Chile Expat Forum

Tax on Foreign Rental Income

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greenthumbelina

3/9/2017 16:09 EST

Hi Everyone,

I'm wondering if anyone has relocated to Chile and dealt with having US rental income being their primary source of income?
I am actively involved in managing the properties, I have heard there is a 30% deduction for this. I'm wondering if normal cost of living (in Chile) deductions also apply to this income,

Basically I'm considering and "early" retirement in Chile, supporting myself on the rental income but I'm seeing that it may be very steeply taxed, so trying to get more information. Also wondering if it makes a difference if I incorporate the properties. Thanks!!

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liewald

3/9/2017 18:12 EST

Hi!
You can get a "rentista" visa and be tax exempt for 3 years.
After that accounting is simplified and you will pay based on Chilean Law, but minus taxes you have paid in the US.
depending on how much it is, you may not pay taxes at all in Chile if total taxable income is below 9 Million pesos per year.
Best
Walt

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cesarolga48

3/9/2017 18:35 EST

You can start an S corporation and pay taxes only once and deduct all you're expenses.

I deal with rentals for a while, I even deduct my airplane tickets and hotels. Have rentals in Chile and U.S.

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greenthumbelina

3/31/2017 14:33 EST

Thanks! So I'll only be taxed on my taxable (net) income from the US right? Which isn't much so I should be ok I hope.

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