Tax Free for foreign travelers in Chile: What it is and how to take Advantage of it

In recent years, Chile has taken significant steps to modernize its VAT refund system for foreign tourists, aiming to follow the example of countries like Uruguay. The implementation of the Tax Free system seeks to promote tourism and domestic consumption, while offering a clear advantage to those who choose to visit the country.

If you're one of those travelers who can’t resist bringing home a suitcase full of souvenirs, gifts, and even a few luxurious indulgences on every trip, this information is for you. Beyond the unforgettable experiences and snapshots, there’s a financial benefit that few travelers take advantage of—and it can make a real difference when shopping abroad: Tax Free.

According to official figures cited by Diario Financiero, around 15% of tourist spending in Chile corresponds to movable goods—that is, items that can be purchased and transported. With the Tax Free system in place, it's expected that over 60% of total foreign tourist spending will be exempt from VAT, which represents a significant relief for travelers’ wallets and a direct incentive for local commerce.

Tax Free is a tool specifically designed for international visitors who make purchases in countries that apply consumption taxes, such as Chile. But how does it work? What are the requirements? And what are the real advantages? Here’s everything you need to know to make the most of this system as you explore the southern country.

What is Tax Free and why is it beneficial?

The term Tax Free refers to the possibility of recovering the Value Added Tax (VAT) or its equivalent, which is included in the price of most products sold in a country. This benefit is not intended for residents, but exclusively for foreign tourists, based on the idea that those who don’t live in the country shouldn't contribute to the local tax system through occasional purchases.

Tax Free is valid only for physical goods, meaning items you can take with you when leaving the country. It does not apply to services such as restaurants, hotels, transportation, or entertainment. If you’re visiting Chile and decide to treat yourself at a designer clothing store, buy electronics, purchase crafts, or any other item for personal use or consumption, you can apply for the 19% VAT refund.

What products are eligible for Tax Free?

The benefit applies to all movable goods purchased in Chilean territory that are intended for personal use or consumption outside the country. What does this mean? You can buy clothing, electronics, cosmetics, accessories, books, handicrafts, and more—as long as they’re items you can pack in your luggage.

However, there's an important limit: the total weight of the goods for which you request a refund must not exceed 23 kilograms. This rule ensures that purchases are for personal use and not for resale or commercial purposes.

Shopping malls where you can take advantage of Tax Free

In Santiago, the main shopping malls are already operating under this system. Among them is Mall Costanera Center, one of the largest and most visited malls in the capital, offering a wide variety of international and local brands. Also included is the exclusive Parque Arauco, where you’ll find everything from luxury fashion to cutting-edge technology—perfect for those looking for quality and style.

How to take advantage of Tax Free, step by step

Using the Tax Free system in Chile is easier than you might think. Here are the steps to ensure you don’t miss this opportunity during your stay:

1. Shop at affiliated stores: These are usually marked with a visible sticker in the window or at the checkout. If in doubt, ask the staff directly.

2. Request your refund form: Once you’ve made your purchase, ask for the Tax Free form. You’ll likely be asked to show your passport to verify that you’re a tourist and not a resident.

3. Validate your purchases before leaving the country: At the airport, go to the customs counter or Tax Free validation point. There, you must present your purchases, receipts, and forms.

4. Receive your refund: With the validated documents, you can request your refund. The reimbursement can be made in cash, by bank transfer, or as a credit card deposit.

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