This article details the current framework for individual income tax in Chile for 2025. It covers the principal elements of Chile’s personal income tax system, including progressive tax brackets, rates, and conditions relevant for residents and non-residents.
Overview of Chilean Individual Income Tax System (2025)
Chile applies a progressive individual income tax on a person’s worldwide income if they are resident, or on Chilean-source income for non-residents. The assessment basis is total income, and the structure rewards lower earners with a zero tax rate up to a defined threshold while progressively increasing rates at higher income levels.
Chile Income Tax Brackets and Rates (2025)
Below is a table summarizing the current tax brackets and rates for individuals in Chile for assessment year 2025. All values are in United States dollars (USD).
| Income Range (USD) | Rate (%) |
|---|---|
| $0 – $11,368.06 | 0% |
| $11,368.07 – $25,262.37 | 4% |
| $25,262.38 – $42,103.94 | 8% |
| $42,103.95 – $58,945.52 | 13.5% |
| $58,945.53 – $75,787.10 | 23% |
| $75,787.11 – $101,049.46 | 30.4% |
| Over $101,049.46 | 35.5% |
The zero-rate band benefits lower earners, and rates increase with higher income bands, with the top marginal rate set at 35.5% for income above $101,049.46.
Assessment Basis
The Chilean tax system uses total income as its assessment basis. Resident individuals are taxed on worldwide income, while non-residents are taxed only on Chilean-sourced income. Official guidance on definitions and residency status can be found on the Chilean tax authority’s website (sii.cl).
Surtaxes for Non-Residents
Non-resident individuals performing certain services are subject to special rates under Chilean law. Notably, there is a flat 15% surtax applicable:
- 15% surtax: Applies to non-resident individuals performing technical, engineering, or professional services prior to establishing Chilean residence.
This additional charge is particularly relevant for consultants, engineers, or foreign experts working on short-term assignments before residency is obtained.
Holding Period Requirements
No minimum or maximum holding period requirements are specified for individual income tax in Chile as of 2025. Transactions and assessments are based strictly on the annual declared income.
Pro Tips for Navigating Chilean Income Tax
- Ensure you understand residency rules—residency status dramatically affects what income is taxable.
- Keep all formal contracts and supporting documents for any technical, engineering, or professional services if you are a non-resident; these support correct surtax treatment.
- Monitor income across tax years to manage progression through Chile’s brackets; smart timing may reduce your marginal tax rate.
- Consult updated guidelines on the official Chilean tax office site (sii.cl) prior to filing or engagement, especially if your situation is complex or unusual.
Key Points to Remember
To summarize, Chile’s individual income tax regime in 2025 employs a clearly structured progressive rate schedule with significant increases at higher income bands. Surcharges apply to non-residents performing certain types of professional work before they acquire residency. Income tax in Chile is assessed on an annual basis with rates and thresholds denominated in USD. As always, verifying your specific position with the Chilean authorities remains the most prudent course.