 and 59	35 %DL Nº 824 art. 60, as of 2026-10-26 · in force
Foreign technical staff may opt out of Chilean pension contributions if covered abroad	Yes textLey Nº 18.156 art. 1, as of 2026-10-26 · in force
Bilateral social security agreements in force	27 countSuperintendencia de Pensiones list, as of 2026-10-26 · in force
Monthly cap on pay subject to pension contributions, 2026	90.0 UFDL Nº 3.500 art. 16, as of 2026-10-26 · in force

The rule

1. A resident for tax purposes is anyone who stays in Chile, continuously or not, for periods that add up to more than 183 days within any 12 month period. Immigration status is irrelevant: a visitor or a business permit holder can become tax resident, and a resident permit holder who lives abroad may not be.DL Nº 830 of 1974, Código Tributario, as amended by Ley Nº 21.210 (Diario Oficial 24 February 2020), Art. 8 Nº 8, 2020-02-24 official text · verified 2026-10-26

2. Residents and persons domiciled in Chile pay income tax on worldwide income, and non residents only on Chilean source income. A foreigner who takes up domicile or residence in Chile is taxed only on Chilean source income during the first 3 years from entry; the SII regional director may extend the period in qualified cases, after which worldwide taxation applies. Absence from Chile does not end domicile if the person keeps the main seat of business in Chile, directly or indirectly.
Example: A Spanish manager who moves to Santiago in March 2026 pays Chilean tax on the Chilean salary from day one, but Spanish rental income and dividends are outside Chilean tax until March 2029 unless the SII extends the period. / On US$20,000 a year of foreign dividends, nothing is due in Chile in the first 3 years.DL Nº 824 of 1974, Ley sobre Impuesto a la Renta, art. 4 as amended by Ley Nº 21.210, Art. 3 and art. 4, 2020-02-24 official text · verified 2026-10-26

3. Salaries and wages are subject to the monthly second category single tax, withheld by the employer. On monthly income the rates are 0 percent up to 13.5 UTM, 4 percent from 13.5 to 30 UTM, 8 percent from 30 to 50, 13.5 percent from 50 to 70, 23 percent from 70 to 90, 30.4 percent from 90 to 120, 35 percent from 120 to 310 and 40 percent above 310 UTM, each applied to the slice within the band. Ley Nº 21.850 (Diario Oficial 17 October 2026) did not change this scale.
Cost to do it: At the October 2026 UTM the bands start at CLP 974,038 (13.5 UTM), CLP 2,164,530 (30), CLP 3,607,550 (50), CLP 5,050,570 (70), CLP 6,493,590 (90), CLP 8,658,120 (120) and CLP 22,366,810 (310).
Example: On taxable monthly pay of CLP 5,000,000 (after mandatory contributions) the tax is about CLP 351,042, an average rate of 7.0 percent; on CLP 10,000,000 about CLP 1,817,439 (18.2 percent). / About US$356 on US$5,068 a month, and about US$1,842 on US$10,136 a month.DL Nº 824 of 1974, as amended by Ley Nº 20.630 and Ley Nº 21.210, Art. 42 Nº 1 and art. 43 Nº 1, 2020-02-24 official text · verified 2026-10-26

4. Individuals without residence or domicile in Chile who earn Chilean source income not taxed under art. 58 and 59 pay additional tax at 35 percent. For pay that comes only from the personal work or skill of non resident individuals who carry out scientific, cultural or sporting activities in Chile, the rate is 20 percent, applied to the gross amount without deductions, as a single tax in place of the second category tax, and it must be withheld and paid by whoever hired them before they leave Chile.
Example: A foreign keynote speaker paid CLP 2,000,000 for a conference in Santiago has CLP 400,000 withheld by the organiser. / About US$405 withheld on a US$2,027 fee.DL Nº 824 of 1974, as amended by Ley Nº 18.682, Ley Nº 20.154, Ley Nº 20.780 and Ley Nº 21.210, Art. 60, 2020-02-24 official text · verified 2026-10-26

5. Employers that hire foreign technical staff, and the staff themselves, are exempt from Chilean pension contributions under those contracts when the worker is affiliated with a foreign social security system that covers at least sickness, disability, old age and death, and the contract states the worker's wish to keep it. The exemption does not cover work accident and occupational disease insurance. Payments made abroad to keep the foreign affiliation are not treated as income in Chile, within the limit the law sets by reference to DL Nº 3.500. Foreign workers who did contribute to an AFP may ask for their pension funds back if they meet the same conditions. Where Chilean contributions are due instead, pension contributions apply to pay of up to 90 UF a month in 2026 (DL Nº 3.500 art. 16, as set by the Superintendencia de Pensiones).Ley Nº 18.156, as amended by Ley Nº 18.726 (Diario Oficial 23 July 1988), Art. 1, art. 2 and art. 7, 1988-07-23 official text · verified 2026-10-26

