Chile: temporary residence for investors, retirees and rentistas

Chile's Migration and Foreigners Law (Law No. 21.325), administered by the Servicio Nacional de Migraciones (SERMIG), replaced the old visa system with a set of temporary residence subcategories. Two are relevant to private clients. The investor subcategory covers individual investors and the legal representatives and senior managers of foreign companies who invest at least USD 500,000, or the equivalent, in the production of goods or services in Chile; applicants need a sponsorship letter from InvestChile, the national foreign investment promotion agency, which is valid for 60 days from issue. The retiree and rentista subcategory is for people with a retirement pension or steady income from real estate or financial assets sufficient to cover at least their basic needs, measured against indicators of the Ministry of Social Development; SERMIG sets no fixed figure. Both are filed online from outside Chile, and residence begins on entry, which must take place within 90 days of the electronic visa stamp being issued.

Temporary residence is granted for up to two years and may be extended for successive two-year periods. Investors seeking an extension must show progress in carrying out the promised investment and a consolidated company, with current tax filings; rentistas and retirees must show that their income continues. For applications filed after 14 May 2022, permanent residence requires at least 24 months of temporary residence, which can be reduced to 12 months for applicants with investments or businesses operating in Chile, income or pensions, or family ties, and increased to 30, 36 or 48 months depending on time spent abroad. Permanent residence is indefinite but is treated as revoked after more than two continuous years outside Chile, unless a one-off two-year extension is requested through a consulate.

For tax, an individual becomes resident after more than 183 days in Chile, continuous or not, in any 12-month period. Under Article 3 of the Income Tax Law, a foreigner who establishes residence or domicile in Chile is taxed only on Chilean-source income for the first three years from entry, a period the tax authority may extend in qualified cases; after that, worldwide income is taxed at progressive personal rates. This three-year window is valuable for planning: foreign portfolios, holding companies and trusts can be reviewed and, where appropriate, restructured before the worldwide regime begins.

Dependants of the principal holder can obtain temporary residence: a spouse or partner, children under 18, children aged 18 to 24 studying at an establishment recognised by the Chilean state, and children with a disability of any age. Parents do not qualify as dependants and need their own route. After five years of continuous residence, a permanent resident aged 18 or over may apply for a nationalisation letter (carta de nacionalización); Chile accepts dual nationality, so applicants need not renounce their existing citizenship. A bill approved by the Chamber of Deputies in November 2024 would extend the naturalisation requirement to ten years of continuous permanent residence and broaden grounds for revoking residence; it remained before the Senate as of our review and should be monitored by anyone planning towards Chilean nationality.