Starting a business in
🇨🇱Chile
Checked November 4, 2026 · How we score
Corporate tax
27%
Top income tax
40%
Setup from
$800
all-in, first year
Time to form
7 days
can be done remotely
Taxes in Chile
| Corporate income tax | 27% 27% under the semi-integrated general regime (Primera CategorÃa). The Pro-Pyme regime for small companies (revenue up to about 75,000 UF) taxes at 25%, with transitional lower rates; the 14 D No. 8 option taxes owners directly on cash basis. Dividends are taxed at 35% in the hands of non-resident shareholders with a credit for 65% of the corporate tax paid. |
|---|---|
| Personal income tax (top) | 40% Impuesto Global Complementario is progressive up to 40% on income above roughly CLP 150M. Residents are taxed on worldwide income, but new residents get a 3-year exemption on foreign income (extendable) from their date of settling. |
| Tax system | Worldwide income |
| Capital gains tax | 10%Gains on shares of listed Chilean companies held 1+ year may be taxed at 10% (flat option) or at ordinary progressive rates; other gains at ordinary rates plus first-category credit. Non-residents are taxed on Chilean-sourced gains at 35%/27% depending on the asset. |
| Dividend withholding (non-residents) | 35% |
| VAT / GST | 19% |
| Social security | IVA 19%. Employer cost about 3% unemployment/accident insurance plus mutual contributions; employee pension about 10% + health 7%. Dividends paid to non-residents face 35% withholding with a credit for corporate tax paid, so the effective total tax is about 44.45% (reduced to 35% under certain treaties). |
Forming a company in Chile
| Usual entity | SpA (Sociedad por Acciones) or SRL |
|---|---|
| Minimum capital | None |
| Setup cost (all-in) | $800–$2,500 |
| Annual running cost | $1,500–$5,000 |
| Time to incorporate | 7 days |
| Form remotely as a foreigner | Yes |
| Local director required | No |
| Local address required | Yes |
| Owners on public register | No |
| Statutory audit for small companies | No |
| Business banking for non-residents | Hard |
Residency and visas
Chile has no dedicated digital nomad visa. Remote workers usually enter as tourists (90 days) or apply for temporary residence; entrepreneurs can use the Start-Up Chile program or the temporary residence for entrepreneurs/independent professionals. Permanent residence is available after 2 years of temporary residence, and citizenship after 5 years.
| Digital nomad visa | No |
|---|---|
| Golden visa | No |
| Ease of residency for founders | 3/5 (1 = easiest) |
Special tax regimes
Pro-Pyme regime
Small and mid-sized companies can adopt a simplified accounting and tax regime with a 25% rate (sometimes lower transitional rates) and immediate expensing of investments.
3-year foreign income exemption for new residents
Newly arrived foreigners are not taxed in Chile on foreign-source income during their first three years of residency (extendable once), with Chilean-source income still taxable.
Start-Up Chile
Government accelerator program providing equity-free funding and visa support for foreign founders building companies in Chile.
Pros and cons
Why founders pick Chile
- Most stable and best-governed economy in Latin America
- SpA can be formed online in days
- Strong treaty network and OECD membership
- Mature banking and capital markets
Watch out for
- 27% corporate tax and 35% dividend withholding on non-residents
- Chilean tax ID and e-signature access need local help for foreigners
- Peso volatility and high living costs in Santiago
- No digital nomad visa
Best for: Startups serving Latin American markets from a stable base · Founders who qualify for Start-Up Chile funding · Foreign professionals using the three-year tax exemption on foreign income
Chile: common questions
What is the corporate tax rate in Chile?
The general corporate tax rate is 27% under the semi-integrated regime, and eligible small companies can use the Pro-Pyme regime at 25% (with reduced transitional rates). Dividends to non-resident shareholders face 35% withholding with a credit for corporate tax paid.
Can a foreigner start a company in Chile remotely?
Yes. A foreign shareholder can form an SpA, even online with the 'Tu Empresa en un DÃa' system if represented by someone with a Clave Única, or through a Chilean lawyer with a power of attorney. You need a RUT tax ID and a registered address; bank accounts can take weeks.
Does Chile tax foreign income for new residents?
New residents are not taxed on foreign-source income for the first three years after settling, extendable once, subject to conditions. After that period, they are taxed on worldwide income at up to 40%.
What is Start-Up Chile?
It is a government-backed accelerator that offers early-stage startups equity-free funding (amounts vary by program and year) and visa support. Founders must plan to operate in Chile during the program.
Does Chile have a digital nomad visa?
No. Remote workers typically stay on a 90-day tourist stay or apply for temporary residence. Check the Servicio Nacional de Migraciones for any new remote-worker categories.
Sources
- SII Chile (Servicio de Impuestos Internos)
- Servicio Nacional de Migraciones
- PwC Worldwide Tax Summaries: Chile
Similar countries
Not tax or legal advice. Rates and rules change; we check official sources and update every page, but verify with a licensed adviser in the country before acting. Spotted something out of date? Use the correction form below.