Expats looking to do business in Chile will find that it's one of the least bureaucratic states in South America. The country is among the best-managed economies in the region and is known for being open to foreign investment.

Many international companies have looked at Chile as the starting point for expanding their business into South America and have chosen Santiago as the headquarters for their regional operations.

It's essential to understand business culture when working in Chile; here are some useful facts.


Fast facts

Business hours

The business day generally runs from 8.30am or 9am to 6pm or 7pm, Monday to Friday, although hours are often extended. There is a one- or two-hour lunch break, usually between 1pm and 3pm.

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.

Business language

The language of business in Chile is Spanish, although many executives will also speak English.

Business dress

Business dress in Chile is formal and conservative. Men should wear a suit and tie for formal business meetings. Women tend to wear business suits and generally avoid wearing bright colours or excessive jewellery. 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.

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.

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'. 

Business cards

When exchanged, business people should take a moment to look at a business card rather than simply pocketing it.


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, formal language and pronouns should be used 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. 

Networking

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.


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 always greet the most senior person first
     
  • Don't talk about politics or human rights 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
     
  • Don't use too many hand gestures when speaking to Chilean associates, as many may be considered rude. In particular, don’t hit the left palm with the right fist; this is considered an offensive gesture in Chile.

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