CHILE: New Bill on Foreign Direct Investment before Chamber of Deputies

Tuesday April 7 2015

A bill on Foreign Direct Investment, which has passed to the floor of the Chamber of Deputies, is currently being debated.

The bill establishes the scope of the Framework Law’s application and defines what will be understood by “foreign investor” and foreign direct investment”. It also establishes the regime that will be applicable to such investment, recognizing the guarantee of access to the formal foreign exchange market and remittance of capital and earnings, the right to freedom from arbitrary discrimination and exemption from sales and service tax on imports of capital goods that comply with the requirements established in Clause 10, Section B of Article 12 of Decree Law N° 825 of 1974.

The bill also establishes that the President of the Republic will define Chile’s foreign investment promotion strategy, supported directly for this purpose by a Committee of Ministers for the Promotion of Foreign Investment.

The new institutional framework will include a Foreign Investment Promotion Agency with the mission of implementing the state policy so as to attract all types of foreign capital and investment to the country, being the only body authorized to undertake this task.

Click on the above link for more details (in Spanish).