Companies that invest in Chile have access toan extensive national network for the promotion of entrepreneurship, innovation and research, which comprises various governmental agencies that offer a range of support programs throughout the country.
If you want to invest in Chile, there is a series of benefits for foreign companies that decide to operate in certain areas of the country, or that specialize in sectors of high value for our economy. They include:
Research and Development
Chilean law establishes a tax benefit for investment in Research and Development (R&D), consisting of the right to a corporate income tax credit of up to 35% of the resources allocated to R&D directly or by third parties, as well as those outsourced to a specialized center found in the Chilean Economic Development Agency (CORFO) registry.
There are benefits available for those investors who choose to set up their companies in remote areas in Chile (the far north and the far south) such as:
- Tax Credit for specific investments (10%-40% of the amount invested in the region is deducted from the company's corporate income tax).
- Manual labor bonus (amount paid to the employer equivalent to 17% of the taxable remunerations)
- Investment Subsidy (a bonus for production investments by small and medium-size investors whose annual sales do not exceed UF 40,000 - around US$1.5 million -, equivalent to 20% of the investment).
Free Trade Zones
Free trade zones are defined physical places located in the Arica y Parinacota, Tarapacá and Magallanes regions, where goods are exempt from customs duties and taxes. The main benefits of Chile’s free trade zones are:
- Imports do not pay duties
- Sales to other Free Trade Zones and abroad are exempt from Value-Added Tax (VAT)
- They are exempt from Corporate Income Tax
In Chile, benefits similar to the Free Trade Zone benefits also apply to businesses in the Tocopilla, Isla Navarino and Tierra del Fuego provinces.
Would you like to find out how to apply for the foreign investment incentives awarded by the Chilean government? Download the chapter of our step-by-step guide for Foreign Investors.