Whether you are planning to build your future in another country, retire, diversify your assets or start a business, residence by investment is the quickest way to gain residence abroad, without having to go through a plethora of procedures.
At the same time, lots of countries have different programs to provide residence, and obviously, each of them comes with its own requirements and eligibility criteria. If you are after a Chile investment visa, here is everything you need to know.
But first, a few words about residence by investment programs…
In some circles, the residence by investment program is referred to as a golden visa. Such programs are normally aimed at high net worth individuals, yet regular individuals can also come up with the investment requirements overtime.
The goal is to obtain residence in a different country by making an investment. Some countries require donations, but most of them will allow you to invest – most commonly in real estate, yet there are other options too.
Some investment programs can be as low as $100,000, while others can easily exceed $1M. It depends on each country. At the same time, it is worth noting that not all countries will provide immediate family members residence permits too – sometimes, you will need to pay separately.
In most situations, there are no requirements to live in the respective country. Sure, you may have to be there for a particular period of time every year, but such requirements are insignificant. In other words, you do not necessarily need to relocate.
The investment visa is different from a classic tourist visa because it may provide visa free travel in countries that have agreements with your new jurisdiction – it is worth double-checking upfront. Furthermore, you will gain access to new business opportunities.
Residence by investment versus citizenship by investment
It is important to know that the Chile investment visa does not mean you can get citizenship by investment. The country does not have such a program. Instead, what you can get is residence, which will lead to citizenship eventually.
Most people fail to make the difference between these two concepts, though.
Citizenship by investment is quite rare. There are around 10 countries providing such programs. Apart from two of them – Saint Kitts and Nevis and Dominica, most programs come and go on a regular basis. Most of them have been introduced throughout the last decade.
Saint Kitts and Nevis has the oldest such program and lasts for around 35 years.
Dominica’s program is around three decades old.
What Chile offers is residence by investment – this is what most countries provide access to. In other words, you can invest money into the local economy and gain residence. The process is relatively fast and will get you there in no time.
You could get residence in other ways too – usually by applying for a visa, finding work, and so on. Basically, you could get a residence by integrating into the local society. Making an investment is much faster, though.
At the same time, investment is likely to bring in some returns if you plan it carefully. It is not like a donation. You will see that money back – maybe even more if you do it right. You can normally invest in real estate.
Citizenship can be granted after five years of residence. You will need to apply for it – no one will contact you to hand it over. There are, of course, some rules you need to follow – such as being in the country for a particular period of time on a yearly basis.
Becoming familiar with Chile
Never apply for a visa without being aware of the respective jurisdiction – you need to become familiar with the local lifestyle and culture and ensure it actually meets your necessities. The same rule applies when aiming for a Chile investment visa.
Chile is one of the fastest growing countries in South America. It is economically and politically stable. Plus, it is rich in numerous resources and has plenty of nature for those who want a quiet environment to recharge their batteries.
The place is definitely welcoming and has overcome other countries in the American continent in terms of popularity. More and more expat communities come up in Chile, and for some good reasons. Moreover, obtaining residence is not an expensive process.
Despite being part of South America, Chile is a safe country with a powerful passport. It allows traveling to a bunch of countries – including the USA, Russia, the EU, and other jurisdictions without a visa. However, obtaining residence will not give you a passport.
The citizenship requires spending years in the country before making an application.
But then, it all starts with the residence.
Given its location in South America, Chile may have a bad reputation – without any actual reasons, though. There are no cartels like in Colombia or Mexico – in fact, you never hear anything about Chile in the news.
The country is quite modern too and features contemporary facilities, as well as direct access to nature and untouched land. It provides lots of opportunities and feels stable. It is transparent and has a safe political system.
The country provides a welcoming environment for business enthusiasts. It allows starting a business from scratch with less than $1,000 – one of the easiest countries in the world to make your dreams come true.
If you are convinced about Chile, here are the steps you need to go through for your plan to come true.
Applying for the actual visa in Chile
This is the first step in the process and asks for a bit of patience. There are more ways to apply for a visa in Chile, and choosing the right one depends on your unique circumstances. The visa aims to give you more than the standard 90 days you can get with a tourist visa.
