The new National Reconstruction and Economic and Social Development Act included a series of adjustments to factors that directly influence the decisions of foreign investors already in Chile or considering the country as an investment destination.
Consequently, the Chilean government, through InvestChile, launched chileforinvestors.gob.cl. The website explains the changes and offers an e-book detailing provisions of the new law that directly affect global investors. These include the corporate tax rate; tax credit integration; the taxation of certain capital gains; incentives for knowledge-based services and workforce training; tax certainty for eligible projects; as well as the permitting, environmental assessment and project implementation processes.
Among other measures, the new law provides a strong incentive for investment by gradually reducing the first-category tax rate under the general regime from 27% to 23%, starting in fiscal year 2029. This tax relief is complemented by the progressive reintegration of the tax system, which gradually eases the obligation to repay the credit for this type of tax.
Furthermore, the document outlines the terms of tax stability for mining, industrial, forestry, energy, infrastructure, telecommunications, research, technological development, and medical or scientific projects. This stability is established through a public-law law-contract with terms of 10, 15, or 20 years, depending on the investment amount, starting at US$50 million.
The website and e-book aim to present the Reconstruction Law not as a list of isolated benefits, but as a framework for evaluating projects from an integrated perspective that considers tax competitiveness, fiscal stability, human capital, permits and implementation.
Both the website and the e-book are available in English and Spanish.
