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While traveling in Chile you might want to carry a copy of your passport and leave the original in your hotel safe. If you plan on paying by credit card you will often be asked to show identification (the copy of your passport or a driver's license, for example). Citizens of the United States, Canada, Australia, New Zealand, and the United Kingdom need only a passport to enter Chile for up to three months.
Upon arrival in Chile, you will be given a flimsy piece of paper that is your three-month tourist visa. This has to be handed in when you leave. Because getting a new one involves waiting in many lines and a lot of bureaucracy, put it somewhere safe. You can extend your visa an additional 90 days for a small fee, but do this before it expires to avoid paying a multa (fine).