Chile is currently considering a comprehensive legislative reform that introduces a range of tax, regulatory and administrative measures with the potential to reshape the country’s business and investment environment. Although the proposal must still complete the legislative process before becoming law, it already outlines significant changes that companies operating in, or planning to invest in, Chile should closely monitor.
The proposed reforms aim to encourage investment, streamline administrative procedures, accelerate permitting processes, stimulate key economic sectors and modernise public administration. If approved, they could have a substantial impact on both domestic and international businesses.
Key Business Implications
Tax Measures to Encourage Investment
The proposal includes several tax initiatives designed to improve Chile’s competitiveness and promote business growth, including:
- A gradual reduction in the corporate income tax rate.
- Full integration of the corporate tax system, simplifying the taxation of corporate profits.
- Elimination of capital gains tax on certain publicly traded securities.
- A voluntary tax regime for the regularisation and repatriation of offshore assets.
- Long-term tax stability agreements for large-scale investment projects.
- Employment-related tax incentives aimed at supporting formal job creation.
- Voluntary tax regimes for the regularisation of retained earnings.
- Temporary measures to facilitate the settlement of certain tax and municipal liabilities.
Together, these initiatives seek to improve cash flow, strengthen investor confidence and provide greater legal certainty for long-term business projects.
Faster Permitting and Regulatory Simplification
One of the central objectives of the proposal is to reduce administrative burdens and improve the efficiency of regulatory procedures.
Key measures include:
- Streamlining environmental permitting processes.
- Shortening administrative review periods.
- Improving coordination between public authorities.
- Simplifying approval procedures in areas such as archaeological permits, aquaculture concessions and sector-specific authorisations.
If enacted, these changes could significantly reduce project development timelines, particularly in industries such as infrastructure, energy, mining, manufacturing and construction.
Infrastructure and Real Estate Development
The proposal also includes measures intended to stimulate economic activity through infrastructure investment and housing development.
Among the initiatives under consideration are temporary incentives for the residential construction sector, reconstruction programmes and measures aimed at supporting industries with strong multiplier effects across the wider economy.
Companies operating in construction, engineering, logistics, transport and related services may benefit from increased business opportunities should these measures be implemented.
Stronger Compliance and Public Administration Modernisation
The reform package also introduces measures designed to strengthen administrative efficiency and improve regulatory oversight.
These include:
- Enhanced information sharing between public authorities for tax compliance purposes.
- Changes to public procurement rules.
- Measures aimed at improving the efficiency of public spending.
- Administrative reforms affecting businesses and economic operators.
Companies should closely monitor these developments, as they may lead to new compliance obligations and increased regulatory oversight.
What Should Businesses Do Next?
It is important to note that these measures remain part of a legislative proposal and are therefore subject to parliamentary debate, amendment and final approval before entering into force.
Nevertheless, given the scope of the proposed reforms, companies with existing operations in Chile—or those considering future investments—should begin assessing the potential impact on their tax planning, investment strategies, compliance obligations and business operations.
At Feliu N&I, we continuously monitor legislative and regulatory developments affecting international business operations. We will continue to provide updates as this proposal progresses through the legislative process and analyse its potential implications for companies doing business in Chile.
