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31/07/2019, updated 11/08/2025
Is it possible to settle in Chile once you are retired?
It is possible to come and spend your retirement in Chile. To do so, you need to apply for a temporary resident visa as a retired person or rentista. You will have to prove that you have a regular income allowing you to live in Chile. Most income types are eligible: pension, rent of a real estate property, and dividends of company stocks.
In Chile, there is not a required minimum amount defined by law. Each visa application is analyzed on a case-by-case basis. Yet, having more than USD 1000 per month and per family member improves the approval rate. Below this amount, it is more challenging to get a visa approved.
Chile has an investor visa program, which grant you a visa if you invest more than 500,000 USD in Chile. If you do not have a recurring income, but you have a significant lump sum of money (above USD 100,000), there are a few options to get a visa approved, contact us for more information.
Why should you retire in Chile?
Many people choose to live in Chile for different reasons. First, if you come from a Western country, your purchasing power will be higher in Chile, although the country is expensive for the region. Many expatriates choose to settle in Santiago, especially in the neighborhoods of Vitacura, Las Condes, or Lo Barnechea, where expatriate groups are very active. Especially since the central zone of Chile, around Santiago, has a Mediterranean climate, which is very pleasant to live in.
Although Santiago is Chile's main economic center, it is not the only area where to spend one's retirement. Indeed, some retirees choose to settle:
- By the sea, in the region of Valparaíso, which has an oceanic climate. Many expatriates choose to retire in Viña del Mar or Valparaíso, two dynamic cities that are pleasant to live in and safe. There, you can swim in the ocean (although the Pacific Ocean is rather cool), walk on the beach, and enjoy cultural activities, especially in Valparaíso, a colorful city known for its open-air museum and home to one of Pablo Neruda's houses.
- Or a bit further north, in La Serena. It is the perfect place if you like Mediterranean landscapes and lifestyle. La Serena offers great beaches, ideal for long walks on the seaside. The climate is also very pleasant: in summer, temperatures rarely exceed 26°C (79°F), so the heat is not overwhelming. In short, La Serena is one of the privileged places to spend your retirement in Chile!
- Or in the south, the Araucania District, the Lake District, or the River District. Concerning activities, you can switch between hiking in the mountains, in natural parks, or by the lakes, and relaxing days at the many spas and thermal baths. For example, the Termas Geometricas near Pucón: they are open air baths wedged between two cliffs with lush vegetation. The South of Chile is great if you appreciate a mountain and rural lifestyle. However, you should know that both these districts are humid regions, so it rains very often!
How does the Chilean pension scheme work?
To pay for the pensions of retired people, Chile uses a defined-contribution funding system, which means that the country has chosen to transfer resources over time through savings and financial markets, rather than instantaneously between active and retired people.
In simple terms, each person contributes to their own pension during their working life, and draws a pension when they retire. Pension funds are called Administradores de Fundo de Pensiones (AFP).
However, AFPs do not enjoy a good reputation in Chile because of their dependence on the financial markets, the opacity of their management fees and the low pensions they pay to retirees.
If you plan to retire in Chile soon, or if you are already retired and want to move to Chile, the rest of this article does not concern you. However, you can read our article on the retirement visa if you want more information on the steps to take.
If you still have years to go and want to know how the pension scheme works and the equivalences between the Chilean pension system and that of your home country, look at the information below.
Retirement system for foreigners in Chile
As a foreigner, it can be relevant to contribute to the public system aimed at non-residents or to a private pension system such as life insurance.
There are arrangements for foreigners living in Chile. Since the law of August 25th, 1982, a derogatory regime has been implemented, allowing foreigners not to contribute in Chile for their pension plan and health insurance. This exemption is possible under certain conditions. Foreigners wishing to have a pension plan and a health cover outside Chile must meet the following criteria:
- You are a foreign technician, that is to say you have a diploma.
- You are covered by a social regime abroad in case of illness, disability, old age and death.
- You have a Chilean employment contract that stipulates, in a specific clause or in an appendix, the application of this exemption law.
