After much debate the Chilean government have now approved a third 10 % withdrawal of AFP funds. The corresponding law (21.330) was published in the official newspaper (“Diario Oficial”) on Wednesday 28th of April 2021. Online requests for withdrawal can be submitted starting on Monday 3rd of May 2021 and will be available only online during the first two weeks.
Here we summarize the main pillars:
- Withdrawal limit stays unmodified: The affiliate can access up to a 10% of its funds, with a minimum of UF 35 (corresponds to CL$ 1.031.870 at April 27th) and a maximum of UF 150 (CL$ 4.422.300). If your total balance is less than UF 35, you can withdraw the total amount.
- No tax deduction: The affiliate is able to make use of the third withdrawal, whether or not he/she did the first and/or second 10% withdrawals. No commissions or fees will be deducted and there is no tax deduction on this third withdrawal.
- The Law Is valid for 365 days upon publication: Like the first two withdrawals, the affiliate has one year to make its request. The deposit will be available within a maximum of 15 working days from submission of the request and will be paid in one payment.
In general, we recommend foreigners to access their AFP funds through the limited law thanks to the pandemic situation and take a smarter investment decision based on a prior evaluation with the financial EBG experts.