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ENA foreigner who establishes domicile or residence in Chile is taxed, for the first 3 years from entering the country, only on Chilean-source income — not on worldwide income. Once that period expires without an extension, they are taxed like any other resident: on all income, whether Chilean- or foreign-source (art. 3, second paragraph, LIR).
What the benefit covers, and what it doesn't
During those 3 years, the foreigner is not taxed in Chile on foreign-source income — for example, salary, dividends or interest whose actual source is outside Chile. The relevant test is the source of the income, not where payment is received: compensation paid from abroad can still be Chilean-source if the activity generating it is carried out in Chile, in which case it is taxed from day one like any Chilean-source income (art. 10 LIR).
The extension before the Regional Director
The law allows the SII's Regional Director to extend the period in qualified cases (SII Ruling No. 4562 of 1999). It is not automatic: it requires a reasoned request from the taxpayer, filed before the original period expires, and the Service's own assessment of the circumstances.
Who it does not apply to
The benefit is for foreigners who establish domicile or residence in Chile. The SII stated in 2026 that it can also reach a foreigner who, having lost their domicile and residence in the country, establishes them again — subject to the Service verifying they had in fact lost them (SII Ruling No. 602 of 2026). This differs from the case of Chileans: SII Ruling 2018 (ja2123) clarified that the benefit is reserved for "foreigners" and does not apply to a Chilean who recovers domicile or residence after living abroad.
What changes once the period expires
Without an extension, once the 3 years are up the general worldwide-income rule applies (art. 3, first paragraph, LIR), with no additional SII procedure required. The specific tax applicable to each foreign income stream from that point depends on its category — it is not always the Global Complementary Tax —, with the right to the article 41 A foreign tax credit where applicable (see our article on double taxation without a treaty).
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
It is counted from the entry into Chile that gives rise to the domicile or residence, not from a later administrative procedure.
The benefit depends on maintaining domicile or residence in Chile; ceasing to have either can change the situation before the term is up, depending on the facts of each case.
No. It depends on the Regional Director assessing the circumstances as qualified; it is not an automatic right of the taxpayer.
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 the benefit and any extension depends on the facts of each case. To assess your situation, request a tax opinion with IDC.
OFFICIAL SOURCES CONSULTED
- Art. 3, second paragraph, of the Income Tax Law
- SII Ruling No. 2405 of 2016
- SII Ruling 2018 (ja2123)
- SII Ruling No. 4562 of 1999
- SII Ruling No. 602 of 2026.