How to Invest in Chile: Personal Data Protection

Chile’s robust regulatory framework protects privacy and the proper handling of personal data—a key consideration for those looking to invest and operate in the country.

In Chile, personal data protection is a fundamental right recognized in the Constitution and regulated according to Law No. 19,628.

The legal framework establishes clear obligations for both public and private organizations, as well as control and protection mechanisms for citizens.

Learn about the regulations that ensure legal certainty for investors and companies handling data in Chile.

A robust regulatory framework protects privacy

Privacy protection in Chile is primarily governed by Law No. 19,628, which establishes the rules for the collection, storage, sharing and use of personal data.

Furthermore, Law No. 21,096 recognizes data protection as a constitutional right, reaffirming its fundamental importance for citizens and companies.

Chile has gradually amended its laws to enhance transparency in data usage, prevent labor discrimination based on financial information and ban the disclosure of education or health-related debts.

The evolving framework allows companies to operate in accordance with modern privacy and accountability standards.

Key terms every company should understand

Chilean law differentiates between various types of data, which is crucial for proper handling:

• Personal data: data from identified or identifiable individuals
• Sensitive data: data related to health, beliefs, racial background or other personal information
• Outdated data: data that is no longer valid
• Statistical data: data that does not allow the identification of an individual

Chilean law also defines a personal data bank or registry as any organized data set that can be processed, either automatically or manually. This definition is vital for companies handling large volumes of data.

Principles for handling data

Chile follows international best-practice principles that are essential to regulatory compliance:

• Lawfulness: Handling requires legal authorization or express consent.
• Purpose: Data can only be used for the purposes the data subject has authorized.
• Accuracy: Data must be kept accurate and up to date.
• Security: Data controllers must safeguard data from unauthorized access or use.
• Confidentiality: A confidentiality obligation remains even after employment ends.
• Protection of sensitive data: Use of sensitive data is rare and highly controlled.

These principles provide certainty that drives the development of industries such as technology, digital services, fintech and e-commerce.

Data subject’s rights: transparency and control

The Chilean framework grants individuals broad rights over their data:

• Access to stored data
• Rectification of incorrect or incomplete data
• Erasure or suppression when there is no legal basis for its conservation
• Blocking when the accuracy or validity is in question

Additionally, the law includes habeas data, a judicial remedy that ensures access, correction or deletion when data controllers do not respond within the established deadlines. For companies, this requires establishing clear internal procedures and official communication channels.

Economic data: limits and transparency

The law strictly regulates the financial data that can be reported, including protested debts or defaults supported by valid documentation.

At the same time, it prohibits reporting debt related to utilities, education, health, highway tolls or arrears that occur during periods of unemployment.

This level of clarity provides certainty, helps prevent discriminatory practices, and is therefore crucial for companies conducting risk assessments, granting credit or handling financial data.

Data handling by public institutions

State agencies have a special data-handling system. All state data banks must be registered with the Civil Registry and Identification Service, which records their legal basis, purposes, data types and the population involved.

The system enhances transparency and facilitates interoperability between institutions.

A reliable environment for investors

Chile’s data protection framework aligns with international standards and guarantees adequate operating conditions for data-driven industries.

The environment offers investors certainty, clear rules and a state commitment to privacy and digital security.

To learn more about this and other matters relevant to setting up your business in Chile, download the chapter of our step-by-step guide for Foreign Investors. Other chapters also contain helpful information on labor laws, taxes and environmental assessment.