How to Prepare for Moving to Chile
For most expats, moving to Chile is an easy transition. The country offers great travel experiences and vibrant communities. The quality of life, particularly healthcare, is quite high, and the Chilean economy is growing. With jobs in mining, natural resources, high tech, tourism, education, healthcare, and design all growing, expats and digital nomads are being recruited across a wide range of fields.
Chile is one of the easiest countries in the world for setting up your own business. No wonder it’s such a popular destination! Here are some tips to help you settle in.
Planning Your Move to Chile? Start Here
From healthcare access to visa requirements, preparation matters. See which health insurance plan best fits your move abroad.
Learning the Language and Culture
Speaking Spanish is essential if you’re considering moving to Chile. Approximately 95% of the population speaks fluent Spanish.
The remaining 5% speak Indigenous languages such as Mapudungun. While English is common among business professionals, university students, and those in the tourism industry, Spanish remains very much the language of everyday life.
Chilean Spanish is very different from European Spanish (though speaking it definitely gives you a boost when you first move to Chile). Long sentences, puns, and wordplay are hallmarks of conversational Chilean Spanish.
Locals are proud of their distinct vocabulary, expressions, and even their accents, which differ from those of other Latin American countries.
It’s well worth the effort to take language classes. Locals will be thrilled by your efforts to engage in casual conversation.
Finding a Job in Chile
Nothing is more important in job searching in Chile than “pituto”. Roughly translated as “personal network, ” Pituto is like a living form of LinkedIn.
At best, Pituto demonstrates how friends support each other in a job hunt. At worst, it’s a controlling factor in the so-called hidden job market. Many positions in Chile are never even advertised, thanks to pituto.
As international citizens cannot beat the pituto system, they must create one of their own. Joining sports clubs, volunteering for a cause, participating in neighborhood activities, and being extra social at work all go a long way to creating a local personal network. It’s hard to find a new job in Chile without it.
Understanding the Cost of Living
The cost of living in Colombia, including housing, local food, fuel, and public transportation, is generally considered affordable.
Luxuries, such as restaurant meals and imported goods, are disproportionately expensive.
But an unexpected budget-buster is utilities. Utility payments are not included in most rental units. Chile does not have any cheap energy reserves of its own and thus needs to import.
As such, the increased cost of imported energy means that water, electricity, and heat are all very expensive.
Finding a Place to Live
Finding a comfortable, affordable place to live usually isn’t a problem in Chile. While some of the trendier neighborhoods in Santiago might have limited availability, in general, there is a good selection of options.
The first and last month’s rent are standard conditions. You may also need a Chilean guarantor to co-sign on your behalf.
For this reason, many expatriates opt to work with a property agent to help them find their new home. Property agents are also invaluable for two other aspects of the process.
They can help translate the contracts so you know exactly what you are signing. Furthermore, they can also negotiate on your behalf to see if you can get a better price or terms.
In popular holiday destinations, short-term leases are often available. In cities like Santiago, 12-month terms are the norm. And when it comes to unfurnished properties, landlords may press for a longer lease.
They likely assume that since you’ll be buying furniture, you’re committed to staying in Chile for a while. They want you to stay on their property!
Understanding the Healthcare System
Chile’s healthcare system is widely considered the best in South America. The public program, known as FONASA, covers any resident who pays into the system through payroll taxes.
FONASA covers the cost of primary care, emergency care, specialist care, hospitalization, maternity care, and more. It also provides care for the unemployed, pregnant women, people with disabilities, and those who are poor.
Approximately 78% of the population is covered by FONASA. The remaining 22% are covered either through similar programs designed for their specific profession or through private health insurance in Chile.
Foreigners moving to Chile are eligible to join the healthcare system if they are working and have legal residency.
Many expats also opt for private health insurance, whether or not they’re part of FONASA. While hospitals in Chile’s cities and larger towns are excellent, medical care in small communities is more basic.
Private insurance means more comfortable and private facilities. Patients can also expect reduced wait times. Finally, most doctors in private facilities are bilingual.
Best Private Health Insurance for Expats in Chile
Cigna Global Insurance Plan
- Flexible plans tailored to your needs and budget
- 1.5M+ providers in 200+ countries
- 24/7 multilingual customer support
Cigna Global is a strong fit for expats who want customizable coverage while managing monthly costs. You can start with core inpatient coverage and add benefits, such as outpatient care and health and well-being.
Best Health Insurance for US Citizens in Chile
BCBS Global Solutions Worldwide Premier
- Unlimited annual and lifetime coverage
- Pre-existing conditions covered with prior insurance
- For U.S. citizens abroad or foreign nationals in the U.S.
The BCBS Global Solutions Worldwide Premier plan is ideal for U.S. expats who want maximum protection and access to private care similar to that in the United States.
Navigating Education in Chile
The poor quality of Chile’s public education system is a common complaint among expats. The public system is managed by municipalities. This helps explain why there are stark differences in standards between different regions.
Chile uses an education voucher system in its public schools. It’s designed to grant all children access to education regardless of their financial background. Income is not a factor in distributing the vouchers.
As such, rich families can afford to top up their vouchers and buy their way into better schools. Meanwhile, poor and middle-class families have just the basics.
In Chile, the school year runs from March to December. There is a two-week break for the winter holidays in July. The summer holidays run from December to March.
July and August are enrollment months when prospective students are enrolled for the next year. The children of expats are required to pass an exam before they begin primary or high school. The exams take place in March and July.
Setting Up a Bank Account
The Peso is the national currency of Chile. It is abbreviated as CLP. It also uses the “$” just like the US dollar.
Speaking of which, US dollars are widely accepted at tourist hot spots in Chile. However, they are much less common at small community businesses.
For expats moving to Chile, opening a bank account so they can easily spend Pesos is easier said than done. Banking policies in Chile discourage expats from opening local accounts.
Furthermore, even when it is possible, the vetting process is very strict. A Chilean residency card is required to open a local bank account. It’s the only form of personal identification that’s accepted.
Not even a passport will do! Furthermore, expats need to have their tax number or “RUT” on hand. Just getting a tax number and a residency card are lengthy processes in their own right. This isn’t something that just happens overnight!
Even with these two important items, the process isn’t over. Applicants must fill out an F4415 tax administration form. They must also provide proof of their Chilean income.
Additionally, some banks require a minimum first deposit. Last but not least, only expats who have stayed in Chile for at least two years can open accounts with a local bank.
Alternatives to Regular Bank Accounts
For foreigners waiting for the process to resolve, there are two interim solutions. They can open a RUT account, a type of savings account. Account holders can use an ATM card, make local payments, and send money transfers.
The other option is a fondos mutuos account. This is a fixed savings account with a static interest rate. While you can withdraw your money prior to the maturation date, you will attract penalties and forfeit any accrued interest if you do.
However, if you keep your money in place throughout the entirety of the investment term, you will be rewarded with a high interest rate.
Ready to Move to Chile? Get Covered First
Before you relocate, make sure you have the right health coverage in place. Compare top plans and get expert guidance tailored to your move.
Vanessa Chiasson is an award-winning Canadian travel writer with over ten years of experience. Her work has appeared in major publications, and she draws on living in France, Ireland, England, and Malawi to bring global insight to her stories.
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