Over my time here in Chile I’ve come across plenty of people that are surprised by the cost of living in Santiago. Some of them naively assumed that living in South America is cheap, or they are basing their ideas on having lived in other countries.
The reality is that Santiago is an expensive city to live. This post is going to break down the costs and what to expect so you can make an informed decision before making the move or accepting a job offer.
Rent
When I arrived in February 2010, things were more affordable. Unfortunately the price of real estate (and rent) has risen significantly. To give you an idea, in February 2011 I rented by first apartment in Ñuñoa for $180.000 a month. It was 1 bedroom and 1 bath, and included a parking space. It was a small 1 bedroom, but it worked for me. It was a large building, so the gastos comunes were divided among many apartments and was therefore quite low at only $30.000 per month. I lucked out in the sense that the real estate agent managing the property didn’t realize that he hadn’t raised the rent for 7 years, and it was a huge benefit to have money to pay off my student loans, travel, and get by during leaner months when I had fewer classes. Before that I was sharing a room in a house and then an apartment with Chileans and other foreigners. I was paying $95.000 for the room, and then the gastos comunes and electricity and water bills were split among all of us. Most months I paid between $110.000 and $120.000.
Now my housing situation is much different. I’m still living in a 1 bedroom 1 bathroom apartment in Ñuñoa, but my rent is now $350.000. The square footage of the apartment is about the same, but it is a much better layout and I also have balcony. With the new apartment also came higher gastos comunes, which are between $70.000 and $80.000 per month.
I should add that there are places with cheaper rent. If you’re willing to live in downtown Santiago or places that are further away such as San Miguel, La Florida, you can find cheaper rent. No matter the situation, you will want to ask what the gastos comunes are per month, see what your work commute will be like, and get a feel for the neighborhood. Some people might like neighborhoods that are very quiet, but there might not be many stupermarkets or restaurants around. Other places might be loud and bustling but have lots of nightlife and food options.
There is also the option of renting a room somewhere. If you decide to pursue that route, it will be easier if you don’t have all of the requirements to rent an apartment on your own such as a Chilean ID card, a work contract or boletas showing 3 times the rental amount, and a credit check. You will need to be sure to do your homework on the owner of the apartment and have a written contract to be sure that there are no misunderstandings about what costs are included and what’s not included, procedures for moving out, and any other issues that might come up. I have heard of landlords that try to charge people for a maid that comes to clean the apartment once a week or for the cost of a new cylinder of gas for cooking, but those costs were not disclosed in a contract or when they moved in. From what I have seen, rooms are going for between $180.000 up to $300.000 per month.
In any case, you are usually required to pay a 1-month security deposit. You will need to factor that cost into your expenses.
Groceries and Eating Out
Food and eating out is another area that has gotten more expensive over time.
To give some background, I live alone and don’t drink alcohol. I rarely eat red meat, but I do eat a good amount of chicken. I usually keep sweets out of my apartment and don’t buy much prepackaged/processed food with the exception of lunchmeat. Most months I spend between $170.000 and $190.000 on groceries. I should add that I could save money on vegetables by shopping at farmers markets, but I haven’t found any near my apartment and have accepted paying more for convenience (at least for now).
As for eating out, I spend a good amount of money in this area. Because I don’t have a fixed office where I work and can heat up lunch or dinner, I find myself either taking sandwiches or salads with me to eat between classes or get something to eat between classes at sit down places. I also meet with friends to get lunch or dinner 2 or 3 times per month, and a few times a month I’ll order pizza or Peruvian. I try to avoid fast food, but if I do get it, it usually costs between $3.500 and $5.000. If I get lunch or dinner at a mid range restaurant I usually pay between $8.000 and $12.000 for the meal and a soft drink. I also go out to coffee shops or restaurants with wifi in order to combine a meal with getting work done for classes. (As I type this, I am at Tony Roma’s in Viña del Mar.) I spend between $70.000 and $90.000 per month. I could definitely spend less in this area, and it’s something that I consider a luxury that I enjoy (when it comes to eating out with friends and ordering in) but also a necessity when I have to kill an hour or two between classes and am tired of sandwiches and salads and would like to have a nice place to sit down and work.
Transportation
The cost of transportation has also risen significantly with time. I remember getting my BIP card in 2010 and the fare being about $500. Now if you take the subway during the rush hour it is $800.
If you’re intentional with your travel around the city, you can save money by taking advantage of the 120 minute/3 ride allowance. If you take 2 or 3 rides within 120 minutes without taking the same bus number and without taking the subway more than once, it counts as one fare. There is a small charge of between $20 and $80 if you take the subway, but it still makes it worth it.
