US tax for Americans in Chile
Chile has both a US income tax treaty and a totalization agreement, but the treaty is recent. It entered into force in December 2023 and applies to taxable periods from 1 January 2024, while the totalization agreement has been in force since December 2001. So self-employment tax can be relieved with a certificate of coverage, and a three-year window for new arrivals decides what Chile taxes.
A treaty that is two years old
The US–Chile income tax treaty was signed in 2010 and entered into force on 19 December 2023. It applies to taxable periods beginning on or after 1 January 2024, with the withholding provisions applying to payments from 1 February 2024. For 2023 and earlier years there is no treaty, so those returns run on the statutory rules alone.
That split matters for a catch-up filing, which treats the two periods differently. It also matters for the treaty's limits: like every US treaty it 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, and its benefits depend on the limitation on benefits article.
Self-employment tax can be relieved
The totalization agreement has been in force since 1 December 2001. Where it covers you, a certificate of coverage assigns your social security coverage to one country, which removes the 15.3% US self-employment charge. For a consultant that is the largest line on most returns elsewhere in Latin America, and it is addressable here.
Chilean pension (AFP) and health contributions are social contributions rather than income tax, so they are not creditable on Form 1116. Request the certificate early rather than after the return is due.
The three-year window
Generally, during the first three years of residence a foreign national is taxed in Chile 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 the window, Chilean tax on worldwide income, on a progressive scale reaching 40%, becomes creditable on Form 1116. The same facts produce a different US return in year four than in year one.
Residence can start sooner than you expect
Chilean tax residence begins 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.
A worked example, tax year 2025
A single American consulting from Santiago, $$95,000 of net self-employment earnings, with the 330-day test met and a certificate of coverage in hand. The US figures are computed.
| Net self-employment earnings | $95,000 |
| US income tax after the exclusion | $0 |
| Self-employment tax that would apply without the agreement | $13,423 |
| Self-employment tax with a certificate of coverage | $0 |
| Treaty relief available | Yes, for taxable periods from 1 January 2024 |
Scroll the table sideways
| Fact | Position |
|---|---|
| US income tax treaty | Yes — applies from 1 January 2024 |
| Totalization agreement | Yes — in force since 1 December 2001 |
| Local income tax | Progressive, to 40% |
| Self-employment tax (SECA) | Relieved where the agreement covers you |
| FBAR threshold | $10,000 aggregate, any point in the year |
IRC §901, §904, §911, §1401 and §1402; IRS Table 3 (List of Tax Treaties, updated through 26 September 2025); US–Chile Agreement on Social Security (TIAS 01-1201); Social Security Administration totalization agreement list; IRS Publication 54; IRS Publication 514; IRS Form 8938 instructions; Servicio de Impuestos Internos, 2026 Global Complementary Tax table; Chilean residence rules (PwC Worldwide Tax Summaries); Rev. Proc. 2025-32; 31 CFR 1010.350. US figures are tax year 2025. Checked 12 November 2026.
Questions Americans in Chile ask
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.
I have not filed for several years while in Chile. What now?
If the failure was non-willful — which describes most people in this position — the Streamlined Foreign Offshore Procedures waive the failure-to-file, failure-to-pay and FBAR penalties: three years of returns, six years of FBARs, and Form 14653.
Filing from Chile?
Fifteen minutes settles the certificate of coverage and which of your years the treaty reaches.