If you are currently employed in Chile, there are two types of contracts:
- Expatriate contract: as a general rule, expatriates maintain a contract with their company in their home country and sometimes add a Chilean contract with a distribution of income between both that varies depending on the company. As a result, a contribution to a Chilean pension plan can be implemented or not. These contributions can be avoided, which increases the employee's compensation and reduces his/her tax burden. Indeed, If the employee already contributes in his/her country of origin, the employee can benefit from the exemption provided by law.
- Local contract: this type of contract implies that the employee does not have a contract from his/her country of origin and his/her entire salary is paid in pesos in Chile. The local company will of course contributes to a chilean pension fund by default. Yet, the employee can ask to apply the exemption from contribution. In this case, the employee sends the funds that would normally have been deducted for his/her pension fund in Chile to a public or private pension scheme abroad. The funds will therefore be paid to the employee and tax-exempt. This withdrawal is usually done when leaving Chile. It does not matter if you successively had several jobs, since all contributions are centralized at the AFP.
Whatever your situation, you should check whether the withdrawal of the funds is interesting for you. If your country of origin has an equivalence convention for pensions with Chile, it may be more interesting to have the years contributed in Chile taken into consideration in your country of origin for the calculation of your pension, to get a full pension.
Healthcare for Retirees in Chile
Chile offers excellent healthcare options for retirees, with both public and private systems providing quality care at affordable costs.
Public Healthcare (FONASA)
- Coverage: Universal healthcare system covering all legal residents
- Cost: Typically 7% of monthly income, with minimum and maximum contributions
- Benefits: Basic medical care, emergency services, and essential treatments
- Waiting times: Can be longer for non-emergency procedures
Private Healthcare (ISAPRE)
- Coverage: Higher quality facilities and shorter waiting times
- Cost: Varies by plan and provider (13 different ISAPRE companies)
- Benefits: Access to private hospitals, specialists, and premium services
- Recommendations: Most expatriates choose private healthcare for better service
Healthcare Costs
- Monthly healthcare expenses: Approximately 7% of pension/income
- Quality: Chile ranks 37th globally in healthcare quality
- Modern facilities: Well-equipped hospitals and highly trained medical professionals
- Prescription drugs: Generally more affordable than US/European prices
Financial Considerations for Retirees
Monthly Budget Requirements
- Single retiree: 800-1,500 USD per month (excluding rent)
- Couple: 1,200-2,200 USD per month (excluding rent)
- Santiago living: Higher costs, budget $1,200-2,000 per month
- Smaller cities: More affordable, budget $700-1,200 per month
Housing Costs
- Santiago rent (1-bedroom): 500-800 USD per month
- Santiago rent (2-bedroom): 650-1,200 USD per month
- Smaller cities (1-bedroom): 300-500 USD per month
- Property purchase: Approximately $238 per square foot in Santiago
Cost Comparison
- Overall costs: 34-58% lower than United States
- Utilities: Around 150-200 USD per month
- Internet: 25-40 USD per month
- Transportation: Public transport 30-50 USD per month
Tax Implications for Retirees
Chilean Tax System
- Territorial taxation: Only Chilean-sourced income is taxed
- Progressive rates: Up to 45% on higher income brackets
- Foreign pensions: Generally not taxed if from foreign sources
- Investment income: Dividends and interest from Chilean sources are taxable
US Citizens
- US tax obligations: Must continue filing US tax returns
- Foreign Earned Income Exclusion: May apply to some income
- Foreign bank account reporting: FBAR requirements still apply
- Tax treaties: Limited tax treaty benefits between US and Chile
Tax-Advantaged Options
- Renta Vitalicia: Special retirement program for residents 55+ with tax benefits
- Investment structures: Various options for tax-efficient retirement income
Getting Started: Next Steps
Before You Move
- Visit Chile first: Spend several weeks exploring different regions and cities
- Learn basic Spanish: Start language learning before arrival
- Research healthcare options: Compare FONASA vs ISAPRE plans
- Consult tax professionals: Understand implications for your specific situation
- Connect with expat communities: Join online groups and forums
Upon Arrival
- Temporary accommodation: Arrange short-term housing while exploring permanent options
- Open bank account: Essential for rent payments and daily transactions
- Register for healthcare: Choose between FONASA or ISAPRE within 3 months
- Obtain RUT number: Chilean tax ID required for all official transactions
- Explore neighborhoods: Take time to find the right area for your lifestyle
Long-term Integration
- Join community groups: Participate in local activities and expat organizations
- Build local relationships: Develop friendships with both Chileans and expatriates
- Explore the country: Take advantage of Chile's diverse geography and culture
- Consider permanent residency: Apply after one year of temporary residence
- Plan for the future: Consider estate planning and long-term care arrangements
Chile offers retirees an excellent quality of life with modern amenities, beautiful landscapes, and affordable living costs. With proper planning and preparation, retirement in Chile can provide the adventure and comfort many retirees seek in their golden years.
