Chile: second run

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.
User avatar
Space Cat
Rank: Chile Forum Citizen
Posts: 1414
Joined: Thu Dec 04, 2014 9:20 pm
Location: Valdivia

Re: Chile: second run

Post by Space Cat » Thu Apr 04, 2019 12:19 am

Yes, literally every EU country has a VAT, from 17% to 27% in Hungary, 22-24% is the most popular range. And most of them have medium-to-high taxes, including capital gains tax (that's why accumulating ETFs are popular in the EU). Same in Russia: high income taxes, high VAT, property taxes, vehicle taxes, many "hidden" fees.

But at least in a tax system like the Chilean I can choose to consume less. I wasn't happy with many car-related payments like $230,000 for a "permiso de circulación" for a year but I hope living out of the city is worth it.

User avatar
41southchile
Rank: Chile Forum Citizen
Posts: 729
Joined: Mon Jun 12, 2017 2:39 pm
Location: Lakes Region

Re: Chile: second run

Post by 41southchile » Thu Apr 04, 2019 7:59 am

Space Cat wrote:
Thu Apr 04, 2019 12:19 am
Yes, literally every EU country has a VAT, from 17% to 27% in Hungary, 22-24% is the most popular range. And most of them have medium-to-high taxes, including capital gains tax (that's why accumulating ETFs are popular in the EU). Same in Russia: high income taxes, high VAT, property taxes, vehicle taxes, many "hidden" fees.

But at least in a tax system like the Chilean I can choose to consume less. I wasn't happy with many car-related payments like $230,000 for a "permiso de circulación" for a year but I hope living out of the city is worth it.
Yeah its true, taxes are a lot less than Europe, Europe is expensive for sure.
I dont know how much you can choose to eat though or buy clothes or use, services . IVA a tax that claims to be fair but disproportionatly hits lower income earners.
Chile is by no means a low low tax country in the world, there also a lot of user pays too. Maybe middle of the pack in a global sense? Total taxes anyone pays and benefits citizens receive are different and hard to compare between countries a lot of the time.
I guess it all comes down to how good your accountant is too sometimes, as to how much tax you pay.
Yeah , 480000 for our permiso and the "green" tax of over 1 million when we bought it,.
Comuna Loncotoro Lakes Region Chile

User avatar
Space Cat
Rank: Chile Forum Citizen
Posts: 1414
Joined: Thu Dec 04, 2014 9:20 pm
Location: Valdivia

Re: Chile: second run

Post by Space Cat » Thu Apr 04, 2019 9:58 am

41southchile wrote:
Thu Apr 04, 2019 7:59 am
I dont know how much you can choose to eat though or buy clothes or use, services.
Not much but at least I can avoid excessive consumption like buying new clothing because of the fashion trends, so I wear mine until holes appear. Or getting new phones and other devices when the old ones still run well. Or wasting food — this one was almost criminal when I was a kid because my grandma and many senior people around were survivors of the Siege of Leningrad.
41southchile wrote:
Thu Apr 04, 2019 7:59 am
IVA a tax that claims to be fair but disproportionatly hits lower income earners.
Yes, and even the most socially-focused European countries still haven’t dropped it. :( Here’s an interesting taxation approach that focuses on the richest part of the population but it would probably affect you a lot as a land owner:
https://en.wikipedia.org/wiki/Georgism

User avatar
tiagoabner
Rank: Chile Forum Citizen
Posts: 427
Joined: Sat Mar 04, 2017 9:48 am

Re: Chile: second run

Post by tiagoabner » Thu Apr 04, 2019 11:15 am

Yep, VAT really shafts low-income earners. Although I'm Europe we have both that and high income & SS tax. That's one of the main reasons we're moving to Chile instead of elsewhere.

User avatar
41southchile
Rank: Chile Forum Citizen
Posts: 729
Joined: Mon Jun 12, 2017 2:39 pm
Location: Lakes Region

Re: Chile: second run

Post by 41southchile » Thu Apr 04, 2019 11:53 am

tiagoabner wrote:
Thu Apr 04, 2019 11:15 am
Yep, VAT really shafts low-income earners. Although I'm Europe we have both that and high income & SS tax. That's one of the main reasons we're moving to Chile instead of elsewhere.
Yeah in some countries, the VAT enables governments to lower income taxes, as normally VAT makes up about 20 percent of total tax take for govt I've heard.
Not Europe I guess, they want to have their cake and eat it, any country in the EU or wanting to join must have a VAT I understand. As do about 140 countries worldwide in one way or another
I know it disportionatly affects Lower income earners , but I still think the system in NZ and Chile is best if there is to be one, one flat rate and across everything.
Its simple reduces compliance and avoids people looking for loopholes.
Comuna Loncotoro Lakes Region Chile

Jamers41
Rank: Chile Forum Citizen
Posts: 96
Joined: Thu Jun 22, 2017 2:11 pm

Re: Chile: second run

Post by Jamers41 » Thu Apr 04, 2019 3:37 pm

admin wrote:
Mon Mar 11, 2019 6:40 am


yea, if your residency expired, then you got to start over.
I don't know how I missed this thread before, but it should be mentioned that there was/is a way to obtain residency again if you have already lived in Chile before.

