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Bringing capital into Chile and taking it back out: capital contributions, foreign investments, the InvestChile certificate and tax free return of capital

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Last verified: 2026-10-26 · Status: Stable

Foreign capital of US$10,000 or more that comes into a Chilean company or investment must arrive through a bank or other formal FX market entity and be reported to the Central Bank, which in practice the bank does on the investor's instructions. Investors of US$5 million or more can also get a certificate under the foreign direct investment law that confirms their statutory right to the FX market and to remit capital and net profits once taxes are paid. A later return of capital is not taxed up to the capital actually brought in, provided the company's tax registers show it is capital and not retained profits.

USD figures use the Central Bank exchange rate of CLP 986.58 per US dollar published in the Diario Oficial for 23 October 2026 (Ley Nº 18.840 art. 44 and CNCI Chapter I, Section VII). UF values use UF 1 = CLP 41,205.16 (23 October 2026) and UTM values use UTM 1 = CLP 72,151 (October 2026), both as published by the Servicio de Impuestos Internos. Conversions are for orientation only.

Key facts

Minimum size of a capital contribution or investment from abroad subject to channelling and reporting	10000 USDCNCI Chapter II, Letter B, Section IV, Nº 19, as of 2026-10-26 · in force
Minimum foreign direct investment for the Ley 20.848 regime and certificate	5000000 USDLey Nº 20.848 art. 2, as of 2026-10-26 · in force
Minimum voting stake for an acquisition to count as foreign direct investment	10 %Ley Nº 20.848 art. 2, as of 2026-10-26 · in force
Deadline for the agency to issue the foreign investor certificate	15 daysLey Nº 20.848 art. 4, as of 2026-10-26 · in force
Right to remit capital and net profits abroad	Statutory right for FDI of US$5,000,000 or more once taxes are paid; free exchange for all others while no restrictions apply textLey Nº 20.848 art. 2, 5 and 6; Ley Nº 18.840 art. 39, as of 2026-10-26 · in force
Tax on a return of capital to a non resident	None up to the capital actually brought into Chile textDL Nº 824 art. 17 Nº 7 and art. 58 Nº 2, as of 2026-10-26 · in force

The rule

1. A capital contribution from abroad is any act by which foreign currency from abroad, or the pesos obtained by converting it, is used to form or increase the capital of a company domiciled in Chile, including capitalizing foreign currency debts owed abroad. It includes contributions made with shares or interests in foreign companies, and capital a foreign investor pays in with shares of foreign companies owned by non residents. An investment from abroad is any acquisition, with foreign currency from abroad or its peso proceeds, of securities, shares, company interests or real or personal property. Foreign currency comes from abroad when the underlying agreement gives or may give rise to a payment obligation abroad by a Chilean resident, or a right to transfer the invested capital and its returns abroad.FX Compendium (CNCI) approved by Central Bank Agreement Nº 2617-03-240125, in force from 1 January 2026, CNCI Chapter I, Annex Nº 5, Section IV letters a), d) and e), 2024-01-30 official text · verified 2026-10-26

2. Capital contributions and investments from abroad made by individuals or companies that are not institutional investors must enter through the formal FX market, unless they are made with funds held abroad, and must be reported to the Central Bank, but only when they are US$10,000 or more (or the equivalent). When the money is placed at the recipient's disposal, the recipient tells the formal market entity the type of operation and its concept, and the entity sends that information to the Central Bank. Investments made by assigning shares or interests in foreign companies are reported directly to the Central Bank.
Cost to do it: No Central Bank fee; the cost is the bank's FX spread and wire charges.
Example: An inbound capital increase of CLP 9,865,800 (US$10,000) is reportable; one of CLP 9,864,813 is not. / US$10,000 or more triggers channelling and reporting; US$9,999 does not.FX Compendium (CNCI) approved by Central Bank Agreement Nº 2617-03-240125, in force from 1 January 2026, CNCI Chapter II, Letter B, Section IV, Nº 16, 18, 19, 30, 31 and 32, 2024-01-30 official text · verified 2026-10-26

