Doing business in Chile is fairly easy and doesn't involve much red tape. The country is among the best-managed economies in the region and is known for being open to foreign investment.
Many international companies have utilised Chile as a starting point for expanding into South America, using Santiago as the headquarters for their regional operations.
It's essential to understand Chile's business culture when working in the country. Here are some useful facts.
Fast facts
Business hours
Usually 8am or 9am to 5pm or 6pm, Monday to Friday, with a one-hour break. Traditionally, the standard work week in Chile has been 45 hours, but the government aims to reduce this to 40 hours with gradual reductions over the next few years.
Business language
Spanish, although many executives will also speak English.
Business dress
Business dress in Chile is formal and smart. Men should wear a suit and tie for business meetings. Women tend to wear conservative yet elegant business suits. Outside of major cities, business dress tends to be less formal.
Gifts
Gifts are not expected until a relationship is formed and are not typically exchanged at a first meeting. If invited to a Chilean’s house, flowers, wine, or chocolates are appropriate. Gifts are normally opened straight away.
Greetings
A firm handshake and direct eye contact are appropriate when greeting Chilean business associates. Expats should use a person’s title and last name when greeting them. If unfamiliar with their title, it's best to use 'Señor' or 'Señora'.
Gender equality
Women have made strides in achieving gender equality in Chilean business and politics, more so than in many South American countries. That said, there is still an element of machismo evident in the business culture.
Business culture in Chile
Chile has a well-educated population with a high literacy rate. As such, expats doing business in Chile will likely be working with highly qualified individuals, many of whom will have been educated abroad, have travelled internationally, and can speak English.
Hierarchy
Business culture in Chile is formal and conservative. Appearance is important, as are status and respect. Business structures are hierarchical, and decisions are made at the top, so it’s helpful to hold meetings with top-level executives first. When speaking Spanish, use formal language and pronouns when addressing colleagues and superiors.
Time
It often takes time to get down to business and start working, so Chileans have been known to extend their work hours. Expats should also be patient if they ask for something to be done and when waiting for email responses – it may be better to discuss certain things in person.
Communication style
Chileans prefer to conduct business face-to-face and build long-lasting, trustworthy personal relationships. Meetings will typically start with polite social talk, asking about an associate's personal life and family. Business is done between people rather than companies and, as such, concluding business in Chile could take some time. Expats should exercise patience and be prepared to invest time in building business relationships.
Relationships
Because building relationships is so important in Chile, it can be beneficial to have a pituto, a network or a connection. Pitutos can help people get connected with others and share information.
When receiving a business card, take a moment to look it over before putting it away. Business cards should be treated with respect, as they represent the person who gave the card.
Annual leave
The summer months of January and February are when most people go on holiday. It’s essential to keep this in mind when scheduling meetings in Chile, as it may be difficult to conduct business during these months.
Dos and don’ts of business in Chile
- Do be on time for meetings
- Do attempt to build personal relationships and be prepared for small talk before getting down to business with Chilean associates
- Do maintain eye contact when conversing with Chilean business associates
- Do greet the most senior person in the room first
- Don't talk about politics during business meetings
- Don't be offended if interrupted while talking in meetings; this is not considered rude but instead shows enthusiasm and interest in the conversation