Chile FDI control

The following Competition practice note provides comprehensive and up to date legal information covering:

  • Chile FDI control
  • 1. What is the applicable legislation?
  • 2. Which government or other body (or bodies) reviews foreign investments?
  • 3. What is the scope of the foreign investment regime? Does it only apply to specific sectors or types of investors (e.g. foreign or non-EU / non-WTO)? Are there specific rules for certain types of investors (e.g. state-owned enterprises)?
  • 4. What are the triggers or thresholds for the regime to apply? What types of transactions are caught? Is there a minimum level of shareholding or a control test that applies? Are there any other thresholds that need to be met (e.g. based on turnover or market shares)?
  • 5. Are there any exceptions that may apply?
  • 6. Is there any discretion to review transactions that do not meet any thresholds for review?
  • 7. What are the grounds for review, eg public or national security or other grounds?
  • 8. What level of discretion do the relevant authorities have to approve or reject transactions? Is there scope for any other body to intervene?
  • 9. Where a transaction is caught by the regime, is notification mandatory and must closing be suspended pending clearance?
  • More...

Chile FDI control

A conversation with Diego Peralta Valenzuela, Partner, and Vesna Camelio Ursic, Senior Associate, from Carey y Cía. Limitada on key issues on FDI control in Chile.

1. What is the applicable legislation?

There are two main rules that regulate equity foreign investment in Chile: (i) Chapter XIV of the Compendium of Foreign Exchange Regulations of the Central Bank of Chile (hereinafter, Chapter XIV), and (ii) Law No. 20,848.

The Compendium of Foreign Exchange Regulations, issued by the Central Bank of Chile using the powers conferred thereto by its Constitutional Organic Law to regulate matters related to international exchange operations, comprehends the general rules applicable to foreign exchange that must be observed by entities that are part of the Formal Exchange Market (as defined in the Constitutional Organic Law of the Central Bank), including the requirements applicable to those that are not banking companies, including individuals, together with the establishment of certain limitations applicable to the main international exchange operations that make up the country’s balance of payments and capital account, consisting in the requirement that the performance of certain operations be reported in writing to the Central Bank and/or be carried out exclusively in the Formal Exchange Market (as defined in the Constitutional Organic Law of the Central Bank).

Chapter XIV offers a quick and relatively free-of-public-authority-intervention system allowing to bring foreign currency into the country

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