Economic & Business Laws — Chile

Economic and Business Laws for Immigrants in Chile

*Note: Chile's migration law (Law 21.325, effective 2022) reformed the previous framework. Figures below are approximate as of recent years — verify current amounts with official sources (Servicio Nacional de Migraciones, SII, CMF) before making decisions.*

1. Right to Work by Visa Type

Temporary Resident Visa (Residencia Temporal)

• Generally allows work with any employer — not tied to a single sponsor in most subcategories
• Common subtypes:
• Subject to Contract (Sujeta a Contrato): historically tied to a specific employer; under Law 21.325 this category has been phased down but transitional cases exist
• Work Visa under new law: broader labor market access without single-employer restriction
• Valid typically for 12 months, renewable, and counts toward permanent residency (after 1 year, or 2 years for some nationalities/categories)

Student Visa

• Can work part-time (generally limited hours, often up to 20-30 hours/week during term) if authorized
• Full-time work typically restricted; check current regulations, as rules have shifted

Tourist Visa

• No right to work. Working while on a tourist visa is illegal and can lead to deportation and future entry bans
• Business visitors can attend meetings/negotiate contracts but not perform paid labor

Permanent Residency (Residencia Permanente)

• Full, unrestricted right to work in any sector, employed or self-employed
• No need for work permits or sector limitations

Mercosur Residency Agreement

• Citizens of Mercosur/associated states (Argentina, Brazil, Uruguay, Paraguay, Bolivia, Peru, Colombia, Ecuador) can obtain simplified temporary residency with full work rights

Practical note: Always register your visa/RUT status with the Servicio Nacional de Migraciones and carry your Cédula de Identidad para Extranjeros — employers routinely check this.

2. Starting a Business as a Foreigner

No Nationality Restriction

• Chile imposes no general restriction on foreigners owning or founding businesses — full legal equality with Chilean nationals for most commercial activity (Chile is notably open compared to regional peers)

Legal Requirements

• RUT (Rol Único Tributario): Tax ID required for any economic activity — obtainable at SII (Servicio de Impuestos Internos) with valid visa/residency
• Business structures available:
• Empresa Individual de Responsabilidad Limitada (EIRL): sole proprietorship with limited liability
• Sociedad de Responsabilidad Limitada (SRL): private limited company
• Sociedad por Acciones (SpA): flexible corporate structure, popular with startups
• Sociedad Anónima (SA): for larger/public companies
• "Empresa en un Día" platform allows online company formation in ~1 day for simplified structures

Visa Considerations for Entrepreneurs

• Tourist visa holders cannot legally operate a business, though they can incorporate one on paper in some cases — operating requires proper residency
• Startup-friendly visa: Chile previously ran a "Start-Up Chile" program (government-backed accelerator) that facilitates a temporary visa for participating entrepreneurs — check current status, as program funding/design changes periodically

Licenses

• Municipal business license (Patente Municipal) required for most commercial premises
• Sector-specific permits (health, sanitary, environmental) depending on activity

3. Foreign Investment Restrictions

General Framework

• Chile has one of the most liberal foreign investment regimes in Latin America — no general screening mechanism for foreign investment (unlike many OECD countries)
• Governed primarily by Law 20.848 (Foreign Investment Framework), replacing the older DL 600 statute
• National treatment principle: foreign investors generally receive the same treatment as domestic investors

Sector-Specific Restrictions

• Fishing: certain quotas/licenses reserved for Chilean-flagged vessels or require reciprocity
• Border zones: land near international borders and coastal areas has restrictions on foreign ownership for national security reasons (requires presidential decree exception)
• Media/broadcasting: some restrictions on foreign ownership of radio/TV concessions
• Lithium and select strategic minerals: state retains significant control via CODELCO/ENAMI and special contracts (evolving policy area given lithium's strategic importance — a National Lithium Strategy was announced in 2023 involving greater state participation)
• Currency/capital repatriation: freely permitted; no restrictions on profit repatriation, unlike historical capital controls (largely dismantled)

Registration

• No mandatory registration for most foreign investment, though using the Foreign Investment Promotion Agency (InvestChile) framework may be advisable for larger investments seeking guarantees/facilitation

4. Property Ownership Rights for Non-Citizens

General Rule: Full Equality

• Foreigners — residents and non-residents alike — have the same property ownership rights as Chilean citizens for urban property
• No requirement to hold residency to buy real estate in most areas

