Digital Nomads in Chile
Working remotely from Chile, or for a Chilean company from abroad? Where each scenario is taxed, and when Chilean tax residency is actually established.
Remote work created a category of situations that Chilean tax law — like that of nearly every other country — wasn’t originally designed to address with complete clarity. But the SII (Chile’s tax authority) has already ruled on the most common scenarios, and the answers change significantly depending on one simple question: from where, physically, is the work being performed?
The key rule: the physical location of the work, not the client’s nationality
Article 10 of Chile’s Income Tax Law (LIR) defines Chilean-source income as income derived from assets located in the country or from activities carried out there — regardless of the taxpayer’s domicile or residency, and regardless of where the client or employer paying for the work is located.
This creates two situations that mirror each other:
- A foreign national who moves to Chile and works remotely for a client abroad: the activity is physically carried out in Chile, so it counts as Chilean-source income — even if payment comes from another country. The SII has already confirmed this position in a specific ruling on teleworking from Chile.
- A Chilean (or Chilean resident) who moves abroad but keeps working remotely for a Chilean company: here, if the employment relationship continues and establishes domicile (see our article on domicile vs. residency), the compensation can still be treated as subject to Chile’s Second Category Single Tax, even though the work is physically performed outside the country.
A freelancer moving to Chile: what changes
Anyone who becomes a Chilean tax resident and works as a contractor or freelancer for clients abroad needs to keep two layers of rules in mind:
- During the first three years of the exemption regime (for foreign nationals, under Article 3 of the LIR — see our article on the three-year regime): even when the service is physically provided from Chile for a foreign client, the activity technically takes place on Chilean territory — which classifies it as Chilean-source income and keeps it taxable in Chile even during the exemption period, since the three-year benefit only protects foreign-source income.
- Once the exemption period ends: all income, regardless of origin, becomes taxable — which was already the case for remote work physically performed from Chile, from day one.
Employment contract or independent service provision?
The legal form of the relationship affects the practical obligations: someone operating as a contractor/freelancer issues Chilean tax receipts (boletas de honorarios) and is responsible for declaring income in the annual tax return filed with the SII, in addition to evaluating voluntary pension contributions. There’s no special exemption for receiving payment in foreign currency — the obligation to declare follows the normal rules applicable to any fee income.
What about “digital nomad visas”?
It’s important not to confuse immigration status with tax status: a digital nomad or rentier visa resolves the question of legal permanence in the country, but doesn’t change the tax residency rules, which continue to depend exclusively on the day count (residency) or on domicile elements, as detailed in our dedicated article on the topic.
Comparison: where remote income is taxed
| Situation | Considered Chilean-source income? |
|---|---|
| A foreign national resident in Chile works remotely from Chile for a foreign client | Yes — the activity is carried out on Chilean territory |
| A Chilean resident moves abroad but keeps an employment contract with a Chilean employer | May still be treated as subject to Chilean withholding, based on domicile |
| A foreign national loses Chilean residency and domicile and starts working from another country for a Chilean client | Chilean-source income, taxable via the Additional Tax (withholding at source) |
Frequently asked questions
If a US client pays me in dollars, do I still need to file with the SII while in Chile?
Yes. The currency of payment is irrelevant — what matters is where the activity is physically carried out.
Does the three-year benefit exempt me from declaring income from foreign clients if I work from Chile?
No. Since the work is physically performed on Chilean territory, the income is already considered Chilean-source from the start, regardless of the exemption regime — which only protects income actually generated outside Chile.
What if I only spend short periods in Chile working remotely, without completing 183 days?
In that case, you don’t become a Chilean tax resident, but the income generated physically during your time in the country may still be considered Chilean-source, depending on the authorities’ assessment — a specific evaluation is recommended for recurring stays.
Next steps
Remote work requires extra attention because it crosses residency, domicile, and source-of-income rules all at once. See also our full guide on Chile-Brazil tax residency.
This content is for informational purposes only and was prepared based on the legislation in effect as of its publication date. It does not constitute legal, tax, or accounting advice. Each situation should be reviewed individually by qualified professionals.