How to Hire in Chile: A Guide for Foreign Companies Entering the Market

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Foreign capital keeps flowing into Chile, and every company behind it faces the same question: how do we build our team here? This guide is for foreign entrepreneurs and companies that want to open operations in Chile or hire Chilean talent to work remotely. It explains the two possible routes, the legal costs worth budgeting from day one and how executive search speeds up the hire of the key person.

Chile keeps attracting foreign capital

According to the Ministry of Economy, InvestChile’s pipeline of foreign investment projects closed 2025 at US$65.7 billion across 463 projects. By country of origin, the United States ranks first with US$19.1 billion and Brazil ranks seventh with US$2.5 billion. This is a pipeline of projects at different stages of development, not completed investment. Capital is also arriving now: foreign direct investment inflows reached US$10.1 billion between January and July 2026, 15% more than in the same period of 2025, according to InvestChile.

The challenge: few profiles and strong competition

The ManpowerGroup Talent Shortage 2026 survey, which polled more than 39,000 employers in 41 countries, found that 62% of companies in Chile struggle to fill vacancies, compared with 72% globally. According to the study, the problem is not a lack of applicants but a gap between the skills available and the skills the market demands.

Two routes to build your team in Chile

The right route depends on whether you want a permanent presence or want to test the market:

• Open a local entity and hire directly. This is the route for companies planning to operate in Chile long term.
• Hire through an Employer of Record (EOR) or an international payroll provider, without creating a local company.

According to Safeguard Global, an EOR provider, companies must in most cases establish a local legal entity to hire employees directly in Chile, while an EOR allows hiring without setting up a subsidiary.

Route 1: open operations in Chile

According to InvestChile, the state investment promotion agency, a foreign investor goes through three stages: the legal constitution of the company (for example, through the Tu Empresa en un Día system), the start of activities before the tax authority (SII) and the municipal license. Before hiring, define the order of priorities: who will be the first local leader, what that person must deliver in the first 12 months and what structure they will need.

Route 2: hire remote talent in Chile

If you need one person or a small team, or you want to test the market, an EOR acts as the legal employer in Chile: it signs the contract, runs payroll and manages benefits and taxes on your behalf, as the providers themselves describe it. Examples include Deel, which also offers global payroll if you already have an entity, Remote, Papaya Global and Safeguard Global. They are mentioned as examples, not as recommendations: compare terms, fees and who signs the contract, and confirm each provider’s coverage in Chile.

One important warning: hiring someone as an independent contractor does not remove labor obligations if, in practice, the person works under subordination and dependence. Article 8 of Chile’s Labor Code presumes an employment contract in any provision of services that meets the requirements of Article 7, as the Labor Directorate cites it.

Legal costs to budget for

• Termination. When an employer ends a contract for business needs, it must give 30 days’ notice or pay a substitute indemnity equal to one month of the last salary, according to the Labor Directorate. If the contract lasted one year or more, a severance payment for years of service is added: 30 days of the last monthly salary per year of service and fraction over six months, capped at 330 days (11 years).
• Working hours. The 40-hour law (Law 21.561) cut the workweek to 42 hours on April 26, 2026 and it will reach 40 hours on April 26, 2028. Senior management can be excluded from the working-hour limit under Article 22 of the Labor Code, but the Labor Directorate clarified in April 2026 who qualifies.
• Variable pay. According to Hiredmate’s Salary Guide 2026 (in Spanish), annual variable pay is about 50% on top of fixed salary for general management (CEO) and commercial roles (CCO/CMO), about 40% in finance (CFO) and operations (COO), and around 35% in technology (CIO) and human resources (CHRO).

This information is general and is not legal advice: have each contract reviewed by a labor lawyer in Chile.

How executive search helps

A job posting reaches people who are looking for work. The leaders a new operation needs are usually already employed and do not browse job boards. Executive search maps the market and approaches those professionals directly. At Hiredmate, the process starts with a 60-minute briefing, continues with mapping candidates at reference companies and delivers a shortlist of 3 to 4 finalists in 5 to 7 days, with a replacement guarantee of up to 4 months and fully confidential processes. Our focus is finding and evaluating the person; whether you employ them through your own entity or through an EOR is a separate decision, best made with legal advice.

Five questions to answer before you open a search

1. What must this person deliver in the first 12 months? Define the mandate before the profile.
2. Is the role local or regional? A country manager and a regional head are different searches.
3. Which industry network does the candidate need? The right network shortens the learning curve in a new market.
4. Does the search need to be confidential? Approaching executives at competitors calls for discretion.
5. What will the full compensation package look like? Fixed pay, variable pay and benefits should be clear before the first conversation.

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Are you opening operations or hiring talent in Chile? Book 30 minutes with us and we will define the profile, the candidate map and the timeline together: Book a meeting. Meetings are held in English or Spanish.

Looking for your next role in Chile? Send your CV: if there is a match, we contact you directly. The form is in Spanish.