Why Chile is Ideal for Scalable International Expansion
Chile is not only a politically and economically stable country—it’s also a scalable platform for international growth. Investors who establish operations in Chile can expand across Latin America by leveraging Chile’s network of trade agreements, its bilingual talent pool, and streamlined business registration processes. For entrepreneurs or SMEs seeking to test markets before full expansion, Chile provides a low-risk entry point with strong institutional support and legal protections. Foreign investors can start small and grow fast, supported by agile legal structures such as SPA companies and low barriers for reinvestment of profits. At Becker Abogados, we help clients build legal frameworks that are scalable, flexible, and adapted to regional expansion goals.
Access to Global Markets
International Trade Agreements through which Chile provides investors with access to markets across the world. Chile has one of the most open economies, with over 30 trade agreements giving it access to more than 65 economies. For example, the Free Trade Agreement with the United States gives duty-free access to most goods and services. Chile’s membership in the OECD (The Organisation for Economic Co-operation and Development) highlights its commitment to international trade and investment standards.
Chile as a Gateway to Asia-Pacific Markets (Investment Opportunities via TPP-11)
Chile’s strategic participation in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP, also known as TPP-11) significantly enhances its position as a global investment hub. This high-standard trade agreement connects Chile to a dynamic network of 10 countries across the Asia-Pacific region, including Australia, Brunei, Canada, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam—collectively representing nearly 500 million people and over 13% of global GDP.
Operational and Legal Advantages of CPTPP Membership
For international investors, the CPTPP offers far-reaching advantages. Most notably, it provides preferential access to fast-growing markets and reduces or eliminates tariffs on a wide range of goods and services. This opens up new trade corridors for companies operating in Chile, enabling them to export competitively to strategic economies under one unified regulatory framework.
From an operational standpoint, the CPTPP streamlines customs procedures, digital trade rules, intellectual property protections, and investor-state dispute mechanisms, ensuring predictability and legal security for businesses. It also strengthens disciplines in areas like services, e-commerce, government procurement, and labor standards, making Chile’s regulatory environment even more attractive to sophisticated foreign investors.
Moreover, Chile’s CPTPP membership is a unique asset for companies seeking to establish regional headquarters or production hubs. By incorporating a business in Chile, investors from outside Latin America can leverage Chile’s access to Asia-Pacific markets while benefiting from the country’s stable macroeconomic environment, rule of law, skilled workforce, and established financial infrastructure. This is especially appealing for export-oriented industries such as agribusiness, food and beverage, clean energy, technology, pharmaceuticals, and advanced manufacturing.
In practical terms, this means that a foreign company setting up operations in Chile not only gains access to the domestic Chilean market but also to a broader network of markets through CPTPP provisions—without needing to establish separate operations or legal entities in each member country. This makes Chile an exceptionally efficient launchpad for international expansion across the Pacific Rim.
In summary, Chile’s participation in the CPTPP elevates its profile as one of the most globally integrated economies in Latin America. For foreign investors, this translates into greater market access, legal protections, competitive export channels, and a future-proof investment environment—solidifying Chile’s role as a gateway between Latin America and the Asia-Pacific.
Chile’s Strategic Role in the Global Expansion of Long-Distance Trade
Recent global economic analyses underscore Chile’s increasingly strategic role in the expansion of long-distance international trade. While trends such as nearshoring have gained traction in regions like North America, long-distance trade continues to grow steadily worldwide—driven by supply chain diversification, energy transition, and cross-regional demand.
Long-Distance Trade Data Highlights
According to Steven Altman, Senior Researcher at NYU Stern’s Center for the Globalization of Business, Chile stands out globally in two key areas: Chile is the country that exports to the longest average distance in the world, with an estimated average of 14,000 km per export shipment. Chile is expected to achieve the second-highest absolute growth in long-distance trade volume globally between 2019 and 2024—only behind Vietnam.
These data highlight Chile’s unique positioning as a resilient and connected export platform, ideal for international companies looking to operate beyond regional limits. With strong institutional frameworks, multiple high-standard trade agreements, and logistical access to both the Pacific and Atlantic via the Strait of Magellan and overland corridors, Chile offers global investors a scalable base for cross-border operations.
Moreover, Chile’s participation in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) further enhances its access to 10 high-growth markets in the Asia-Pacific region. Combined with its established Free Trade Agreements with the United States, the European Union, and Latin American neighbors, Chile allows businesses to operate from a legally secure, export-oriented jurisdiction.
As Altman puts it: “We see long-distance trade expanding globally, and Chile is one of the most strategically positioned countries to benefit from this trend.”
For international investors aiming for long-term growth with a global reach, Chile is no longer a distant market—it is a gateway to the world.
According to a 2025 international trade analysis cited by DF Sud, Chile is the country that exports to the longest average distance in the world, reaching an estimated 14,000 km per export shipment. This extraordinary figure highlights Chile’s structural integration into long-distance maritime trade and reinforces its strategic relevance in global value chains. Far from being a disadvantage, Chile’s geography positions it as a Pacific gateway hub connecting Latin America to Asia-Pacific, North America, and beyond.
Furthermore, Chile was projected to experience the second-highest absolute growth in global long-distance trade volume between 2019 and 2024, only behind Vietnam. This reflects a growing global demand for Chilean goods and services—particularly in mining, agribusiness, green energy, and high-value exports. For international investors, this trend translates into scalable growth potential backed by legal stability, FTAs, and export-ready infrastructure.
