Chile, the market that every Spanish company should have on its radar

Chile is consolidating its position as one of the most stable and attractive destinations for foreign direct investment in Latin America. For Spanish companies, the South American country represents a strategic platform for long-term growth, based on legal certainty, sectoral convergence, and the renewal of bilateral regulatory frameworks with the European Union.

Strategic factor	Situation in Chile
Strong point	Legal certainty, institutional stability and inflation control.
Great opportunity	The new Advanced Framework Agreement with the European Union.
Main challenge	Highly competitive market and high internal transport costs.
where to invest	Renewable energy, infrastructure, technology and water management.

One of the greatest advantages of the Chilean market is the strength of its institutions. The Central Bank maintains effective control over inflation, and the country stands out for its transparency: public tenders are predictable and have clear rules. Chile also boasts an extensive network of free trade agreements that allows it to function as an export platform to the rest of Latin America, an advantage that many foreign companies leverage to establish their regional logistics and sales centers there.

Added to this is the new Advanced Framework Agreement (AMA) between the European Union and Chile, signed on December 13, 2023, which modernizes the 2002 Association Agreement. Its trade component, the Interim Trade Agreement, entered into force on February 1, 2025, and eliminates tariffs on 99,9% of European exports to Chile, in addition to facilitating access for Spanish companies to Chilean public contracts on equal terms with local companies.

The precedent for this framework is the Association Agreement signed in 2002 between the European Union and Chile, whose original objectives — to strengthen the political partnership, promote trade and investment, and consolidate cooperation between both parties — remain in force as guiding principles of the bilateral relationship under the new agreement.

On the trade front, Spanish exports have shown strong performance in markets with which the EU has free trade agreements, including Chile, which in 2025 recorded record highs in purchases of Spanish goods, according to ICEX foreign trade data. Sectors such as energy storage, cybersecurity, and cosmetics are among those identified by the network of Spanish Economic and Commercial Offices as areas of growing opportunity for Spanish exports in the country.

In conclusion, Chile is not a country designed for quick profits, but a market for companies seeking to expand safely, reliably, and in an orderly manner over the long term.

In this context, Gedeth Network It can act as a strategic ally for Spanish companies seeking to position themselves in Chile, providing local knowledge, market intelligence and support at every stage of the internationalization process.

Santiago Marquez

Junior Business Consultant

Gedeth Network