Chile Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in chile, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Digital Economy
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Overview

Chile stands as a pioneer in Latin America’s digital transformation, leveraging its strong institutional frameworks, open-market economy, and robust digital infrastructure for fast modernization. With over 90 percent internet penetration, and a government committed to digital innovation, Chile is embracing technologies that drive productivity and global competitiveness. The country’s digital economy is fulfilling an ambitious agenda encompassing advancements in AI, data analytics, fintech, eCommerce, and smart infrastructure.

National Focus 

According to an Accenture Research and Oxford Economics study, the digital economy represents approximately 22 percent of Chile’s GDP, amounting to $55 billion. Chile ranks at the top of the World Bank’s Digital Evolution Index for Latin America and the Caribbean, which ranks 24 regional countries on their pace of digital growth with respect to supply, demand, institutional environment, and innovation. eCommerce in Chile soared during the pandemic with a growth rate of 90 percent according to Chile’s Center of Public Studies and has remained as a primary purchasing channel ever since. Generally, the Center considers domestic companies to be at an “Intermediate Digital” level of advancement, which is in the upper echelon of digital transformation criteria. As referenced in Alcor, Chile is best known for being the first country in the Latin American region to deliver 5G coverage for over 90 percent of the population.

These achievements have been bolstered by a plan called Chile Digital 2035, which is a government-led roadmap to transform Chile into a fully connected and digitally advanced nation by 2035. It was developed by the Chilean Senate with support from the UN Economic Commission for Latin America and the Caribbean (ECLAC), Fundación País Digital, ChileTelcos, and other stakeholders. Its primary objectives are to: (1) ensure equitable access to digital technologies and internet across Chile, and (2) facilitate the integration of digital technologies into all aspects of Chilean society.

The strategy is centered around seven key pillars, including Digital Infrastructure, Digital Skills, Digital Rights, Digital Economy, Digital Government, Cybersecurity, and Digital Governance. According to the Digital Economy section, Chile encourages digitalization to boost economic productivity. The country is focused on promoting the digitalization of small and medium-sized enterprises (SMEs), ensuring digital financial inclusion, and incorporating digital technologies into critical sectors of the Chilean economy, such as mining and energy.

Projected Digital Economy Growth

Chile has quantitative targets for the growth of its digital economy. According to BNAmericas, 35 percent of companies are projected to be using electronic commerce tools by 2025, and 70 percent by 2035. BNAmericas also estimates that fifty percent of SMEs could be using e-commerce by 2035. Furthermore, 10,000 companies per year are anticipated to have access to digitalization training resources. AI, data analytics, robotics, and cybersecurity firms are expected to represent five percent of all businesses in 2025, 10 percent in 2030, and 15 percent in 2035. Chile also aims to increase R&D spending to one percent of GDP in 2025, two percent in 2023, and two and a half percent in 2035. In accordance with Chile Digital’s promotion of digital entrepreneurship and automation, the government will expand startup funding through angel investments from approximately 0.2 percent to 0.3 percent of GDP by 2035.

Chile’s digital economic sector features a mix of global tech giants focused on the platform economy and cloud services, regional players focused on fintech and e-commerce, and local companies focused on digital innovation. They are all competing in an environment driven by government digitalization goals, expanding internet access, and rising consumer demand for digital services. Chile is becoming a prime location for the implementation of novel digital inventions as Chile seeks to attract the best of new technologies.

Major multinational firms have made large investments in Chile, using it as a regional hub. Microsoft opened its first South American Azure datacenter region in Santiago in 2025 as a part of a $317 million project in cloud, AI, and training. Google recently partnered with the Government of Chile to build the Humboldt Cable, a trans-Pacific fiber optic cable connecting South America to Australia. Lastly, Amazon Web Services (AWS) and Oracle continue to build cloud computing capabilities in Chile. AWS announced a $4 billion investment into a new AWS Region in Chile that the company aims to be ready by the end of 2026, responding to increasing demand for cloud infrastructure. The cloud is critical for the digital economy as it helps businesses scale, reduce costs, and protect data.

On a regional scale, the Latin American fintech sector is becoming an economic hotspot, especially in Chile. Chile’s fintech sector is driven by strong banking infrastructure, favorable regulation, and rising digital wallet adoption. Tenpo is Chile’s largest neobank with over two million users, while Fintual and Global66 are, respectively, a leading digital investment platform and cross-border payments system. On the eCommerce side, the market is mature. Argentina-based Mercado Libre is a dominant business to consumer (B2C) marketplace in the country, while Falabella is the largest online retailer. Chinese AliExpress is also increasing its cross-border presence in Latin America.

