Tax Advantages and Benefits in Chile

By EasyCo Updated October 10, 2026

Chile is not a low-tax country: the general corporate rate is 27%, and Chile taxes resident companies on their worldwide income. But it offers several real tax benefits for companies that set up and invest there. Here are the main ones in 2026.

1. Reduced rate for small and medium companies

Companies under the Pro Pyme general regime pay 12.5% First Category Tax for 2025, 2026 and 2027, 15% in 2028 and then 25% (Law 21,755). See corporate tax in Chile.

2. R&D tax credit

Under Law 20,241, 35% of R&D spending certified by CORFO is credited against the First Category Tax, up to 15,000 UTM a year, and the remaining 65% is deductible. Law 21,755 extended the incentive until 31 December 2035.

3. Free zones

Users of the free zones of Iquique (ZOFRI) and Punta Arenas enjoy exemptions from customs duties, VAT on goods in the zone and, for activities inside the zone, First Category Tax.

4. Trade and tax treaties

Chile has trade agreements with most of the world’s major economies and more than 30 double tax treaties in force. For shareholders in a treaty country, the corporate tax paid by the Chilean company is fully credited against the 35% Additional Tax on dividends.

5. Pension relief for foreign technical staff

Under Law 18,156, foreign professionals and technicians hired in Chile can be exempt from Chilean pension contributions if they are covered by a social security system abroad and the contract says so.

6. Depreciation

Companies can use accelerated depreciation on new fixed assets, which brings forward the deduction of the investment.

Stability and predictability

Chile’s tax rules are administered by the SII with online filing and electronic invoicing, and changes come through public legislation. Check the current rules before you rely on any incentive.

How a company is set up in Chile

Choose the company type. Most foreign founders use the SpA.
If you are abroad, sign a power of attorney, apostilled and translated into Spanish, so a person in Chile can act for you.
Sign the incorporation deed before a notary, or form the company online in the Registro de Empresas y Sociedades.
Register the extract in the Commercial Registry and publish it in the Diario Oficial (both are automatic on the online registry).
Obtain the company’s RUT and file the start of activities (inicio de actividades) with the SII.
Bring in the capital and open a corporate bank account.
Set up electronic invoicing, monthly Form 29 filings and payroll.

Full guide: how to set up a company in Chile.

Get help from Easyco

Easyco coordinates the company setup in Chile up to the issue of the RUT, and supports companies afterwards with tax, accounting and payroll. Contact us to discuss your project.