When I came (back) to Chile in 2011, I applied and obtained my temp visa as an ex-resident (had a student visa in 2008-2009).

Since to my knowledge there has been no official change in the law, I would think this is still an option. It doesn't save you from having to apply for a visa again, but the requirements are easier (I remember I did not have to submit a job or contract offer).

User avatar
tiagoabner
Rank: Chile Forum Citizen
Posts: 427
Joined: Sat Mar 04, 2017 9:48 am

Re: Chile: second run

Post by tiagoabner » Thu Apr 04, 2019 3:45 pm

Thanks, but our Visa situation is quite simple, as we both will get a Visa Mercosur.

User avatar
snobrd4life
Rank: Chile Forum Citizen
Posts: 199
Joined: Tue Aug 02, 2011 9:28 pm
Location: South Florida

Re: Chile: second run

Post by snobrd4life » Thu Apr 04, 2019 4:03 pm

Jamers41 wrote:
Thu Apr 04, 2019 3:37 pm
I don't know how I missed this thread before, but it should be mentioned that there was/is a way to obtain residency again if you have already lived in Chile before.

When I came (back) to Chile in 2011, I applied and obtained my temp visa as an ex-resident (had a student visa in 2008-2009).

Since to my knowledge there has been no official change in the law, I would think this is still an option. It doesn't save you from having to apply for a visa again, but the requirements are easier (I remember I did not have to submit a job or contract offer).
interesting. much simpler than i previously had thought.

https://www.extranjeria.gob.cl/media/20 ... idente.pdf
ese ruido blanco es una alarma en mis oídos
Not in Chile for now, but still lurking.

User avatar
admin
Site Admin
Posts: 18040
Joined: Sat Aug 26, 2006 11:02 pm
Location: Frutillar, Chile
Contact:

Re: Chile: second run

Post by admin » Thu Apr 04, 2019 5:49 pm

Yea, people, careful with generalizations. Someone reading and half understanding, or it being half explained, leads to people with a completly diffrent situation getting in to trouble.

At the very least, it makes my job harder as I end-up with hysterical emails and phone calls, 'but so and so on the forum said..."; and, I have to spend the next 30+ mins to talk someone down off a ledge.
Spencer Global Chile: Legal, relocation, and Investment assistance in Chile.
For more information visit: https://www.spencerglobal.com

From USA and outside Chile dial 1-917-727-5985 (U.S.), in Chile dial 65 2 42 1024 or by cell 747 97974.

User avatar
eeuunikkeiexpat
Rank: Chile Forum Citizen
Posts: 7573
Joined: Fri Sep 01, 2006 1:38 am
Location: Megalith of unknown origin near my digs, south V Region coast

Re: Chile: second run

Post by eeuunikkeiexpat » Thu Apr 04, 2019 7:44 pm

If tiagoabner was not so comfortable and fluid in English, most here would not know about the Chile Mercosur visa.
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

User avatar
admin
Site Admin
Posts: 18040
Joined: Sat Aug 26, 2006 11:02 pm
Location: Frutillar, Chile
Contact:

Re: Chile: second run

Post by admin » Thu Apr 04, 2019 9:17 pm

eeuunikkeiexpat wrote:
Thu Apr 04, 2019 7:44 pm
If tiagoabner was not so comfortable and fluid in English, most here would not know about the Chile Mercosur visa.
yea, i have historically avoided talking about it to avoid the confusion and a million questions from people that totally do not qualify.
Spencer Global Chile: Legal, relocation, and Investment assistance in Chile.
For more information visit: https://www.spencerglobal.com

From USA and outside Chile dial 1-917-727-5985 (U.S.), in Chile dial 65 2 42 1024 or by cell 747 97974.

User avatar
tiagoabner
Rank: Chile Forum Citizen
Posts: 427
Joined: Sat Mar 04, 2017 9:48 am

Re: Chile: second run

Post by tiagoabner » Thu Apr 04, 2019 9:41 pm

Most forumites don't qualify for it.

Random internet person: if you're reading this and you're not a citizen of a Mercosur country, you're not eligible.

Post Reply