On a local level, Chile’s startup ecosystem is robust. Supported by StartUp Chile, CORFO, and R&D tax credits, Chile’s more than three hundred tech startups have fostered a culture of innovation.

Market Challenges

A key market challenge in Chile’s digital economy is the digital skills gap. Chile faces a shortage of skilled information communication technology (ICT) professionals, especially in cybersecurity, cloud computing, AI, and software engineering. The supply of tech graduates has been unable to meet the increasing demand for highly skilled labor in this sector. According to Chile’s National Training and Employment Service (SENCE), there was a deficit of about 6,000 IT professionals during 2022. This reflects a broader trend in Latin America, as 64 percent of public managers in the regional tech industry face difficulties due to lack of skills among personnel. As cited in Bloomberg Linea, it is not uncommon for tech roles to be underpaid, limiting retention of highly skilled workers necessary for the digitalization of the economy.

Chile remains behind other OECD countries in several digital indicators. Rural and remote areas still lag in digital inclusion. The high cost of mobile data and fixed broadband in Chile relative to OECD averages remains a barrier for low-income households. This has created a digital divide that affects education, entrepreneurship, and public service. The lack of ICT patents, mature ICT goods and services trade, and top performing students in science and math also hinders innovation in Chile. Despite Chile Digital 2035, small firms hold very little market share across various sectors of the digital economy and businesses in general have a lesser internet presence than other OECD-based companies.

Regulatory Environment

Chile has a number of regulatory frameworks and laws that oversee its digital economy. Many of the following polices were passed during the Boric Administration as Chile pivots toward facilitating the digital transformation.

  • General Telecommunications Law (Law 18,168). (1982)
     
  • Net Neutrality Law (Law 20,453). (2010)
     
  • Guaranteed Minimum Speed Law (Law 21,046). (2019)
     
  • Law on the Digital Transformation of the State (Law 21,180). (2019)
     
  • Digital Economy Partnership Agreement (DEPA). (2020) Chile commits to collaboration on digital trade issues with Singapore and New Zealand. South Korea joined DEPA in 2024.
     
  • National Policy on Artificial Intelligence. (2021) Latin America’s first comprehensive AI legal framework with 70 priority actions and 185 various public-sector initiatives over 10 years with approximately $26 billion of public investment for AI skill-building accelerators.
     
  • Law on Computer Crimes (Law 21,459) (2022) In alignment with the Budapest Convention, offenses including hacking, illicit access, unlawful interception, computer forgery, computer fraud, and technology misuse.
     
  • The Fintech Law (Law 21,521). (2023) Facilitates competition and innovation in financial technologies as a priority sector. The Commission for the Financial Market (CMF) supervises fintech technologies, such as crowdfunding platforms and alternative transaction systems. The law also establishes an Open Banking System that permits financial service providers to exchange customer information with one another.
     
  • Economic Crime Law (Law 21,595). (2023) Raises economic crimes to a more severe class of crimes and makes the confiscation of profits applicable to all convictions of economic crimes, including those that occur digitally.
     
  • Chile Digital 2035. This is a government-led roadmap to transform Chile into a fully connected and digitally advanced nation by 2035. The digital economy is a strategic pillar of the plan.
     
  • The Cybersecurity Framework Law (Law 21,663). (2024) Establishes a National Cybersecurity Agency (ANCI) that wields regulatory, supervisory, and enforcement authorities. The National Computer Security Incident Response Team (CSIRT) is subordinate to ANCI and is responsible for countering cyberattacks.
     
  • Internet Access as a Public Telecommunications Service Law (Law 21,678). (2024) Defines internet access as a public right. Telecommunications companies are mandated to provide internet coverage to users in their service area and Chileans can request a need-based demand subsidy to help pay their internet bills.
     
  • National Data Center Plan 2024-2030. (2024). Promotes the growth of the data center industry, leverage renewable energy to reduce the environmental repercussions data centers, and spur R&D in this field. The plan calls for the publication of a permit reference guide to clarify processes for companies interested in building and operating data centers in Chile.
     
  • Law on the Protection of Personal Data (LPPD) (Law 21,719). (2024) Chile governs how entities process and manage personal data through the new Personal Data Protection Agency (PDPA). Companies must have an internal data controller who is responsible for privacy compliance.

Note that the regulatory environment is active and changing.

