Chile has both a US tax treaty and a totalization agreement — but the treaty has only applied since 2024.

The treaty is new, and the date decides which years it touches. It applies to taxable periods beginning on or after 1 January 2024, with the withholding provisions applying to payments from 1 February 2024. A 2023 or earlier return for Chile runs on the statutory rules alone, so a catch-up filing treats the two periods differently.

Like every US treaty, this one contains a saving clause, so the US keeps taxing its citizens as if the treaty did not exist, apart from the exceptions the treaty lists. The treaty is mostly a tool for tie-breakers, reduced withholding and pensions, not a way to stop filing, and its benefits depend on the limitation on benefits article.

Chile gives foreigners a window. Generally, during the first three years of residence a foreign national is taxed only on Chilean-source income, and worldwide income is taxed afterwards. Inside the window, income earned abroad faces no Chilean tax, so there is nothing to credit and the exclusion does the work. After it, Chilean tax on worldwide income becomes creditable on Form 1116.

Residence in Chile starts after six consecutive months in a calendar year, or more than six months in total across two consecutive calendar years. Domicile, meaning presence with the intention to stay, can bring normal taxation from the date of entry. Which test applies to you changes when the three-year window starts.

Chilean pension (AFP) and health contributions are social contributions rather than income tax, so they are not creditable on Form 1116. Where the totalization agreement applies, the certificate of coverage decides which country's system you pay into, and it is worth requesting early.

Is there a US–Chile tax treaty?

Yes. It was signed in 2010, entered into force on 19 December 2023 and applies to taxable periods beginning on or after 1 January 2024, with the withholding provisions applying to payments from 1 February 2024. As with every US treaty, a saving clause lets the US keep taxing its citizens.

Do I pay US self-employment tax in Chile?

Usually not. The totalization agreement has been in force since 1 December 2001, so with a certificate of coverage self-employment is covered by one country's system rather than both.

Does Chile tax my US income?

Generally not during the first three years, when a foreign national is taxed only on Chilean-source income. After that Chile taxes worldwide income, and the Chilean tax becomes creditable on your US return.

When do I become a Chilean tax resident?

After six consecutive months in a calendar year, or more than six months in total across two consecutive calendar years. Where you arrive intending to stay, domicile can bring normal taxation from the date of entry.

When is my return due?

15 June, under the automatic extension for filers living abroad. Form 4868 moves it to 15 October, and I file the extension free.

Do I have to file an FBAR for my Chilean bank account?

If your foreign accounts together passed $10,000 at any point in the year, yes. You can file it free through FinCEN's own system. The non-willful penalty for not filing is $16,536.

I have not filed for several years. What now?

The Streamlined Foreign Offshore Procedures: three returns, six FBARs and Form 14653 certifying non-willfulness. Penalties are waived. Note that the IRS terminated the separate Delinquent FBAR Submission Procedures around 1 July 2026.

Filing from Chile this year?

Fifteen minutes with the Enrolled Agent who will prepare and sign it. Complete return, $599.