New Investments in Chile

Foreign direct investment (FDI) in Chile this year has surged due to a law passed on June 16, 2015, that replaced a previous law which expired beginning in 2016. Library of Congress The law also established the creation of an agency called InvestChile that markets Chile as an ideal South American for investors. Business leaders can contact InvestChile, attend conferences, and gather information on the requirements and the process of investing in the country. InvestChile is behind promotions anywhere from renewable energy, high-tech, and financial services. Domestic R&D is a key area where Chile is lagging, and the agency is working to attract foreign talent and capital to generate more innovation.

Chile is rich in natural resources, especially copper, however, the last President, Michelle Bachelet, was faulted for weak copper prices and the lack of new investments in the industry. President Sebastian Pinera only took office in March but has already set a foreign investment growth target of 6 to 7 percent a year over the next 4 years. He has also committed to reducing government bureaucracy for foreign investors. Reuters So far most new capital has come in the form of reinvestments by companies already present in Chile. In March, a Chinese company called Southern Power Grid completed the purchase of nearly 30 percent of Transelec, Chile’s largest electric transmission system, resulting in the largest foreign investment this year under Chile’s economic program. Only Brazil and Colombia are said to have more favorable climates for FDI.

Santander Bank has an economic and policy guide available that details the regulations, business filings, tax rates, and statistics. I think it’s fairly robust and as a foreign-based bank from the Spanish speaking world; it’s worth a look. SantanderTrade

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