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Chile
Chile, a long, narrow country stretching along South America's western edge, is known for its diverse landscapes from the Atacama Desert in the north to the glacial fjords in the south. Governed as a democratic republic, its capital, Santiago, is a hub of culture and economy. Spanish is the official language, and the population is predominantly Roman Catholic.
Economically, Chile is one of South America's most stable and prosperous nations, with significant exports including copper, which it leads globally in production, alongside fruits, fish, and wine. Politically, it has transitioned from a dictatorship under Pinochet to a democracy, though recent years have seen demands for social and constitutional reforms.
Culturally, Chile boasts a rich heritage with influences from its indigenous peoples, particularly the Mapuche, alongside European traditions. The country is also noted for its poets like Pablo Neruda and Gabriela Mistral, both Nobel laureates. Its natural beauty includes the Torres del Paine National Park and Easter Island with its enigmatic moai statues.
last updated on Jan 02, 2025
Taxes
Individual tax rate: Low to Moderate
Chile operates under a progressive tax system for individuals where tax rates increase with income. The tax rates range from 0% to 40% depending on the income bracket. Residents are taxed on their global income, while non-residents are taxed only on Chilean-source income. Notable is the Global Complementary Tax, which applies to income like salaries, investments, and capital gains. Deductions and exemptions are available, such as for dependents and medical expenses, which can significantly affect one's tax liability.
Challenges: Moderate to High, due to the complexity of the tax code, multiple income sources requiring detailed reporting, and the need for understanding global taxation for residents.
Source: Chilean Internal Revenue Service
Corporate tax rate: Low to Moderate
Corporations in Chile face a First Category Tax rate of 27% on their income. However, this can vary with special regimes like the SME (Small and Medium Enterprises) regime, which offers a reduced rate, and the ProPyme regime for companies under certain revenue thresholds. Additionally, there's an Additional Tax on dividends at 35%, but with credits for the First Category Tax paid, the effective rate can be lower. Taxpayers can use the Partial Integrated Regime, which allows for a partial tax credit when distributing profits.
Challenges: Moderate to High, mainly because of the complexity in understanding and applying different tax regimes, maintaining compliance, and dealing with international tax treaties.
Source: Chilean Internal Revenue Service
Crypto friendly: Moderate
Chile has not yet fully regulated cryptocurrencies but has made strides in clarifying tax treatments. Profits from crypto trading are subject to income tax, with rates varying based on the type of income. The Central Bank and Financial Market Commission have clarified that cryptocurrencies are not legal tender or securities but are digital or virtual assets. The lack of specific regulation means there's room for crypto activities but also uncertainty about future regulatory changes.
Challenges: High, due to the evolving regulatory landscape, lack of specific crypto laws, and potential for sudden policy shifts affecting investment decisions.
Source: Financial Market Commission of Chile
Bank account friendly: Hard
Opening a bank account in Chile for foreigners can be challenging. Requirements often include proof of residency, a Chilean RUT (tax ID), and sometimes a minimum deposit. Banks might also ask for employment proof or income statements. While there's no legal restriction, the process can be bureaucratic, and banks have discretion in account approvals. For non-residents, special accounts exist, but with limitations on fund transfers and services.
Challenges: Moderate to High, due to the need for residency, bureaucratic processes, and banks' conservative policies towards foreign account holders.
Source: Chilean Banking Association
Visas
Investor Visa: Moderate to Hard
The Chilean Investor Visa is designed for foreigners who intend to invest at least US$500,000 in Chilean projects or hold significant roles in companies where foreign investors own at least 10% of voting rights. This visa grants temporary residence for one year, extendable, and after two years, holders can apply for permanent residency. Applicants must provide proof of funds and a detailed investment plan.
Challenges: Moderate to Hard, due to the substantial investment requirement, need for validation by the Chilean Foreign Investment Agency, and the complexity of navigating immigration and investment laws.
