Chile, like almost all of the countries of the world, is still navigating its way around crypto and working on regulating cryptocurrency. Nonetheless, Chile has issued various guidelines clarifying the nature of crypto it perceives and the brackets crypto comes under. Crypto tax in Chile is taxes under non employment income, that is the Global Complementary Tax rates.
In 2021, 2.6% of its population owned cryptocurrency and the numbers have been steadily rising with a 23% of people stating crypto as their preferred form of investment.
Do you have to pay crypto tax in Chile?
Yes, you have to pay tax in Crypto. Crypto is taxed under non employment income, that is the Global Complementary Tax rates are applied whenever income from crypto transactions is generated.
When do you have to pay tax on crypto in Chile?
Whenever income is generated through cryptocurrency, it will be taxed in Chile.
What crypto transactions are taxable in Chile?
- Selling crypto with a profit
- Getting paid in crypto
- Exchanging or swapping crypto
- Spending by crypto.
What are the Crypto Tax Rates in Chile?
Under the Global Complementary tax brackets, gains are taxable at progressive rate of up to 35.5% with gains of maximum $11,368 being exempt from taxes.
Chile Income Tax Brackets (2023)
Global Complementary Tax (annual rates)
|Taxable base (USD*)||Rate (%)|
Chile Capital Gain Tax Rates (2023)
Capital Gains are not taxed separately in Chile and general income tax rates are applied on such gains.
How is Tax Calculated on Cryptocurrency in Chile?
Tax is levied on the gains made from crypto transactions in Chile. In order to deduce the gains. You need to calculate the cost price at which the crypto was acquired. This might be a confusing task if the asset was bought at two different points of time but is being sold together. In order to simplify the task of figuring out the cost price of your crypto, two methods can be used: First In First Out (FIFO) and Average Costs Based (ACB).
According to FIFO Method, you sell your oldest acquired coin first and cost is calculated according to the respective prices at which the coin was bought. Whereas, in ACB, time of buying doesnt matter and average cost is taken into account.
Let’s take an example,
Say you bought 2 BTC for $ 20,000 in 2020 and 4 BTC for $ 60,000 in 2021. Then you sold 4 BTC in 2022 for $ 100,000:
- FIFO METHOD
You sell 2 BTC from 2020 and 2 BTC from 2021. So cost price is:
= 20,000 + (2/4)*60,000
= $ 50,000
Profit = 100,000 – 50,000
Here, taxes are levied on $ 50,000 .
- ACB METHOD:
All coins are of the same denomination. Therefore, cost price for one coin:
= (20,000 + 60,000)/6
= $ 13,333
So, cost price of 4 coins:
= $ 53,333
Profit = 100,000 – 53,333
Here, taxes are levied on $ 46,666.
Is there any Crypto Tax Free in Chile?
Buying crypto and transferring it is not taxable in Chile.
Crypto Tax in Chile – FAQs
Do you have to pay tax when you buy crypto in Chile?
No, you don’t have to pay taxes when you buy crypto in Chile.
Do you have to pay tax when you sell crypto in Chile?
Yes, sale of crypto is taxable in Chile.
Do you have to pay tax when transferring crypto in Chile?
No, you don;t have to pay tax when transferring crypto in Chile
Do you have to pay tax when spending crypto in Chile?
Yes, spending crypto to pay for goods and services is subject to taxes in Chile.
Is swapping crypto taxable?
Yes, swapping crypto is also taxable in Chile.
How much tax on crypto gains in Chile?
|Taxable base (USD*)||Rate (%)|
How do I avoid capital gains tax on crypto in Chile?
Profits under $11,368 are exempt from taxation, so transactions could be managed in such a way that they amount to less than that annually.