The application can be made while you are already in Chile – on a tourist visa. You can also prepare everything ahead of time – the better option, as you might exceed the tourist visa while waiting for all the procedures. Therefore, apply at a local consulate or embassy instead.
The self sufficient visa
The self sufficient visa is one of the top choices, but it comes with a catch. Its name is self explanatory – you need to prove that you are self sufficient. Just like any other country out there, Chile does not want to welcome you if you are about to seek social benefits.
The idea is to have enough income to support yourself – or perhaps your family. There are no requirements about the income, so each case is analyzed independently. As a general rule of thumb, you should aim for at least $1,500 a month – $500 for each additional family member too.
The source of the income is where the catch is. This program is suitable for those who get a pension or perhaps those with various investments. If you have a job, it will not count, even if you are allowed to work abroad. This is not a digital nomad visa.
The good news about the self sufficient visa is that you can also start a business in Chile.
The startup visa
The startup visa in Chile is granted to those who want to infuse innovation into the local economy. Chile has turned to business entrepreneurs over the past few decades, so the country attracts more talent than ever.
No matter what your goals are, chances are you can achieve them in Chile. While advanced and modern, the country also has plenty of room for improvement, so many opportunities from advanced countries could become a reality in Chile.
All in all, if you are interested in starting a business, getting this visa is fairly simple. The problem is that it is only given for a year. It is known to be difficult to renew – unless your business actually skyrockets and makes good money.
The entrepreneur visa
This Chile investment visa is more difficult to achieve, but it is suitable to big players who are willing to spend some money and start a serious business. The visa is great for those who want to start a company, but the minimum investment is quite high – $75,000.
Compared to other countries, the amount is actually low.
Keep in mind that the requirement depends on where you want to invest. You will need about $75,000 for Santiago, but less than that in smaller towns or villages. At the end of the day, it depends on your actual business.
This visa option is more sophisticated because of the fees and requirements, but also because of the process. There are no general rules here. It is not like you meet the requirements, and you will be accepted straight away.
Instead, each case is subjective. Those who deal with the visa will analyze how much potential your business has. Will it create any jobs? Is there an opportunity for locals to work there? All these things will lead to the final decision.
Dealing with the temporary residence in Chile
Deciding on the right type of visa depends solely on your necessities and goals. No matter which option you decide on, it must be an authentic choice, as each case is thoroughly investigated. If you are accepted, you will be the lucky owner of a temporary residence permit.
The temporary residence permit comes with a year of validity. You are allowed to travel and leave the country, though, but over that year, you need to spend 185 days in Chile – otherwise, the permit might be canceled.
Now, here is another catch. Spending 185 days in a year in Chile will make you a local taxpayer as well.
Another important thing to mention is that all these days can be random. You can be there for a couple of months, leave the country, come back for another couple of months, and so on. These days must not be consecutive – unless you want to.
Over this year, you can do whatever you want if you follow the rules and help the country in terms of business. If this was your original plan, you should have applied for an entrepreneur visa or perhaps the startup alternative.
Now, while the permit is only given for a year, you are basically allowed to live for two years in Chile because it can be extended. The extension comes with another year. Once the two years are over, you have two options – get permanent residence or leave.
What to know about taxes in Chile
Get the temporary residence permit, and you will need to spend 185 days a year in Chile, which is also what you need to become a tax resident. In other words, this permit will make you liable for tax in your new country.
Tax residency is obtained if you spend six consecutive months in Chile over a year. You do not have to. If you think you can skip this aspect, think twice – you can also become tax liable if you spend six non consecutive months in Chile over two years.
If tax optimization is the primary reason wherefore you want to obtain residence or citizenship, the Chile investment visa may not be the best option for you. In fact, Chile has never been classified as a tax haven, as tax requirements are quite high.
As you get your temporary visa, you will be taxed from two directions. First, you will need to pay tax on the income obtained on Chilean territory. Second, you will also have to pay tax for the income from abroad – assuming you work online or run a business somewhere else.
The temporary visa is only given for a year, so you are responsible for tax for a year only. After this year, you can get a permanent residence permit. Since the physical residence is not an actual requirement – apart from that day, you will be covered by tax for a year only.
