Doing business in Chile

Chile is a unitary republic with a codified civil-law system. Key authorities for an incoming business are the Servicio de Impuestos Internos (tax), the commercial registry and the online company registry (incorporation), the Central Bank (foreign exchange reporting), the CMF (financial markets), the FNE and TDLC (competition), INAPI (industrial property), the Dirección del Trabajo (labour) and the Servicio Nacional de Aduanas (customs). InvestChile promotes foreign investment.

Key facts

Corporate income tax

27% standard rate, general regime (as at mid-2026)

VAT

19% standard rate

Dividends to non-residents

35% Additional Tax, with full or 65% credit for corporate tax

Main entity form

SpA (single shareholder allowed)

Foreign ownership

Non-discrimination principle under the investment framework law

Exchange controls

No limits on repatriating capital or profits; Central Bank reporting for some operations

Data protection

Law 19.628; Law 21.719 due 1 December 2026, postponement bill pending

New York Convention

Party since 1975

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Chile is open to foreign investment and its investment framework law treats foreign and Chilean investors alike. Most foreign investors use a sociedad por acciones (SpA), which can be held by a single shareholder and formed through the electronic company registry; an agency (branch) of a foreign company is also possible. Every entity needs a Chilean tax number (RUT) from the tax authority before it can trade.

Key facts

• Law 20.848 gives foreign investors the same legal regime as Chilean investors; InvestChile administers it, and older DL 600 contracts remain in force.

• The SpA is the usual vehicle for a foreign-owned subsidiary because it allows a single shareholder and flexible by-laws.

• Incorporation can be done through the free electronic Registro de Empresas y Sociedades or by the traditional route through the Registro de Comercio; open S.A.s cannot use the electronic registry.

• An agency (agencia) of a foreign company is an alternative, but it has no separate legal personality, so the parent is directly exposed to Chilean liabilities.

Who handles this in ChileSetting up and running a companyLicences, permits and regulatorsContracts and commercial law

Chile taxes companies under a first-category income tax with a standard rate of 27% in the general regime and a temporary 12.5% rate for Pro-Pyme businesses from 2025 to 2027. Dividends paid abroad bear a 35% Additional Tax with full or partial credit for corporate tax. VAT is 19% and applies to goods, services and digital services supplied by non-residents, and electronic invoicing is compulsory for all taxpayers.

Key facts

• Plan on 27% corporate tax in the general regime; qualifying smaller businesses pay 12.5% under the Pro-Pyme regime for 2025 to 2027.

• Distributions to foreign shareholders bear 35% Additional Tax; the credit for corporate tax is full for treaty residents and 65% otherwise, so treaty residence matters.

• VAT at 19% applies to goods and services, and non-resident digital service providers fall under a simplified VAT system.

• Invoicing is electronic for all taxpayers and runs through the SII, so local billing systems need to be compliant from day one.

• Related-party transactions fall under transfer pricing rules, and groups with revenue of EUR 750 million or more file a country-by-country report.

Who handles this in ChileTax and structuringAccounting and annual filingsAudit

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Key facts

• The working week fell to 42 hours on 26 April 2026 and will fall to 40 hours on 26 April 2028; schedules and contracts need to track each step.

• Payroll must deduct employee pension (10%) and health (7%) contributions and pay the new employer contribution, which is 3.5% from August 2026.

Who handles this in ChileEmployment, payroll and immigrationContracts and commercial law

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Lithium is reserved to the state, and access is through state contracts. Public procurement runs through the ChileCompra platform.

Key facts

• Expect a municipal commercial licence (patente) for most activities in addition to SII registration; it is charged on taxable equity.

• Lithium projects are only possible through arrangements with the state; other mining operates under a concession system.

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• Government contracts are tendered on the Mercado Público platform, where suppliers register.

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• Foreign investors can generally own property on the same terms as Chileans, but check border-zone restrictions.

Who handles this in ChileLicences, permits and regulatorsMarket research and partner checks

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Chile's foreign exchange rules do not restrict the repatriation of capital or profits, although the Central Bank has a legal power to restrict transfers. Banks apply standard anti-money laundering checks overseen by the financial intelligence unit.

