Investment

Therefore, foreign investors enjoy the same rights and guarantees as local investors. The principle of non-discretionary treatment governs the activities in every economic sector and entails the existence of clear, well-known and transparent rules, which assure foreign investors they will be treated fairly and impartially.

Apart from the rights guaranteed by Chile's legal framework, Bilateral Investment Treaties (BITS) add further protection to the foreign investors. As of January 2006, Chile had signed 51 BITs, 37 of which were in force at that time. In addition, Chile's Free Trade Agreements (FTAs) with Canada, Mexico, South Korea and the United States include specific chapters on investment-related issues, including dispute-settlement mechanisms that are similar to those used in BITs.

Though there are other mechanisms that can be used by foreign investors, such as Chapter XIV of the Central Banks´Compendium of foreign Exchange Regulations, more than 81% of materialized foreign investment between 1990 and 2004 entered the country through D.L. 600, with a total of US$ 53.6 billion.

Main Foreign Investors' Rights

Foreign investors in Chile can own up to 100% of a Chilean-based company, and there is no time limit on property rights. They also have access to all productive activities and sectors of the economy, except for a few restrictions in areas that include coastal trade, air transport and the mass media. In the case of fishing, restrictions are subject to the rules of international reciprocity.
The State has a very minor productive role in Chile. Only a few strategic activities --such as exploration and exploitation of lithium, liquid and gaseous hydrocarbons deposits in coastal waters under national jurisdiction or located in areas classified as important to national security, and the production of nuclear energy-- are restricted to the State. However, under certain circumstances, foreign companies can invest even in these sectors.