Chile

Chile

New Framework Law for Foreign Investment

16 Jun 2015

On 16 June 2015, President Michelle Bachelet promulgated the new Framework Law for Foreign Investment in Chile. The new law is one of the measures on the Productivity, Innovation and Growth Agenda coordinated by the Economy Ministry and reflects the recommendations of the Presidential Advisory Commission on foreign investment convened as part of the undertakings entered into by the government during the passage of a tax reform last year. Among its key provisions, the new law establishes that the President of the Republic will define Chile’s foreign investment promotion strategy, supported directly for this purpose by a Committee of Ministers for the Promotion of Foreign Investment. The new institutional framework will also include a Foreign Investment Promotion Agency with the mission of implementing the state policy so as to attract all types of foreign capital and investment to the country, being the only body authorized to undertake this task and working in coordination with the country’s regional governments. The law guarantees access to the formal foreign exchange market and the free remittance of capital and earnings as well as the right to freedom from arbitrary discrimination and exemption from sales and service tax on imports of capital goods that comply with certain requirements.

Nature of measure:
  • Promotion
  • Incentives
  • Other regulatory changes
Type:
  • Treatment and operation (Non-discrimination, Capital transfer and FOREX)
  • Promotion and facilitation (Investment facilitation , Investment incentives)
Industry:
  • Not industry specific
Inward FDI:
No
Outward FDI:
No
Sources: