Chile

Employment taxes

Taxes are simple and progressive:

• Income tax (Second Category Tax) ranges from 0% to 40% depending on your salary.
• Your employer will handle the monthly deductions for you.
• Social security contributions are deducted too, covering your health insurance, pension, and unemployment insurance.

Leave policy

• Vacation: 15 paid working days per year (after 1 year of service) + 16 national holidays.
• Sick leave: Unlimited paid sick leave, but payments are made by the employee’s health provider (FONASA or ISAPRE), not the employer. To qualify, the employee must have contributed to the healthcare system for at least 6 months. The first 3 days are unpaid; days 4–10 are paid by the provider minus those 3 days; and from day 11 onward, sick leave is fully paid.
• Maternity leave: 18 weeks (6 weeks before birth, 12 weeks after), fully paid.
• Paternity leave: 7 paid days.
• Parental leave: Mothers can extend their leave with one of three options: 84 days full-time, 144 days part-time, or 84 days shared with the father (with 30 days' notice before the initial leave ends).

Employment termination

To terminate an employee, there must be a valid cause, such as mutual agreement, resignation, or justified dismissal.

• Notice is generally 30 days unless there's serious misconduct.
• Severance pay applies in most cases (unless fired for cause).

Hiring and contracts

• Written contracts are mandatory and must be signed within 15 days of starting work.
• They should clearly state job duties, salary, hours, and termination clauses.
• Fixed-term contracts are allowed (max 1 year, or 2 for managers and professionals).

Payroll and salary payments

• Chile’s national minimum wage is CLP 500,000/month ($525 USD).
• Salaries are paid monthly in Chilean pesos.
• Payments are usually made via direct bank transfer by the last working day of the month.
• Overtime is paid at 1.5x the regular hourly rate.

Benefits

Mandatory:

• Pension contributions
• Health insurance (public or private)
• Unemployment insurance
• Work-related accident coverage

Optional:

• Private health insurance upgrades
• Meal or transport allowances
• Gym memberships, wellness programs
• Bonus payments or profit-sharing

Monthly living cost (Santiago Edition)

• Rent (1-bedroom apartment, city center): $500–$700 USD
• Utilities & internet: $100–$130 USD
• Public transport pass: $40 USD/month
• Eating out & coffee: $300USD/month

You can live well on $2,000 USD per month, depending on your lifestyle.

How to get a local ID number (RUT)

To live and work in Chile, you’ll need a RUT (Rol Único Tributario):

• Locals and residents apply via the Civil Registry.
• Remote workers or freelancers can apply via the SII (tax authority) with proof of legal residency.
• It’s used for everything, like getting paid, signing leases, opening a bank account, etc.

Social security registration

Your employer will register you automatically in the social security system. This includes:

• AFP: Your pension fund administrator
• Fonasa or Isapre: For public or private health insurance
• Unemployment insurance and work accident insurance are also included.

Banking

To get paid, you’ll need a local bank account. Popular banks include:

• Banco de Chile
• BancoEstado (state-owned, great for public services)
• Santander Chile
• BICE and Scotiabank

You’ll need your RUT, proof of address, and a valid visa or residency card.

Housing and rental process

Finding a place to rent is pretty straightforward:

• Look on sites like Portal Inmobiliario or local Facebook groups.
• Most rentals come unfurnished.
• A typical lease is for 12 months, and you’ll need a guarantor or proof of income.

Tenant rights are protected. Landlords must give notice for eviction, and deposits are returned unless there’s damage.

Healthcare system

Chile offers both public (Fonasa) and private (Isapre) healthcare.

• Public system is affordable and widely accessible.
• Private system offers faster access and more comfort, and many employers offer private plans.
• Emergency services are available to all.

Driving and public transport

• Public transport in Santiago is clean, cheap, and reliable. There is a metro, buses, and shared taxis (colectivos).
• Uber and Cabify are also widely used.
• Want to drive? You can use your foreign license for a while, but long-term residents need a Chilean one.

Emergency and important contacts

• Emergency services (police, fire, ambulance): Dial 133 / 132 / 131
• Embassies: Most major countries have one in Santiago
• Hospitals: Clínica Alemana, Clínica Santa María (private), Hospital del Salvador (public)

Work permit and visa requirements

For all foreign nationals:

• Work visa subject to contract: For those with a job offer. This visa is valid for 2 years.
• Temporary residency visa: For remote workers, digital nomads, or self-employed professionals
• Start-Up Chile visa: A special option for entrepreneurs.
• Permanent residency is available after 2 years of legal residence.

Business culture and work norms

• Hierarchies matter, especially in traditional industries. Titles are used, but people are warm and approachable.
• Meetings are formal, but socializing is part of doing business.
• Trust and relationships go a long way, people do business with people they like.