Restricted Zones

• Border zones (zonas fronterizas): Decree Law 1.939 restricts foreign ownership of land within certain kilometers of international borders — exceptions require authorization from the Ministry of National Defense
• Easter Island (Rapa Nui): special restrictions — land ownership limited largely to individuals of Rapa Nui descent
• Some indigenous lands: subject to protective legislation (Ley Indígena, 19.253) restricting transfer outside indigenous communities

Practical Matters

• Property purchases require a RUT (tax ID) — obtainable even without residency, using passport
• No restriction on foreign mortgage access in principle, though Chilean banks typically require residency and local credit history for financing (see banking section below) — cash purchases or financing from home country are common workarounds for non-residents

5. Banking Access for New Immigrants

Opening a Basic Account

• Cuenta RUT (issued by state bank BancoEstado): relatively accessible, often obtainable with a RUT and visa/residency proof; simplified account without credit line
• Requires:
• RUT number
• Proof of address
• Valid visa (tourist visa often insufficient — typically need temporary or permanent residency)

Full Bank Accounts / Credit

• Traditional checking/savings accounts typically require:
• Permanent residency or long-standing temporary residency in practice, though rules vary by bank
• Proof of income/employment
• Sometimes a minimum deposit
• Credit history: Chile's credit bureau system (e.g., DICOM/Boletín Comercial) does not carry over foreign credit history — immigrants typically start with no credit history, limiting access to credit cards and loans initially
• Building local credit history takes time; secured credit cards or lines tied to Cuenta RUT can help bootstrap this

Digital/Fintech Alternatives

• Fintech options (e.g., Tenpo, Mach, MercadoPago) have lowered barriers, often requiring only RUT + ID, useful for immigrants awaiting full bank account approval

Currency Controls

• No significant restrictions on holding foreign currency accounts, but large currency exchanges/international transfers may require documentation under anti-money laundering rules (Chile's UAF — Unidad de Análisis Financiero)

6. Labor Law Protections for Immigrant Workers

Equal Protection Principle

• Chile's Labor Code (Código del Trabajo) applies to all workers regardless of nationality or immigration status — this includes minimum wage, social security contributions, and workplace safety
• Minimum wage (Sueldo Mínimo): set periodically by law — verify current figure (subject to regular adjustment; historically increased roughly annually)

Specific Protections

• Written contracts: Employers are legally required to provide written employment contracts (within 15 days of starting work, or 5 days for short-term contracts) — this applies to foreign workers too and is critical for visa renewal purposes
• Social security: Foreign workers with residency generally must contribute to Chile's pension (AFP) and health system (FONASA or private ISAPRE), same as nationals, unless exempted by bilateral social security agreements (Chile has agreements with several countries allowing contribution exemptions/portability)
• 85% national workforce rule: Companies with more than 25 employees must ensure at least 85% of their workforce is Chilean (or foreign spouses/children of Chileans, or foreigners with more than 5 years' residency) — a notable restriction; exceptions exist for specialized technical roles hard to fill locally
• Anti-discrimination: Labor Code prohibits discrimination based on nationality; immigrant workers can file complaints with the Dirección del Trabajo (Labor Directorate)

Undocumented/Irregular Status Workers

• Even workers in irregular migration status retain basic labor rights (unpaid wages can be claimed, workplace injury protections apply) — Chilean labor courts have upheld this principle, though it does not regularize immigration status
• Employers hiring irregular migrants face fines but the worker is not automatically penalized for wage claims

Enforcement Resources

• Dirección del Trabajo (www.dt.gob.cl): handles complaints, contract disputes, unpaid wages
• Free legal aid available through Corporación de Asistencia Judicial for low-income workers, including immigrants

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Key Recommendations

• Verify visa category rules directly with Servicio Nacional de Migraciones (migracion.gob.cl) — categories and rights have shifted significantly since the 2022 law reform
• Consult SII for current RUT/tax obligations (sii.cl)
• Check InvestChile (investchile.gob.cl) for current foreign investment guidance and incentives
• Confirm minimum wage and social security rates with Dirección del Trabajo, as these adjust regularly
• Consider a local lawyer or gestor for business incorporation and property transactions, especially near border zones
• Bilateral agreements: Check if your home country has a social security or double-taxation treaty with Chile, as this significantly affects pension contributions and tax liability

More about immigrating to Chile