Source: Chilean Immigration Service
Digital Nomad Visa: Moderate to Hard
Chile does not have an official digital nomad visa; however, the "Rentista" or "Independent Means" visa can serve similar purposes. This visa requires showing a steady income from abroad (e.g., dividends, rental income) to prove you can support yourself without local employment. It offers temporary residence for one year, renewable annually.
Challenges: Moderate, as there's no direct visa for digital nomads, requiring applicants to fit into existing visa categories which might not perfectly match their lifestyle or work.
Source: Chilean Immigration Service
Marriage Visa: Easy to Moderate
Available to foreigners married to Chilean citizens or permanent residents. The process includes proving the marriage, often through a valid marriage certificate, and sometimes a background check. This visa grants temporary residence, which can later transition to permanent residency after a year of marriage.
Challenges: Easy to Moderate, mainly due to paperwork and ensuring the marriage is recognized by Chilean law, with potential complications if the marriage lacks legal documentation.
Source: Chilean Immigration Service
Visitor Visa: Easy to Moderate
For tourists, this visa is typically issued upon arrival for up to 90 days, extendable for another 90 days. No visa is needed for many nationalities, but some require one before entry. Requirements include a valid passport, proof of onward travel, and sometimes financial solvency evidence.
Challenges: Easy, especially for visa-exempt countries, though extending the stay might involve moderate effort due to bureaucratic processes.
Source: Chilean Ministry of Foreign Affairs
Student Visa: Easy to Moderate
Granted to those enrolled in Chilean educational institutions. Proof of admission, financial means to support oneself, and sometimes health insurance or a police certificate are required. The visa duration aligns with the study period, with possibilities for part-time work.
Challenges: Moderate, due to the need for educational institution acceptance, financial proof, and possibly navigating language and cultural differences.
Source: Chilean Immigration Service
Work Visa: Moderate to Hard
Issued to foreigners with a job offer from a Chilean company. The employer must prove the job cannot be filled by a Chilean. The visa is generally for one to two years, renewable, and can lead to permanent residency. Documentation includes a work contract, proof of qualifications, and sometimes a certificate of good conduct.
Challenges: Moderate to Hard, due to the need for employer sponsorship, compliance with labor laws, and navigating the often lengthy application process.
Source: Chilean Immigration Service
Economy and Business
Property Ownership: Moderate to Hard
Chile has a robust legal framework protecting property rights, which is reflected in its performance in global indices. The country scores well in the International Property Rights Index, with a focus on legal and political environments that support property rights. Foreigners can own property with few restrictions, except near national borders. The process involves land registration, which is public and managed by the real estate registrars.
Challenges: Moderate to Hard, due to the need to navigate Chilean legal systems, understand local zoning laws, and manage the title search process.
Source: International Property Rights Index
Payment friendly: Moderate
Chile ranks favorably in payment systems, with a well-developed banking sector and increasing adoption of digital payments. The country has embraced technologies like contactless payments and mobile banking. According to the Global Findex, there's significant financial inclusion. However, there are still gaps in rural areas and in integrating informal sectors into digital payment systems.
Challenges: Easy to Moderate, mainly because while infrastructure exists, there's a learning curve for adopting new payment technologies, and disparities in access.
Source: World Bank's Global Findex Database
Economy: Moderate
Chile is often highlighted in economic indices for its stability and open-market policies. It performs well in indices like the Global Competitiveness Index and the Economic Freedom Index, due to its macroeconomic stability, high income per capita, and liberal trade policies. However, there are challenges like income inequality, dependency on commodity exports, particularly copper, and recent social unrest demanding reforms.
Challenges: Moderate, with the complexity arising from the need to understand Chile's market dynamics, economic policy changes, and social factors affecting economic stability.
Source: World Economic Forum's Global Competitiveness Index
Business friendly: Moderate
Chile ranks high in business environment indices due to its ease of doing business, straightforward regulatory framework, and supportive infrastructure for entrepreneurship. The Doing Business report by the World Bank praises Chile for its business registration processes, contract enforcement, and access to credit. However, challenges include bureaucratic hurdles in certain administrative processes, labor market rigidity, and high energy costs.
