How to Invest in Chile as a Foreign Company

Investing in Chile as a foreign company doesn’t require prior government authorisation or a local partner, but before structuring the operation it’s worth resolving three framing questions: which legal regime applies to you, which corporate structure to use, and what tax burden to expect. This article answers those three questions at a decision level and points to the specific detail on each, already covered in dedicated articles on this site.

Do you need prior authorisation to invest in Chile?

No. Chile doesn’t require state authorisation for a foreigner to invest, own a Chilean company, or remit capital into the country. Most sectors are open without special restrictions for foreign investors, though some regulated activities — such as financial services or telecommunications — carry additional requirements tied to their own sector regulation, not to the investor’s foreign status. This means the relevant question isn’t "can I invest," but "under which regime and structure should I do it."

Which legal regime applies to your investment: general or Law 20.848?

This is where precision matters, because it’s a point that commonly gets confused: the general ability to invest, incorporate a company and operate in Chile under ordinary rules is independent from qualifying as foreign direct investment for the specific regime of Law N° 20.848. These are two different things, and no foreign investment automatically accesses that special regime simply by being foreign.

The Law 20.848 threshold: USD 5,000,000, and when the 10% requirement applies

Law N° 20.848, in force since 2015, establishes the institutional framework for foreign direct investment and created the Foreign Investment Promotion Agency (InvestChile). Its Article 2 defines foreign direct investment, for the purposes of the regime it regulates, across two paragraphs worth distinguishing. The first paragraph sets the general threshold: the transfer into the country of foreign capital or assets worth US$ 5,000,000 or more (or its equivalent in other currencies), carried out through freely convertible foreign currency, physical goods, profit reinvestment, credit capitalisation, capitalisable technology, or credits associated with related-company foreign investment. The second paragraph adds a further requirement specifically for the modality of acquiring or taking a stake in the capital of a company already incorporated in Chile: within those same amount thresholds, that stake must grant control of at least 10% of the voting rights in the recipient company (or an equivalent share of capital, depending on the type of entity). In other words, the 10% requirement isn’t a universal condition layered onto every way of making the investment — it’s specific to that acquisition/equity-stake modality.

Article 3 defines a foreign investor as an individual or entity incorporated abroad, neither resident nor domiciled in Chile, that transfers capital under those conditions. A qualifying investor may voluntarily apply to InvestChile for the Foreign Investor Certificate. Under Article 4, the certificate’s sole legal purpose is to enable access to the specific Law 20.848 regime: it isn’t required to incorporate or operate a company in Chile, but it is the enabling instrument for a qualifying investor that wants to access that regime. InvestChile states that the certificate is issued within 15 business days after the complete set of required documents has been filed. Articles 5 and 6 regulate, within that regime, capital and profit remittances and access to the formal foreign exchange market.

What happens if your investment doesn’t reach that threshold

An investment below US$ 5,000,000 can be made and structured in Chile under the general rules that apply, but it doesn’t thereby qualify as foreign direct investment for accessing the special Law 20.848 regime and the rights that law grants to those who meet its requirements and obtain the corresponding certificate. This doesn’t prevent incorporating a company in Chile, obtaining a tax ID, operating, hiring staff, or repatriating profits abroad: those possibilities exist under the general avenues of Chilean corporate, exchange and tax law, independent of Law 20.848. The full detail on who qualifies and how to apply for the certificate is in Understanding Law 20.848: Who Qualifies as a Foreign Investor in Chile and in InvestChile and the Foreign Investor Certificate; the repatriation rights available under the general route (distinct from those granted specifically by the 20.848 regime) are explained in Foreign Investor Rights: Repatriating Capital and Profits.

What exactly does the certificate do, and when does it make sense to apply?

