The National Reconstruction and Economic and Social Development Law, published on October 17th, creates a new Tax Invariability Statute that takes effect on January 1st, 2027. This permanent regime is intended to provide certainty for investors through the execution of an investment agreement with the Chilean State, setting out the tax obligations applicable to a qualifying investment project for a specified period. 

Who can benefit from the regime? 

The regime is available to both domestic and foreign investors, provided they undertake projects that meet the requirements established by law. 

What is the minimum investment threshold? 

The project must involve a minimum investment of USD 50 million. 

The deadline for bringing the investment into Chile will be established in the relevant agreement and may not exceed ten years for mining projects and five years for all other investments, measured from the date of execution of the agreement. 

What kind of projects qualify? 

The benefit is reserved for projects in the following sectors: 

• Mining 

• Industrial 

• Forest 

• Energy 

• Infrastructure 

• Telecommunications 

• Research 

• Technological development 

• Medical 

• Scientific 

How can investors access the regime? 

The first step is the submission of an investment application. As part of the application process, the investor must: 

• Provide a detailed description of the project. 

• Commit that the companies receiving the investment will subject their annual financial statements to an external audit and file them with the Financial Market Commission (CMF, for its initials in Spanish). 

• Provide information reasonably demonstrating the lawful origin of the funds, the financial capacity of the business group, and any additional information regarding project execution required by regulation. 

• Declare the project’s estimated impact on direct and indirect employment, the expected national and regional productive linkages, and, where applicable, a territorial engagement plan. 

If the company that will carry out the project has already been incorporated, it must be included in the application. 

The Foreign Investment Promotion Agency (the “Agency”) will establish a platform for the submission of applications, supporting documentation, and related filings, acting as contact between investors and the Ministry of Finance. Upon receipt, the Agency will forward the required documentation to the Ministry of Finance together with its corresponding report. 

If the applicable requirements are met, and following a favorable report from the Agency, foreign investment agreements will be executed by the Ministry of Finance, on behalf of the Republic of Chile, and the investors. The agreement may be executed electronically. 

Rights granted under the investment agreement 

• Income taxes: A total effective income tax burden (including the tax rate, tax base, and other elements of the tax) equivalent to that applicable under the legislation in force on the date of the relevant investment agreement, with respect to the covered investments. 

For domestic investors, the tax invariability regime does not extend to the Global Complementary Tax. 

• Value Added Tax (VAT) and customs duties: The agreement may include tax invariability, for the period required to carry out the investment, regarding the VAT regime and customs duty regime applicable to the importation of machinery and equipment qualifying as capital goods, as in force on the date of execution of the agreement. 

• Administrative guidance issued by the Chilean Internal Revenue Service (SII, for its initials in Spanish): Tax invariability with respect to the rulings, administrative interpretations, and circulars in force at the time the agreement is executed, relating to asset depreciation regimes, tax loss carryforwards, and start-up and organizational expenses. 

• Exports: Tax invariability regarding the regulations in force on the execution date of the agreement governing the right to export freely. 

• Additional rights for mining projects: 

• Tax invariability of the Mining Royalty. 

• Exemption from any new taxes specifically targeting mining activities that may be enacted after the execution date of the investment agreement. 

• Tax invariability of the amount and calculation method of mining exploitation and exploration licenses, to the extent that subsequent amendments would make them more burdensome. 

How long will the Tax Invariability Regime last? 

The extent of the regime depends on the amount of the investment committed: 

• USD 50 million to less than USD 100 million: 10 years. 

• USD 100 million to less than USD 350 million: 15 years. 

• USD 350 million or more: 20 years. 

The period will be counted from the beginning of operations of the project, defined as the fiscal year in which gross income from its principal business activity is received or accrued. 

For these purposes, the investment includes both equity contributions and debt effectively deployed in the investment project. In the case of related-party debt, the amount may not exceed three times the tax equity of the recipient company. 

Where there are substantial changes in the investment amount due to subsequent circumstances, the investor may request an adjustment to the term of the tax invariability regime based on the thresholds described above. 

How much does this invariability regime cost? 

The First Category Income Tax rate established in the investment agreement will be increased by 1.5% regarding the income attributable to investments covered by the tax invariability regime. 

What obligations apply during the term of the agreement? 

In addition to the general obligations established by law, the regime includes monitoring mechanisms designed to verify that the project continues to satisfy the conditions under which tax invariability was granted. Key obligations include: 

• Maintaining separate accounting records by the recipient company, treating the investment subject to the tax invariability regime as a separate entity for tax purposes. 

• Reporting corporate reorganizations to both the Ministry of Finance and the SII. 

• Fill with the CMF quarterly and annual standalone and consolidated financial statements, as well as an annual report containing information regarding the ownership structure of the entity. 

• Ensuring that related-party debt does not exceed three times the tax equity of the recipient company. 

Can tax invariability be cancelled? 

Yes, the rights associated with the investment agreement may be forfeited in the following circumstances: 

• A final and binding conviction for a tax crime or for conduct sanctioned under Chile’s General Anti-Avoidance Rule. 

• Failure to submit the required financial information to the Financial Market Commission, subject to a reasoned decision by the Ministry of Finance. 

• Related-party debt exceeding three times the company’s tax equity at the end of a fiscal year. 

In addition, the investor may elect, on a one-time basis, to renounce the tax invariability regime and become subject to the ordinary tax regime. 

Information updated as of October 2026. 

Francisco Vial, Senior Associate, Tax Team, Fischer y Cía.