Company Formation & Tax in Chile
Latin America's most stable and open economy — a 27% corporate tax with a partial-integration credit for shareholders, a lighter SME regime, and the versatile SpA vehicle.
Chile combines a 27% first-category corporate tax under its semi-integrated regime with a 19% VAT and a partial credit that flows to shareholders when profits are distributed. Long regarded as Latin America's most stable, treaty-rich and business-friendly jurisdiction — and an OECD member — it offers a lighter Pro-Pyme regime for smaller companies and the flexible Sociedad por Acciones (SpA), which can be formed with a single shareholder.
The headline numbers
| Tax | Rate |
|---|---|
| Corporate tax — semi-integrated (general) | 27% |
| Corporate tax — Pro-Pyme (SMEs) | 25% |
| VAT (IVA) | 19% |
| Additional tax on dividends to non-residents | 35% (with partial corporate-tax credit) |
| Capital gains | Generally taxed as ordinary income |
Under the semi-integrated system, non-resident shareholders face a 35% additional tax on distributions, but may credit part of the 27% corporate tax already paid — a treaty with Chile typically restores full credit, bringing the combined burden to 35%. VAT at 19% applies broadly to goods and services.
Two regimes, two profiles
- Semi-integrated (27%) — the default for larger companies; shareholders credit 65% of corporate tax unless a tax treaty grants full integration.
- Pro-Pyme (25%) — a simplified regime for small and medium enterprises below a revenue threshold, with fully integrated credits and cash-basis options.
- Treaty network — an extensive double-tax-treaty network (and OECD membership) reduces cross-border friction and preserves dividend credits.
- Stability — transparent rule of law and strong institutions underpin Chile's standing as a regional holding and mining-services base.
Forming the company
The Sociedad por Acciones (SpA) is the modern default — one or more shareholders, flexible statutes, and no minimum capital — while the Sociedad de Responsabilidad Limitada (Ltda) remains common. Many companies can be formed same-day through the government's "Empresa en un Día" electronic portal, followed by a RUT tax registration and start-of-activities notice with the SII. 100% foreign ownership is permitted; a local representative and Chilean tax address are needed in practice. VAT and annual income-tax filings apply.
Frequently asked questions
What is Chile's corporate tax rate in 2026?
27% under the general semi-integrated regime, or 25% for qualifying SMEs under the Pro-Pyme regime.
How are dividends to foreign shareholders taxed?
A 35% additional tax applies, but shareholders credit part of the corporate tax paid; residents of treaty countries generally receive full credit, capping the combined burden at 35%.
What is the VAT rate in Chile?
19%, applied broadly to goods and services.
Can a foreigner own a Chilean company fully?
Yes — 100% foreign ownership is permitted, and an SpA can be formed with a single shareholder, often within a day via the "Empresa en un Día" portal.
Official sources
- SII — corporate income tax and VAT
- Registro de Empresas y Sociedades — "Empresa en un Día"
- InvestChile — foreign investment
This guide is general information prepared by A.R.M. Management and is current as at July 2026. It is not legal or tax advice; regime and credit eligibility carries conditions and rules change. Confirm against the SII, or with an advisor, before acting.
Structure a Chilean company the right way.
A.R.M. Management advises founders, investors and holding structures on Chilean incorporation, regime selection and the integrated dividend system across Latin America. Begin with a confidential conversation.