Chile's R&D Law: what it is, how it works and who can use it

Sun, 06 Sep 2026 00:00:00 +0000

Chile invests little in research and development. To change that, the government created an incentive that few companies take advantage of: the R&D Law (Ley I+D, Law No. 20,241), which lets a company recover a significant share of its R&D spending through its taxes.

This article explains what the law is, which activities qualify, how much the benefit is worth and how to activate it.

What is the R&D Law?

Law 20,241 establishes a tax incentive for private investment in research and development. It was enacted in 2008 and reformed in 2012 by Law 20,570, which made it far more flexible: it added projects carried out with the company’s own capabilities (“intramural”), removed the cap of 15% of gross income and raised the annual credit limit to 15,000 UTM.

From 2008 to today: how Chile's R&D Law evolved

Wed, 05 Aug 2026 00:00:00 +0000

The R&D Law we know today is not the one enacted in 2008. Understanding how it changed helps explain why it works the way it does, and why people are still debating how to improve it.

2008: a law built only for “outsourcing”

Law 20,241 was passed in 2008 with a clear goal: increase private investment in research and development in a country that invested very little. But its original design was narrow:

Law 20,241 on NovaTax Blog

Chile's R&D Law: what it is, how it works and who can use it

What is the R&D Law?

From 2008 to today: how Chile's R&D Law evolved

2008: a law built only for “outsourcing”