Chile has Latin America’s best economy and has seen more foreign investment than all of the other Latin American countries other than Mexico and Brazil. Not only is it a popular place to invest in Latin America, but it’s a popular place to invest globally. In its World Investment Report 2016, the United Nations Conference on Trade and Development (UNCTAD) ranked Chile as the world’s 17th largest recipient of direct foreign investment in 2015. With its economic and political stability and high GDP, there are great reasons to invest in Chile.
Invest in Chile Real Estate
The Chilean government allows foreigners the same rights as Chile’s citizens when it comes to buying and selling Chile real estate. There are a few exceptions to this rule, so check with a qualified Chile real estate agent before heading down this path – but, you’re not likely to have any trouble. All you’ll need is your formalized contract, the title report for the property, and an RUT if you aren’t a citizen or resident. If you are a citizen or resident, you’ll need the RUN. This is a number used to keep track of you for tax purposes, sort of like a social security number.
With the tourism industry surging, starting with properties in Chile’s capital city of Santiago is a popular choice for real estate purchases. Prices are rising, but still in the affordable realm in which a real estate investment in Chile could be solid. Then again, Chile is known for its fruit and wine, so don’t overlook the vineyards and farmland for sale in Chile. Again, a highly qualified Chile farmland vineyard broker is essential. These would give you immediate exposure to the growing food industry.
Invest in a Chilean ETF
The easiest way to invest in Chile is through the only available ETF, the iShares MSCI Chile Capped ETF. Its top 10 holdings show a broad cross-section of Chile’s economy, with its largest holdings being utilities along with exposure to the growing services sector through Banco Santander Chile and Chile’s largest retailer, Falabella.
With the mining industry in its troubled state, you’d be glad to know that this ETF has very little exposure to that part of the market. ECH’s holdings are expected to bounce as the economy improves and the Chilean currency strengthens against the American dollar.
Invest in Chilean Stock
Another common way to get involved in Chilean investments is to invest in one of its stock opportunities. There are many! Check the Santiago Exchange for markets and trades. You’ll find that this market includes trades over $2 billion per day in equities, fixed income, and money market instruments. The Banco Santander Chile (as mentioned above) is one of the highest traded stocks on the exchange. It can be purchased directly on the Santiago Exchange or as an American depository receipt (ADR). The Banco Santander Chile is a source of commercial and retail banking services for the Chilean population and its institutions.
Invest in Chile’s Biggest Industries
The biggest industries for investment in Chile are: the food industry, infrastructure, mining, tourism, and energy. The mining industry isn’t doing so hot right now, but the others are likely to be solid investments. The food industry’s most popular markets are that of fruit, wine, and salmon. As for infrastructure, the portfolio of Chile includes highways, airports, and hospitals. For mining, the markets are construction, equipment, engineering, and support services. It’s also important to note that one of Chile’s fastest growing markets is tourism, so it wouldn’t hurt to take a look at that market as well. Look for opportunities in hotel and leisure projects. Finally, Chile’s energy sector may be one of its largest. Chile has easy access to natural resources, so alternative, renewable energy sources are growing in popularity among international investors in this country. To learn more about investing in any of Chile’s industries, check out InvestChile. It offers all of the information you’ll need to get started.
Start a Chilean Business
Chile is known for being very pro-business. It’s said to be one of the easiest and cheapest places in Latin America to start a business. It takes about 3 to 5 weeks and costs about $650 to start a company. If the business is online, you can start it at no cost at all! To get started opening a new business abroad in Chile, simply go and fill out the online form to start a business on Chile’s Ministry of Economy website.
Chile is a low-risk place to invest internationally. With its attractive business environment, high transparency, and stable economy, it makes sense to look into its markets. If you’re just getting started on your international portfolio, investing in Chile is a good place to start.
Here are a few articles I hope you will enjoy on Chile!
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