Disclaimer: This article is not a substitute for legal nor accounting advice. Look for professional advice before you take action.
If you're currently living in Chile you're very well aware that its beautiful and vast landscapes, along with the year-long warm weather, can make it hard for you to leave. And why should you?
Now more than ever, we see a significant shift in the global demand for experienced software developers from Latam. In addition, due to the advancements in technology, many developers now work remotely for notable companies in the US.
Remote work opens up opportunities for a better salary and opportunities to take your career to the next level. If you live in Chile and want to know how to prepare to work remotely for US companies, you may want to consider the following points.
No Visa Needed to Work for US Companies in Chile
One of the greatest misconceptions is that you need a Visa to work remotely for US companies. Luckily this isn't the case for Chile! There are no work Visa requirements to work remotely from Chile, which leads to an easier way to obtain better employment.
So, what duties are employers obligated to carry out once they hire international team members in Chile? Well, in Chile, remote workers are protected under Law 21220, which outlines different aspects of remote work, or in this case, it's categorized as distance work or teleworking.
If both parties sign an agreement, the employer must register it at the Dirección del Trabajo as stated in Artículo 152 quáter O. However, if you plan to work as an independent contractor, you must register yourself with a different office…but more on that later.
Know Your Rights as A Remote Worker
Under these two classifications, remote workers have the rights of any other worker. Other than what is already outlined in Law 16.744, employers have specific obligations to remote workers.
One of those includes the right to privacy in your home, as employers do not monitor your home office or workspace.
You have many other rights as a remote worker in Chile. Take the time to know and understand these to protect yourself and your work environment.
Receiving Payments in Chile for Remote Work
Of course, we must address how you will receive your money in Chile from the US. Like many other countries, you now have more payment options and quicker ways to receive your compensation.
- Bank transfers are a widely available payment option to and from most counties. However, the cost associated with carrying out the transaction can be more of a hindrance than a help. Check with your local bank and ask what options are available to you. Don't forget to ask about any fees you may be required to pay.
- Digital wallets or online transfer systems are another option to get paid online. There are many options available, such as:
- Wise - formally known as TransferWise, offers transfers from various countries for a low fee. They offer the ability to exchange multiple currencies if needed. Head to their website and use their exchange calculator to estimate exchange rates.
- Xoom - powered by Paypal, this similar service gives you the option to receive money and deposit it into your local bank in Chile or arrange a cash pick up at their authorized locations.
How to Pay Taxes Through the Chilean Tax System
When working remotely, you must take care of your yearly tax obligations. To do that, you must register yourself with the Instituto de Seguridad Laboral to obtain your tax identification number.
Once you are registered, you will contribute to the Servicio de Impuestos Internos. The contribution is calculated by annual taxable units (ATU). Each month the Chilean Peso is evaluated to determine the value of the ATU. Your gross salary will be tax-free until you reach 13.5 ATU and above.
The progressive income tax rate can be up to 40% of your gross salary. You can make these payments once a year; however, you can submit monthly payments toward your final amount. You are responsible for keeping records of transactions and calculating your contribution.
By making tax contributions, you will gain access to social security benefits in case of a work-related accident or illness. It also gives remote workers access to insurance, which you can access after six months of continuous payments.
Where We Come In
Here at Nexton, we aim to aid senior software developers to reach greater heights and salaries by connecting them with some of the best remote opportunities within the US. We believe in Chilean talent and want to be an active part of their path to achieving their personal career goals.
Not only is our goal to help developers find remote positions, but to secure long-term employment. If you would like to learn more about how we help software developers like yourself achieve their dream to work remotely and earn a higher salary, contact us and let's start your journey.