Chile is undergoing a period of particular interest for the Israeli investor. Following the presidential victory of José Antonio Kast, the market anticipates a more pro-market economic orientation, against a backdrop of greater macroeconomic stability and an IPSA index that reached record highs in 2025. To this is added a telling figure: in January 2026, foreign direct investment (FDI) inflows into the country reached US$1.815 billion, 164% higher than in the same month of 2025; and between 2023 and 2026, materialized FDI exceeded the government's target of US$17 billion by 137%, generating more than 8,300 permanent jobs.
Sectors with the Greatest Potential
- Mining and Lithium. Mining remains the leading sector for FDI in Chile, supported by a robust pipeline of registered projects. Israel—with its ecosystem of water-efficiency technologies, automation, and remote monitoring—can provide high value-added solutions to a Chilean sector facing growing sustainability and digitalization demands.
- Energy has become the most dynamic sector within Chilean FDI, driven by the energy transition. Israeli know-how in solar power, storage, and smart grid management is directly exportable to meet this demand.
- Agribusiness and Agtech. Chile exports fruit, wine, meat, and forestry products to more than 170 markets. Israeli expertise in precision irrigation, agricultural biotechnology, and desalination offers natural synergies with Chilean producers seeking competitiveness in demanding markets.
- Technology, Cybersecurity, and Dual-Use. The Chile–Israel business rounds have already identified cyber, retail, and health as priority working groups. Israel, globally recognized as “the startup nation” for its R&D investment, can position cybersecurity, digital health, and dual-use technology solutions in Chile—sectors that in 2026 are attracting growing interest from sovereign funds and public agencies worldwide.
- Infrastructure and Sectoral Permitting. The advancement of the Sectoral Permits Law (Ley de Permisos Sectoriales), aimed at reducing processing times, could accelerate private investment in public infrastructure—an area in which InvestChile maintains active portfolios of projects out to tender.
Legal Considerations for the Israeli Investor
Any investment structuring into Chile should take into account:
(i) the selection of an appropriate corporate vehicle (a SpA [simplified joint-stock company], a sociedad anónima [stock corporation], or a branch of a foreign agency);
(ii) the appointment of a legal representative—whether Chilean or foreign—domiciled and resident in Chile, for tax purposes, pursuant to Article 9 of the Tax Code (Código Tributario);
(iii) the applicable tax regime under the Income Tax Law (Ley sobre Impuesto a la Renta) and any benefits available under double taxation treaties;
(iv) regulatory compliance under Law No. 20,393 (corporate criminal liability) and, depending on the sector, the new Law No. 21,719 on data protection; and
(v) sector-specific regulatory due diligence, particularly relevant in mining, energy, and infrastructure.