Chile free zones in 2023

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