On December 16 2025, Chile held its presidential elections, in which José Antonio Kast – a right‑wing candidate – was elected with nearly 59% of the vote. He will formally assume office on March 11 2026.
Taking inspiration from Argentine President Javier Milei, who introduced a foreign investment attraction regime known as RIGI, Chile’s president-elect announced in his programme that he “will create a new foreign investment regime that grants legal and tax certainty to both local and foreign investors who choose to become subject to it, bringing significant investment into Chile, with a particular focus on technological transfer and human capital development”.
It is important to highlight that Chile once had a robust foreign investment framework, which has gradually been reduced over time. The new proposal suggests a reintroduction of that type of regime.
Chile’s background in attracting foreign investment
During the early 1970s, Chile faced considerable economic challenges, including limited access to foreign capital and significant uncertainty regarding investment conditions.
In response, the government introduced DL 600, a mechanism designed to attract foreign investment and provide investors with the confidence and safeguards necessary to participate in the country’s development. The statute aimed to reassure international investors through clear procedures and contractual guarantees.
Main features of DL 600
DL 600 established a well‑defined set of rules and benefits for foreign investors who committed capital to Chile. Its key characteristics included:
Legal certainty and stability – investors entered into a contract with the Chilean state, which protected their rights and guaranteed the terms of their investment;
Tax invariability – investors could opt for a fixed income tax rate on profits for up to ten years, shielding them from abrupt tax policy changes;
Free repatriation of capital and profits – DL 600 allowed investors to freely remit capital contributions and profits abroad, minimising restrictions on international capital flows;
Non‑discrimination – foreign investors were granted treatment equal to that of Chilean nationals, promoting fair competition and transparency; and
Access to arbitration – in the event of disputes, investors could seek recourse through international arbitration, adding further protection and certainty.
Modernisation and replacement
Although DL 600 proved effective for many years, evolving global standards and Chile’s economic growth prompted the need for modernisation. In 2015, Chile enacted a new Foreign Investment Law (Law 20,848), which replaced DL 600. The updated framework streamlined administrative procedures and aligned Chile’s investment policies with international best practices.
The new law shifted the focus from contractual agreements to a simpler registration system, maintaining essential protections while reducing bureaucracy but without preserving the tax invariability regime. Existing DL 600 contracts remained valid, but new investments were governed under the updated legislation.
Final thoughts on the new regime
The previous foreign investment attraction regime in Chile was a very useful mechanism for drawing foreign investors. Its replacement in 2015 did not set forth a tax invariability regime and taxes have also increased substantially, reducing foreign investment.
Pursuant to president-elect Kast’s presidential programme, the proposed foreign investment attraction regime is expected to include tax invariability and provide greater incentives for foreign investment in Chile.