Digital Trade Barriers

Chile published its Data Protection Law (DPL) in December 2024. When data is transferred outside of Chile, the DPL requires receiving countries to demonstrate “adequate” levels of data protection comparable to privacy standards in Chile. When a country’s data protection standards are inadequate or undetermined, companies must use approved contractual clauses to transfer data. U.S. stakeholders have expressed concerns that the guidelines for using contractual clauses are unclear. The DPL also lacks clear definitions for other key concepts. The United States continues to engage with Chile on these issues, including through participating in multilateral data privacy certification arrangements, which provide a mechanism for companies to facilitate international transfers of personal data in compliance with the laws of participating jurisdictions. For a full review of Chile’s trade barriers, see the United States Trade Representative’s (USTR) 2025 National Trade Estimates Report.

Chapter 15 of the United States-Chile Free Trade Agreement discusses agreements between the two countries on the subject of “Electronic Commerce.” Neither party is permitted to apply custom duties on digital products of the other party. Under the terms, Chile cannot give less favorable treatment to U.S. digital products on the basis of its U.S. origin, production, or customers.

On June 1, 2020, Chile enacted a 19 percent Value Added Tax (VAT) on digital services provided by foreign suppliers, which are required to register with the Chilean tax authority. Four groups of suppliers are required to pay VAT on digital services: (1) intermediaries of services rendered in Chile, (2) those which supply digital entertainment content, (3) those which supply software, and (4) those engaged in digital advertising.

Digital Trade Opportunities

U.S. companies looking to enter the Chilean market, particularly those new to the region, are advised to contact the Commercial Service office in Santiago. Although Chile presents a strong legal environment and encourages homegrown digital innovation, understanding local market dynamics and consumer preferences is crucial for success. The recent surge of government action in the digital economy also adds regulatory complexities. Conducting market research and building local partnerships is recommended to navigate these barriers effectively. Partnerships or strategic alliances with local firms can provide valuable insights into the market and help U.S. companies tailor their offerings to meet the specific needs of Chilean consumers, access distribution networks, and establish a local presence.

Chile is becoming increasingly interested in cross-enabling technologies, which are systems that support and enhance capabilities across multiple industries, sectors, or technological domains. These include artificial intelligence and advanced and networked sensing and signature management. With the help of U.S. companies, their development in Chile may unlock greater productivity gains and inspire new business models across the economy.

Cross-Sector Enabling Technologies

Artificial Intelligence

Chile has emerged as a leader in Latin America’s AI scene, showing progress across policy, infrastructure, innovation, research, and regional collaboration. Chile launched its National Policy on Artificial Intelligence in 2021, which backed 70 priority actions and 185 various public-sector initiatives spanning 10 years. The $26 billion public investment is being allocated toward AI skill-building accelerators, R&D initiatives between universities and the private sector, and the deployment of the 5G National Connectivity System. As of July 2025, Chile’s Senate was considering a new AI Bill that would regulate the uses of AI systems and further promote ethnical deployment. Leading the Latam-GPT project, a large language model (LLM) with capabilities comparable to OpenAI’s ChatGPT 3.5, Chile’s Ministry of Science, Technology, Knowledge and Innovation (CTCI) and National AI Center (CENIA) seek to build a homegrown AI system that reflects the cultural reality and history of the region. In collaboration with over 30 other regional institutions, the Chilean GPT project is in its final stages of development. 

Chile recognizes that human capital is essential in fostering an innovation ecosystem. Chile tops the Latin American AI Index (ILIA 2024), outperforming its neighbors in technological infrastructure, training programs, and supporting policies. Programs such as CORFO’s Startup Chile have incubated 1,600+ startups from over 80 countries since 2010. Awardees are given equity-free seed capital, a one-year visa, and connections to a body of potential mentors and investors in the industry. This is an opportunity for American tech startups to scale up their products abroad.

Advanced and Networked Sensing and Signature Management

This market refers to a collection of high-tech systems used for detecting, monitoring, and concealing the physical or electronic presence of assets across various domains. They are primarily used in defense, aerospace, and smart infrastructure applications. Chile’s market combines military, civil, and industrial demand for both sensor-based detection systems and methods for managing observability (signatures). Advanced and networked sensing interest is driven by defense modernization, disaster management, environmental monitoring, and energy management priorities, while signature management interest is driven by Chile’s need for better cybersecurity response. 

