Taxes & Law

• Impuesto Global Complementario (IGC): progressive annual income tax for individuals with domicile/residence in Chile
• IVA: general VAT typically 19%
• Others: including Impuesto de Primera Categoría (companies), municipal fees, social contributions by activity
• Authority: Servicio de Impuestos Internos (SII)

Tax residency/domicile follows Chilean rules (including presence and connecting factors). Per common SII guidance, new residents may in the early years be taxed in a limited way only on Chilean-source income — check details and deadlines in current SII rules; migration status ≠ automatic tax status.

For tax year 2026, the SII Guía Práctica Renta notes, among other things, an exempt band and progressive rates up to a top marginal rate of 40% — update brackets and UF/UTM amounts yearly. IVA is generally 19%. No DIY tax planning; use an accountant/advisor and primary sources.

Incorporation typically goes through Registro de Empresas, RUT at the SII, municipal patente and a bank account. Foreigners need valid migration status. Plan for local advice — no incorporation advice here.

• Account opening: usually RUT/cédula + proof of address; strict KYC
• Foreign cards: functionality and fees depend on the bank
• No investment recommendation; for transfers check tax and FX rules

A general double tax agreement between Germany and Chile on income and capital taxes was, per the BMF DTA overview as of 1 January 2026, not in force. Chile is listed there under ongoing treaty negotiations (“A V”). An older special agreement on shipping income (1951) exists; it does not replace a general DTA.

Context note: some older secondary sources or expectations (“since 2016”) refer to negotiation phases or other treaties — the current BMF/SII status controls. Until a general DTA enters into force, national credit/exemption and withholding rules apply. Clarify individual cases with tax advisors in both countries.