Chile

Carlos Álvarez V.DirectorForeign Investment Promotion Agency

Business Opportunities

in High Value Added

Sectors

I. FDI: Growth engine

II. Chile: Distinctive attributes

III. Prioritized Sectors

IV. InvestChile Services

8.3%of GDP

FDI RECIPIENT

2007-2017

19.5billion USDAnnual Average

11%Annual average

FDI Growth 2007 –

2017

Nº20of 202 world economies

as FDI recipient

Total Surface:

756,102.4 km²

Population:

18,373,917

CHILE

*

Foreign Direct Investment,

A dynamic growth source

for Chile

• A company establised in Chile can be 100% owned by

foreign investors-

• Foreign and domestic companies enjoy the same rights

and responsibilities (non-discrimination principle).

• National legislation allows the entry and repatriation of

capital without cost.

• Investments over US$5 million are exempt from import

taxes on capital goods.

Robust Foreign

Investment Regime

ChileThe place to build

your Future

ON-GOING

LEADERSHIP

HIGH-LEVEL

TALENT

ENTREPRENEURIAL

ENVIRONMENT

LATIN AMERICAN

HUBTREND

SETTERAttributes that reinforce

Chile as ‘The Hotspot’

on the Latin American

FDI Map :

1. Ongoing Leadership

2017 (est)

GDP per capita PPP

US$24,797Source: World Economic Outlook – World Bank

Since 1998, and every

year since, Chile is the

WEF’s most competitive

nation in Latin America

OECD’s first and only South

American economy

When it comes to foreign direct investment- FDI - we are leaders in Latin America

World Class sovereign

risk levels:

Nº1

Aa3 (Moody’s)

A+ (S&P)Source : Bloomberg

Chile exhibits high stability & respect for government institutions

Governance Index

1st in Latin America

Source: World Bank

Strong committment for

healthy inflation levels:

3.3% Source: Central Bank of Chile

(average

inflation

2000-17)

Healthiest Fiscal Position in

the Region: 1.5% structural

deficit Source: Ministry of Finance, Chile.

1. Ongoing Leadership

We are a talent magnet in LatAm

OECD Pisa ranking

2016

Source: INSEAD, HCLI,

ADECCO

Source: OECD

Talent

attraction

program

Maths

Sciences

Chile LatAm

average

2. High level Talent

Source: 2015-2016 WEF –

Global Entrepreneurship

Monitor

3. Entrepreneurial Environment

We are internationally recognized for our vibrant ecosystem

26 trade agreements with 64

markets: 64.1% of the world

population.

Agreements to avoid

double taxation with 32

economies.

Fuente: Alianza del Pacífico

We have signed more FTAs than anyone on the planet

4. A Latin American Hub

FTAs provide access to 86.3% of global GDP with

privileged tariff conditions: 4.3 billion potential consumers.(Source: DIRECON)

Chile & Czech Republic

Double TaxationTreaty

Advantages

• Avoids application of a similar type of tax, to the same income, in the same

period of time, by both Chile and the Czech Republic.

• Establishes which State/country, and in which cases, collects the tax.

• Establishes maximum rates for different types of income (business profits,

dividends, interests, royalties, real estate, etc.).

Dividends received by a Czech Company that invests in Chile:

• Are subject to a total tax burden that amounts to 35% (27% paid by the Chilean

Company that generates the income on its yearly returns; and an effective 8%

paid when dividends are remitted to the Czech Republic).

• Due to the existing Double Taxation Treaty, the Czech Republic must

acknowledge the 35% tax paid in Chile by way of a credit right.

Chile and the Czech Republic

4. A Latin American Hub

Source: DIRECON

We are globally connected & globalization-committed

Airports: 17

International: 7

National: 10

Ports: 17

International Logistics

Performance Index 2016

2nd in Latin America46th in the world

Source: World Bank

4. A Latin American Hub

5. Trendsetter

The country with the

most netizens in the world (early adopters)

32%

We are a natural laboratory for new-tech business

Leader in LatAm in “availability and use of the latest technologies”

Source: Ericsson Consumer Lab 2015

28% Brazil 23% Colombia

CHILE

CITIZENS OF THE

NETWORK

DIGITAL COMMERCE

CONNECTIVITY

Chilean consumers are Latin America’s leaders in online

purchases

TOP 20 according to Global Retail E-Commerce Index

2015 (Source: AT Kearney) Source: SUBTEL

Source: Cepal

5. Trendsetter

We are a natural laboratory for green energy & sustainable business

Source: Chilean governmentSource: International Renewable Energy

(IRENA) – Chilean Ministry of Energy

KeySectors

Mining and

Auxiliary Industry

Sophisticated

food industrySustainable

Tourism

Clean

Energy

Global

Services

Chile has mature and high value

added sectors which present

competitive advantages and

business opportunities for foreign

investors.

Source: Tholons

GLOBAL SERVICES & DIGITAL ECONOMY

Talent and the technology

to promote your company’s

services to the world. One

of the most recognized

entrepreneurial

environments on the globe

competitive costs.

