During the meeting, Undersecretary of Tourism Verónica Pardo stressed that the plan not only seeks to benefit Argentine tourism but also aims to strengthen the country's competitiveness compared to other destinations in the region that already offer similar policies. "We are working to facilitate and promote the return of foreign tourists to Chile, and we understand that VAT refunds are a powerful tool to stimulate spending and improve the visitor experience," Pardo stated.
The drop in Argentine spending in Chile has been notable in recent months, partly due to the sharp devaluation of the Argentine peso, domestic inflation, and foreign exchange restrictions that have reduced purchasing power. At the same time, other Latin American destinations have begun offering tax advantages and financial incentives to attract international tourism, prompting Chile to rethink its strategy and introduce concrete benefits.
According to Sernatur’s own data, visits from Argentinians to Chile have significantly decreased compared to previous years, affecting not only local retailers but also lodging services, restaurants, and transportation. Southern cities such as Osorno, Puerto Montt, Valdivia, and Temuco—which have traditionally received a steady flow of cross-border tourists—have seen a marked decline in economic activity since the start of Argentina’s economic restrictions.
The implementation of this new VAT refund scheme will require effective coordination with Chile’s Internal Revenue Service (SII) and participating businesses, which must issue valid receipts so tourists can request the tax reimbursement. While all technical details of the process have not yet been released, the system is expected to be modeled after practices already in place in European countries and other Latin American nations like Uruguay, which have proven effective in encouraging tourism spending.
The private sector has welcomed the measure enthusiastically. Representatives of hotel associations, restaurants, and travel agencies have expressed their support and called for a swift implementation, accompanied by informational campaigns to help both tourists and service providers understand how the refund works.
This policy is also expected to have a multiplying effect, not only boosting retail sales but also creating jobs related to tourism and revitalizing local economies in tourist areas near the Argentine border.
With this initiative, Chile aims to reclaim its position as an attractive and competitive destination in the Southern Cone, offering clear tax advantages, quality services, and a comprehensive travel experience. The VAT refund, in addition to directly benefiting visitors, represents a gesture of openness and hospitality that could make a significant difference in today’s increasingly competitive and cost-sensitive global tourism landscape.
