Chile has rules around the treatment of foreign-source income for new residents that produce specific outcomes during the initial years of residence. The mechanics have been adjusted over the years; the current state must be verified at planning time. The broad framework follows.
Chilean tax residence triggers
Chilean tax residence applies once an individual establishes habitual residence in Chile or meets the presence threshold. Once resident, worldwide income comes into scope subject to specific provisions and treaty mechanics.
The initial-years framework
Chilean tax law has historically provided specific treatment of foreign-source income for new residents during a defined initial period. The treatment - and whether and how it can be elected or applied - has been adjusted at various times. Anyone relying on a specific outcome must verify the current rules.