Applying for the Foreign Investor Certificate is voluntary: a company doesn’t need it simply to incorporate or operate in Chile. However, if the investor meets the requirements of Law 20.848 and wants to access the specific statutory regime, the certificate is necessary because Article 4 expressly makes it the instrument that enables that access. The rights in Articles 5 and 6 — capital and profit remittances and access to the formal foreign exchange market on the terms of that law — belong to that specific regime. Outside it, operations and remittances remain subject to the generally applicable corporate, tax and foreign-exchange rules.

A qualifying investor can choose not to request the certificate if it doesn’t intend to rely on the Law 20.848 regime. If it does want access to that regime, the certificate must be requested. Investments that don’t meet the Article 2 threshold or other statutory conditions are structured under the generally applicable rules rather than through Law 20.848.

What structure should you use to make the investment?

Once the regime question is settled, the next decision is corporate: incorporating a Chilean subsidiary (SpA) or registering a branch of the foreign company are the two most commonly used routes for foreign investors, each with different implications for liability exposure and banking perception. That comparison is developed in SpA or Foreign Branch: Factors Most Investors Evaluate Too Late, and isn’t repeated here to avoid duplicating that analysis.

What tax burden should you anticipate?

Regardless of the regime under which you invest, the Chilean entity you incorporate — subsidiary or branch — will be subject to Corporate Income Tax on its local profits, plus additional withholding when profits are remitted to the foreign parent. The exact calculation of that burden, and how it could change under future reform, is developed in Chile’s Corporate Tax System for Foreign-Owned Companies, Explained. One factor that can significantly reduce that combined burden is the existence of a double-taxation treaty between Chile and the parent company’s home country, whose current network and practical use are explained in Double Tax Treaties: Chile’s Treaty Network and How to Use It.

How does market entry actually run, step by step?

Once the three questions above are resolved — regime, structure and expected tax burden — operational execution normally involves incorporating the chosen structure, obtaining a Chilean tax ID and registering a tax domicile, opening a corporate bank account subject to the bank’s KYC review, and, if the company hires staff in Chile, complying with employment-contract registration and the applicable occupational-accident and disease insurance rules under Law 16,744 from the commencement of the employment relationship. None of these steps depends on Law 20.848 qualification. For an overview of the integrated market-entry process, see our foreign investment in Chile service page.

Frequently asked questions

Does every foreign company investing in Chile need the InvestChile Certificate?

No. The certificate is only relevant to those who qualify as foreign direct investment under Article 2 of Law 20.848 — investment of US$ 5,000,000 or more, and, specifically when the modality is acquisition or an equity stake, minimum 10% control. A company that doesn’t meet those conditions, or doesn’t intend to access that specific regime, can operate in Chile under the generally applicable rules.

Does investing under the general regime mean fewer rights than qualifying under Law 20.848?

It means not accessing the specific rights that Law 20.848 grants under Articles 5 and 6 to those who qualify and obtain the certificate. Outside that specific regime, the right to own a Chilean company, operate, and repatriate profits after paying the corresponding taxes exists equally under the general regime, just without the law’s own institutional framework.

What should I decide first: the regime, the structure, or the tax treatment?

In practice these are evaluated in parallel, because they’re interrelated: the amount and country of origin of the investment influence both whether Law 20.848 is worth pursuing and which double-taxation treaty might apply, and both factors shape the most efficient corporate structure. A company evaluating a large, capital-intensive project will typically work through all three in the same conversation with its advisors, rather than sequentially.

Where do I start if I’ve already decided to invest and just need the operational route?

Start with the foreign investment in Chile overview and then move to the specific corporate, tax, banking or compliance topic that applies to the project.

Evaluating an investment in Chile?

At Izquierdo Deramond Consultores (IDC), we help foreign companies and investors work out which regime and structure fits their case, and coordinate legal, tax and banking execution end to end.

📅 Book a meeting 📱 WhatsApp +56 9 8892 5401 ✉️ gregorio@consultoresid.cl

This content is for informational purposes only and does not constitute professional advice. Each case should be evaluated individually with a specialist.

OFFICIAL SOURCES CONSULTED

Gregorio Izquierdo González
This publication provides general information and is not professional advice.

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