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How to Invest in Chile: What Protection does Chile offer Investors?

InvestChile - December,29,2021

Foreign investors can participate in every Chilean business sector and their capital can account for up to 100% of a company's capital. 

NEGOCIOS HANDSHAKE (1)

There are no lines of business that are regarded as the sole preserve of the Chilean State, or can only be owned by Chilean individuals or legal entities. Consequently, private companies may participate in all business sectors and up to 100% of a company's capital can be foreign.  

When doing business in Chile, you can access a series of foreign investment guarantees established under our laws and trade agreements. Some of them are outlined below:  

International Law 

Foreign companies in Chile benefit from the security and protection provided by a network of international, bilateral and multilateral treaties with 29 countries, whose rules are mandatory and protect the rights of those who invest in Chile. This network of international treaties provides foreign investors with international protection standards. 

National Law 

Law 20,848 of 2015 establishes the framework for Foreign Direct Investment (FDI). This regime applies to foreign individuals and legal entities who are neither residents nor domiciled in Chile, but who transfer capital to Chile.

This law establishes the following founding principles: 

  • Economic Freedom  
  • Non-discretionary procedures
  • No arbitrary discrimination

This law grants a series of rights, which include the following: 

  • Right to access the formal foreign exchange market to liquidate the foreign currencies that form its investment and to repatriate capital and profits.
  • Right to remit the capital invested and the profits produced by its investments, after its tax obligations havebeen met.
  • Right to request exemption from value added tax (VAT) when importing capital goods.
  • Right to request a Foreign Investor’s Certificate, a public instrument granted by InvestChile which allows access to legal benefits.

Do you want to find out about all the guarantees that Chile offers investors? Download the chapter of our step-by-step guide for Foreign Investors. Other chapters of the guide also contain useful information about Labor Laws, Taxes and Environmental Assessment.

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Topics: How to invest in Chile

InvestChile

InvestChile

We are the government agency responsible for promoting Chile in the global market as a destination for foreign direct investment, serving as a bridge between the interests of overseas investors and the business opportunities the country offers and providing world-class services that are in line with the country’s economic development policies.

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