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Labor Laws in Chile

  • Annual Leave: 15 days
  • Maternity Leave: 18 weeks
  • Public Holidays: 16
  • Workweek: 44 hours per week (Being reduced progressively to 40 hours in 2028.)
  • Overtime: Should not exceed two hours per day or 10 hours per week.

Income Tax in Chile

Chile taxes its residents or domiciled in Chile on worldwide income.

Foreigners working in Chile are subject to taxation only on their Chilean-source income during the first three years in Chile, after which worldwide income is taxed.

Income earned by professionals and independent workers, minus deductions for actual or deemed expenses, is also subject to personal income tax, which is imposed annually at progressive rates ranging from 0% to 35.5%.

Value Added Tax (VAT) in Chile

The standard VAT is 19%.

Social Security in Chile

Foreign individuals may be exempt from some local social security payments, provided they belong to a foreign social security entity system covering at least pension, disability, illness, and death.

Employee Contributions

  • Employees must contribute 10% of their monthly remuneration up to a maximum of 80.2 Unidades de Fomento (UF).
  • Employees also contribute 7% of their monthly remuneration up to the 80.2 UF cap for medical care. In total, employee contributions amount to around 17% of their monthly earnings.

Employer Contributions

  • Employers must contribute between 1% and 1.5% of the employee's remuneration for disability and survival insurance (SIS).
  • Employers also contribute around 2.4% for unemployment insurance, with a cap of 113.5 UF.
  • The employer's share of social security contributions is around 5% of the employee's monthly earnings.

Work Visas Chile

Here is a selection of visas available to work in Chile.

  • Temporary Residence Visa:This visa can be granted for up to 2 years and can be renewed indefinitely in 2-year increments. It is the primary visa category for international individuals seeking to work in Chile.
  • Subject to contract Visa:One of the primary work visas available in Chile for foreign nationals who have secured employment with a Chilean employer. This visa allows the holder to live and work in Chile based on the terms of their employment contract.
  • Permanent Residence:To apply for permanent residency in Chile you are required to spend at least 180 days per year in the country if you have a temporary residency visa. If you have a work visa, you need to spend 2 years in the country uninterrupted.

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