Country guide · Chile
What it really takes, what it costs every year, what you file with the IRS even with zero revenue, and the advantage almost nobody mentions: Chile is the only country in the region with a tax treaty in force with the United States.
Written by an Argentine public accountant who is a Florida notary public and an IRS-registered tax preparer. We handle and sign the US side; your Chilean accountant closes the local side, and this page tells you what they will ask for.
The Chile-United States double taxation treaty came into force from 2024, after more than a decade waiting on ratification by the US Senate. Chile is the only country in South America, alongside Venezuela, that has one.
What it means in practice: an agreed framework for allocating taxing rights between the two countries, and reduced withholding rates on certain cross-border payments. It is not an exemption or a shortcut — it is a framework that lets you plan with clear rules instead of applying unilateral credits with limits.
Article 41 G. Chile's foreign passive income regime: when you control an entity abroad, its passive income is recognised in Chile even if nothing was distributed. If your LLC invoices services you personally perform, the analysis differs. Add the annual informational returns on foreign investments and operations, which are informational but mandatory.
And if you arrived in Chile recently, read this. A foreign national who establishes domicile or residence in Chile is taxed only on Chilean-source income for the first three years, extendable where the rules allow. Inside that window, the order in which you build the structure matters as much as the structure itself.
Where the line sits. We handle and sign the US side: formation, EIN, operating agreement and the IRS filings. Applying the treaty, article 41 G, the informational returns and your residence status belong to your accountant in Chile. What we do is hand them, in writing, everything they will ask you for.
| Item | Year 1 | Year 2 onward |
|---|---|---|
| Wyoming state fee Charged by the state, not by us | USD 102 | USD 60 annual report |
| Registered agent Mandatory under state law | Included | Annual renewal |
| Full formation LLC, EIN, operating agreement, banking guide | Quoted on your case | — |
| Mandatory federal filing Form 5472 + pro forma 1120 | Quoted per tax year | Quoted per tax year |
Wyoming charges no state income tax. Run the numbers by state in our free calculator, no signup.
One obligation does not depend on revenue: Form 5472 with the pro forma 1120, every year, starting with the first. The penalty for not filing starts at USD 25,000 and is automatic. Having a treaty does not exempt you from this: a treaty allocates taxes, it does not remove informational filings.
With the EIN and your passport you can open an account remotely at Mercury or Relay. They review what the business does and sometimes decline. The banking guide is included and, if you are declined, we give you the fallback plan in writing.
Based somewhere else? There are country guides for Argentina, Colombia, Spain, Mexico, Panama and Peru.
Your passport and little else. No visa, no US residency, no local partner and no travel. The state requires a registered agent with a physical address there, included for the first year, and the EIN is issued without a Social Security number, as a foreign owner.
Full formation is quoted on your case and includes the first-year Wyoming state fee (USD 102), the EIN, the operating agreement and the registered agent for year 1. From year two the floor the state charges is USD 60 for the annual report, plus the registered agent renewal. The mandatory federal filing is separate and quoted per tax year.
Yes, and it is the big difference against Colombia, Peru or Argentina. The Chile-US treaty came into force from 2024, after more than a decade waiting on ratification by the US Senate. That gives a Chilean resident a framework for allocating taxing rights and reduced withholding rates that neighbouring countries do not have. How it applies to your specific operation is settled by your accountant in Chile, but the starting point is far better.
If you are a Chilean resident you are taxed on worldwide income, and there is also the foreign passive income regime under article 41 G of the income tax law: when you control a foreign entity, its passive income is recognised in Chile even if nothing was distributed. If your LLC invoices services you personally perform, the analysis differs. There are also annual informational returns on foreign investments and operations your accountant has to review.
Not necessarily, and this is one of the most useful things a newcomer can know. Chilean law provides that a foreign national who establishes domicile or residence in Chile is taxed only on Chilean-source income for the first three years, a period that can be extended where the rules allow. If you are inside that window, the order in which you build the structure matters a great deal. Confirm it with your accountant before moving anything.
It depends on where the income is earned, not where the company is registered. If you work from Chile with no US office or staff, the usual answer is no federal income tax and only the informational filings. If your operation physically touches the United States, Form 1040-NR comes into play — and there the treaty is the instrument that prevents the same income being taxed twice.
This page is informational and is not individualized legal or tax advice. Your Chilean tax position is determined by your accountant there.
Two or three lines: what you will invoice from Chile, whether there are partners, and how long you have been resident there. I answer personally with the diagnosis and a fixed quote, in writing.
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