U.S. TAX GUIDE IN CHILE

Do US citizens in Chile need to file an FBAR?

Generally, yes. FBAR, or Foreign Bank Account Report, is something that US citizens, residents, and entities need to file if they hold foreign financial accounts that exceed a certain threshold.

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However, it’s often misunderstood, especially when it comes to determining when you actually need to file. 

What is FBAR?

FBAR is a reporting requirement for any US person with foreign financial accounts. 

It’s separate from your tax return and is filed with the Financial Crimes Enforcement Network (FinCEN). Their goal is to ensure that US persons report any assets they hold in foreign financial accounts, which could otherwise go unnoticed.

When do I need to file an FBAR?

The rule is pretty straightforward: if the total value of your foreign financial accounts exceeds US$10,000 at any point during the year, you must file an FBAR.

What does “aggregate” mean?

This is where some confusion arises. When the IRS says “aggregate,” they’re talking about the combined balance of all your foreign accounts. 

Even if no single account exceeds US$10,000, if the combined value of all your accounts does, then you’re required to file.

Example:

  • Account 1: US$6,000

  • Account 2: US$4,500

  • PayPal account: US$0

In this case, the total value of your accounts is US$10,500, which exceeds the US$10,000 threshold. So, you’re required to report all of these accounts on the FBAR, even if one or more of them has a zero balance.

What happens if I don’t file?

FBAR penalties can be pretty harsh, even for unintentional violations. 

If you fail to file on time or forget to report an account, you could face significant penalties, especially if the IRS finds that you willfully neglected to file. Even if it was an honest mistake, the fines can add up quickly.

If you’ve missed filing in previous years, the IRS offers something called the Streamlined Foreign Offshore Procedure, which allows you to catch up on your reporting without facing penalties. If you’re behind, this is an option worth considering.

When is the FBAR filing deadline?

FBAR is due on April 15, the same day as your federal tax return. However, there’s an automatic extension to October 15 for FBAR filing, so if you miss the initial deadline, there’s no need to panic.

There’s no need to apply for this extension—it’s automatic for everyone. As long as you file by October 15, you won’t face any penalties for late filing.

How is FBAR separate from tax returns?

Although FBAR is linked to your financial accounts, it’s entirely separate from your federal tax return (Form 1040)

You file your FBAR online through the BSA E-Filing System, not with your tax return.

What counts as a Foreign Financial Account?

For FBAR purposes, a foreign financial account is any account held outside of the US that contains:

  • Cash (in a savings or checking account)
  • Investments like stocks and bonds
  • A pension or retirement account
  • Digital currency accounts like PayPal


As long as the account is held with a foreign institution, it counts.

Are there any exceptions?

Some accounts, such as US-based retirement accounts like 401(k)s or IRAs, don’t need to be reported on FBAR. 

However, if you’re living abroad and hold a foreign retirement account, like a Chilean pension, you’ll need to include it.