Chile free zones in 2022

Chilean free zone company registration 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

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Contact us

For additional information on our free zone company services in Chile, please contact our in-house country expert, Ms. Chrissi Zamora, directly:
client relationship officer - Chrissi