Introducing the new identity of NSS.
A mining, energy, or infrastructure project is modeled over 20 or 25 years. Within that timeframe, what frightens an investor most isn't today's rate: it's not knowing what tomorrow's will be. The Reconstruction Law directly addresses this uncertainty.
It reintroduces a 25-year tax invariability statute, a mechanism Chile had under the historic Decree Law 600, which was repealed in 2016. Here's how it works and who it benefits.
It's a contract between the investor and the State of Chile that freezes the tax burden in effect at the time of signing for a period of 25 years. If Chile raises taxes in the future, the investor remains protected under the original conditions. If taxes are lowered, the investor can opt for the new, more favorable terms. It's an asymmetrical guarantee: it protects against increases and allows for improvements.
This mechanism is not new to Chile. Decree Law 600, in effect for decades, was one of the tools that supported the arrival of foreign investment in the country, especially in mining. It was repealed in 2016, in a context where the aim was to simplify the foreign investment statute and it was assumed that institutional stability was sufficient as a guarantee. Its reintroduction, now for 25 years, is a deliberate signal that Chile wants to compete again for long-term capital.
The investor applies for the statute and signs a contract that establishes the tax rules applicable to their project. According to the bill, the application is submitted to the Ministry of Finance, and the Undersecretary of that ministry signs the contract. From that point, the conditions are protected for 25 years, unless the investor prefers to take advantage of a subsequent tax reduction.
Combined with the corporate tax reduction to 23% included in the same bill, investors can lock in a tax burden that is already lower than the current one.
The statute is reserved for large-scale investments: over USD 50 million. It targets sectors where projects are capital-intensive and slow to mature — mining, energy, infrastructure, technology — which are the ones that most value long-term certainty and that Chile most needs to reactivate.
In a world where regulatory uncertainty is one of the main brakes on investment, being able to model a project's cash flows over 25 years, knowing that the tax burden will not change, is an asset in itself. It reduces the cost of capital, facilitates financing, and transforms Chile into a predictable destination. For investors, that predictability often carries as much weight as the rate itself.
The bill is not yet law. It is currently in the Senate, undergoing its second legislative process. Deadlines run from its publication in the Official Gazette, not from today.
It is for large projects. The USD 50 million threshold excludes most investments; it is not a planning tool for medium-sized businesses.
Requirements may be adjusted. The threshold and access conditions are precisely among the points that the Senate could modify during the legislative process.
This content is for informational purposes only and does not replace advice for your specific case.
For 25 years from the signing of the contract with the State.
If they raise them, you remain protected by the original conditions. If they lower them, you can opt for the new, more favorable conditions.
For investments over USD 50 million, in sectors such as mining, energy, infrastructure, and technology.
It is a mechanism equivalent to Decree Law 600, repealed in 2016, now reintroduced by the Reconstruction Law.