“Economic and Tax Landscape: Impact on Investments and Markets”was the event featuring Nathan Pincheira, Chief Economist at Fynsa; Nicolás Alvarado, tax attorney and partner at Alessandri Abogados; and Francisca Donoso, senior associate at the same firm. The discussion addressed two key issues for the current landscape: the slowdown in the Chilean economy and the main provisions of the tax reform bill currently being debated in the Senate. 

The starting point was not encouraging. Nathan Pincheira explained that the first quarter of 2026 saw a contraction of 0.5%, below expectations, leading to a downward revision of the annual growth forecast from 2.3% to 1.7%. The decline was mainly due to weak performance in sectors such as agriculture, mining, and fishing, while the labor market continues to show signs of fragility, with an unemployment rate of nearly 8%. 

Added to this is a more complex inflationary outlook. Rising oil prices have made it unlikely that inflation will end the year at around 3%, pushing projections up to 4.3% to 4.5%. In this context, the monetary policy rate is expected to remain stable for the rest of the year. Despite this, Pincheira ruled out a stagflation scenario and noted that, although the economy faces significant challenges, it is not in a crisis. 

One of the main focuses of the webinar was the progress of the tax reform. Nicolás Alvarado reviewed some of the most significant measures in the bill currently under discussion: the gradual reduction of the corporate tax rate from 27% to 23%, the reintegration of the tax system, incentives for capital repatriation, transitional benefits for the real estate sector, and the elimination of the capital gains tax, among other aspects. 

As Alvarado explained, one of the most important factors in attracting investment is precisely the tax credit system, as it would reduce the overall tax burden on investors and businesses, thereby improving Chile’s competitiveness relative to other markets. 

Pincheira agreed that the reform’s goal is to boost investment, though he cautioned that the bill still faces challenges regarding tax matters and revenue projections. Both he and Alvarado agreed on a key point: beyond tax rates, legal certainty and the ability to reach agreements remain decisive factors in attracting investment to Chile. 

Relive the event by clicking here. 

Fynsa