3. A foreign investor within Ley Nº 20.848 (a non resident that transfers foreign direct investment of US$5,000,000 or more, as defined in art. 2 and 3) has the right to remit abroad the capital transferred and the net profits its investments generate once all Chilean tax obligations are met, and the right to access the formal FX market to convert the currency of its investment and to obtain the currency needed to remit capital or net profits, at a freely agreed rate. These FX operations remain subject to the Central Bank's powers. Foreign investors are subject to the same legal regime as domestic investors and may not be arbitrarily discriminated against, directly or indirectly. Smaller investors rely on the free exchange principle of Ley Nº 18.840 art. 39, under which anyone may carry out FX operations freely while no restrictions are imposed.Ley Nº 20.848, framework law for foreign direct investment, Art. 5, art. 6, art. 7 and art. 9, 2015-06-25 official text · verified 2026-10-26

4. Foreign direct investment under Ley Nº 20.848 is a transfer to Chile of foreign capital or assets owned or controlled by a foreign investor of US$5,000,000 or more (or the equivalent), made in freely convertible currency, physical goods, reinvested profits, capitalized credits, capitalizable technology or associated related party credits, and also an acquisition giving control of at least 10 percent of the voting shares (or an equivalent stake) of a Chilean company. A foreign investor is a person or entity constituted abroad, not resident or domiciled in Chile. The investor may ask the foreign investment promotion agency (InvestChile) for a certificate, whose sole purpose is to give access to the regime of articles 5 to 9; the application must prove the investment has been made, and the agency must issue the certificate within 15 days of receiving it.
Cost to do it: The law sets no fee for the certificate; the cost is preparing evidence that the investment has been made.
Example: A capitalization of CLP 4,932,900,000 into a Chilean SpA meets the US$5,000,000 floor for the certificate. / US$5,000,000 minimum; a US$4,000,000 investment still has the general FX rights of the Compendium but not the certificate.Ley Nº 20.848, framework law for foreign direct investment, Art. 2, art. 3 and art. 4, 2015-06-25 official text · verified 2026-10-26

5. Foreign investors are exempt from VAT on imports of capital goods, provided the import meets the requirements and follows the procedure of article 12, letter B, Nº 10 of the VAT law.Ley Nº 20.848, framework law for foreign direct investment, Art. 8, 2015-06-25 official text · verified 2026-10-26

6. When the Central Bank imposes a restriction requiring foreign currency to be brought home and converted, it must still allow access to the formal market to meet the obligations that arise from investments, capital contributions or credits from abroad, on the general terms in force on the date the currency was converted. Operations are governed by the Compendium rules in force on the date the funds enter Chile (or are used abroad), while each payment or remittance, including profits and other returns, is governed by the rules in force on the date it is made.Ley Nº 18.840, Organic Constitutional Law of the Banco Central de Chile; FX Compendium (CNCI) approved by Central Bank Agreement Nº 2617-03-240125, in force from 1 January 2026, Ley Nº 18.840 art. 49 Nº 1, second paragraph; CNCI Chapter II, Letter B, Section IV, Nº 21 and 22, 2024-01-30 official text · verified 2026-10-26

7. Returns of capital are not income up to the contributed or acquisition value of the holding and its inflation adjustments, as long as they are not capitalized profits that must pay tax; amounts withdrawn or distributed under this heading are allocated in the order set by article 14. For non residents, returns of capital brought into Chile under the Central Bank law and other legal provisions are excluded from the 35 percent additional tax, but only up to the capital actually brought into Chile.
Example: A parent that contributed CLP 1,973,160,000 and later receives a capital reduction of the same amount pays no additional tax on it, if the company's registers show no taxable retained profits to allocate first. / US$2,000,000 in, US$2,000,000 back as capital: no additional tax; any amount above the capital actually brought in is taxed as a distribution.Decreto Ley Nº 824, Ley sobre Impuesto a la Renta, Art. 17 Nº 7 and art. 58 Nº 2, 1974-12-31 official text · verified 2026-10-26

