Rentista visa, taxes & looking for housing

All things related to Moving to Chile, tips, tricks, FAQS. Here is where to exchange information between those that have already moved and those planning to move to Chile so you do not need to learn the hard way. Please also check Living in Chile forum for related information.
oli_rouss
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Re: Rentista visa, taxes & looking for housing

Post by oli_rouss » Fri Apr 07, 2017 2:21 pm

Hi again, so I'm planning on buying myself a short-term annuity (not sure how to describe them in English but essentially you give them a bunch of money and they give you payouts each month), so that should solve the 'fixed periodic income' issue I've been having.

On a separate note does anyone know what the best way to send money to Chile is? I've done the maths and had a look at my bank's ATM fees and it seems like even with the fees and everything added in (my bank charges about 5USD + extra 1% on the visa exchange rate) it still works out better than money transfer sites like WU or Transferwise or what have you. Is this generally the same with everyone else?

at46
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Re: Rentista visa, taxes & looking for housing

Post by at46 » Fri Apr 07, 2017 2:47 pm

oli_rouss wrote:On a separate note does anyone know what the best way to send money to Chile is? I've done the maths and had a look at my bank's ATM fees and it seems like even with the fees and everything added in (my bank charges about 5USD + extra 1% on the visa exchange rate) it still works out better than money transfer sites like WU or Transferwise or what have you. Is this generally the same with everyone else?
Fondos mutuos is the cheapest method of sending money to Chile in my experience (no monetary cost this side of the border anyway, just the hassle of setting it up). Search the forum.

oli_rouss
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Re: Rentista visa, taxes & looking for housing

Post by oli_rouss » Fri Apr 07, 2017 3:11 pm

Thanks. However it seems that its nearly impossible to get a bank account at least until I get my cedula, which will probably be months after my arrival in Chile. Without a bank account are ATM cards still the way to go?

at46
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Re: Rentista visa, taxes & looking for housing

Post by at46 » Fri Apr 07, 2017 3:20 pm

You don't need a bank account to open a fondos mutuos account. You can do that with just your tourist RUT, passport and some document showing how you came into possession of the money. It just takes a week or so to set up, that's all. Otherwise, yep, ATMs.

oli_rouss
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Taxes on foreign capital gains and dividends

Post by oli_rouss » Wed Apr 12, 2017 2:40 am

Thanks again for the clarification.

I was also wondering whether anyone is aware of the tax implications regarding capital gains and dividends on foreign (non-Chilean) stocks and bonds? It seems that the 'Impuesto Global Complementario' is the only type of tax applicable to these types of passive income, and that the 3-year tax exemption for foreigners regarding foreign income would still apply. I remember reading a separate post on a similar issue (http://www.allchile.net/chileforum/view ... =23&t=9214) which essentially said that you don't need to declare anything to the SII. Would this be the same for cap gains/dividends? My country does not have tax on capital gains/dividends or foreign-earned income so I wouldn't be saving any money by declaring my income in Chile instead of my home country as might be the case with Brits or Americans.

So I guess the question is does anyone here have firsthand experience with paying Chilean taxes on dividends/foreign capital gains that they might be able to share? Thanks!

papageno
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Re: Rentista visa, taxes & looking for housing

Post by papageno » Wed Apr 12, 2017 11:44 am

at46 wrote:You don't need a bank account to open a fondos mutuos account. You can do that with just your tourist RUT, passport and some document showing how you came into possession of the money. It just takes a week or so to set up, that's all. Otherwise, yep, ATMs.
Does anyone know whether fondos mutuos accounts are subject to US IRS PFIC (Passive Foreign Investment Company) rules?

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RuneTheChookcha
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Re: Taxes on foreign capital gains and dividends

Post by RuneTheChookcha » Wed Apr 12, 2017 5:41 pm

oli_rouss wrote:... and that the 3-year tax exemption for foreigners regarding foreign income would still apply.
Note that even after the 3-year tax exemption for foreigners:

1. You are exempt from your foreign source income tax, if it is less than 13.5 UTA* annually. (1 UTA (Abril) = $557.532 CLP)

=======
UTM = Unidad Tributaria Mensual
UTA = Unidad Tributaria Anual (UTM x 12)
LEY SOBRE IMPUESTO A LA RENTA - CONTENIDA EN EL ARTÍCULO 1º
DEL DECRETO LEY Nº 824.

...

TITULO III
Del Impuesto Global Complementario

PÁRRAFO 1º
De la materia y tasa del impuesto

...