Chile’s autonomous and sensor technology market is projected to reach approximately $96 million in 2025. According to Statista, Chile’s civil and industrial IoT sensing is growing 15-20 percent annually due to renewable grid and smart infrastructure demands. Statista also presents defense-grade sensing to maintain 8-12 percent annual sector growth, which is comparable to regional trends. On the signature management front, the demand for cybersecurity is increasing as a result of increasing cyberattacks. Chile is interested in 4 sub-segments of cybersecurity, including network, data, application, and cloud security. Signatures can also be physical. While specific Chilean studies on stealth tech are scarce, procurement and deployment patterns point to an active role in reducing the observability of Chilean military platforms.
 

Specific Industry sub-Sectors

Financial Technologies

Chile’s fintech sector, which refers to the digitalization of financial services, is experiencing growth with over 300 Chilean fintech startups focused on payments, remittances, financial management, and lending. In January 2023, the Boric government signed the Fintech Law, facilitating competition and innovation in financial technologies. This regulatory framework delegates supervisory powers to the Commission for the Financial Market (CMF) over fintech technologies, such as crowdfunding platforms and alternative transaction systems. 

There are 3 core trends shaping the Chilean fintech market. First, the business-to-business sales model is working, as large corporations and financial institutions are the principal buyers of fintech technologies. According to Galileo Financial Technology Platform, B2B models represented 37 percent of total customer demand in 2024, which differentiates Chile from other Latin America fintech cultures. Second, Chilean fintech companies working on payments and remittances have boomed in transaction volumes. Foreign fintech providers have also entered this segment of the market to capitalize on the growth. Lastly, Chile’s Fintech Law is viewed upon favorably as a stimulant of the sector. U.S. fintech companies are encouraged to enter the Chilean fintech market as the sector surges, especially in the digital assets vertical, which a DataCube Research reports to project annual growth of nearly 14 percent until 2032.

Cybersecurity 

In December 2023, President Boric launched the National Cybersecurity Policy 2023-2028. It aims to (1) create resilient information infrastructure, (2) protect personal data, (3) develop a cybersecurity culture through education, (4) encourage national and international coordination, and (5) promote industry and scientific research. In March 2024, President Boric then signed Chile’s Cybersecurity Framework Law into effect to better implement the National Policy, making Chile the first country in Latin America to establish a cybersecurity agency and regulatory framework. The law created the National Cybersecurity Agency (ANCI), which drafts and enforces cybersecurity regulations. The National Computer Security Incident Response Team (CSIRT), which is responsible for responding to cyberattacks and other cyber threats, is directly liable to ANCI. Chile experienced 27.6 billion cyberattack attempts in 2024, a 360 percent increase from 2023. As cited in G5 Noticias, the more formidable threat landscape has made Chile interested in investing in cybersecurity solutions. 

Telecommunications and Internet of Things (IOT)

Chile is recognized as one of Latin America’s most advanced digital markets. It is characterized by high mobile and fixed internet penetration, a robust regulatory framework, strong public-private partnerships, and major investments in fiber optics, 5G, and submarine connectivity. According to Mordor Intelligence, Chile’s telecommunications sector is expected to grow at an annual rate of approximately six percent and reach a $10 billion valuation by 2029. The market is largely liberalized and competitive, with multiple telecom operators offering integrated services, including mobile, broadband, TV, and enterprise solutions. There are several key market players. 

According to Fitch Ratings, Entel is the largest mobile operator, with approximately 35 percent market share. Chile maintains large investments in 5G as the first country in Latin America to start building 5G networks in 2021. The Chilean government has announced that it has already surpassed its goal of 90 percent countrywide access to 5G coverage. Movistar (Telefónica) and Claro Chile compete in fixed broadband and mobile, while Mundo is aggressively expanding fiber-to-the-home (FTTH) coverage in underserved/geographically isolated communities. VTR is Chile’s main cable operator. As 5G adoption grows, demand for new IoT solutions is expected to increase and require the construction and implementation of new networks and systems.
 

Digital Economy-Related Trade Events

  • Expo América Digital 2026, April 8-9, 2026, Santiago, Chile. Expo América Digital brings together 5,000+ leaders in telecom, IoT, AI, IT security, fintech, e-commerce, digital marketing, and governments in the region to promote technological solutions in the digital transformation of businesses and industries.
     
  • ICMPMT (International Conference on Marketing, Product Management, and Technology), September 16-17, 2026, Santiago, Chile. ICMPMT hosts researchers, practitioners, and educators to present and discuss recent innovations and trends in the digital economy.