In this article, we provide a comprehensive overview of the tax residency rules applying to individuals in Chile for 2025. All data is based on official guidelines, focusing on residency definition, key thresholds, and practical application for your tax planning needs.
Definition of Tax Residency in Chile
The Chilean tax system determines tax residency for individuals primarily through a combination of physical presence and habitual residence tests, along with certain conditions for extended stays and domicile intentions.
Key Tax Residency Criteria (2025)
| Residency Test | Description | Minimum Requirement |
|---|---|---|
| Physical Presence | Stay in Chile for six consecutive months in one calendar year, or more than six months (whether consecutive or not) over two consecutive calendar years. | 183 days (consecutive or distributed across 2 years) |
| Habitual Residence Rule | Applies when an individual establishes habitual residence in Chile. | Condition met upon intent to stay long-term |
| Extended Temporary Stay | If you remain over six months in aggregate during two consecutive years, residency is triggered. | Greater than 183 days across two years |
| Domicile Acquisition Before Residence | If domicile is acquired before establishing residence and there is a clear intention to remain in Chile permanently or for a significant period, normal taxation applies from the entry date. | Subjective test based on individual’s intent |
Overview of Residency Rules Applied in Practice
- 183-Day Rule: Chile does not apply a classic 183-day rule in the same way as some other countries. Instead, the focus is on six consecutive months in a calendar year, or an accumulated period totaling more than six months over two years.
- Center of Economic Interest: This is not a determining factor for residency in Chile.
- Habitual Residence: Habitual residence is a core criterion. If you settle in Chile with the intention of forming a long-term or indefinite home, you are deemed tax resident from your arrival date.
- Center of Family Life or Citizenship: Neither the center of family life nor citizenship per se defines tax residency under Chilean law.
- Intent and Domicile: Where domicile is acquired before formal residence, and intent is clear, you are considered tax resident with taxation starting from arrival.
Detailed Residency Framework for 2025
The main components of Chile’s tax residency determination for individuals in 2025 are:
- Physical Presence: Residency is triggered if you are physically present in Chile for six consecutive months in any calendar year, or for more than six months in total (even if not consecutive) across two consecutive years.
- Habitual Residence: If you establish habitual residence due to your intent to remain in the country, you are considered tax resident from your date of entry.
- Extended Temporary Stay: If you remain in the country for more than six months over two consecutive years (even if this stay is not uninterrupted), residency is acquired.
| Rule | Is it applied in Chile? |
|---|---|
| 183-Day Classic Rule | No |
| Center of Economic Interest | No |
| Habitual Residence | Yes |
| Center of Family Life | No |
| Citizenship | No |
| Extended Temporary Stay Rule | Yes |
Note: In practice, tax authorities in Chile may investigate the intention behind your move (habitual residence) and review your actual pattern of stay to apply the correct test.
Special Considerations: Domicile and Taxation Start Date
If you acquire domicile in Chile before qualifying as resident, and your declared intention is to stay for a significant period, you will be subject to Chilean taxation from your first date of entry. This subjective test underscores the importance of properly documenting your intent when relocating.
Actionable Pro Tips
- Carefully document your entry and exit dates each year. Authorities will rely on these records to assess whether the six-month threshold has been met.
- If you intend to remain in Chile long-term, clarify your plans and maintain supporting documentation (e.g., housing contracts, local bank accounts) to demonstrate habitual residence.
- For those with irregular travel patterns, monitor your total days present in Chile over a two-year period to avoid unexpected triggers of tax residency under the extended temporary stay rule.
- Consult with a local advisor if there is any question of domicile acquisition before you reach residency thresholds, as taxation may be applied retroactively from your first arrival.
- Habitual residence can sometimes be inferred from facts, not just explicit intention, so make sure your living arrangements and official registrations align with your plans.
Official Resources
For the most accurate and up-to-date information on residency criteria, visit the official Chilean revenue authority at sii.cl.
In summary, Chile establishes tax residency based on habitual residence and specific day-count triggers, rather than the classic 183-day standard. Extended stays and the declared intention to live in Chile both play critical roles. By keeping precise records and understanding how domicile rules can accelerate your taxation start date, you can effectively manage your tax obligations and residency status in Chile for 2025.