Income Tax Law
Persons resident or domiciled in Chile are subject to income tax on their world-wide income. However an individual taking up domicile or residency in Chile is taxed only on Chilean source income for the first 3 years, on application this may be extended. Persons without domicile nor residency in Chile are taxed on their Chilean source income. A person is deemed to be domiciled or resident in Chile if:
- It may be assumed from the activities that he/she wishes to stay in the country on a permanent basis (domicile).
- If he/she spends more than six months in the country in a given calendar year or over a period of two years (resident).
Chilean source income is defined as income arising out of:
- Goods or assets located within Chilean territory
- Activities performed in Chilean territory