Key facts

• Dividends and capital can be sent abroad after tax; the rules do not limit repatriation, though the Central Bank keeps a legal power to restrict transfers.

• Foreign investments, loans and capital contributions above USD 10,000 must go through the formal exchange market and be reported to the Central Bank.

• Bank onboarding requires the company RUT, constitutional documents and beneficial owner details.

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• Banks apply customer due diligence under the anti-money laundering law supervised by the UAF.

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Who handles this in ChileBanking and capitalPayments and currencyAnti-bribery, sanctions and compliance

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It is a member of the Pacific Alliance and the CPTPP and an associate state of Mercosur. Customs is administered by the Servicio Nacional de Aduanas.

Key facts

• The general duty is 6% of CIF value, but imports from free trade agreement partners can enter at reduced or zero rates if origin rules are met.

• Pacific Alliance, Mercosur association and CPTPP membership give access to regional and Asia-Pacific markets.

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Who handles this in ChileCustoms, trade and export controls

Chile is moving from an older data protection law (Law 19.628 of 1999) to a modern regime under Law 21.719, which creates a data protection agency and is due to apply from 1 December 2026. A government bill filed in September 2026 would delay this to December 2027 and was still before the Senate in early October 2026. A 2024 cybersecurity framework law created a national cybersecurity agency and requires essential services to give early warning of significant incidents within three hours.

Key facts

• Law 19.628 still applies; Law 21.719 is due to apply from 1 December 2026, but a pending bill could delay it, so track the date while preparing compliance programmes now.

• The new law creates the Agencia de Protección de Datos Personales and introduces significant fines, so expect active enforcement once in force.

• International transfers will need one of the Article 27 grounds, such as the model contractual clauses approved in December 2025.

• Essential service providers and operators of vital importance must send an early incident alert to the national CSIRT within three hours.

Who handles this in ChileData protection and cyberContracts and commercial law

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Industrial property (trademarks, patents and designs) is handled by INAPI under Law 19.039, and copyright is protected under Law 17.336. Chile is a party to the Paris Convention, the PCT and, since 2022, the Madrid Protocol, and trademark rights arise from registration on a first-to-file basis.

Key facts

• File trademarks with INAPI early, because rights go to the first to file.

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• Patent applicants can enter Chile through the PCT national phase, and trademark owners can designate Chile through the Madrid system.

• Copyright arises automatically, with optional registration that can help evidence ownership.

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Who handles this in ChileTrade marks, patents and brandsContracts and commercial law

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Listed company deals fall under the securities law and the CMF. Insolvency is handled under a 2014 law providing for reorganisation and liquidation procedures.

Key facts

• Competition disputes and appeals go to the specialised TDLC.

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• Acquisitions of listed companies may trigger tender offer rules under the securities law.

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• Distressed targets may be in reorganisation or liquidation under the 2014 insolvency law.

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Who handles this in ChileBuying, selling and investingLicences, permits and regulatorsContracts and commercial law

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Companies can be criminally liable in Chile for a wide range of offences, including bribery and money laundering, and a 2023 economic crimes law expanded this regime. An effective crime prevention model can reduce or exclude liability. Chile is a party to the OECD Anti-Bribery Convention.

Key facts

• An effective, documented crime prevention model is the main defence and should be in place from the start.

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• Foreign bribery is covered and Chile is part of the OECD anti-bribery framework.

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• Employers need harassment prevention protocols under the 2024 Karin Law.

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Who handles this in ChileAnti-bribery, sanctions and complianceBusiness insurance

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Commercial disputes go to the ordinary civil courts, with the Supreme Court at the top. International commercial arbitration is governed by a law based on the UNCITRAL Model Law, and Chile is a party to the New York Convention. Foreign judgments are enforced through exequatur before the Supreme Court.

Key facts

• Chile is an arbitration-friendly seat, with a 2004 statute based on the UNCITRAL Model Law and New York Convention membership since 1975.

• Foreign judgments and awards need exequatur from the Supreme Court before enforcement.

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• CAM Santiago administers most domestic commercial arbitrations and offers mediation.

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• Investors protected by investment treaties can access ICSID arbitration; the Convention has applied to Chile since 1991.

Who handles this in ChileDisputes and arbitrationContracts and commercial law