Chile – Self-Employment

How does self-employment work for expats in Chile?

Chile has long been regarded as a compelling destination for foreign investors and expat business founders. As one of South America’s more stable economies, the country takes a notably open approach to non-nationals wishing to establish enterprises, and recent reforms have meaningfully reduced the administrative burden of doing so. That said, working legally as an independent professional requires the appropriate immigration status to be secured before any income-generating activity begins.

Foreign nationals wishing to operate as self-employed individuals in Chile must first apply for a Temporary Residence Visa for Independent Work (Visa de Residencia Temporaria para Trabajo Independiente). Applicants are expected to demonstrate a credible business plan and sufficient personal finances to sustain themselves during their stay; the precise financial threshold depends on the nature of the proposed activity and individual circumstances.

Once this visa has been approved, expats may legally work as independent professionals in Chile. Like any other worker, they are obligated to pay taxes and social security contributions, and must comply with all applicable laws and regulations. In Chilean law, self-employment encompasses independent professionals and freelancers — referred to as trabajadores independientes — who generate revenue by issuing service invoices (boletas de honorarios) rather than drawing a salary through an employer’s payroll.

Tax liability in Chile depends on both residency status and the origin of income. Individuals who are either resident in or domiciled in Chile are taxed on their worldwide income. However, newly arrived expats benefit from an important transitional rule: only income sourced within Chile is taxable during the first three years of residence. After that period, worldwide income comes into scope. This distinction deserves careful attention for anyone arriving with established income streams from abroad.

Residency is established once a person has spent more than six months in Chile within one or two calendar years. Domicile, by contrast, may be attributed from the moment of arrival — unless the individual holds a tourist visa — since Chilean law interprets domicile as reflecting an intention to settle. Evidence supporting a claim of domicile includes purchasing or leasing a home, relocating with family members, or placing children in Chilean schools.

What are the different self-employment and business structures available in Chile?

Chile offers several legal forms through which a business can be operated, and the most appropriate choice will depend on factors such as the nature of the activity, plans for growth, the number of owners involved, and whether capital may eventually be raised through a public share offering. The principal structures are described below.

Sole Trader (Empresario Individual)
Operating as an Empresario Individual is the most straightforward option, but it carries unlimited personal liability for all business debts and obligations. The structure is inexpensive and quick to establish, but leaves the owner personally exposed to commercial risk. Freelancers and consultants working under their own name commonly begin their activities in this form.

Individual Limited Liability Company (EIRL – Empresa Individual de Responsabilidad Limitada)
The EIRL is well suited to sole operators who wish to separate personal assets from business liabilities. As a distinct legal entity, it can engage in most commercial activities, with a limited number of operations reserved exclusively for corporations. The owner’s liability is capped at their capital contribution, while the company itself is responsible for all of its assets. This structure is broadly comparable to a sole-director limited company in the United Kingdom or a single-owner GmbH in Germany.

Simplified Stock Company (SpA – Sociedad por Acciones)
The SpA is the structure most frequently chosen by foreign investors in Chile. It accommodates a single shareholder, permits 100% foreign ownership, and offers considerable flexibility in governance arrangements. SpAs are the only Chilean entity type that can be formed with just one shareholder, and they were specifically designed to facilitate venture capital and private equity investment. For these reasons, they have become the dominant vehicle for structuring new businesses in the country.

Limited Liability Company (SRL – Sociedad de Responsabilidad Limitada)
An SRL may have between 2 and 50 shareholders, with each partner’s liability limited to their capital contribution. It operates as a separate legal entity, providing meaningful asset protection, and is widely used by consultants and small professional firms seeking a formal business framework. Functionally, the SRL resembles a European GmbH or a private limited company in other common-law jurisdictions, though it requires at least two partners — unlike the SpA.

Corporation (SA – Sociedad Anónima)
The SA is designed for larger enterprises that need to raise capital or operate within heavily regulated industries. Its capital is divided into shares that may be either publicly listed or privately held. Forming an SA involves greater complexity than other structures, with additional accounting obligations and the requirement for audited financial statements.

Branch (Sucursal)
Rather than forming a new legal entity, a foreign company may establish a branch office in Chile. This requires executing a public deed documenting the parent company’s resolution to open the branch, allocating capital to it, and designating a local representative. Because a branch is not a separate legal entity, the foreign parent company bears full liability for all branch activities.

For the majority of expat entrepreneurs and freelancers, the SpA is the recommended starting point. It combines limited liability with flexible governance and can be registered quickly through the online portal. Business advisers in Chile routinely recommend the SpA as the closest equivalent to a US LLC, making it the default choice for most foreign founders.