Artículo 52.- Se aplicará, cobrará y pagará anualmente un impuesto global complementario sobre la renta imponible determinada en conformidad al párrafo 2º de este Título, de toda persona natural, residente o que tenga domicilio o residencia en el país, y de las personas o patrimonios a que se refieren los artículos 5º, 7º y 8º, con arreglo a las siguientes tasas: (274) (275)(VER NOTA 274-a)

...

Las rentas que no excedan de 13,5 (VER NOTA 275-a) unidades tributarias anuales estarán exentas de este impuesto;
You are exempt from even tax declaration, if your foreign source income is less than 10 UTA annually.
LEY SOBRE IMPUESTO A LA RENTA - CONTENIDA EN EL ARTÍCULO 1º
DEL DECRETO LEY Nº 824.

...
TITULO V
De la administración del impuesto

PÁRRAFO 1º
De la declaración y pago anual (378)

rtículo 65.- Están obligados a presentar anualmente una declaración jurada de sus rentas en cada año tributario:
...

3º.- Los contribuyentes del impuesto global complementario establecido en el Título III, por las rentas a que se refiere el artículo 54, obtenidas en el año calendario anterior, siempre que éstas antes de efectuar cualquier rebaja, excedan, en conjunto, de diez unidades tributarias anuales. (381)

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eeuunikkeiexpat
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Re: Rentista visa, taxes & looking for housing

Post by eeuunikkeiexpat » Wed Apr 12, 2017 6:20 pm

Damn, that was the best "NEW" piece of info posted on the forum in a looooooong time.

¡Muchísima' Gracia' Runester!
Generally, just a SPAM KILLER. You are on your own in this forum. My personal mission here is done.

BUT when necessary, by way of ridicule and truth revelation we shalt do war.

--eeuunikkeiexpat

papageno
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Re: Rentista visa, taxes & looking for housing

Post by papageno » Wed Apr 12, 2017 8:16 pm

eeuunikkeiexpat wrote:Damn, that was the best "NEW" piece of info posted on the forum in a looooooong time.

¡Muchísima' Gracia' Runester!
Indeed, very useful and specific information, and I'll take notes for future reference when I'm paying taxes to Chile as a Chilean resident.

What I should have clarified was whether fondo mutuos are categorized by the US IRS as Passive Foreign Investment Companies (PFICS) for tax compliance purposes BY "US PERSONS". Apparently, we subjects of the Empire must be VERY careful about the structure and contents of what we hope or think would be a simple bank account. I did a Google search under "chile fondo mutuos us pfic" and turned up a couple of 300+ page pdf's from Banco de Chile that I haven't had time to scroll through. The excerpt that popped up under the search indicated BdC didn't believe they were subject to PFIC, but I couldn't find the actual section in the limited time I've had to look at this point.

at46
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Re: Rentista visa, taxes & looking for housing

Post by at46 » Wed Apr 12, 2017 10:13 pm

Banco de Chile had no problem opening a fondos mutuos account to an American friend, and the question of his US tax compliance never came up during the process.

papageno
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Re: Rentista visa, taxes & looking for housing

Post by papageno » Wed Apr 12, 2017 11:35 pm

at46 wrote:Banco de Chile had no problem opening a fondos mutuos account to an American friend, and the question of his US tax compliance never came up during the process.
Ah well, I suppose it's all part of the adventure: on this last trip I was scammed by Avis for physical damage insurance (they refused to accept the Allianz cover purchased as part of the booking through American Airline's website); chased by a pack of street dogs (who knows--it might be on YouTube by now--some wiseass shot video of it. For those of you who know Puerto Varas, it started at the corner of Santa Rosa and Del Salvador, and went up the hill and on to Imperial. Relentless little bastards. If there weren't so many witnesses, I'd have made pavement pizza out of them); and my luggage still hasn't turned up. Other than that, it was a great trip.

oli_rouss
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Re: Rentista visa, taxes & looking for housing

Post by oli_rouss » Thu Apr 13, 2017 7:48 am

Thanks for the info! (Un)fortunately my income is likely to be higher than 10UTA, so does that mean I have to declare my income to the SII even during the first three years of my (tax) residency in Chile?

Also, am I right in thinking that the tax rates that would apply to my foreign-based capital gains income would be the 'Impuesto Global Complementario' instead of the 'Impuesto Único de Segunda Categoría'?

Thanks!

EDIT: This is a link I found on the SII website with the tax brackets and rates. http://www.sii.cl/aprenda_sobre_impuest ... s.htm#o2p3

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