Chile Viewpoint: Prepare for take-off. Reactivation bill moves forward.

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Chile Viewpoint: Prepare for take-off. Reactivation bill moves forward.

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Chile Viewpoint

Prepare for take-off. Reactivation bill

moves forward.

Pro-Growth tax and investment package moves forward 22 July 2026

The reactivation bill approval is a key success for the government. We expect potential GEM Economics

growth to pick up significantly, by 0.3%-0.4% in the medium term. The bill combines tax LatAm | Chile

reform, investment incentives and deregulation. Key measures: cut in the corporate tax Sebastian Rondeau

rate from 27% to 23% by 2029, reintegration of the tax system, and a tax invariability Southern Cone & Venz Economist

regime for investments. It also includes measures to accelerate investment permits. BofAS+1 646 855 3767

sebastian.rondeau@bofa.com

Approval secured, but legal risks remain Lucas Martin, CFA

The Lower House approved the most important articles of the bill after Senate SovereignBofAS Debt FI Strategist

amendments. However, the process is not yet complete. The opposition announced +1 646 855 1731

lucas.martin@bofa.com

constitutional challenges, particularly against the tax invariability regime and

environmental provisions. Additionally, the government is evaluating potential vetoes. DavidBz Econ/FIBeker& LatAm>> EQ Strategy

Merrill Lynch (Brazil)

Revitalizing potential growth, with moderate fiscal costs +55david.beker@bofa.com11 2188 4371

We view the bill as an important positive step toward reversing Chile’s declining Paula Andrea Soto, CFA >>

potential growth, which has fallen to around 2% amid high corporate taxes and slow LatAm Equity Strategist

investment approvals. Lower tax rates, greater tax certainty, and reduced regulatory risks +55 11 2188 4226

should strengthen Chile’s appeal for investment.