How do you register as self-employed in Chile?

The registration process for independent workers (trabajadores independientes) in Chile is primarily managed through the Servicio de Impuestos Internos (SII), the national tax authority. Most of the steps can be completed online, and the overall process is relatively accessible. The following sequence applies:

1. Secure the appropriate visa. Before registering with any authority, you must hold a visa that authorises independent work in Chile. Foreign nationals should submit their application through the Servicio Nacional de Migraciones (SERMIG) and receive approval before beginning any income-generating activity.
2. Obtain your RUT (Rol Único Tributario). Every individual and business operating in Chile is assigned a RUT — the national taxpayer identification number. Foreign nationals need their passport and visa documents to apply. Foreign individuals assigned to Chile must obtain a Chilean National Tax ID (RUT) and an SII website password in order to file their annual tax return.
3. Register with the SII and declare the start of activities. You are required to file a notice of “initiation of activities” (inicio de actividades) with the SII. This is done through the SII website: navigate to the RUT e Inicio de Actividades section, select the option for starting activities, and complete Form 4415.
4. Obtain a patente municipal (municipal operating licence). After receiving your RUT, you must obtain a patente municipal — an operating licence — from the local municipality in which your business is based. Fees differ between municipalities and vary according to the type of business activity.
5. Set up electronic invoicing. Law No. 20.727, enacted in 2014, established the framework for mandatory electronic invoicing in Chile. All businesses and self-employed individuals must now issue electronic service invoices (boletas de honorarios electrónicas) through the SII portal — physical, printed invoice books are no longer accepted.
6. Open a local bank account. Having a Chilean bank account simplifies transactions considerably. Note that foreign nationals often face additional documentation requirements when opening accounts — the practical challenges section below discusses this in more detail.

The SII generally processes RUT applications within approximately ten days, after which you may begin operating as a sole proprietor. There is no government fee for SII registration itself as of 2025, though municipal licence costs vary — contact your local municipality for current figures. From the point at which your visa is in place, the entire self-employment registration process can typically be concluded within two to three weeks.

How do you set up a company in Chile as an expat?

Chile places no restrictions on the level of foreign ownership, and no minimum capital investment is mandated for most business structures. A local partner is not required, but you will need to appoint a Chilean-resident legal representative to interact with tax and regulatory bodies on the company’s behalf. The steps below describe the standard incorporation process, alongside a faster digital alternative.

1. Choose your legal structure. Most foreign founders select the SpA (Sociedad por Acciones) for its flexibility, minimal administrative requirements, and single-shareholder capability. Discuss the options with a local lawyer or accountant before making a final decision.
2. Reserve a company name. Check the national business registry (Registro de Empresas y Sociedades — RES) to confirm that the proposed name has not already been registered. You may reserve or register the name as part of the incorporation process through the RES “Tu Empresa en un Día” online platform.
3. Draft and notarise the articles of incorporation (Escritura Pública). The company’s founding statutes — setting out its name, purpose, share capital, governance structure, and operational rules — must be formalised. For a SpA, these may take the form of a private document rather than a full public deed, which reduces notarial costs relative to other structures.
4. Register with the Commercial Registry and publish in the Official Gazette. An extract of the company’s statutes must be published in the Diario Oficial (Chile’s Official Gazette) to render the incorporation legally effective and publicly accessible.
5. Obtain a RUT for the company from the SII. Obtaining a Rol Único Tributario (RUT) for the company takes approximately 2 to 4 weeks. Foreign investors who do not yet hold a Chilean RUT will need to obtain a temporary one before the company can be formally incorporated.
6. File the “inicio de actividades” with the SII. As with individual registration, the company must notify the SII that it has commenced trading and, where applicable, register for VAT.
7. Obtain a patente municipal. Apply for a municipal operating licence from the municipality in which the company’s registered office is located.
8. Open a corporate bank account. Establish a dedicated business bank account for managing company finances. All official accounting records must be maintained in Spanish and denominated in Chilean pesos as required under Chilean law.

Online fast-track option: Simple entity types can be registered digitally within 24 hours through the “Empresa en un Día” system operated by the RES, using an electronic signature. This route is considerably faster than the traditional notary-based process for eligible company types.

Timelines and costs: Standard company formation takes between 2 and 4 weeks, depending on notarial processing, Business Registry procedures, and the tax office’s workload. As of 2025, public notary fees typically fall between USD 230 and USD 500, covering notarisation, commercial registry, and Official Gazette publication. Legal advice on structure selection generally costs around USD 1,500, though this varies by provider. Always confirm current fee schedules directly with your notary and the Registro de Empresas y Sociedades.