I think out the errands I need to run and when I’ll be in that area for classes, and I take advantage of the ride allowance as much as possible. Sometimes I will also get a colectivo if I’m in a rush or would be paying for one ride anyway, as the cost works out to be about the same. In a typical month, I spend between $40.000 and $50.000 on my BIP card to get around for classes and errands. You do also have Uber and Beat as alternatives to taxis, and I find their prices to be cheaper than taxis and with better service.
If you are living in the outskirts and need to take an
additional bus that doesn’t accept a BIP card, you should allow an additional $700 or more for each trip.
Health Insurance
There is a public system for health insurance in Chile, and there are also private health insurance companies. The public system Fonasa is less expensive in most cases and most consultations are free or very low cost, but waiting times can be very long. Isapres (private health insurance companies) can vary in cost and quality, and their premiums are usually more expensive but provide better coverage.
For my first year in Chile I had travel insurance with emergency coverage, and for the next few years after that I got an insurance plan with Cruz Blanca for about $25.000 per month. As it became clear that I would be staying in Chile, I upgraded my plan for better coverage. I’m currently paying $82.000 per month. While that is a lot of money, I have gotten 90% coverage for going to the nutritionist (only paying $3.000 for a $30.000 consultation) and excellent coverage for psychotherapy (covering 90% of the cost at Clinica Indisa and afterwards reimbursing me for $37.000 per session for a session costing $45.000). I have reached the limit for
psychotherapy coverage and now get back about $9.000 per session, but it is an annual limit. In the case of needing therapy in 2020 that limit will reset and I will get the higher reimbursement again.
It’s important to consider that since I am a male my premiums are less than for women. Health insurance companies factor in that women can have children and that they might have additional healthcare costs that men don’t, so if you are shopping around and are a woman you’ll want to keep that in mind.
Internet, Cell Phone, TV, and Entertainment
I find the cost of an internet connection to be expensive if you’re living on your own. I pay about $26.000 per month for a decent wifi connection with VTR.
As for my cell phone, I purchased a nice (but not cutting-edge) smartphone from the Samsung store, and I pay $7.000 per month for an antiplan with Virgin Mobile which includes 4 GB of data, 100 minutes, and 100 messages. The benefit of Virgin Mobile is that you are not locked into a plan paying a certain amount per month; once the month is over you can renew the same plan or change to another one with more or less coverage depending on what you need. I like the flexibility, and if I ever do have problems with the service I know I’ll be able to change to another company without a problem.
I don’t have cable TV, as I don’t really watch enough TV to justify paying $20.000 to $25.000 per month. I do have Spotify to listen to music on the go and Netflix to watch Friends whenever I want, but I am considering cancelling Netflix considering I don’t really watch anything else and know that I can also entertain myself with videos on Youtube or reading.
Other Utilities
Your electric bill may or may not be included in your rent depending on what your contract says. In my case it isn’t, and my bill is usually about $8.000 per month. I am quite frugal with my electricity use. I don’t leave things plugged in if I’m not using them, and I turn off lights when I’m leaving a room. In winter I use my electric heater sparingly, and I’m the same way with my portable air conditioner in summer.
Water is not included in my rent either, and I usually pay about $2.000 per month. Hot water use is included in your gastos comunes and is charged based on the use per apartment. My hot water bill usually comes to $2.000 or $3.000 per month. As you can see, I am also frugal with my water consumption.
The cost of these utilities will vary based on where you live, so you might want to ask people in a neighborhood or building how much they pay to get an idea of what to expect.
Taxes and Pension Payments
Since I work independently and issue boletas, I need to pay 10% of my total income every month as an anticipated income tax. In May of each year I then get a tax refund based on the what my actual income tax is and what I have paid, but this is currently changing. In any case, I need to be sure to have 10% of my income to pay every month. If you work for a company, however, they are responsible for paying this 10%.
The social security system is privatized, and you are supposed to make contributions to an AFP every month that go to your pension. This money is notoriously poorly managed, and returns are so low that many people are against being required to contribute. They would prefer to invest the money on their own, and there have been many protests to get rid of the privatized system. In any case, you are supposed to pay 10% of your boletas into the system. If you work with a contract, I believe they deduct 7% of your monthly income to go towards your health insurance and 13% to go towards your pension.
I am not an expert in these matters, and they are changing with time. Before making any decision be sure to consult an expert.