8. Every payment or remittance abroad of capital, profits or other returns on a reported investment or capital contribution must be reported to the Central Bank: through the formal market entity when the money is sent from Chile, or directly by the Chilean resident when the payment is made abroad or funded from currency used directly abroad. Later changes to a reported operation (for example a capital reduction, merger or assignment) must also be reported.
Cost to do it: No filing fee; the cost is internal or adviser time to report through the bank or the SICAM.FX Compendium (CNCI) approved by Central Bank Agreement Nº 2617-03-240125, in force from 1 January 2026, CNCI Chapter II, Letter B, Section IV, Nº 33, 34 and 35, 2024-01-30 official text · verified 2026-10-26

Stage	Rule	Who acts	Amount test
Money arrives in Chile	Must enter through a formal market entity and be reported	Recipient tells the bank the type and concept; bank reports	US$10,000 or more (CLP 9,865,800)
Contribution made in foreign shares or funded abroad	Reported directly to the Central Bank	Chilean recipient	US$10,000 or more
Certificate under the FDI law	Optional; confirms FX and remittance rights	Investor applies to InvestChile; issued within 15 days	US$5,000,000 or more (CLP 4,932,900,000) or 10 percent voting control within that amount
Capital returned	Not taxed up to capital actually brought in; reported through the bank	Company withholds any tax due; bank reports the remittance	Any amount; excess over capital is taxed as a distribution

What happens to a foreign capital contribution in Chile, by stage (CNCI Chapter II, Letter B, Section IV; Ley Nº 20.848; DL Nº 824). CLP at 986.58 per US dollar.

Worked example

A Spanish company forms a Chilean SpA and wires US$3,000,000 (CLP 2,959,740,000) of capital to the SpA's account at a Chilean bank. The SpA tells the bank the money is a capital contribution from abroad, and the bank reports it to the Central Bank (CNCI Section IV, Nº 31 and 32).
Because US$3,000,000 is below the US$5,000,000 floor of Ley Nº 20.848 art. 2, the parent cannot get the FDI certificate, and the statutory rights of art. 5 and 6 are tied to that floor; it can still buy and remit currency freely under the free exchange principle of Ley Nº 18.840 art. 39, since no FX restrictions are applied.
Five years later the SpA reduces capital by US$1,000,000 (CLP 986,580,000). The return is not taxed up to the capital actually brought in (DL Nº 824 art. 58 Nº 2) provided the art. 14 allocation does not first assign taxable profits to it, the SpA buys dollars at a freely agreed rate (Ley Nº 20.848 art. 6), and the bank reports the remittance (CNCI Nº 34 a).

Step by step

1. Obtain a RUT for the foreign investor and the Chilean company and open a bank account for the company.
2. Wire the capital to the Chilean bank (or keep it abroad and report directly if the contribution is made abroad or in foreign shares).
3. Give the bank the operation type (capital contribution or investment from abroad) and concept when the funds arrive.
4. Record the capital increase in the company's corporate documents and tax registers, so that its paid in capital can be shown later.
5. If the investment is US$5,000,000 or more, apply to InvestChile for the certificate once the investment has been made; the agency has 15 days to issue it.
6. For any later capital reduction, merger or assignment, report the change and have the bank report the outbound remittance.
7. Before returning capital, check the art. 14 tax registers: amounts treated as retained profits bear additional tax before capital can be returned tax free.

Common traps

Mixing capital and loans in one wire without telling the bank. The bank reports on the basis of what the recipient declares, and loans of US$1,000,000 or more have an extra terms report.
Assuming the certificate is required to remit profits. The statutory rights of Ley Nº 20.848 attach to qualifying investments of US$5,000,000 or more by law, and the certificate only evidences access to them; smaller investors remit under the general free exchange principle.
Returning capital when the company still has taxable retained profits. The art. 14 allocation order can treat part of the payment as a taxable distribution.
Losing the paper trail. The tax free return of capital is capped at capital actually brought in, so bank reports and corporate records from the original contribution are the evidence.
Contributing foreign shares and forgetting the filing. In kind contributions of foreign company shares are reported directly to the Central Bank, not through a bank wire.

Sources

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