Why Global Investors Are Turning to Chile - A Stable, Connected, Resource-Rich Gateway to Latin America

For foreign executives considering capital deployment in Latin America, the decision typically hinges on three key questions:

Will my investment be secure?

Can I move goods and capital freely?

Does the country offer what my business needs?

Chile is one of the few markets in the region that convincingly answers yes to all three, and 2026 is shaping up to be a year when that case is stronger than ever.

Latin America’s Most Stable Credit Story

Political and macroeconomic stability are foundational concerns for serious investors, and Chile stands out as a regional leader in both. In 2026, S&P Global Ratings and Moody’s reaffirmed Chile’s sovereign credit ratings at A and A2, respectively, both with stable outlooks. S&P places Chile’s standing alongside Lithuania, Latvia, and Israel; Moody’s groups it with Lithuania and Poland. By both measures, Chile ranks above every other Latin American economy.

This stability is underpinned by robust institutions. As the first South American nation to join the OECD, Chile adheres to OECD standards on transfer pricing, tax transparency, and anti-corruption. For boards evaluating country risk, this combination of investment-grade ratings and OECD membership is a rare advantage in the region.

Legal Protections Tailored for Foreign Capital

Chile doesn’t rely on goodwill to attract overseas investment. Since 2016, foreign direct investment (FDI) has been governed by Law 20.848—a dedicated framework that guarantees foreign investors the same treatment as domestic ones, unrestricted access to the formal foreign exchange market, and the right to repatriate capital and profits. InvestChile, the national investment promotion agency, administers this framework and has been named South America’s Best Investment Promotion Agency in five of the past seven years.

The impact is clear. According to UNCTAD’s 2026 World Investment Report, FDI inflows to Chile increased from US$11.8 billion to US$13.1 billion in 2025, even as global investment flows remained subdued. This momentum has continued into 2026: InvestChile reported US$9.2 billion in FDI during the first half of the year—a 29% increase over the same period in 2025.

The World’s Most Connected Trade Network

Few countries can match Chile’s market access. With more free trade agreements than any other nation, Chile enjoys preferential access to 65 markets representing approximately 70% of the global population and 88% of global GDP. This network includes the United States, the European Union, China, the United Kingdom, Japan, and the CPTPP bloc, as well as double-taxation treaties with over 30 countries, reducing withholding taxes on cross-border dividends, interest, and royalties.

For manufacturers, exporters, or service providers, Chile offers a strategic base for tariff-advantaged trade with nearly every major economic bloc—a position rarely matched in Latin America or elsewhere.

A Predictable and Competitive Tax Environment

Chile’s standard corporate tax rate is 27%, with a preferential 25% rate and simplified accounting for qualifying small and medium enterprises. Since Chile applies OECD-standard transfer pricing rules and participates in the Common Reporting Standard and BEPS framework, foreign investors benefit from internationally recognized tax norms rather than navigating unpredictable local regimes.

Resources Powering the World’s Supply Chains

Chile’s natural resources offer exposure to two of the most strategically important commodities of the coming decade. The country holds the world’s largest lithium reserves—around 40% of the global total—and remains the second-largest producer, with significant new investments underway. The Codelco and SQM NovaAndino joint venture secures long-term operations at the Atacama salt flat, while Rio Tinto’s US$900 million stake in the Maricunga lithium project targets first production by 2030. Chile is also the world’s largest copper producer, crucial to electrification and the global energy transition.

Positioning as a Green Energy Exporter

Chile is rapidly emerging as a renewable energy leader. The Atacama Desert boasts some of the world’s highest solar irradiation levels, and Patagonia’s wind resources are equally impressive. Through its Green Hydrogen Action Plan, Chile aims to become a major exporter of green hydrogen and its derivatives, with support from the World Bank and the European Investment Bank for infrastructure development. For investors in energy, industrial decarbonization, or green chemicals, Chile offers both renewable inputs and established export logistics.

Reform Momentum Under a Market-Oriented Government

Since taking office in March 2026, President José Antonio Kast’s administration has signaled a clear shift toward faster and more predictable investment approvals. The government has merged the mining and economy ministries and advanced legislation to streamline permitting and reduce tax friction for new mining and industrial projects—addressing longstanding investor concerns about bureaucracy limiting resource development. While these reforms are still progressing through the legislature, the direction is clear: Chile is committed to attracting the capital needed for large-scale resource development.

The Bottom Line for Foreign Boards

No market is without risk, and ongoing debates around mining permits and lithium policy are important considerations, especially for companies in those sectors. Yet Chile offers a combination that is difficult to match elsewhere in Latin America: the region’s highest sovereign credit rating, a legal framework that explicitly protects foreign capital, the world’s most extensive trade agreement network, globally significant mineral reserves, and a government determined to eliminate barriers to investment.

For companies deciding where to invest in Latin America, Chile stands out as one of the clearest choices.