Chile free zones

Chile free zones

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)

    Chilean free zone company registration
  • 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 GlanceIquiquePunta ArenasArica
Number of free trade zones available111
Average annual Industrial space rent per 1000 sqmUS$16,000US$12,500US$15,000
How long to set the company up?2-3 weeks6 weeks6 weeks
How long to open company bank account?2-3 weeks3-4 weeks3-4 weeks
Quality of UtilitiesExcellentGoodAverage
Allowed to sign sales contracts with Chilean Clients?YesYesYes
Allowed to invoice Chilean Clients?YesYesYes
Corporate tax payable in ChileNoNoNo
Corporate bank accountYesYesYes
Physical office space requiredYesYesYes
Industrial space availabilityManyLimitedLimited
Allowed to import raw materials?YesYesYes
Allowed to export goods?YesYesYes
Wholly foreign ownedYesYesYes
Can the entity hire expatriate staff in Chile?YesYesYes
Do you visit Chile for company incorporation?NoNoNo
Minimum number of directors111
Minimum number of shareholders222
Tax registration certificate requiredYesYesYes
Individual shareholders allowedYesYesYes
Corporate shareholders allowedYesYesYes
Corporate director(s) allowedYesYesYes
Public register of shareholders and directorsNoNoNo
LLC company allowedYesYesYes
Can apply for immigration visasYesYesYes
Annual audited financial statementsNoNoNo

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Contact us

For additional information on our free zone company services in Chile, please email us at email@healyconsultants.com. Alternatively please contact our in-house country expert, Ms. Chrissi Zamora, directly:
client relationship officer - Chrissi