Chile Forum

I was reading some months ago that Concepcion is either being considered as a thirteenth state, or was already declared XIII. Either way, I would appreciate it if someone could elaborate on this. Is this area being considered as a Tax Free Zone as well, like I or X, XI, XII? Comments? Thanks.

this might not be your question, but last october a new region, region 14, was approved - Los Rios regoin - which split the previously massive Los Lagos region. It consists of Valdivia and Ranco Provinces (each region is split into provinces). Osorno nearly joined too but didn't maybe because Valdivia was made the capital.

No tax free action, is more to ensure more appropriate administration of Valdivia area rather than Puerto Montt being in charge. I think only I and XII are tax free to support / encourage / facilitate people living there. Not X and XI.

Concepcion as far as I know remains the capital of Region del BioBio.

Of course it's always possible something has changed and I just haven't asked the right people the right question in the right way to the power of 3.

It appears congress created a new one around Arica at the same time, in another irrelevant aside.

Go Play Outside,
I appreciate your statements. I could of been mistaken as to the identity of the area, just got Concepcion and Valdivia mixed up. Gringos!

So, Arica and Inquique are tax free, part of Area I, or otherwise? Area of State XII, is just the Puerto Arenas and Isla Grande Tierra del Fuego, correct?

What is entailed in the tax free status? Freedom of income, investment, limit of time, import? Thanks....G

The tax free zones mean sales tax for the most part on imports. There are a few other things like being able import used cars and such. There are special extensions to the tax free zones like around Chaiten and Futa.

admin wrote:The tax free zones mean sales tax for the most part on imports. There are a few other things like being able import used cars and such. There are special extensions to the tax free zones like around Chaiten and Futa.

So, do we infer that by bringing in a brand new auto, that wouldn't be charged sales tax, we could bring with us to another locale in Chile? We would avoid sales tax, and also be able to use outside of the tax free areas, seeing as new and could import. VAT still required? Thanks...G

na, they thought of that one. You get special tax zone license plates that are red. You, and only you the owner, can drive them out of the tax zone for up to 90 days a year. After that you get fined, if you do not pay the tax.

We still have not been able to however to get a clear answer on buying a tax free zone used vehicles, then relocating it out of the zone. You are able to bring in used cars that you can not bring in to the rest of Chile.

So, according to TomBrad2, bring in only new vehicles as straight from the manufacturer as possible, in order to be able to bring into the country proper. Used vehicles only in Area I & XII, and that's where they stay. If we bring new vehicles there, there they stay, barring the 90 days.

So, I have a licensed Japanese truck, 660CC, that my state in US licenses as an ATV. Any likely hood I can bring it?

Basically, from what I have read so far, buy something in country. You might have a vehicle with better gas mileage then can be purchased in the US, and you avoid VAT, Sales Tax, import duties, shipping charges, Loading and unloading fees, having to run across the border every 90 days...did I miss anything? G out.

yea, in general the most strait forward way is to buy something in the country; unless you have something particularly rare or unusual that makes it worth the effort.

Just to be clear Valdivia is the capital of the new region 14, Los Rios. It is breakup of region los lagos where Puerto Mont use to be the capital.

OK, what if I want to travel with my own kitchen, bath, and 7 other people. What do you suppose could be found in country? How about this: http://64.225.237.252/upload/sprinterwestfalia.pdf
They don't make'em like this everywhere. So then, you decide to buy one of these new. You spend 75K US. You pay 2 to 4 thousand to ship. You pay 11% CIT, (whatever that is ) and then 19% VAT. So in chilean speak, you are going to pay $22,500 US to have said vehicle in all of country. You can only bring new from the manufacturer or dealer and to the boat, so chaaaaaaa......Like, how do you start your own dealership in Chile, and import these things in a more logical, less burdensome method? G out.

admin wrote:Just to be clear Valdivia is the capital of the new region 14, Los Rios. It is breakup of region los lagos where Puerto Mont use to be the capital.

So, is Valdivia like Chiloe, and have excessive rainbows, too? Seattle like, or more Vancouver?

G. Take a look at http://www.status.cl/ for iport/purchase motorhome, you may also the import for yourself, provided you pay all taxes BUT it must be brand new

No, Concepcion will be no a new Region and odds to become a new free zone are very close to zero

New regions in Chile are Los Lagos (capital Valdivis, nice city) and Arica-Parinacota (capital Arica)

TomBrad gave me the breakdown of the import duties, taxes, VAT, excise, and gringo tax and any other taxxxs that they can think of to impose on importing. Over half of the purchase price with vehicles over $17K US. This isn't just excessive, but onerous. I guess weigh what you want to drive with what you want to spend.

So, is Arica in the tax free advantage zone like Inquique? Thanks...G

Yes, Arica and Iquique in north, Punta Arenas, Aysen y Futaleufu in south are "zonas francas de extension", that is, the only places where may circulate imported used cars, with 90 days prmission each year to circulate in the rest of the country.

The reasons argued for the practically forbid to import used cars ares polution and spare part supples, pure bull...t the real reasons are economic: General Motors has the only assembly plant in Chile and the import of brand new cars is hugely profitable for "oficial concecionaries" a sort of medieval lords with much power and privileges.

To import brand new cars -in short- taxes are 11% CIF internacion tax plus 18% VAT, this is for cheap cars under sone US$ 17.000, for more expensive cars there are an aditional "luxury" tax and for motorhomes ANOTHER aditional tax Tax on cars is one of the most stupid laws ever made in Chile