Frequently Asked Questions about Retiring in Chile
Visa and Residency
While there's no official minimum, immigration typically expects 1,000-1,500 USD per month for the primary applicant and an additional $600 per dependent. Higher income improves approval chances.
The initial temporary residence visa takes 2-4 months to process. You can renew it annually and apply for permanent residency after one year of temporary residence.
Yes, the retirement visa allows you to work, start a business, or make investments in Chile without additional permits.
No, you don't need to prove retirement status. You need to demonstrate regular passive income from sources like pensions, rental income, dividends, or investments.
Yes, after 5 years of legal residence (including temporary residence time), you can apply for Chilean citizenship.
Cost of Living and Finance
Chile is generally 34-58% less expensive than the United States, though it's the most expensive South American country. Santiago is pricier than smaller cities.
Yes, but inform your banks of international use. Consider opening a Chilean bank account for easier daily transactions and to avoid foreign transaction fees.
The Chilean peso can be volatile. Many retirees keep US dollar accounts and exchange money as needed, or use strategies to minimize exchange rate risk.
While not required, having 6-12 months of living expenses saved is recommended for emergencies and initial setup costs.
Healthcare
Check if your current insurance covers international care. Most retirees choose Chilean healthcare (FONASA or ISAPRE) as primary coverage due to quality and affordability.
FONASA (public system) accepts all residents regardless of health status. Private ISAPRE plans may have restrictions or higher premiums for pre-existing conditions.
In Santiago and major cities, many private healthcare providers have English-speaking staff. Smaller cities may require basic Spanish or translator services.
Most medications are available and generally cheaper than US prices. Bring a list of current medications with generic names to discuss with Chilean doctors.
Daily Life and Culture
While not legally required, basic Spanish is highly recommended for daily life, banking, healthcare, and integration. English is limited outside tourist areas.
Chile is one of South America's safest countries with low crime rates. Standard urban precautions apply, especially regarding petty theft in Santiago.
Chile has excellent internet infrastructure. High-speed internet costs $25-40 monthly, and mobile phone plans are affordable and reliable.
Yes, but it's expensive due to import taxes and restrictions. Most retirees buy locally or use Chile's good public transportation.
Practical Considerations
Birth certificate, marriage certificate (if applicable), police background checks, proof of income, medical exams, and various other documents - all apostilled and translated.
Many retirees rent initially to explore different areas. Property ownership is straightforward for foreigners, but consider long-term plans and inheritance laws.
Chile allows pet importation with proper health certificates, vaccinations, and quarantine procedures. The process can take several months to arrange.
Social Security payments can be received in Chile. Contact the Social Security Administration about international payment procedures before moving.
Maintain connections with home country healthcare, banking, and legal systems. Consider the tax implications of maintaining residency in multiple countries.
Do you want to go more in detail?
I wrote the Chile Handbook for Foreigners for anyone and everyone looking to move permanently and enjoy life in Chile. It's a 265-page book that goes over all aspects of relocating to Chile. Here is what you get:
✅ Practical tips based on 7-year relocation experience
✅ To-do lists to help you start
✅ Last updated in 2025
