Chile proposes new regime to attract and protect foreign investment

International Tax Review is part of Legal Benchmarking Limited, 1-2 Paris Garden, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2026

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement


Chile proposes new regime to attract and protect foreign investment

Sponsored by

sponsored-firms-pwc.png
Santiago skyline in Chile

Rodrigo Winter Salgado of PwC Chile outlines the country's proposed foreign investment regime, comparing it with past frameworks and highlighting potential tax and legal protections for local and international investors

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.

more across site & shared bottom lb ros

More from across our site

It was also a memorable night for Galicia, KPMG, Skadden and Pinheiro Neto, all of which scooped major awards at a gala ceremony in New York
The former Deloitte UK CEO earned a 45% raise in a year when 1,000 staff reportedly lost their jobs – and the pay gap is only getting bigger
In a seminal development for big law, the 95-year-old firm is set to cease operations after a series of high-profile partner departures
UK Chancellor John Healey extended a VAT cut, suspended tariffs, increased a bank surcharge and vowed to increase funding for HMRC
Kristine Riisberg warned that TP decisions can determine top-up tax exposure under pillar two, while global consensus over the rules remains unsettled
Both Germany’s NIS2 and the EU AI Act now determine whether a tax function can meet its obligations – and both can make management personally accountable
Originators, loan purchasers and securitisation vehicles may need to revisit servicing agreements and pricing after a key judgment narrowed the VAT credit management exemption
Opening doors for existing talent within Baker McKenzie and a desire for enhanced legal capabilities informed Ricardo Perera’s switch from KPMG
Boaz Goren’s move to the upstart PE-backed firm takes the number of senior UK tax professionals who have left EY this year to 13
The allegations against Deloitte Cyprus raise uncomfortable questions about how far the big four can distance themselves from misconduct at member firms
Gift this article