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ENA tax treaty is an agreement between two States that allocates the right to tax the same income when a person could be considered resident in both, or when their income has its source in one and their residence in the other. For an individual to invoke it before the SII, they must first prove their residence with the relevant certificate.
Chile's treaty network
According to the SII's official table, Chile currently has 37 tax treaties in force, including the United Kingdom (in force since 01.01.2005), the United States (since 01.01.2024) and Brazil (protocol applicable from 01.01.2026). Germany has no double-taxation treaty in force with Chile — only bilateral shipping and air-transport agreements exist, which do not cover employment or capital income.
What a treaty resolves for an individual
When a person could qualify as a resident of two States at once (for example, by keeping a permanent home in both), the treaty applies tie-breaker rules, typically following the scheme of article 4 of the OECD Model Tax Convention. That Model is a reference, not an autonomous rule applicable on its own: what governs is article 4 of the specific bilateral treaty, whose wording can depart from the Model. Each treaty also sets its own rules by type of income (salaries, pensions, dividends) in its own articles — so it is worth checking the applicable treaty's text rather than assuming they all say the same thing.
How residence is proven
For certain purposes — in particular, for a withholding agent in Chile not to withhold or to apply the treaty rate, under article 74 No. 4 of the LIR — a person must prove their tax residence with a residence certificate issued by the tax authority of the relevant country; in Chile's case, the SII issues it on the taxpayer's request. It is not, however, a universal requirement for every analysis or filing under a treaty: whether it is required depends on the specific procedure involved.
How this differs from the business angle
This article addresses treaties from the perspective of the individual who works or resides in Chile. If your interest is how a treaty affects dividend, interest or royalty remittances from a Chilean company to its foreign parent, see our article on double-taxation treaties in the Investor's Manual.
Related articles
- Start with the central guide to Chile's 183-day tax residency rule.
- Continue with a related article in this series.
Frequently asked questions
Not automatically; it allocates the taxing right between the two States and, when both retain some right, a credit for tax paid in the other country usually applies, similar to the unilateral mechanism under article 41 A of the LIR.
No. What determines a treaty's application is proven tax residence, not nationality.
The general rules of the Income Tax Law apply (residence, source of income, and the unilateral credit under art. 41 A), without the tie-breaker rules or reduced rates a treaty offers.
Do you need an assessment of your situation?
Each case depends on the dates, income types, country of origin and any applicable treaty. Izquierdo Deramond Consultores prepares tax opinions for foreigners who work or settle in Chile.
- Book a meeting: calendly.com/izquierdoconsultores
- WhatsApp: +56 9 8892 5401
- Email: gregorio@consultoresid.cl
This article is for informational purposes only and does not constitute tax advice. Applying a treaty depends on its specific text, the facts of the case, and proof of residence. To assess your situation, request a tax opinion with IDC.
OFFICIAL SOURCES CONSULTED
- SII's official table of International Tax Treaties
- article 4 of the OECD Model Tax Convention.