MilitarySpend
Defense Economics Research

Rank #40 · Americas

Chile military spending in 2026.

Chile spends approximately 1.6% of GDP on defense (~$5.1B), historically anchored by the Ley Reservada del Cobre — a law requiring Codelco to transfer 10% of copper-export revenue to military procurement. That law was replaced in 2019 by the Strategic Capabilities Fund with parliamentary oversight, phasing out copper-linked funding by 2029. Chile fields the most sophisticated conventional navy in South America, operating Scorpène-class submarines, Type 23 frigates, and an icebreaker, with a new National Naval Construction Policy 2025-2040 aiming for domestic shipbuilding capability.

Rank #40 · Americas
2026 spend2024
Estimate
Per capita
$261
% of GDP
1.6%
YoY
▲1.6%
1.6%
of GDP
Burden gauge · ring fills at 10% of GDP
Global comparison

Chile vs the top 5 spenders

#1 United States
$954.0B
#2 China
$336.0B
#3 Russia
$190.0B
#4 Germany
$114.0B
#5 India
$92.1B
#40 Chile
$5.1B
Force composition

106K personnel

2025
Active duty
66K
62%
Reserve
40K
38%
Global ranking

#40 of 100 tracked countries

Sorted by 2026 spend
#1#50#100

Budget context

Chilean defense spending under the old Ley Reservada del Cobre was partly off-budget and linked to copper-price cycles; the 2019 replacement act brings military funding under standard parliamentary appropriation, with a transition period to 2029 during which Codelco contributions decline 2.5% per year. The Strategic Capabilities Fund supplements the regular defense appropriation for major capital items. The 2025-2026 defense budget is approximately $5.1-5.4B, or 1.6% of GDP — mid-range for Latin America but high in absolute terms given Chile's $319B economy. Personnel accounts for roughly 55% of spending; equipment and infrastructure the remainder, with the Navy receiving a disproportionate share for its blue-water ambitions.

Force structure

Chile's armed forces number approximately 66,000 active-duty personnel: Army (~35,000), Navy (~25,000), and Air Force (~6,000). The Air Force operates F/A-18C/D Hornets and F-16C/D Fighting Falcons (acquired early 2000s). The Army fields Leopard 2A4 and AMX-30 tanks; Piranha and MOWAG APCs. The Navy is the flagship: four Scorpène-class and two Thomson-class (Type 209) submarines, eight frigates (Type 23 and Adelaide-class), and multiple OPVs. In 2025, the Navy commissioned the icebreaker Almirante Viel, expanding polar projection capability. The National Naval Construction Policy 2025-2040 was formally approved, targeting domestic production of offshore patrol vessels and eventually frigates.

Industrial posture

FAMAE (Fábrica y Maestranza del Ejército) produces ammunition, small arms, and M2 Bradley variant components for domestic use. ASMAR (naval shipyard) performs MRO on submarines and frigates and is developing domestic OPV construction capability under the 2025-2040 naval policy. ENAER (Empresa Nacional de Aeronáutica) maintains and upgrades aircraft including F-16s. Chile's defense industrial base is the most developed in South America after Brazil, but still heavily import-dependent for major platforms. The transition away from copper-law automatic procurement funding requires more rigorous parliamentary justification for major buys, potentially slowing recapitalization cycles after 2029.

Conflict exposure

Chile has no active armed conflicts. Its primary security concerns are: maritime sovereignty in the Pacific; unresolved historical disputes with Peru (settled by ICJ in 2014 but politically sensitive) and Bolivia (Bolivia's landlocked status and continued demand for Pacific access); and Antarctica (Chile is a major claimant). Domestically, indigenous Mapuche land-rights protests in the Araucanía region have required occasional security force involvement. Chile's strategic orientation is toward projecting naval power in the South Pacific and maintaining Antarctic logistics. Drug-transit pressure at northern borders (Bolivia) is a secondary concern.

Recent developments

The National Naval Construction Policy 2025-2040 was formally approved by Chile's Ministry of Defense in early 2025, establishing a strategic framework to develop domestic naval shipbuilding. In 2025, the Navy commissioned the icebreaker ARA Almirante Viel, enhancing polar logistics capacity. Chile participated in a US-led submarine-warfare exercise in 2025, honing ASW skills with its Scorpène fleet. SIPRI confirmed Chilean defense spending rose 1.58% in real terms in 2024 (the most recent full-year data at retrieval). The copper-law phase-out continues on schedule; by 2029 all defense funding will be fully parliamentary-appropriated for the first time since 1958.

Frequently asked questions

What was the Ley Reservada del Cobre (Reserved Copper Law)?

A 1958 Chilean law requiring Codelco (state copper company) to transfer 10% of copper-export revenues to the armed forces for weapons procurement — roughly one quarter of the total military budget at copper price peaks. The law was secret ("reservada"); spending was not subject to normal congressional oversight. It was repealed in 2019 and replaced by the Strategic Capabilities Fund, with the transition to fully parliamentary-appropriated defense spending completing by 2029.

What submarines does Chile operate?

Chile operates four Scorpène-class diesel-electric submarines (built by DCNS/Naval Group, France, delivered 2005-2006) and two Thomson-class submarines (German Type 209/1300, originally delivered 1984). The Scorpènes are among the most capable conventional submarines in South America. Chile participates in US-led ASW exercises to maintain crew proficiency.

How does Chile fund its military without the copper law?

Since 2019, the Ley Reservada del Cobre has been replaced by a Strategic Capabilities Fund fed through the regular national budget. Codelco continues contributing (on a declining schedule — 2.5% reduction per year) until 2029, when defense funding becomes entirely dependent on congressional appropriations. This increases transparency but may reduce the automatic procurement pipeline for major capital programs.

What fighter jets does Chile fly?

The Chilean Air Force operates F/A-18C/D Hornets (acquired from the US in 2001, upgraded with AESA radar) and F-16C/D Block 50 Fighting Falcons (acquired 2006). The F/A-18s are the primary air-superiority platform; F-16s provide multi-role strike capability. No replacement procurement has been announced as of 2026.

Primary sources