Challenges: Moderate to Hard, primarily due to navigating government bureaucracy, labor laws, and dealing with potential regulatory changes.
Source: World Bank's Doing Business Report
Affordability: Moderate
Chile's affordability can vary widely by region. In global affordability indices, while Santiago might be considered expensive relative to other Latin American cities, other parts of Chile provide more affordable living costs. The Mercer's Cost of Living Survey and the Numbeo Cost of Living Index give insights into these disparities. Housing, healthcare, and education are generally accessible but can be pricey in urban centers.
Challenges: Moderate, as the cost of living can be quite high in certain areas, requiring careful budgeting and understanding of local economic conditions.
Source: Mercer's Cost of Living Survey
Communications and Technology
Internet: Improving
Chile is recognized for having some of the fastest internet speeds in Latin America, with fixed broadband speeds often surpassing many developed countries. According to the Speedtest Global Index by Ookla, Chile has consistently ranked among the top countries for fixed broadband speed, with download speeds reaching over 200 Mbps in urban centers. Mobile internet speeds are also commendable, supporting 4G and emerging 5G networks. However, challenges include the digital divide, where rural areas might not enjoy the same speed or reliability as urban regions, and the cost of such high-speed services can be prohibitive for some.
Challenges: Easy to Moderate, as while high-speed internet is accessible in urban areas, disparities exist in coverage and cost.
Source: Ookla Speedtest Global Index
Communication: Moderate
The primary language in Chile is Spanish, specifically Chilean Spanish, which has its unique colloquialisms, slang, and pronunciation. This can make communication challenging for those not familiar with local dialects. English is taught in schools but is not as widely spoken outside of major cities or business settings, which can complicate interactions for English speakers. Additionally, there's a cultural aspect to language use, where understanding local expressions and humor is part of effective communication. Indigenous languages like Mapudungun are present but not commonly spoken outside indigenous communities.
Challenges: Moderate to Hard, due to the need to adapt to local Spanish variations and the limited prevalence of English.
Source: Ethnologue: Languages of the World
Phone friendly: High
Chile has a well-developed mobile phone infrastructure, with major operators like Movistar, Entel, and Claro providing extensive 4G services and introducing 5G in urban areas. Acquiring a SIM card is relatively straightforward for visitors, requiring just a passport to activate a prepaid plan. However, understanding local service plans, managing international roaming charges, and dealing with customer service in Spanish might pose small challenges. The network coverage is generally good, but there can be areas, particularly in the countryside, where connectivity drops.
Challenges: Easy, mainly because of the ease of obtaining and using mobile services, though language in customer interactions and rural coverage can be minor hurdles.
Source: GSMA Intelligence
Social, Safety and Politics
Progressive: Moderate
Chile has experienced significant cultural shifts towards progressiveness, particularly post-dictatorship. There's been a notable push for equality, with movements advocating for women's rights, indigenous rights, and the rights of the LGBTQ+ community. Legal changes include the legalization of divorce, same-sex civil unions, and the decriminalization of abortion under certain conditions. However, traditional values still hold sway, particularly outside urban centers, and there's resistance to some progressive policies. The cultural landscape is also influenced by a growing secularism, with a decline in religious affiliation impacting views on social issues.
Challenges: Moderate to High, due to the tension between traditional and progressive values, varying by region and generation.
Source: World Values Survey
Religions: Less than 5
Roman Catholicism dominates, with around 55-60% of Chileans identifying as Catholic, although this number is decreasing. Protestantism, particularly Evangelical Christianity, has seen a significant rise, now around 15-20%. There's also a growing segment of the population that identifies as non-religious or atheist, reflecting a broader Latin American trend. Indigenous spiritual practices coexist, especially among the Mapuche, though they are less visible in mainstream Chilean culture. Religion still plays a role in public life and policy, particularly regarding education and social issues.
Challenges: Easy to Moderate, mainly in understanding the changing religious landscape and its societal impact.
