China's commercial presence in Latin America has grown steadily over the past decade. In 2026, this expansion is entering a more mature phase combining infrastructure investment with a growing presence of SMEs and startups.
China's presence in Latin America has grown steadily, driven by demand for natural resources, new consumer markets and the Belt and Road Initiative. In 2026, this process is in a mature phase combining major infrastructure investments with a growing SME and startup presence.
Brazil concentrates most Chinese investment, especially in renewable energy, telecommunications and agribusiness. Chile and Peru are strategic destinations due to free trade agreements with China and institutional stability. Argentina offers opportunities in lithium, agriculture and technology.
Key challenges for Chinese companies include: cultural and negotiation differences, complex regulatory and tax environments, political and currency instability in some markets, and growing ESG compliance requirements from investors and local partners.
Iberex Spain, bridging Spain, China and Latin America, offers comprehensive advisory for companies seeking to structure their regional presence. Spain serves as a natural gateway: cultural, linguistic and historical ties with Latin America, combined with the EU legal framework, make Spain an ideal hub for coordinating Latin American operations.
One of the most efficient ways to structure Latin American investment is through a holding company in Spain. The Foreign-Securities Holding Entity (ETVE) regime offers, under certain conditions, favourable tax treatment of dividends and capital gains from foreign subsidiaries, making Spain a particularly effective platform for channelling investment into the region.
This is reinforced by Spain's extensive network of double-taxation treaties with most Latin American countries, as well as reciprocal investment promotion and protection agreements (APPRI). These instruments reduce the tax burden on cross-border flows and provide legal certainty against expropriation risk or discriminatory treatment.
In practice, we recommend a phased market entry: a legal and tax feasibility study, a choice between subsidiary, branch or joint venture with a local partner, verification of sector-specific requirements (mining, energy and agribusiness are often specifically regulated), and the negotiation of contracts with international-arbitration dispute-resolution clauses.