Government incentives InvestChile, Agency of the Ministry of Economy of the Government of Chile, has as its mission the attraction of foreign investment in our country. It includes identifying and helping foreign companies to invest in Chile, and supporting those that already exist, in expanding their investments. An important part of its strategy is to work and collaborate with allied organizations and companies, such as other similar tax organizations or law firms, industry bodies, chambers of commerce, and with whom InvestChile can be of great value in approaching its clients or members who provide support, and the vision of how attractive our country is. https://investchile.gob.cl/.
New Foreign Investments Law (NFIL)
Currently, foreign direct investment is defined as the transfer of capital or assets owned or controlled by a foreign investor in Chile for an amount equal to or greater than US$ 5 million. The investment must be in the form of freely convertible foreign currency, tangible assets, reinvestment of profits, capitalization of loans, or transfer of technology.
The NFIL requires greater foreign direct investment than is made through the purchase of shares in the capital of a Chilean company, in which the foreign investor holds at least ten percent of the company’s voting shares or a percentage equivalent to the participation in the company’s capital.
The NFIL defines a foreign investor as an individual or legal entity incorporated abroad, resident or domiciled in Chile, which transfers capital to Chile in compliance with NFIL requirements. To qualify as a foreign investor under the NFIL, the foreign investor must issue a certificate of approval from the Foreign Investment Promotion Agency.
A foreign investor has the following rights:
To transfer abroad the capital and profits without time limit after applicable Chilean taxes have been paid;
To purchase foreign currency in the formal exchange market for the purpose of remitting funds related to investments;
To be exempted from the payment of value added tax on imports of capital goods; and
To be governed by the same legal framework applicable to domestic investors. (Id. Arts. 5-9.)
foreign investment contracts executed between foreign investors and the Government of Chile under the replaced statute will still be governed by the rules of that statute. (Id., Transitional Provision 1)
A globally connected country Chile has first class roads and telecommunications services, with high technology penetration and excellent connectivity. In the Network Readiness Index 2019 published by the World Economic Forum (WEF), it ranked 38th out of 139 economies, for the first time in Latin America.
A country with talent Chile stands out not only for its top-level professionals, but also as the home of the two universities that, according to the latest Academic Ranking of World Universities (ARWU), are among the top ten in Latin America. It also ranks 33rd out of 119 economies in the 2019 Talent Global Competitiveness Index reported by the Adecco Group, INSEAD and Tata Communications.
– Constitution and Population Constitutional Republic. Population: 19,458,310 (ESTIMATED)
Currency and language $ Chilean (CLP), Spanish
– Civil law legal system, the Romanesque tradition, mainly based on the French one.
Memberships and Economic Agreements Chile is a founding member of the United Nations, and belongs to the main organizations, such as the Organization of American States, the Asia-Pacific Economic Cooperation Forum, the Organization for Economic Cooperation and Development, the International Monetary Fund, the World Bank and the World Trade Organization.
Chile’s open market economy focuses mainly on its natural resources – mining, agriculture and fisheries – and on trade with the world. Compared to the rest of Latin America, Chile ranks favorably in human and income development.
Translated with www.DeepL.com/Translator (free version)