Chile: individual tax residence and scope

More than 183 days in twelve months

Tax residence starts on the 184th day of presence in any rolling twelve-month period, consecutive or not. Arrival and departure days count; foreign-to-foreign transit and days wholly abroad do not.

Domicile can apply before the day test

Domicile combines residence with an actual or presumed intention to remain, evaluated with economic connections. It can begin on entry. Losing physical residence does not itself end domicile, especially where the principal business base remains directly or indirectly in Chile.

Worldwide versus Chilean-source income

Subject to statutory exceptions, residents or domiciliaries are taxed on worldwide income; people with neither status are taxed on Chilean-source income. Source includes Chilean-situated assets and activities carried out in Chile, regardless of the taxpayer's domicile or residence.

Initial three-year foreigner concession

A foreigner establishing Chilean residence or domicile initially pays only on Chilean-source income for three years from entry. The Regional Director may extend that period in qualifying cases. After it or an approved extension expires, worldwide income is covered.

Treaty residence and the initial concession

Applicable treaties use tie-breakers when both countries treat someone as resident. SII states that a foreigner taxed only on Chilean-source income during the initial three years is not a Chilean resident for treaty purposes during that period. Treaty protection must not be assumed from domestic residence alone.