Chile as a Maritime Power: Strategic Location for Global Commerce
Beyond its free trade agreements and economic policies, Chile’s extensive coastline and maritime infrastructure make it a natural gateway to international markets. Strategically located along the Pacific Ocean, Chile provides direct access to key shipping routes that connect Latin America to North America, Asia-Pacific, and beyond.
As highlighted by maritime scholars, Chile’s development as a maritime power is not just a military or historical attribute—it is deeply linked to trade, logistics, and long-term economic modernization. This is especially attractive to foreign investors in logistics, agribusiness, fisheries, port infrastructure, and energy.
Furthermore, Chile’s political stability and consistent commitment to economic liberalization have allowed it to evolve into one of Latin America’s most reliable and diversified economies. Combined with modernized ports and streamlined customs procedures, Chile offers one of the most efficient platforms for businesses aiming to engage in long-distance commerce, particularly with Asia and the United States.
Sector-Specific Investment Opportunities
Chile offers a breadth of opportunities across mining and renewable energy in particular. In terms of foreign investment, The Mining Code allows 100% foreign ownership and Tax Stability Agreements mean that large mining projects can benefit from long-term tax predictability under the country’s foreign investment regime.
Legal and Regulatory Framework
With the exception of properties situated in limited areas, there are no restrictions on foreign ownership of buildings or land, nor are there any percentage limits on foreign holdings. Agencies such as InvestChile provide guidance and support through the investment process, facilitating foreign investment.
Foreigners in Chile are subject to the same labor rights as Chileans, including regulations on working hours and termination of employment.
Taxation and Financial Considerations
Corporate Taxation in Chile
Under accelerated depreciation, investors can reduce taxable income by writing off investments more quickly. This is because retained and reinvested profits are subject to 25-27% corporate tax with no dividend tax until distribution, an advantage for businesses focused on growth. Investments greater than US $5 million in capital goods qualify for VAT exemptions or credits on imported equipment, decreasing costs for companies bringing in machinery or technology. Remote Area Incentives: to encourage economic development in less-developed regions, Chile offers tax credits for projects in remote areas.
Chile has no wealth tax, nor inheritance tax for non-resident heirs. Expatriates working in Chile are taxed only on Chilean-source income during their first three years of residence, providing a temporary break on foreign income taxation.
Chile has a dual tax system in place, with companies paying a corporate income tax and shareholders paying additional taxes on distributed profits. Under the Partially Integrated Tax System, the default system for foreign investors, the corporate tax rate is 27%.
Tax on Dividends and Profit Distributions
Profits that are distributed to non-resident shareholders are subject to 35% withholding tax. However, investors under tax treaties, e.g. UK, may be eligible for a reduced withholding tax or additional tax credits. These tax treaties also help reduce the withholding taxes on dividends, interest and royalties and avert double taxation for foreign investors.
Value-Added Tax
19% of Value-Added Tax is applied on the sale of goods and services. However, exported goods and services are typically exempt, making Chile more attractive for international trade.
Foreign Investment Regulations & Incentives
Foreign investors making significant investments (above USD 5 million) can apply for a tax stability agreement, ensuring a stable tax rate for 10 years.
Being aware of the country´s taxation requirements, which promote economic expansion and investment is essential when conducting business in Chile. For shareholders who are non-Chilean residents, a personal tax known as ´Global Complementary Tax’ applies. This tax is proportional and progressive and can be as high as 40% dependent on the profits withdrawn or received. Companies classified as Small and Medium Enterprises (SMEs) and entities without shareholders or owners are subject to a reduced tax rate of 25%.
Free Trade Zone Incentives
A Free Trade Zone Area is one which is deemed to be outside of Chile for import duty purposes. For example, the ports of Iquique and Punta Arenas. Companies operating within one of these zones are granted the following exemptions:
First Category Tax: all operations within the free trade zone are tax exempt.
Value Added Tax: all operations within the free trade zone are tax exempt.
Customs duties: foreign goods imported into the free trade zone are tax exempt.
Regional Incentives
Due to a unique tax system, Easter Island is free from all taxes, contributions, and fees associated with goods sold there as well as rent. The benefit also extends to the activities that the island’s residents have established in relation to its territory.
Employees in the provinces of Campo, Magallanes, Chilean Antarctic, and Chiloé are partially free from paying personal income tax. Against personal taxable income, a deduction equal to that given to civil servants in those areas is permitted. Professionals’ and independent contractors’ incomes are also covered by this benefit.
Moreover, Chile makes a distinction between tax requirements for Chilean nationals and foreigners. Individuals without domicile in Chile are subject to taxes on their Chilean source income. Withholding tax is levied on the Chilean source of income of individuals or companies without domicile in Chile. 35% is the tax rate that is applied to income distributions and withdrawals. Foreign investors that have obtained certification under the foreign investment statute are not required to pay VAT on capital items imported for the creation, investigation, or management of specific projects in Chile, including those related to mining, industry, forestry, energy, and infrastructure, among others, provided that the investment is at least USD 5,000,000 and satisfies the additional conditions outlined in the VAT Law.
In terms of Chile´s financial sector, local and international banks are highly developed and offer corporate financing options. The Santiago Stock Exchange, known as Bolsa de Comercio de Santiago, provides investment opportunities for equity and debt financing. Santiago is one of the region’s financial hubs, with several multinational banks having regional headquarters in the capital city.