Obviously, just like in any other country out there, there are ways to optimize the tax and structure your business finances to reduce the tax. But then, if you are after the citizenship, you will have to spend most of your time in Chile, so tax is part of the game too.
Even if you choose to avoid residence, the income sourced on Chilean territory will be taxed. For instance, you could rent out properties, or maybe you are a director in a company. Income from Chile is taxed no matter what.
The country is aware that its tax system is not the best, so it aims to offer toms benefits. Over the first three years as a resident, you can have a year where international income is not taxed, but just the one coming from Chile.
This benefit can be extended if you apply for it – three more years.
While numbers may change, the VAT is set at 19%. Corporations are taxed at 27% if they generate income internationally. Other than that, it is worth noting that tax rates are progressive and may take a long time to jump from one level to another.
Reaching the permanent residence in Chile
The Chile investment visa will inevitably lead to a permanent residence in the country – unless, of course, you decide you no longer want to do business there, and you choose to leave. Again, it is totally up to your needs.
The process of gaining permanent residence is straightforward, so you are less likely to get lost. Indeed, you could hire a professional service for this job to ease the process, but you can also do it yourself. Either way, it is a bit time consuming.
You will have to bring in some documentation – you should have most of it already, as you needed it for the temporary residence. The same 185-day rule applies to the permanent residence, and local authorities will actually check everything.
From a more subjective point of view, you will have to write a letter and describe the reasons wherefore you could be a good addition to the country. You need to explain why you want to be a permanent resident – the more reasons you bring in, the better your application will be.
Just like temporary residence visa, the permanent one will come with an expiry date – five years. Also, it can be renewed. Unlike the temporary residence visa, the permanent one can be renewed as many times as you want – in other words, you do not necessarily need citizenship.
The necessity of a certified service is even more obvious if you cannot speak Spanish. This is the official language in Chile, and you need to understand it to do everything alone. There are no services in English, hence the necessity of a translator or lawyer.
The best part about the Chile investment visa for permanent residence? You can forget about those 185 days. That rule is for the temporary residence only. Get the permanent one, and you will be required to spend 24 hours a year in Chile – a single day only.
While the requirement is definitely doable, there are situations when you may not be able to get there. Sure, if you run a business, chances are you want to go there often and keep an eye on it, rather than rely on managers.
But then, the current coronavirus pandemic might have been an issue – the government understands that though. Whether it comes to travel restrictions or perhaps an illness, get in touch with the closest representation and explain your circumstances.
Another requirement for a permanent visa is a police clearance certificate. Such paperwork is needed in most countries out there when it comes to residence. After all, no country wants to allow a criminal within its borders.
This certificate is valid for 90 days and can be taken from a local consulate or embassy, as well as your local government office. It must be in English or Spanish – an apostille to prove its authenticity is also required.
Reaching the Chilean citizenship
Should you decide to choose this country as your final destination, citizenship is obviously your final goal. It all starts with the Chile investment visa, and while you can renew your permanent residence as many times as you want, the citizenship feels safer because it is difficult to lose.
You will have to spend five years in Chile as a permanent resident in order to obtain citizenship. It will not come out of nowhere. Instead, you need to apply for it – again, similar documentation and procedures.
Just like other procedures in Chile, obtaining citizenship is also time-consuming. It will most likely take you between one and two years to get everything done. Meanwhile, you will need to take a few exams. Learn a bit of Spanish and study the local history and culture.
Once you get the citizenship, you can keep the current one because Chile is one of those countries that accept dual citizenship – make sure your current country does too. Get the passport straight away, and you will get plenty of benefits.
You will be able to travel without a visa to over 170 countries, access to the whole South American trading block, healthcare, education, and even social benefits, not to mention access to places like Russia, the EU, or the USA.
Conclusion
As a short final conclusion, the Chile investment visa is excellent if you want to get citizenship or perhaps conduct business in a politically and economically stable country. Should you go for citizenship, the passport is quite powerful and will provide access to a solid system.
Chile is an attractive opportunity for those who want stability and nature. It can be a primary base on the American continent, yet the tax-related issues could chase some investors away. Again, there are a few loopholes to consider.
The necessity of a professional tax planner is quite obvious if you want to settle in Chile, regardless of the business you want to conduct.
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