Chile (CL)
South America's most stable and developed economy, Chile stretches 4,300 km from the Atacama Desert to Patagonia.
Capital: Santiago
Region: Americas
Language: Spanish
Currency: CLP ($)
Cost of living: Affordable (index 45)
Emergency: 133
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Business Setup
Start a business or go freelance in Chile.
🧑💻 Freelancer / Self-Employed Guide
Steps to register:
- 1 1. Obtain your RUT (Rol Único Tributario) from SII — required before anything else. Foreign residents: apply with your cédula de identidad para extranjeros or via Servicio Nacional de Migraciones.
- 2 2. Obtain Clave Única (digital identity) at the Registro Civil — needed to access SII online portal.
- 3 3. Register "Inicio de Actividades" (start of activities) at sii.cl — select your activity code (código de actividad) from the SII list. Common for expat freelancers: Actividades de consultoría (consulting), Desarrollo de software (software development), Actividades de diseño (design), Enseñanza / educación.
- 4 4. Register as "Segunda Categoría" (professional services) or "Primera Categoría" (trade/commerce) depending on your activity. Most professional freelancers fall under Segunda Categoría (boleta de honorarios system).
- 5 5. Issue boletas electrónicas de honorarios through the SII portal for every payment received from Chilean clients. You cannot receive formal Chilean payments without boletas.
- 6 6. Foreign companies paying you directly (USD/EUR): receive income as foreign income and declare it in your annual Operación Renta. You do not necessarily issue Chilean boletas for foreign clients, but must still declare and pay Impuesto Global Complementario (worldwide income tax).
- 7 7. Pay monthly provisional AFP contributions: by 2026, full mandatory AFP (10%) and FONASA (7%) contributions apply to boleta income under the phase-in that started in 2019.
- 8 8. Pay monthly provisional tax retention: SII automatically retains 13.75% of each boleta amount as advance income tax. Annual reconciliation in April (Operación Renta) adjusts this against your actual tax liability.
- 9 9. File annual tax return (Declaración de Renta) via sii.cl in April — compare total income, withholdings paid, and social contributions against the annual tax table.
- 10 10. Register for IVA only if your activity is classified as comercio (trade) rather than professional services. Professional services (boleta de honorarios) are generally IVA-exempt — confirm with a contador.
Tax registration
SII Inicio de Actividades — register at sii.cl using Clave Única. Free of charge. Takes effect immediately. Select activity code matching your services. You will receive a Resolución de Inicio de Actividades. For a formal company (SpA/EIRL), also register the legal entity and declare initiation of activities.
VAT threshold
Professional services (Segunda Categoría, boleta de honorarios) are generally exempt from IVA regardless of income level. Comerciantes (Primera Categoría) must register for IVA from the first transaction — no minimum threshold exemption for commercial activities. Confirm with a contador whether your activity is classified as professional or commercial.
Invoicing
Issue boleta electrónica de honorarios for all professional service payments via the SII portal (sii.cl). For commercial activities: issue facturas electrónicas (electronic invoices) through SII-certified software or portal. All electronic documents (DTE — Documentos Tributarios Electrónicos) must be transmitted to SII in real-time. Facturas must include: RUT of buyer, description of goods/service, amounts, and IVA breakdown. Physical paper invoices are no longer accepted for new transactions.
Social security
Self-employed workers on boleta de honorarios are obligated since 2019 to pay AFP (10% + AFP commission fee ~1.2%) and FONASA (7%) on boleta income. By 2026, the phase-in is complete at full rates. Contributions are calculated monthly based on income. Option to choose ISAPRE instead of FONASA for private health coverage. Also consider voluntary APV (Ahorro Previsional Voluntario) contributions for additional tax deduction and retirement savings.
💡 Key Chile-specific rules: (1) The boleta de honorarios system is uniquely Chilean — understand it before starting any paid work. (2) Contadores are essential — most charge CLP $50,000–150,000/month for bookkeeping. (3) The IVA treatment of your specific service type must be confirmed — some digital services are IVA-liable under 2020 reforms. (4) Foreign-source income must be declared — Chile taxes worldwide income after residency is established. (5) Keep all SII receipts and declarations — SII audits can cover the last 3 years (or 6 if fraud indicators exist).
🏢 Business Structures
Empresa Individual · Empresa Individual de Responsabilidad Limitada (EIRL)
Sole-owner limited liability company
No minimum capital required (declared in the deed)
Min. capital
1–3 weeks via notaría + municipal office; or 1–3 days via portal.cl (online registration)
Setup time
Liability: Limited to declared capital — personal assets protected
Setup cost: CLP $80,000–150,000 (notary deed + municipal patent + SII registration)
Best for: Solo entrepreneurs, freelancers, and consultants who want limited liability without partners. Most common structure for self-employed expats with a stable client base.
SpA · Sociedad por Acciones
Stock corporation (simplified)
No minimum capital required
Min. capital
1–5 business days via portal.cl online system; up to 2 weeks via traditional notaría route
Setup time
Liability: Limited to capital contribution — shareholders not personally liable
Setup cost: CLP $80,000–200,000 (notary deed or online via portal.cl; municipal patent; SII initiation of activities)
Best for: Startups, tech companies, and businesses expecting investment or multiple future shareholders. Very flexible governance rules. Allows single founder (unlike SRL). Most popular structure for growth-oriented businesses and expat entrepreneurs.
SRL · Sociedad de Responsabilidad Limitada
Limited Liability Company (LLC equivalent)
No minimum capital required
Min. capital
2–4 weeks via traditional notaría route; slower than SpA online option
Setup time
Liability: Limited to capital contribution
Setup cost: CLP $100,000–250,000 (notary deed, registration at Conservador de Bienes Raíces, municipal patent)
Best for: Professional practices (law firms, accounting firms) and small businesses with 2–50 partners. Requires at least 2 partners and unanimous consent for major changes — less flexible than SpA.
SA Cerrada · Sociedad Anónima Cerrada
Private corporation (closed)
No minimum capital required but must declare amount in statutes
Min. capital
4–8 weeks
Setup time
Liability: Limited to share capital — shareholders protected
Setup cost: CLP $300,000–800,000 (notaría, Conservador de Bienes Raíces, CMF registration not required if closed)
Best for: Medium-to-large businesses with shareholders who want a corporate governance structure. Requires audited accounts once capital thresholds are met. Preparation for potential IPO.
Boleta de Honorarios · Emisor de Boletas de Honorarios (Informal self-employment)
Independent contractor / freelancer (informal structure)
None
Min. capital
Same day online via Clave Única
Setup time
Liability: Unlimited personal liability — no corporate shield
Setup cost: Free — register with SII (Inicio de Actividades, Formulario 3349) online at sii.cl
Best for: Freelancers, consultants, and service providers working with Chilean clients. Issue boletas electrónicas (electronic fee receipts) through SII's portal. No formal company needed. Income taxed under Impuesto Global Complementario. Monthly provisional retención of 13.75% of each boleta remitted to SII. Mandatory AFP and FONASA contributions also apply.
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