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Foreign companies: Find out how to help rebuild Valparaiso

InvestChile - February,23,2024

Chilean and foreign companies can donate money or goods through the National Reconstruction Fund, and receive tax benefits by helping the area destroyed by recent forest fires.


At the start of February 2024, a series of forest fires affected Chile’s Valparaiso Region, causing devastating loss of life and destroying homes and public and private infrastructure. According to official estimates, it will cost approximately US$1.0 billion and take five years to rebuild the area.

Considering this scenario, the Ministry of Finance announced that it has activated the National Reconstruction Fund, which will be in force for two years in order to respond to this catastrophe. The decree to activate the fund covers the provinces of Marga Marga and Valparaíso, and donations can already be received.

How to donate?

The National Reconstruction Fund can receive three types of donations: local or foreign currency; goods such as equipment or supplies; and works carried out. These donations can be made either to a specific project, where the donor can select the beneficiaries, or a general donation to the fund, whose advisory committee will determine how the donation is used. Donations can be made via the website

100% of the donation will reach the final beneficiary (minus administration costs), and donations of money and/or goods will generate tax benefits in the following cases:

  • Donation to a specific project. If the donation consists of conducting works, or providing equipment or money to finance a specific project, this will be deductible as an expense with no limit.
  • General donation. If the donation is contributed directly to the fund or consists of raw materials, 50% can be apportioned as a tax credit and the other 50% as an expense. Similarly, there aren’t any limits for these tax benefits.
  • Employees. In this case, 40% of the donation is deducted from the tax payable.

How does the National Reconstruction Fund work?

The National Reconstruction Fund was created after the earthquake in 2010 as a mechanism to incentivize private-sector contributions to rebuilding the country following a catastrophic event. The fund can finance projects related to construction, reconstruction, replacement, refurbishment, restoration, or renovation of infrastructure, facilities, and historical and architectural heritage at heritage sites, in addition to works carried out and equipment used in areas affected by a catastrophe.

Donations to the National Reconstruction Fund can be used for both public and private-sector works, and the fund will remain in operation for two years after a catastrophe zone is declared by supreme decree.

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Topics: Foreign companies



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