Chile Fiscal & Treaty Framework
1. Bilateral Tax Accord & Jurisdictional Allocation (Chile)
Relocating from Chile to Spain activates the provisions of the Convenio entre la República de Chile y el Reino de España para Evitar la Doble Imposición (2003). Under Article 15 of this bilateral accord, employment income is strictly allocated based on physical presence. If you move your tax residency from Chile without electing the 24% Beckham Law regime via Form 149, the Spanish Tax Authority (AEAT) will subject your worldwide earnings to progressive Spanish income tax (IRPF) reaching up to 47% (and up to 54% in autonomous regions like Valencia).
By contrast, electing the Special Regime for Inbound Workers (Article 93 LIRPF) caps your Spanish employment tax at a flat 24% for active labor income up to €600,000 per year. Furthermore, foreign-sourced passive income (such as dividends, interest, or rental yield originating in Chile) remains 100% EXEMPT from Spanish income tax.
2. Taxation of Chilean Employee Stock Options, RSUs, and Corporate Share Incentives.
A critical area of divergence for executives from Chile involves Chilean Employee Stock Options, RSUs, and Corporate Share Incentives.. Under DGT Binding Ruling V0813-23, unvested equity grants are time-sliced across the vesting grant period: only the fraction of workdays physically performed on Spanish soil is added to your Spanish 24% taxable base.
Regarding corporate distributions, 10% reduced dividend withholding tax under DTA Article 10. This provides significant cash flow protection compared to standard non-resident rates.
3. Statutory Departure & Compliance Requirements
Prior to relocating from Chile, you must address local departure formalities: Servicio de Impuestos Internos (SII) Declaración Jurada de Pérdida de Residencia Fiscal. AEAT Tax Residency Certificate protects against Chilean SII worldwide tax claims. AFP (Administradora de Fondos de Pensiones) voluntary savings (APV) evaluated under DTA Article 18.