The New Law does not change the rights and obligations contained in Chapter XIV of the Compendium of Foreign Exchange Regulations issued by the Central Bank that apply to loans, investments and capital contributions coming from abroad.
In order to facilitate direct foreign investment, the New Law eliminates: (i) the deadline for the entering of foreign capital into the country and (ii) the requirement to wait one year from the time that the investment enters the country before remitting the capital.
Regarding tax matters, the New Law sets forth a more expeditious procedure to request VAT exemptions in the import of capital goods.
Strategy to promote foreign investment
The New Law also establishes as a task for the President of the Republic, the development of a strategy for the Promotion of Foreign Investment that includes among its main objectives: (i) foreign investment promotion, (ii) positioning Chile at an international level and as a center for foreign businesses and investments and (iii) facilitating collaboration between foreign investors and domestic companies.
The New Law also creates two new institutions to replace the former Committee with the aim of boosting investment into Chile:
- A Committee of Ministers, chaired by the Minister of Economy, Development and Tourism, and comprised of the Minister of Finance and other ministers ,as determined by the President of the Republic, who will advise the President on the promotion of foreign investment
- The Agency for the Promotion of Foreign Investment, which will replace the former foreign investment Committee. This new agency will be in charge of promoting Chile and attracting capital inflows and foreign investment, coordinating policies entrusted by the Committee of Ministers in order to foster foreign investment into Chile and to issue investment certificates to enable foreign investors to access the new investment regime, among others matters.
