Although there are many advantages to relocating to Chile, ease of banking and convenient financial services are unlikely to feature among them. Handling banking, money and taxes in Chile can be a complicated and often frustrating proposition. Expats may wish to seek advice from accounting firms, tax specialists and relocation companies when dealing with money in Chile.
Money in Chile
The currency used in Chile is the Chilean Peso (CLP), subdivided into 100 centavos. Centavo coins are no longer in circulation, and due to inflation, prices are typically rounded to the nearest 10 pesos.
- Notes: CLP 1,000, CLP 2,000, CLP 5,000, CLP 10,000, and CLP 20,000
- Coins: CLP 1, CLP 5, CLP 10, CLP 50, CLP 100, and CLP 500
Money matters can be tricky, especially when dealing with a foreign currency. The Chilean Peso has a floating exchange rate, and the currency can fluctuate. This can complicate currency conversions, but luckily there are many ways and places to do this. Money can be exchanged at airports, large hotels, ATMs and foreign exchange bureaux (casas de cambio). Expats should never exchange money with strangers on the street, as this exposes them to the risk of scams.
Expats will probably find the best rates for getting the local currency in Chile at ATMs or casas de cambio. Travellers’ cheques are often accepted at the casas de cambio, although the exchange rate is not in favour of the person exchanging money.
Expats are advised to carry cash with them, especially in smaller denominations, as change is difficult to come by outside of large cities and tourist areas.
Banking in Chile
The banking system and economy of Chile are relatively stable. Many Chilean banks operate internationally, and a number of large foreign-owned international banks operate in the country. The main banks in Chile are Banco Santander Chile, Banco de Chile, Banco de Credito e Inversiones, Banco del Estado, and CorpBanca.
Foreign commercial banks with a major presence in Chile include HSBC, Scotiabank, and JPMorgan Chase. It may be possible to open an account with one of these before leaving home and then open a linked local account after arriving in Chile.
Banking hours are short in Chile, and banks are only open on weekdays from 9am to 2pm.
Opening a bank account
Opening a local bank account in Chile is more challenging than in many other countries. Many banks will only allow expats to open a local account once they've had Chilean residency for some time and even then, it isn't a straightforward process.
What complicates opening a current account (cuenta corriente) is the extensive requirements: an income of a certain level, a good credit history to prove that debts can be repaid, and a permanent contract proving that the person has worked and lived in Chile for several months.
An alternative is getting a CuentaRUT through Banco del Estado. This is a debit account allowing all basic payments and withdrawals. Setting it up is fairly simple and can be done online. That said, the account lacks some features and has limits on deposit amounts. Expats will also need a valid Chilean ID card number and tax number (RUT) to open one.
Scotiabank offers another banking option for foreigners. Expats can open a simple current account with a debit card provided they have proof of a minimum income. This will come in handy for making online payments, among other things.
We recommend that expats seek the help of banking relationship managers and advisors, although finding a good advisor may prove difficult. They are best acquired through networking.
Alternatively, expats could have their salaries paid into their overseas bank accounts and access their money using foreign debit or credit cards. Expats who want to take this approach must ensure that they inform their bank before leaving home and should bring at least two or three working ATM cards with them to Chile in case of loss or damage.
Credit cards and ATMs
ATMs are widely available with multiple language options, even in the smallest Chilean towns. These typically operate 24 hours a day and accept all major bank cards. Credit cards are also widely accepted throughout Chile.
Although Visa, Mastercard, and American Express cards are accepted, especially in large cities, fees for card payments can be high. It's best to keep some cash on hand for small purchases.
Taxes in Chile
When moving to Chile, expats will need a Chilean tax number, known as an RUT (Rol Único Tributario). This is done by registering with Chile’s tax service, the Servicio de Impuestos Internos (SII). The process can be challenging for expats who do not speak Spanish, as the website and administration are largely in Spanish.
It's best to hire an advisor and translator experienced in handling expat tax matters. Expats can also seek advice from large accounting firms such as KPMG for specific information.
For tax purposes, a foreigner is considered a resident if they have been living in Chile either for six consecutive months or more than six months in two consecutive financial years.
Expats will not usually be taxed on their worldwide income for the first three years that they are residents of Chile. However, they will be taxed on the income they earn from Chilean sources on a progressive scale from zero to 45 percent.
After three years of residency in Chile, expats are taxed on their worldwide income, but Chile has double-taxation avoidance agreements in place with many countries, so expats from these countries will not be taxed on the same income twice.
*Tax regulations are subject to change at short notice, and expats are advised to seek the assistance and advice of a professional tax consultant.