Chile: Investing

FDI in Figures

The flows of foreign direct investments (FDI) in Chile  were in strong growth until 2008 (flows had multiplied by four in five years), but they slowed down in 2009 due to the effects of the global recession.  They have sharply recovered in 2010, reaching a record level.  Chile is the second most attractive country in South America in terms of FDI, after Brazil.  The origin of this good performance is due to the Chilean economic policies founded with a spirit of capital transparency and non-discriminatory against foreign investors.  These investors are also attracted by the richness of Chile's natural resources, the stability of its macro-economic system and its growth potential, its legal security, the country's low level of risk and the high quality of its infrastructures.

Why You Should Choose to Invest in Chile

Strong Points

Its macro-economic stability, its growth perspective and the low level of risk, are among the most promising points of the Chilean economy. The country is the top Latin-American importer per capita, it enjoys an excellent solvency and the economic players have the highest purchasing power in South America.

Labor laws are favorable to business, mainly due to the flexibility of working hours and uncomplicated procedures for the dismissal of employees.

The restricted size of the Chilean market has become less of a handicap due to the country's increase in economic weight at a regional level and its open trade. Foreign companies established in Chile can benefit from  privileged access to regional markets through different free trade agreements.

Weak Points

The main three weak points of the country are:
- Its lack of innovation: Its spending in research and development is still very weak ;
- Its investment in network industries is not substantial ;
- A lack of qualified workforce. The active population rate is still very low especially among women and young people.

Government Measures to Motivate or Restrict FDI

The Chilean policy for reception of investments has always been based on simplicity, transparency and non discrimination towards foreign investors. The process of direct investment DL 600, offers security of investment. The government continues to develop and improve laws such as the simplification of administrative procedures or the increased appeal for credit. On a fiscal level, foreign investors benefit from a moderate income tax on companies and their capital can be repatriated without being taxed at the level of the invested funds. The country also offers a large range of investment solutions and has established a program called: "Chile Plataforma" in order to encourage investment. These courses have notably allowed the development of a new type of company  "The Simplified Limited Company" which allows a foreigner to create a business in Chile without needing a local partner.
For more information, consult the Foreign Investment Committe from the chilean Government.

Procedures Relative to Foreign Investment

Freedom of Establishment

YES

Acquisition of Holdings

A majority holding interest in the capital of a local company is legal, as long as Chilean procedures and agreement formalities are respected.

Obligation to Declare

Depending on the qualification of the company in Chile, the foreign investment will under control of:
- The Law-Decree procedure (DLF) n°600 called "Status of the Foreign Investor" fixed by DLF 523 of the Ministry of Economy, Development and Reconstruction for productive investments
- The procedure in the 14th Chapter of the Central Bank International Exchange Regulation, controlling financial investments only
- The procedure of the chapter 19th of the Central Bank exchange regulation allowing a foreign investment, if creditor to a public or private Chilean enterprise, to finance a future investment.

Competent Organization For the Declaration

Chile Foreign Investment Committee

Requests For Specific Authorizations

Foreign investors must obtain specific authorisation to invest in certain strategic sectors such as exploration and exploitation of hydrocarbons or the production of nuclear energy.

Investment Opportunities

Investment Aid Agency

Chile Foreign Investment Committee

Tenders, Projects and Public Procurement

Mercado Publico, Tenders and Public Procurement
Tenders Info, Tenders in Chile
Inter-American Development Bank, Tenders in South America
Globaltenders, Tenders & Projects from Chile
DgMarket, Choose your country

Other Useful Resources

Information pages of the Government

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