Source: Pew Research Center
Safety: Moderate
Chile is generally considered one of the safer countries in Latin America according to global safety indices like the Global Peace Index. Petty crimes like theft occur, especially in tourist areas, but violent crime rates are lower compared to neighboring countries. However, safety can vary significantly between regions, with urban centers facing more crime than rural areas. Recent social protests have occasionally led to disruptions, though the response from law enforcement has been criticized at times.
Challenges: Moderate, due to regional disparities and occasional civil unrest.
Source: Global Peace Index
Political Stability: Moderate
Post-Pinochet, Chile has been a stable democracy with regular elections and peaceful transitions of power. However, political stability has been tested by social movements demanding constitutional reform and addressing inequality. The political scene is polarized, with tensions between conservative and progressive forces. The country's stability is also challenged by economic issues and public dissatisfaction with governance, as evidenced by the push for a new constitution.
Challenges: Moderate to High, due to the potential for social unrest and the ongoing process of constitutional reform.
Source: The Economist Intelligence Unit's Democracy Index
Corruption: Moderate
Chile typically ranks well in global corruption perception indices, such as Transparency International's Corruption Perceptions Index, often viewed as one of the least corrupt countries in Latin America. Despite this, corruption scandals have emerged, particularly in politics and business, showing that challenges persist. There's an active civil society and media that monitor and report on corruption, which aids in maintaining relatively lower corruption levels.
Challenges: Moderate, as while corruption is lower, vigilance is required due to occasional high-profile cases.
Source: Transparency International's Corruption Perceptions Index
Friendliness: Moderate
Chileans are generally perceived as friendly and hospitable, particularly in smaller towns and rural areas. In cities, while people might seem more reserved, they are still open to foreigners. The concept of "huaso" hospitality is known in rural Chile, where guests are warmly welcomed. However, like any country, friendliness can vary by individual interaction and context. Language barriers might affect the perception of friendliness for non-Spanish speakers.
Challenges: Easy to Moderate, primarily due to cultural differences and language barriers.
Source: InterNations Expat Insider Survey
Education
Average education: High literacy
Chile boasts one of the highest literacy rates in Latin America, with an adult literacy rate around 97%. This is reflected in global indices, where Chile often ranks highly in terms of educational attainment and literacy. The country has made significant strides in education, with an average of over 10 years of schooling per person. Challenges include disparities in educational quality between public and private sectors, urban and rural areas, and socioeconomic groups. There's also a need for improvement in higher education outcomes and addressing the skills mismatch in the labor market.
Challenges: Moderate to High, due to the ongoing need to equalize educational opportunities and quality across different segments of society.
Source: UNESCO Institute for Statistics
International Schools: Moderate
Chile has a growing number of international schools, particularly in cities like Santiago, offering curricula like the International Baccalaureate (IB) or American, British, German, and French systems. These schools cater to expatriates and locals seeking international education standards. They are often well-regarded but come with high tuition fees, making them less accessible to the general population. Challenges include the high cost of education, ensuring accreditation and quality, and the availability of these schools primarily in urban centers, which limits options for those outside these areas.
Challenges: Moderate to High, mainly due to the financial barrier and geographical concentration of these schools.
Source: International Schools Database
Technological expertise: Developing
Chile has positioned itself as a leader in technological expertise within Latin America, with strong performance in indices like the Global Innovation Index and the Networked Readiness Index. The country has a burgeoning tech startup scene, significant government investment in digital infrastructure, and a well-educated workforce in STEM fields. However, challenges remain in scaling tech industries beyond startups, in fostering R&D that leads to high-impact innovations, and in integrating technology across all sectors uniformly, particularly in less developed regions or industries.
Challenges: Moderate, as while there's a solid foundation, there's ongoing work to fully leverage tech for economic growth and to bridge tech divides.
