Chile free zones in 2025
Chile boasts three FTZs which provide excellent manufacturing infrastructure for foreign companies willing to incorporate in Chile, including i) service land ii) ready-made factory buildings and iii) export facilities. There are several incentives available for companies in Chile’s free trade zones.
Duty free zone of Iquique free trade zone (ZOFRI)
- Iquique free trade zone is Chile’s most ambitious tax-free zone. It is located the northern part of the country, with an area of 240 hectares, providing large warehouses, serviced area, and financial area;
- Companies operating in Iquiqe enjoy i) 100% exemption from corporate tax ii) 100% exemption from custom duties iii) 0% VAT on their first sales iv) and 0.8% import tax;
- This free zone invites multinationals from both commercial and industrial sectors such as imports, exports, retail, assembly, manufacturing, and industrial processing. Establishing a company in this Chile FTZ will however require sole shareholder companies to have i) at least US$5,000,000 of share capital and ii) to provide business references.
Punta Arenas free trade zone
- Punta Arenas FTZ is a tax-free zone located in Southern Chile, with a total area of 53 hectares offering and ample amount of warehouses, shopping centers, storage areas, and construction lots;
- Companies registered in this zone are eligible for i) 100% exemption from corporate tax and ii) 100% exemption from custom duties for imported goods;
- This Chile tax-free zone invites companies from both commercial and industrial sectors to conduct a diverse range of commercial and industrial activities, including i) import/export ii) retail iii) assembly iv) manufacturing and v) industrial processing.
Arica free trade zone
- The Arica Free Trade Zone is located near the border between Chile, Peru and Bolivia. Consequently, investors enjoy the convenient logistics for trading activities within the three countries;
- Companies registered in this Chile free zone are eligible for i) 100% exemption from corporate tax and ii) 100% exemption from custom duties;
- This Chile economic zone invites multinationals from the business sectors of manufacturing, exports, and minerals trading.
Table comparison of free zones
Summary at a Glance | Iquique | Punta Arenas | Arica |
---|---|---|---|
Number of free trade zones available | 1 | 1 | 1 |
Average annual Industrial space rent per 1000 sqm | US$16,000 | US$12,500 | US$15,000 |
How long to set the company up? | 2-3 weeks | 6 weeks | 6 weeks |
How long to open company bank account? | 2-3 weeks | 3-4 weeks | 3-4 weeks |
Quality of Utilities | Excellent | Good | Average |
Allowed to sign sales contracts with Chilean Clients? | Yes | Yes | Yes |
Allowed to invoice Chilean Clients? | Yes | Yes | Yes |
Corporate tax payable in Chile | No | No | No |
Corporate bank account | Yes | Yes | Yes |
Physical office space required | Yes | Yes | Yes |
Industrial space availability | Many | Limited | Limited |
Allowed to import raw materials? | Yes | Yes | Yes |
Allowed to export goods? | Yes | Yes | Yes |
Wholly foreign owned | Yes | Yes | Yes |
Can the entity hire expatriate staff in Chile? | Yes | Yes | Yes |
Do you visit Chile for company incorporation? | No | No | No |
Minimum number of directors | 1 | 1 | 1 |
Minimum number of shareholders | 2 | 2 | 2 |
Tax registration certificate required | Yes | Yes | Yes |
Individual shareholders allowed | Yes | Yes | Yes |
Corporate shareholders allowed | Yes | Yes | Yes |
Corporate director(s) allowed | Yes | Yes | Yes |
Public register of shareholders and directors | No | No | No |
LLC company allowed | Yes | Yes | Yes |
Can apply for immigration visas | Yes | Yes | Yes |
Annual audited financial statements | No | No | No |