Written by Josefa Barbera, Paralegal
As Latin America’s innovation economy gains momentum, Chile has emerged as a regional frontrunner in attracting venture capital (VC) investment. Known for its political stability, transparent regulations, and investor-friendly legal framework, Chile offers a unique gateway for international VC funds looking to tap into early-stage opportunities. With dedicated government support through CORFO, strong legal protections under Law 20.848, and trade/tax treaties that reduce barriers for foreign investors (including Australians) Chile is positioning itself as the natural landing pad for global capital seeking scalable innovation across the Pacific. This blog post will outline some of the legal tools that Chile has implemented in order to increase the country’s attractiveness as a destination for cross-border investment.
Key context
Chile has built one of Latin America’s most dynamic startup ecosystems and actively courts foreign venture capital (VC) investors, including those from Australia. A stable macroeconomy and a pro-investment legal framework make Chile attractive. For example, Law 20.848 (2015) (known as the Foreign Investment Promotion Law) explicitly grants foreign investors national treatment (no special discrimination), and guarantees rights to repatriate both invested capital and profits. Under this law, a foreign investment certificate (for projects ≥US$5M) is issued in just 15 working days of filing, entitling the investor to use Chile’s streamlined regime. Once certified, foreign investors enjoy full access to Chile’s foreign-exchange market at market rates and may freely convert and transfer funds in and out of Chile. In short, foreign investors are treated just like domestic ones: they can remit profits and repatriate capital (subject only to normal tax rules), and they are protected from arbitrary discrimination.
Additionally, Chile offers tax and customs incentives for strategic sectors. For instance, companies (foreign or local) undertaking large projects (≥US$5M) in mining, energy, manufacturing or R&D can obtain VAT exemptions on imported capital goods. Overall, Chile’s investment laws ensure free transfer of capital and profits and penalize unfair local rules, giving foreign VC a high degree of confidence in profit repatriation and legal stability.
CORFO’s VC Programs and “Venture Capital Chile” Platform
Chile’s government actively supports VC via its development agency CORFO (Corporación de Fomento de la Producción). CORFO offers co-investment financing for VC funds and startups rather than just grants.
A recent pillar of CORFO’s strategy is the “Venture Capital Chile” country brand and web platform. Launched in 2023 with industry groups (the Chilean VC Association and fund administrators), this portal is explicitly designed as “the gateway for foreign investors and fund administrators” to plug into Chile’s early-stage deals. In practical terms, VentureCapitalChile.org consolidates CORFO-backed VC funds, co-investment opportunities, and startup pipelines in one place. By coordinating public and private efforts under this brand, CORFO aims to bring more global funds to co-invest alongside domestic players. In short, foreign VCs looking at Latin America can find Chile an especially welcoming market: government-backed deal-flow, transparent screening of regulated funds, and a network (via CORFO and partner events) connecting them to Chilean startups.
Trade and Tax Agreements with Australia (and Others)
Chile’s international agreements further reduce barriers for Australian (and other) investors. The Chile–Australia Free Trade Agreement (2009) eliminated nearly all tariffs on goods. In practice, this means Australian companies enjoy national treatment and predictable rules in Chile on par with locals. On the tax side, the 2010 Double Taxation Agreement (DTA) between Chile and Australia greatly eases profit repatriation. Under the DTA, withholding taxes on dividends, interest and royalties are substantially cut (e.g. inter-company dividends are taxed only at 5–15% instead of Chile’s standard 30%) making it “much easier and cheaper” to send earnings back to Australia. Together, the FTA and DTA mean Australians face minimal trade/tax hurdles in Chile, especially in sectors like mining, energy tech and engineering, which are specifically mentioned as FTA priorities.
Likewise, Chile’s FTAs with other markets benefit foreign investors. For example, Canada and Chile have a long-standing FTA (modernised in 2019) that has quadrupled merchandise trade since 1997; as of 2020 Canadian direct investment in Chile totalled roughly US$5.4 billion. Likewise the U.S.–Chile FTA (2004) grants U.S. investors tariff-free access on qualifying exports and explicit protections for U.S. investments and IP in Chile. In effect, investors from Australia, Canada, the U.S. (and many other FTA partners) enjoy special footing in Chile, by way of reduced taxes and stable rules, and these ties bolster confidence for venture investors as well as trade.
Conclusion
Chile offers far more than geographic proximity to Latin America’s emerging markets—it offers clarity, confidence, and cooperation. From legal guarantees that ensure national treatment and profit repatriation, to CORFO-backed deal pipelines and reduced tax burdens via international agreements, Chile equips foreign venture capital with the tools to invest securely and strategically.
For Australian investors in particular, the alignment of trade priorities, tax treaties, and shared sectoral strengths (such as mining technology and energy) makes the Chilean market not just attractive, but highly accessible.
In a region where policy and politics can often complicate investment decisions, Chile’s message to venture capital is clear: we’re open for business, and we speak your language.
So whether your next bet is in energy tech, advanced manufacturing, or AI-driven startups, Chile’s ecosystem is ready. The only question is: are you?
Harris Gomez Group METS Lawyers ® opened its doors in 1997 as an Australian legal and commercial firm. In 2001, we expanded our practice to the international market with the establishment of our office in Santiago, Chile. This international expansion meant that as an English speaking law firm we could provide an essential bridge for Australian companies with interests and activities in Latin America, and to provide legal advice in Chile, Peru and the rest of Latin America. In opening this office, HGG became the first Australian law firm with an office in Latin America.
As Legal and Commercial Advisors, we partner with innovative businesses in resources, technology and sustainability by providing strategy, legal and corporate services. Our goal is to see innovative businesses establish and thrive in Latin America and Australia. We are proud members of Austmine and the Australia Latin American Business Council.
To better understand how we can support your management team in the Region, please contact contact@hgomezgroup.com
Disclaimer: This article is for general informational purposes only and does not constitute legal advice. It does not create a solicitor-client relationship, and readers should seek independent legal advice for their specific circumstances. Harris Gomez Group accepts no liability for reliance on this content.