6. Chile has 27 bilateral social security agreements in force (Germany, Argentina, Australia, Austria, Belgium, Brazil, Canada, Colombia, Denmark, Ecuador, Spain, United States, Finland, France, Netherlands, Luxembourg, Norway, Paraguay, Peru, Portugal, Quebec, United Kingdom, Czech Republic, Korea, Sweden, Switzerland and Uruguay) plus the Ibero American Multilateral Agreement. Under them, workers can access old age, disability and survivor pensions with each state paying under its own law, and staff sent temporarily abroad can be exempted from contributing in the host country with a detachment certificate, as long as contributions continue at home, with extensions where the agreement allows.Bilateral social security agreements and the Ibero American Multilateral Agreement, as listed by the Superintendencia de Pensiones, Agreements list and detachment certificates, 2026-10-26 official text · verified 2026-10-26

7. Whatever the tax and social security position, the staff member needs an immigration permit that allows work, filed from abroad in most cases: the paid activities subcategory for employees, the investor subcategory for managers and specialist staff of companies at least 10 percent foreign controlled, or the multiple entry business permit for executives who only visit and are not paid in Chile.Decreto Nº 177 of 2022, Ministerio del Interior y Seguridad Pública, Art. 17, art. 62 and art. 65, 2022-05-14 official text · verified 2026-10-26

Monthly band (UTM)	From CLP	To CLP	Rate on the slice
0 to 13.5	0	974,038	0%
13.5 to 30	974,038	2,164,530	4%
30 to 50	2,164,530	3,607,550	8%
50 to 70	3,607,550	5,050,570	13.5%
70 to 90	5,050,570	6,493,590	23%
90 to 120	6,493,590	8,658,120	30.4%
120 to 310	8,658,120	22,366,810	35%
Above 310	22,366,810		40%

Monthly second category tax scale (DL Nº 824 art. 43 Nº 1) at the October 2026 UTM of CLP 72,151

Situation	Income tax in Chile	Chilean pension contributions
Executive visiting on a business permit, paid abroad, under 183 days in 12 months	Only on Chilean source income, if any	Not applicable without a Chilean employment contract
Employee of a Chilean company, newly moved	Monthly wage tax on Chilean pay; foreign income exempt for 3 years	Due, unless Ley Nº 18.156 exemption or a detachment certificate applies
Seconded technician keeping a foreign pension	Monthly wage tax on Chilean pay	Exempt under Ley Nº 18.156; work accident insurance still due
Seconded worker from an agreement country	Monthly wage tax on Chilean pay	Home system under a detachment certificate, within the agreement's limits
Non resident speaker, artist or athlete	20 percent single tax withheld before departure	Not applicable

Tax and social security position by type of assignee (DL Nº 824, Código Tributario, Ley Nº 18.156, Superintendencia de Pensiones)

Worked example

Taxable monthly pay of CLP 5,000,000: 4 percent of CLP 1,190,492 (CLP 47,620) plus 8 percent of CLP 1,443,020 (CLP 115,442) plus 13.5 percent of CLP 1,392,450 (CLP 187,981) gives CLP 351,042, about US$356 on about US$5,068.
Taxable monthly pay of CLP 25,000,000 bears about CLP 7,199,098 of wage tax, an average of 28.8 percent, about US$7,297 on about US$25,340.
A US engineer seconded by a Texas parent stays in US Social Security with a detachment certificate under the Chile United States agreement; the Chilean subsidiary still withholds Chilean wage tax on pay for work in Chile.
An Argentine manager moving to Santiago can rely on the Chile Argentina social security agreement listed by the Superintendencia de Pensiones; Argentine side rules are covered at a high level by The Argentine Thread guide.

Step by step

Map each assignee's days in Chile: more than 183 days in any 12 months makes them tax resident whatever the permit.
Record the date of entry that starts the 3 year Chilean source only period, and plan for worldwide taxation afterwards or ask the SII for an extension in qualified cases.
Decide the social security route before the contract is signed: Chilean AFP and health, a Ley Nº 18.156 clause with proof of foreign coverage, or a detachment certificate from the home country under an agreement.
Set up payroll withholding of the monthly wage tax and pay it with other withholdings by the monthly deadline (see taxes/payroll-taxes).
For short visits by speakers, artists or athletes, withhold the 20 percent tax and pay it before they leave Chile.
Check the treaty position for the assignee's home country, including any tie breaker on residence (see taxes/tax-treaties).

Common traps

Assuming a visitor or business permit avoids tax residence. Residence is a day count under Código Tributario art. 8 Nº 8.
Forgetting the 3 year clock. From the fourth year after entry a resident foreigner is taxed on worldwide income unless the SII extends the period.
Keeping the main seat of business in Chile after leaving. Under DL Nº 824 art. 4, absence alone does not end Chilean domicile.
Using Ley Nº 18.156 without the contract clause stating the wish to keep foreign affiliation, or for staff whose foreign scheme lacks one of the four covered risks.
Expecting the pension exemption to cover work accident insurance. Ley Nº 16.744 coverage is still due.
Detachment certificates only work with agreement countries and within each agreement's limits; check before the start date.
The 20 percent single tax for performers must be withheld before departure; after they leave, the payer still owes it.

Sources

← Employer compliance for foreign staff in Chile: who you may hire, contract formalities, the 85 percent rule and fines for unauthorised workBusiness visitors and short stays in Chile: the 90 day visitor permit, who needs a consular visa, proof of funds, extensions and paid work on a visit →