Chile 2026: three years, extendable to six, with no tax on your foreign income, in the most stable country in Latin America

Article 3 of the LIR provides that a foreigner becoming tax resident in Chile is taxed on Chilean-source income only for the first three years. Foreign-source income, including dividends and capital gains, is therefore exempt from Chilean tax during this period. This three-year window is extendable by up to three more years, six in total, at the discretion of the SII Regional Director, on application. The scheme is confirmed in force for 2026. Source: LIR Art. 3, PwC Chile 2026.

The resident switches to worldwide taxation. Foreign income, dividends included, is then folded into the Global Complementary Tax (IGC), a progressive scale from 0% to 40%, with the 40% bracket applying above 310 UTA per year (roughly 270,000 USD in 2026). Foreign tax credits exist under treaties (Articles 41A and 41C, capped at 35%) and a unilateral credit capped at 32% for certain income. This is why Chile is a window play, not a permanent haven. Source: PwC Chile 2026, LIR Art. 41A.

No, and this is the Article 107 trap. Since the 2022 reform, the flat 10% rate on capital gains applies only to instruments with a Chilean stock-market presence, that is, listed on the Bolsa de Santiago or held in Chilean funds governed by Law 20,712. A foreign ETF or share held through a foreign broker falls under the general regime, the IGC scale of 0% to 40%. You must therefore track the origin of each security carefully. Source: LIR Art. 107, SII Circular 39/2022.

Chile has no wealth tax. It does, however, tax transfers by inheritance or gift. In the direct line, the scale is progressive from 1% to 25%, with an allowance of 50 UTA per heir. For comparison, many Western systems impose capital and estate taxes that can run well higher, so on wealth and transfers Chile is comparatively light. Source: PwC Chile 2026.

The rentista or jubilado visa opens temporary residence, up to two years, to people living on passive income or a pension. The income threshold is not officially set by Law 21,325, but practice centers on roughly 1,000 to 1,500 USD a month, to be evidenced as stable and recurring. Processing is slow, six to fourteen months. Permanent residence follows, with a fast track possible at twelve months. Source: SERMIG, Ley 21,325.

Citizenship is available after five years of regular residence in Chile, subject to genuine presence and a clean record. Chile recognizes dual nationality, so you can keep your original passport. This is one of the shortest timelines in the region for a developed country, and an advantage for a long-term settlement plan. Source: SERMIG, 2026.

Chile is, alongside Uruguay, the most expensive country in Latin America, yet it remains moderate compared with Western Europe. A two-bedroom flat in Providencia or Las Condes, in Santiago, costs around €650 a month, dinner for two around €30, a pint around €3. Valparaiso comes 20% to 30% cheaper. The service level is high: quality private clinics, fast internet, the highest HDI in the region. Source: cost-of-living indices, 2026.

Yes, freely, which is not the case everywhere in the region. A foreigner can buy an apartment or a house with no nationality restriction. As a guide, central Santiago is near €2,400 per square meter, outside the center €1,500, and Valparaiso around €1,600. Only certain sensitive border zones may be subject to specific restrictions. Source: local real estate data, 2026.

Yes, it is the best ranked of the large Latin American countries in the hub. The 2025 Global Peace Index places Chile 56th out of 163 (score 1.899). As in any large metropolis, property crime exists in certain districts of Santiago, but the country remains markedly more stable and safe than its regional neighbors. Source: Institute for Economics and Peace, Global Peace Index 2025.

Chile has the best healthcare system in the region, with excellent private clinics in Santiago, notably in the Las Condes area. Residents rely on the private Isapre system or on international insurance. Care quality in the major cities is comparable to Europe, at lower rates. Solid private cover remains recommended. Source: international insurers, 2026.

This is the main point to watch. The Chilean peso is closely correlated with the copper price, the country's leading export, which gives it volatility of around 8% to 12% against the euro depending on the year. For a FIRE candidate whose income is in euros, this volatility can weigh on local purchasing power from one year to the next. Inflation runs around 3.8%. It is prudent to keep part of your wealth in hard currencies. Source: market data, 2026.

Yes. Chile takes part in automatic exchange of information under the OECD CRS standard and has a network of tax treaties to avoid double taxation. Notably, a tax treaty between Chile and the United States entered into force in December 2023. The three-year window does not remove reporting obligations: a review of your situation with an adviser remains recommended. Source: OECD, PwC Chile 2026.