All Chilean companies must obtain a RUT, register with the SII, and keep proper accounting records. Most adopt IFRS or locally adapted IFRS-based standards. Records must be kept in Spanish and in Chilean pesos, though parallel records in another currency may be maintained for internal management purposes.

Can you work as a digital nomad in Chile?

At present, Chile offers no visa category specifically designed for digital nomads. The absence of a dedicated pathway has created a degree of legal uncertainty, compelling remote workers to navigate existing visa categories that were not conceived with location-independent work in mind. This stands in contrast to neighbouring countries such as Costa Rica and Brazil, both of which have introduced formal remote work visa schemes in recent years.

A digital nomad could potentially obtain a temporary residence visa for lawful remunerated activities if they hold a civil service contract with a company not domiciled in Chile, signed by a Chilean or foreign attorney-in-fact resident in Chile — alternatively, one of the standard residence visa categories without employer sponsorship may be available.

Citizens of many countries may enter Chile as tourists and remain for up to 90 days without a visa. In certain exceptional circumstances — such as a short-term assignment given to a foreigner already in Chile on a tourist entry — temporary work authorisation for up to 90 days may be available and can in some cases be extended. However, working remotely for overseas clients while on tourist admission occupies a legal grey area and is not formally permitted. Those planning a longer stay or more regular working arrangements should pursue a formal temporary residence category.

A more streamlined route exists for technology professionals and startup founders. Foreign professionals or technicians active in science and technology, or with demonstrated experience in innovation, may apply for the Visa Tech when engaged by a technology services company holding an invitation letter or sponsorship certificate from InvestChile, Start-Up Chile, or the Undersecretariat of Economy.

There is no general system for accelerating visa processing in Chile. However, depending on the visa type, the applicant’s nationality, the level of investment proposed, or sponsorship from qualifying public bodies such as InvestChile or the National Agency for Research and Development, processing may be completed in approximately 60 days or fewer.

For the most current information on visa categories and any progress towards a formal digital nomad scheme, consult the Servicio Nacional de Migraciones (SERMIG) and the InvestChile website, as this policy area continues to develop.

What taxes and social contributions apply to self-employed expats and business owners in Chile?

Tax administration in Chile falls under the Servicio de Impuestos Internos (SII). Gaining a clear understanding of your obligations from the outset is essential, both for maintaining compliance and for sound financial planning.

Personal income tax for the self-employed: Tax-resident individuals in Chile are subject to a progressive personal income tax, with rates ranging from 0% to 35.5% depending on earnings measured in Monthly Tax Units (UTM). For example, income falling between 13.5 and 30 UTM is taxed at 4%, while earnings above 150 UTM attract the top rate of 35.5%. Unlike employment, where tax is deducted at source by an employer, self-employed individuals are responsible for withholding tax themselves and submitting monthly payments through the SII portal.

The three-year foreign income exemption: Expats are taxed exclusively on Chilean-source income for their first three years in the country, with a further three-year extension available upon application. Once this period has elapsed, worldwide income becomes subject to Chilean tax. This rule represents a meaningful planning opportunity for expats who continue to receive income from abroad following their arrival.

Corporate tax: Two tax regimes apply to companies. The Pro Pyme system, targeted at small and medium-sized enterprises, carries a reduced corporate rate of 25%. The general regime applies at 27%. Profits are taxed at the company level, and dividends paid to non-resident shareholders are subject to additional withholding taxes — check the SII website for current rates and any reductions available under applicable double tax treaties.

VAT (IVA): The standard VAT rate is 19%, applied to the supply of goods and services, with monthly returns due by the 12th of the following month. VAT registration becomes mandatory once annual turnover exceeds UF 50 — a threshold that is adjusted for inflation, so verify the current UF value with the SII. Exporters are relieved of VAT on foreign sales and may reclaim VAT on purchases or services used in generating those exports, a provision of direct relevance to expats whose client base is primarily located outside Chile.

Social security contributions: Self-employed individuals in Chile are not subject to mandatory social security contributions — participation in the system is entirely voluntary. This differs markedly from employed workers, for whom contributions are compulsory at approximately 20% of monthly salary, capped at 75.7 Unidades de Fomento (UF), equivalent to approximately USD 3,049 in 2025. Independent workers who choose to contribute voluntarily gain access to pension provision and healthcare under the public system.

Annual tax return: Chile’s tax year runs on a calendar-year basis. An annual income tax return must be filed in April of the year following the close of the tax year, accompanied by payment of any remaining tax liability.

