Does Chile allow dual citizenship?

Chile allows dual citizenship for its nationals but -as for most countries- you will have to renounce any previous allegiances if you want to become a naturalized citizen of Chile unless, you belong to a country with which a treaty exists on that regard. It takes long -very long- to get the citizenship, if you get it.

Your question shall be in the other direction. Does your country allows you to recover citizenship after renouncing due to the demands of a third party, in order to get equal benefits as the citizens of that country? Does your country provides non revokable rights of blood or birth? In those cases you will be fine. 

But...there is a trick...if you declare at the moment of becoming a Chilean citizen that you lost your country of birth passport. They don't have a way to report your country that you pledge allegiance to Chile renouncing all other allegiances. Therefore, you may keep both nationalities. Very important in most of these cases, you shall never openly inform any authority in any country that you hold a second citizenship. In most cases, it is an expedite way to loose the citizenship of that country.

I didn't have a trouble getting dual citizenship. When I was still in the US I went to the nearest Chilean Consulate and was able to do it there. I didn't have to renounce my citizenship with the US in order to get citizenship  here in Chile. Good luck!

Thank you Maggie and Hernan, those were really helpful:)

I thought it was harder to get dual citizen ship at Chile Counsel while in US?

Dear US citizens, I guess that you already know that US, and Eritrea are the two countries in the world that their systems of taxation on personal income are citizenship-based. This is a very serious issue. Please contact a professional before IRS contacts you.
Dear Canadian citizens, it's difficult to obtain non-resident tax status in Canada since the definition of residence is much wider than that existing in many other countries.

Wddenis3, I don't know if it's easier to get it done once you're in Chile. But I had no problem getting it taken care of in the US. My Chilean passport wasn't ready by the time I left for Chile so they sent it to an office in Santiago where I was able to pick it up.