Cost of Living in Chile

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Although the cost of living in Chile is considered relatively affordable for expats, its political and economic stability still makes it one of the more expensive South American destinations, with prices that fluctuate and vary around the country.

In the past year, the cost of living in Santiago, Chile’s capital, has dropped. Mercer’s 2024 Cost of Living Survey ranks the city as the 160th most expensive out of 226 expat destinations worldwide. This is a drop of 73 spots compared to its previous ranking. Santiago remains generally more affordable than many other major global cities, especially for those on an expat salary.

While attractive executive salaries may lure many expats to Chile, competition for top management positions in multinational firms can be fierce, and expat packages may not be as lucrative as they once were. Those considering a move to Chile should ensure their salary is high enough to accommodate their lifestyle, especially in urban areas like Santiago, where living expenses can be higher.

Moving to a foreign country often means using a new currency and getting familiar with banking, money and taxes in that country. Here is a breakdown of costs in Chile.

Cost of accommodation in Chile

Chile boasts a range of accommodation options for expats, and even top-quality housing tends to be affordable when compared to other major destinations. Buying and renting prices in the country are among the cheapest in Latin America, and a construction boom yielding sleek skyscrapers and an array of housing developments means that standards aren’t sacrificed even in the face of lower costs.

There are also plenty of opportunities for young, single expats to negotiate incredibly cheap shared housing, either with a Chilean family or in a furnished space with other expats. This option provides an affordable way to live and a unique cultural experience.

Cost of transport in Chile

Chile prides itself on its urban infrastructure, and public transport systems are well-connected and affordable. The country’s main modes of transit are buses and the metro, which are both efficient, safe, and economical.

Taxis are pricier, and the drivers are notorious for overcharging foreigners, so you should do your best to negotiate a reasonable fee or use a ride-hailing service that charges standardised rates.

For those who prefer to drive, the costs and risks can vary. Driving in Santiago is better than in some other capitals, but considerate motorists are found more outside the bustling capital.

Cost of groceries in Chile

The cost of food in Chile registers as cheap on a global scale but is steeper than in neighbouring South American countries such as Peru and Argentina. Buying seasonal fruits and vegetables from the large central markets is a great way to save money and sample the local flavours in Chile.

Supermarket prices are slightly higher, and eating out and buying imported food items can be costly. Imported items tend to be more expensive, and the cost of good-quality toiletries such as shampoo, conditioner, and toothpaste is high in Chile.

Purchasing fruit, vegetables, pulses, and seeds at local ferias (fresh produce markets) can save money and provide superior quality while supporting Chilean farmers and independent suppliers.

Cost of entertainment and eating out in Chile

Chile is known for its vibrant culture and delicious cuisine, making it an attractive destination if you’re seeking adventure and culinary delights. That said, like in any foreign country, the cost of entertainment and dining out can vary depending on where you go and what you do.

For entertainment, you will find a wide range of options available, from exploring the bustling streets of Santiago to hiking in the Andes mountains. In general, the cost of entertainment in Chile is quite reasonable, especially compared to other major cities in the region. Film tickets and museum admission are generally affordable, and outdoor activities like hiking and skiing can be enjoyed at a reasonable cost.

When it comes to dining out, you will find that the cost of food can vary greatly depending on the type of restaurant and location. For example, fine dining restaurants in upscale areas like Vitacura can be quite expensive, while small local cafés and street vendors offer affordable and tasty options.

Chile is also known for its wine, and while some high-end bottles can be expensive, many affordable options are available that are just as delicious.

Cost of education in Chile

If you have children, you’ll have various options for education and schools in Chile. Public schools in Chile tend to provide a lower standard of education than you might be used to, and the curriculum is usually taught in Spanish.

Some parents prefer sending their children to Chilean private schools, but fees for these institutions can be expensive. Plus, they don’t always live up to the promise of providing better standards of education than public schools.

For many expat parents, international schools in Chile are the answer to this dilemma. Their fees can also be fairly high, but negotiating an education allowance as part of an employment contract is often possible.

Cost of healthcare in Chile

Healthcare in Chile is a mix of public and private sectors, with Chile boasting one of the most advanced healthcare systems in South America.

The public healthcare system in Chile is managed through the government-run FONASA scheme, providing free and subsidised healthcare to Chilean nationals and legal residents. If you’re living and working in Chile, you are eligible for public healthcare but must have legal residency and pay taxes.

Private healthcare is popular among expats, especially in Santiago, where standards are high, but it can be expensive. You’ll find that many expats typically opt for international health insurance, which is comprehensive and cost-effective. The quality of healthcare may vary in different geographical locations, especially in remote areas with less advanced medical facilities.