Tax treaties: Chile has 37 double taxation agreements in force, covering the United States, United Kingdom, Canada, and the majority of EU member states. The US–Chile tax treaty, originally signed in 2010, was ratified by the US Senate on 22 June 2023 and entered into full operation in early 2024. If your country of origin maintains a treaty with Chile, it may be possible to offset Chilean tax against your home-country liability — professional advice from someone familiar with both jurisdictions is strongly recommended.

Are there any incentives, grants, or programmes to encourage expat entrepreneurs in Chile?

The Chilean government has put in place a range of programmes aimed at stimulating foreign investment and entrepreneurial activity, offering both funding and practical support to make it easier for expats to launch and grow businesses. The most significant initiatives are outlined below.

Start-Up Chile (CORFO): Run under the auspices of CORFO, Start-Up Chile is a government-backed accelerator that provides equity-free funding and resources to early-stage, high-potential ventures. The programme is open to both Chilean and international founders. Funding ranges from USD 15,000 through the Build programme to USD 100,000 under the Growth programme for qualifying technology startups. Start-Up Chile alumni have collectively raised over USD 1 billion in follow-on funding, reflecting the programme’s strong track record. Applications are assessed in competitive cohort rounds; visit startupchile.org for the latest eligibility criteria and application windows.

CORFO venture capital and SME financing: CORFO (Corporación de Fomento de la Producción) is the principal government body providing financing and support to small and medium-sized enterprises. Between 1998 and 2024, CORFO financed 72 venture capital funds and supported investments in 497 companies, with total financing of USD 1.061 billion.

InvestChile: As Chile’s national investment promotion agency, InvestChile supports overseas companies and individual investors at every stage of an investment project, offering free advisory services and facilitating connections with relevant authorities. Rather than applying restrictive screening, InvestChile conducts pro-forma reviews to help investors navigate the process. Companies committing more than USD 500,000 may qualify for enhanced visa processing pathways. Current thresholds and eligibility conditions are available at investchile.gob.cl.

R&D tax incentives: Chile extends a 35% corporate income tax credit on qualifying research and development expenditures, with a maximum annual benefit of USD 1 million as of 2025. This is a compelling incentive for technology-driven businesses and innovative startups. Current eligibility requirements and applicable caps should be confirmed with the SII and InvestChile.

ProChile: ProChile is the government agency charged with supporting businesses seeking to sell products and services in international markets. For expat entrepreneurs building outward-looking enterprises, ProChile offers market entry assistance, trade mission connections, and co-funding towards export development activities. Further information is available at prochile.gob.cl.

Visa Tech: As described in the digital nomad section, the Visa Tech pathway — administered through InvestChile and CORFO — provides an accelerated entry route for foreign technology professionals and entrepreneurs participating in the Start-Up Chile ecosystem or employed by qualifying technology companies. Access to this visa is linked to involvement in a CORFO-recognised technological entrepreneurship programme.

What are the practical challenges of being self-employed or running a business in Chile?

Language: Spanish is the sole working language of all government and legal processes in Chile. While visa applications may be submitted in English or Portuguese without requiring translation, once a business is operational, virtually every administrative task — tax filings, contracts, accounting records, and official correspondence — must be conducted in Spanish. Expats who do not speak the language will need dependable translation support or a bilingual professional adviser throughout.

Accounting records in Spanish and pesos: Most companies adopt IFRS or locally adapted IFRS-based accounting standards. All official records must be maintained in Spanish and denominated in Chilean pesos, though parallel records in another currency may be kept for internal purposes. Even businesses with a strongly international orientation must ensure their books comply with Chilean requirements. Engaging a local contador (accountant) from the outset is strongly advisable.

The role of notaries and legal representatives: Many significant business acts in Chile — including the execution of founding documents, the granting of powers of attorney, and the certification of official papers — require the involvement of a Chilean notary public. Powers of attorney executed abroad must be apostilled in accordance with the Hague Convention, or alternatively legalised by the relevant Chilean Consul and the Ministry of Foreign Affairs, before being notarised by a Chilean notary. Both the time and cost involved in notarial procedures should be factored into business planning from an early stage.

Banking access for foreign nationals: Opening a personal or business bank account as a foreign national can be a more involved process than in many other countries. Most institutions require a valid RUT, proof of a Chilean address, and in some cases evidence of income or existing business activity. Some expats report waiting several weeks for account applications to be processed and approved. Starting the banking process early and enlisting the assistance of a local legal representative can help avoid unnecessary delays.

Local legal representative requirement: Foreign shareholders may be required to appoint a local legal representative, and for companies without a resident director, this is effectively mandatory for dealings with the SII and other regulatory bodies. The representative — who may be a lawyer, accountant, or another individual resident in Chile — acts as the point of contact for official communications and signs on the company’s behalf in regulatory matters.