• TALENT• PLATFORM• PROJECTION

Talent for Export

Fuente: SUBTEL

What we offer

Companies that seek businessopportunities in this sector willbenefit from:

• First class technological and telecommunications infrastructure

• Availability of Talent

• Time zone (U.S. and the rest of LatinAmerica).

• Technological entrepreneurial ecosystem

• Wide range of business and tax agreements

• Financial Incentives

GLOBAL SERVICES & DIGITAL ECONOMY

Talent for Export

A natural laboratory for the

energy of the future.

A unique environment

accompanied by state-of

the-art policies and

incentives for developing

new sustainable energy

technologies.

Source: E&Y 2016 Source: CNESource: CNE

Source: CNE Source: Corporación de Bienes de capital Source: Climatescope 2016

PRIVILEGEDCUTTING-EDGE

ENVIRONMENT

GREEN ENERGY

We are developing today energy for tomorrow

Set up your new project in Chile and take advantage of privileged conditions:

•By becoming one of the country’s energy

producers.

•By helping to develop solar panels /modules,

lithium batteries and technology associated to

integrated systems.

•By incorporating yourself into our Strategic Solar

Program.

•By implementing projects and studies about the

types of renewable energy and their potential in

the country.

GREEN ENERGY

What we offer

We are developing today energy for tomorrow

Status Small Hydro Projects March 2014- July 20017)

Project State Number of Projects MW

In Operation 50 168

Under Construction 18 85

With Environmental

Approval 96 438

Unde Environmental

Analysis11 110

Pre-feasibility 90 537

Total 265 1338

Small Hydro (less than 20 MW) Opportunities

GREEN ENERGY

We are developing today energy for tomorrow

• Since March 2014 50 small

hydro power stations have

started operations.

• At this time,18 small hydro

power stations are under

construction and 52 have

environmental approval.

• According to the Ministry of

energy, small hydro potential in

Chile is 7,951 MW.

• Worldwide leaders in

mining.

• Access to well-

experienced strategic

partners in innovation

projects for adding value

to the global mining

industry.

Source: Central Bank of Chile Source: United States Geological Survey Source: INE

Source: COCHILCOSource: COCHILCO Source: Central Bank of Chile

MINING INVESTMENT PIPELINE

MINING

Creating the mining of tomorrow, productive and sustainable.

• VISION OF FUTURE• LOCATION

• EXPERIENCE

By setting up operations in Chile,

your company will operate inside a

market that also has the sector’s

global players. You will benefit by

having:

What we offer

• Access to a mature and

competitive local market.

• The possibility of expanding

your sales by optimizing the

goods and supply logistics

services to your customers.

MINING

Creating the mining of tomorrow, productive and sustainable.

• Chile has 52% of the world’s total lithium

reserves.

• Chile’s Salar de Atacama has the world’s

highest proven reserves and has a very

low production cost.

• Our country has an ongoing process of

increasing production capacity:

o 2016 production reached 79,000

tons LCE.

o 2020 production will exceed

150,000 tons LCE (50% Albemarle

and 50% SQM), keeping a 42%

market share in the global market.

MINING

Creating the mining of tomorrow, productive and sustainable.

By producing in Chile you are

part of a privileged

network that can access 64%

of the world market

consumers.

SOPHISTICATED FOOD INDUSTRY

Power foods for the world

• DIVERSITY• COMPETENCE

• NETWORKS

Source: PROCHILESource: The economist Intelligence Unit &

Dupont

Source: Central Bank of Chile Source: Central Bank of Chile Source: Central Bank of Chile and OIV

Source: Central Bank of Chile and

PROCHILE

Chile is a mature market for

the production and export of:

What we offer

• Functional ingredients and sophisticated

foods..

• Bioproducts and their forerunners,

nutraceuticals used in agriculture,

generated from algae and residues

produced by the Food Industry (fishery/

aquaculture).

• There are also incentives for the arrival

and set up of RD&I centres for added

value in the food industry.

SOPHISTICATED FOOD INDUSTRY

Power foods for the world

• RECOGNITION• DEMAND

Here is an invitation to develop projects

and enjoy the great adventure of Latin

America.

It is the awarded destination for

conventions and

events.

Source: Ministerio de Economía, Fomento y

Turismo

Source: ICCA Source: SERNATUR

Source: World Travel Awards Source: JAC Source: The New York Times

TOURISM

Discover our adventure

• The development of new sustainable tourist

attraction areas, with investment potential in

infrastructure: nautical tourism, business tourism,

astro-tourism, eco-tourism.

• To design and implement technological platforms

aimed at improving and diversifying the supply of

tourist goods and services in Chile.

• Businesses with potential in new services for

consolidated and high demand tourist attractions.

• The development of Santiago’s MICE sector

(meetings, incentives, conferencing, exhibitions).

Discover our adventure

TOURISM

By investing in Chile, you willbe part of growing businessopportunities:

What we offer

Support for Strategic Projects

at pre-investment stage

Implementation of

Technological Investment

Projects (IFI)

R&D Law

Business Technological

Innovation

We are ready to offer you specific services for each stage of

your project. A multicultural and dedicated team of

professionals is ready to help you set up your next

business site in Chile.

CONTACT US!

www.investchile.gob.cl is designed

as a free information and services platform.

First and main point of contact for investors in Chile.