Country Hub · Chile · 2026

Chile

0–40% progressive · Territorial for first 3 years of residency · AFP pension employee 10% · Health 7% · Most stable economy in South America

0% → 4% → 8% → 13.5% → 23% → 30.4% → 35% → 40% (8 brackets)

Income Tax Rates

~CLP 9.7M/year (~$10,000) — first bracket is 0%

Tax-Free Threshold

Foreign income exempt for first 3 years of Chilean residency

Territorial System

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Chile Tax Facts

— 2026

Income Tax Rates

0% → 4% → 8% → 13.5% → 23% → 30.4% → 35% → 40% (8 brackets)

Tax-Free Threshold

~CLP 9.7M/year (~$10,000) — first bracket is 0%

Territorial System

Foreign income exempt for first 3 years of Chilean residency expat benefit

AFP Pension

10% employee contribution (private pension funds)

Health Insurance

7% employee (FONASA public or ISAPRE private)

Tax Year

1 Jan – 31 Dec (tax return April 30)

Quick Country Comparison

— at CLP 60,000,000

Country	Take-home	Eff. Rate	vs Chile
Chile	CLP 38,400,000	~36%	—
Peru	CLP 41,400,000	~31%	+CLP 3,000,000
Colombia	CLP 37,800,000	~37%	−CLP 600,000
Argentina	CLP 36,600,000	~39%	−CLP 1,800,000

Chile: progressive 0–40% + AFP 10% + health 7% = ~17% social. Colombia: progressive 0–39%. Argentina: Ganancias 5–35% + ~17% social. Peru: 8–30%. CLP 60,000,000 ≈ $63,000 at June 2026 rates. Illustrative — not tax advice.

Want your exact figures? Use the full Chile calculator →

Comparison Guides

See how Chile's tax system compares to Argentina and other Latin American countries.

Chile vs Argentina South America's most contrasted economies

Salary Guides

Chile uses the Chilean Peso (CLP). The 3-year territorial period for new residents is a significant planning opportunity — foreign income (remote work, investments, pensions) is not subject to Chilean tax during this period. After 3 years, residents pay tax on worldwide income.

Moving from Chile

Chile offers a Rentista visa (passive income from abroad, min $2,000/month), a Pensionado visa (retirement pension), and professional/work visas. Chile has signed free trade agreements with 65+ countries and has a well-developed legal and financial infrastructure. Santiago offers a modern city lifestyle with relatively low crime vs other Latin American capitals. Chile has no formal digital nomad visa but remote workers frequently use the Rentista category.

2026 Chile Tax Changes

Tax reform under discussion 2025/26 — Chile's government has been pursuing tax reform (reforma tributaria) to increase the top marginal rate and wealth taxes; as of June 2026, the core progressive schedule (0–40%) and the 3-year territorial exemption remain in place; monitor for legislative changes.
AFP pension system reform ongoing — Chile's private pension (AFP) system has been subject to reform debate since 2021 withdrawals during COVID; the 10% employee contribution continues but the system architecture may change.
CLP exchange rate volatility — The Chilean peso (CLP) has experienced volatility; the government intervenes in the currency market periodically; USD-earning expats using Chile's 3-year territorial exemption benefit from converting at current rates.

Last Updated: June 2026 · Daniel · CountryTaxCalc