Electronic invoicing compliance: Every business in Chile, including freelancers, must issue electronic boletas de honorarios through the SII portal. The system is manageable once configured, but requires a functioning RUT, valid SII login credentials, and familiarity with the platform. Errors in invoicing can prompt SII queries and create delays in receiving payment from Chilean clients.

Professional support is strongly advisable: Given the interplay of Spanish-language bureaucracy, notarial requirements, electronic invoicing obligations, and multi-layered tax rules, most expats who successfully establish businesses in Chile rely on the ongoing support of a local contador and, where necessary, a commercial lawyer. The cost of professional assistance is modest relative to the potential consequences of errors in company registration or tax compliance.

Frequently asked questions

Can I be employed by a Chilean company and also work as self-employed at the same time?

Yes, it is legally permissible to combine employment and self-employment in Chile simultaneously, provided that your visa category and employment contract both allow it. Income from both sources is aggregated for tax purposes and subject to Chile’s progressive income tax rates. You must ensure that your boletas de honorarios (self-employment invoices) are issued correctly and that your annual tax return covers all income streams. A local accountant can help you manage the monthly self-withholding obligations that arise when employment income is also in the picture.

How do I invoice foreign clients from Chile?

Exporters of services are exempt from VAT on foreign sales and are entitled to recover VAT on goods purchased or services used in generating those exports. As a registered self-employed person or company in Chile, you may issue invoices denominated in foreign currencies to clients abroad. However, your official accounting records must be kept in Chilean pesos at the exchange rate prescribed by the SII. Electronic boletas de honorarios issued via the SII portal are the standard invoicing mechanism; your accountant can advise on the appropriate invoice type for cross-border transactions.

What happens to my self-employed or company status if my visa changes or is not renewed?

Your entitlement to carry out paid work in Chile, including running a business, depends directly on your visa or residency status. If your visa lapses or renewal is not obtained, the legal basis for your working activity ceases. Your company’s SII registration does not automatically cancel, but you would be operating without legal authorisation. It is essential to monitor visa expiry dates carefully and initiate the renewal process well in advance. If your immigration status changes materially — for example, through the grant of permanent residency — update your records with both SERMIG and the SII accordingly.

Is there a minimum capital requirement to start a company in Chile?

The minimum share capital required to register a company in Chile is USD 1. In practical terms, there is effectively no meaningful minimum capital threshold for most structures, including the SpA and SRL. That said, the SII may scrutinise companies that appear to lack any genuine economic activity, so the business should be capitalised appropriately for its intended operations. Separate and significantly higher investment thresholds apply under the investor visa pathway, which requires a minimum commitment of USD 500,000.

Do I need to pay Chilean social security contributions as a self-employed expat?

Self-employed individuals in Chile face no mandatory social security contribution requirement — participation in the system is entirely voluntary. Opting in voluntarily provides access to the pension system and public healthcare on more favourable terms. Where a person is simultaneously employed and self-employed, mandatory contributions apply to the employment component. Because the United States has a totalisation agreement with Chile, US expats covered by that agreement are protected from double social security contributions. Check whether your home country has a comparable totalisation agreement with Chile.

Can I apply for Start-Up Chile as an individual founder, or do I need a team?

Start-Up Chile provides equity-free funding ranging from USD 15,000 (Build programme) to USD 100,000 (Growth programme) for qualifying technology startups as of 2025. Individual founders are eligible to apply, though the programme gives preference to ventures with scalable, technology-driven models and at least a minimum viable product already in place. Dedicated tracks exist for women founders and underrepresented groups through initiatives such as the Women Founder Award. Visit startupchile.org to review the requirements for the current cohort before submitting an application.

How long does it take to complete the full company registration process in Chile?

Registration through the “Empresa en un Día” digital platform can be accomplished within 24 hours for straightforward entity types. The conventional formation route — involving a notary, the Business Registry, and the tax office — typically requires between 2 and 4 weeks, depending on the completeness of documentation and processing times at each stage. Foreign shareholders who need to apostille documents in their country of origin should allow an additional one to three weeks, depending on that country’s procedures.

Are all business sectors open to foreign-owned companies in Chile?

Chile maintains a broadly open business environment, though certain strategic sectors — such as maritime transportation and the extraction of natural resources — may be subject to restrictions or additional licensing requirements. Outside these areas, overseas investors benefit from the same legal protections as domestic operators, including strong intellectual property rights and a transparent regulatory framework. Before committing to a regulated industry, always verify sector-specific licensing requirements with InvestChile or a qualified local lawyer.