A.- The law defines FOREIGN DIRECT INVESTMENT (FDI) and indicates its constituent elements, which are the following:

Investment Transfer: There must be a transfer from abroad to Chile of foreign capital or assets of a foreign investor, or an entity controlled by it.

Minimum investment amount: The transfer must be for an amount equal to or greater than US$ 5,000,000.- from the United States of America or its equivalent in other currencies.

FDI is also considered to be that which materializes, directly or indirectly, through the acquisition or participation in the company's equity or in the capital of the company receiving the investment incorporated in Chile in accordance with Chilean law, granting the investor the control of at least: - 10% of the voting rights of the receiving company's shares; or - An equivalent percentage of participation in the social capital if it is not a joint stock company or in the assets of the company in question.

Regarding the investment modalities, the amount transferred to Chile can be in - Freely convertible foreign currency. - Physical assets in all their forms or states. - Reinvestment of profits. - Capitalization of credits. - Technology, in its various forms, capable of being capitalized. - Credits associated with foreign investment from related companies.

B.- The law establishes who is considered as FOREIGN INVESTORS, considering as such those investors who meet the following requirements:

Natural person or legal person incorporated abroad

Not resident or domiciled in Chile

That transfers foreign capital to Chile from abroad or assets of a foreign investor, or an entity controlled by it.


Those who are foreign investors may request InvestChile, if they wish, for a Foreign Investor Certificate, which will enable their access to the regime established by Law 20,848. Said certificate will be issued within a period of 15 business days2 from the presentation of all the information required by InvestChile.


To remit abroad the transferred capital.

To remit the liquid profits that their investments generate, once the corresponding tax obligations have been fulfilled according to national legislation.

To access the formal exchange market to: ·- Settle the currencies constituting your investment. - Obtain the necessary currencies to remit the invested capital. - Obtain the necessary foreign currency to remit the liquid profits generated by your investment, once the corresponding tax obligations have been satisfied. The applicable exchange rate will be the one freely agreed upon by the parties. ------

To non-arbitrary discrimination, either directly or indirectly. - Foreign investors will be subject to the common legal regime applicable to national investors, without being able to discriminate against them directly or indirectly.

To the exemption of the Tax on the Sales of Goods and Services in the importation of capital goods.

Foreign investors and companies receiving their investment may request exemption from this tax with respect to capital goods that they import and use for the development, exploration or exploitation in Chile of mining, industrial, forestry, energy, infrastructure, telecommunications, research or technological, medical or scientific development, among others, and that imply investments for an amount equal to or greater than five million United States dollars. For this, the interested party must submit an application to the Ministry of Finance , accompanying the Foreign Investor Certificate issued by InvestChile. The Ministry will verify and certify compliance with the requirements