Source: World Intellectual Property Organization's Global Innovation Index
Health
Seasons: 4 seasons
Chile's seasons are opposite to those in the Northern Hemisphere due to its location in the Southern Hemisphere. Summer runs from December to February, characterized by warm and often dry weather, especially in central Chile and the north. Autumn (March to May) brings cooler temperatures and the beginning of the rainy season in central areas. Winter (June to August) sees the coldest temperatures, with significant rainfall in central and southern regions, and snow in mountainous areas. Spring (September to November) brings milder weather and blooming landscapes. The climate varies greatly from the arid north to the temperate, wetter south, with Easter Island having its own subtropical climate.
Challenges: Easy to Moderate, as understanding seasonal variations is straightforward, but differing regional climates can complicate planning.
Source: Chilean Meteorological Service
Fitness: Moderate
Chile has seen an increase in health awareness, with many engaging in physical activities like soccer, running, and cycling. However, there's a significant variation in fitness levels across socioeconomic groups, with higher rates of obesity in lower income brackets. According to the Global Obesity Observatory, Chile faces challenges with obesity, particularly among children and adults. Public health initiatives aim to promote healthier lifestyles, but urban living, work culture, and dietary habits pose obstacles to widespread fitness.
Challenges: Moderate to High, due to socioeconomic disparities influencing fitness levels and health outcomes.
Source: Global Obesity Observatory
Pollution: High
Chile's pollution levels vary by region, with air quality being a particular concern in Santiago, where it's often ranked poorly in global air quality indices due to high particulate matter from industry, transportation, and wood burning for heating. Water pollution is also an issue, especially in mining areas affecting rivers and groundwater. The Environmental Performance Index highlights Chile's challenges with air and water quality alongside waste management. However, the country has made efforts towards cleaner energy and stricter environmental regulations.
Challenges: Moderate to High, as pollution, especially in urban areas, requires ongoing and intensified environmental policies and public awareness.
Source: Environmental Performance Index
Healthcare: Moderate
Chile's healthcare system is often rated well in global health indices, providing universal coverage through a public system supplemented by private healthcare. The country scores high in metrics like life expectancy and access to healthcare in the Bloomberg Health-Efficiency Index. However, there are disparities in the quality of care between public and private sectors, with long wait times and overcrowding in public hospitals. Access to specialized care and pharmaceuticals in remote areas remains a challenge, along with ensuring equitable healthcare distribution.
Challenges: Moderate, with the complexity of managing dual public-private systems, ensuring equitable access, and addressing regional differences in healthcare quality.
Source: Bloomberg Health-Efficiency Index
Diversity
Food diversity: Highly diverse
Chile's culinary landscape is rich with diversity, influenced by its indigenous Mapuche heritage, Spanish colonial legacy, and more recent European and Asian migrations. The country's geography from the Atacama Desert to Patagonia provides a wide range of ingredients, leading to a varied diet. Seafood is prominent along the coast, while the central valley offers an abundance of fruits, vegetables, and wines. Traditional dishes like "curanto" from Chiloé or "pastel de choclo" showcase local flavors. However, challenges include the dominance of processed foods in urban diets, which can overshadow traditional cuisine, and the need for greater recognition and preservation of indigenous food practices.
Challenges: Moderate, with the task of balancing modern dietary trends with the preservation and promotion of traditional foods.
Source: World Food Travel Association
Ethnics diversity: Low
Chile has a less ethnically diverse population compared to other Latin American countries, with the majority being of European descent, predominantly Spanish, but also Italian, German, and British. The indigenous population, mainly Mapuche, constitutes around 10% of the total, though they have a significant cultural impact. There are smaller communities of other indigenous groups like Aymara, Rapa Nui, and Huilliche. Recent immigration from Peru, Bolivia, and Venezuela has added to the ethnic mix. Challenges include the historical marginalization of indigenous peoples, leading to cultural assimilation pressures, and ensuring that ethnic minorities have equal rights and opportunities. There's also the integration of new immigrants into Chilean society.
Challenges: Moderate to High, as addressing historical inequalities, ensuring cultural preservation, and integrating new immigrant populations pose complex social and political issues.
Source: CIA World Factbook