Intangible costs to consider
Santiago is a major city, and with it comes some other things to keep in mind. Traffic during the rush hour in the morning and after work can be an absolute nightmare, and if you’re the type of person that does not do well with traffic and can’t arrange your schedule to avoid it, you will want to factor it in before making the decision to make a permanent move here.
The smog and pollution are also areas for concern. If you have respiratory problems, they could be aggravated due to the buildup of smog and pollution. Santiago has been getting much less rainfall in the past 5 years compared to before, so the air gets cleaned much less often than before. This may not affect you if you don’t spend much time outside, but if you like to go jogging or hiking it might.
Last but not least, Chileans in general are big partiers. There are birthdays, barbecues, bars, and celebrations for any occasion, and they will often go late into the night and early into the morning without any regard for neighbors that want to sleep. If you live in a building or area with people that don’t respect that others want to sleep, it can have a long-term effect on your sleep and mental health.
If you do like having lots of restaurants and nightlife and almost anything you need in the city, Santiago is great for that. It’s also located not far from the beach or the mountains, making day trips and weekend getaways easy.
So, what’s the bottom line? How much money do I need to live comfortably in Santiago?
I have not included the costs of things like a gym membership, cleaning and home supplies, and toiletries in any of the categories. I find that they really depend on the person, and since I have no experience with female toiletries I don’t think I should be quoting prices or tell people what to expect to pay. Given that caveat, onto the calculations!
Here are a few calculations assuming you’d like to rent your own apartment and that you don’t need to worry about taxes or a pension payment:
- Living in a 1-bedroom apartment $250.000-$400.000
- gastos comunes (may be included in rent) $40.000-80.000
- utilities (may be included in rent) $10.000-25.000
- internet (may be included in rent) $25.000-$30.000
- cell phone service $7.000-$20.0000
- transportation $40.000-$50.000
- groceries $150.000-$200.000
- eating out $40.000-$100.000
- health insurance $25.000-$100.000
Grand total for a low budget: $522.000
This amount is based on finding an apartment for $250.000 with gastos comunes and internet access included. It also assumes that you are frugal at the supermarket at are on the lower end of spending for eating out and have a cheap health insurance plan.
Grand total for a mid-range budget: $785.000
This is based on finding an apartment for $350.000 and needing to pay a moderate amount for gastos comunes and needing to pay for your own internet. It also assumes a moderate budget for groceries and eating out as well as a moderate health insurance plan.
Grand total for a higher-end budget: $1.000.000
This is based on a monthly rent of $400.000 and paying gastos comunes, internet, groceries, a phone plan, transportation, and eating out at the top end of the budget. It also assumes having a health insurance plan of $100.000.
Here is a breakdown of costs if you decide to rent a room instead of an entire apartment (again not including taxes or a pension payment):
- Renting a room $180.000-250.000
- gastos comunes (may be included in rent) $20.000-50.000
- utilities (may be included in rent) $5.000-$15.000
- internet (may be included in rent) $15.000-$20.000
- cell phone service $7.000-$20.0000
- transportation $40.000-$50.000
- groceries $150.000-$200.000
- eating out $40.000-100.000
- health insurance $25.000-$100.000
Grand total for a low budget: $482.000
This amount is based on renting a room for $180.000 with a low cost for gastos comunes, utilities, and internet. (It would be rare to find them included with a rent at that price). It also assumes the low end of the budget in the other areas.
Grand total for a mid-range budget: $617.000
This is based on finding an room for $220.000 and paying a low amount for gastos comunes, utilities, and internet. The other costs are considered at the mid range of the prices provided.
Grand total for a higher-end budget: $805.000
This is based on a paying $250.00 for a room and being at the top end of the budget for gastos comunes, utilities, and internet. The other costs have also been calculated based on the top end of the indicated prices.
In Conclusion
Santiago is an expensive city, and most jobs do not pay enough for people from the United States to live the type of lifestyle they may be used to. If you do decide to move to Santiago it can be done, but you should come with at least $1500 in startup funds to cover the cost of a security deposit for a room/apartment, buying furniture, travel, visa processing, and other expenses that will inevitably come up.
Last but not least, there are plenty of ways to entertain yourself without spending money. Going to a park, meeting friends and cooking at home, starting a book club, hosting a potluck, and playing board games are all no-cost or very low-cost forms of entertainment that help keep your budget in check while cultivating authentic friendships and relationships.
Are there any costs that I have forgotten about? Has your experience been different? If so, feel free to leave a comment!
