A study of subjective well-being in 4,942 children (49% girls) aged 10 and 12 living in Israel and Chile is presented. The association between perceptions of the neighborhood and subjective well-being (SWB) was analyzed based on a mediation model using satisfaction with the neighborhood as a mediating variable. The overall results showed high average SWB scores for both countries as well as high levels of satisfaction with the neighborhoods where they live. Differences between the countries were observed for the age groups. The SWB of Chilean children decreased with age, while a decrease was not detected for the Israeli children. The mediation model had excellent fit for the age groups and countries, and the satisfaction with the neighborhood variable presents a partial mediation effect between neighborhood variables and SWB. Satisfaction with the neighborhood displayed a greater effect on the SWB of the older children than the younger ones. Gender showed significant effects on SWB only in Chile. The results are discussed, analyzing the similarities and differences between both countries and providing new evidence for the study of SWB at the international level. Questions for a more specific analysis of SWB within each country are suggested.