Expat Taxes in Chile

[!WARNING] Chile taxes worldwide income after 3 years, wiping out long-term arbitrage.

The 3-Year Grace Period

If you move to Chile and become a tax resident (living there for more than 183 days in any 12-month period), you are generally liable for Chilean taxes.

• The Loophole: Foreigners are exempt from paying Chilean tax on foreign-sourced income for their first 3 years of residency. You only pay tax on Chilean-sourced income (which should be zero if you are a remote worker).
• The Cliff: Exactly on day 1 of your 4th year, the exemption vanishes. You are suddenly taxed on your worldwide income at progressive rates up to 40%. Most nomads leave Chile before this 3-year grace period expires.