Brazil – Chile Tax Treaty
The Brazil-Chile tax treaty caps withholding on dividends at 15% for portfolio investors and 10% for qualifying direct investment, and interest at 15%. Royalties are taxed at a uniform 15% across all categories. Private pensions are taxable only in the country of residence, with no withholding at source. This is one of 25 active treaties in Brazil's network and one of 25 in Chile's. The general dividend rate of 15% compares to a median of 15% across Brazil's network and 15% across Chile's.
Verified data
SII Tax Treaty Network (sii.cl) (Treaty list verified April 2026. Rates from individual treaty texts (Articles 10-12). Chile's statutory WHT on dividends/interest reflects the 35% additional tax on non-residents.)
Withholding Rate Summary
Source: Chile Treaty Reference| Income Type | Treaty Rate | Statutory Rate (Chile) |
|---|---|---|
| Dividends (general) Portfolio investors | 15%saves 20% | 35% |
| Dividends (qualified) Beneficial owner is a company holding >= 10% of voting stock | 10%saves 25% | 35% |
| Interest Bank interest, bonds, loans | 15%saves 20% | 35% |
| Royalties (avg) Patents, copyright, know-how, film/TV | 15% | — |
| Pensions Private pension distributions | 0% | — |
| Social Security Government social security benefits | 0% | — |
“Treaty Rate” is the maximum withholding permitted under this treaty. The actual effective rate may be lower if domestic law provides a more favorable rate independently. “Statutory Rate (Chile)” shows the rate that applies when no treaty benefit is claimed. Qualified dividend rate requires: Beneficial owner is a company holding >= 10% of voting stock.
Dividends
The general dividend rate of 15% applies to portfolio investors. A reduced rate of 10% is available when beneficial owner is a company holding >= 10% of voting stock. Without the treaty, the statutory withholding rate on dividends is 35%.
Source: Chile Treaty Reference
Interest
Interest payments (bank interest, bonds, loans) are subject to 15% withholding under this treaty, compared to the 35% statutory rate. This represents a 20% reduction from the statutory rate.
Source: Chile Treaty Reference
Royalties
Royalty withholding rates vary by the type of intellectual property. This treaty distinguishes 4 categories, with rates ranging from 15% to 15%.
Source: Chile Treaty Reference
Pensions & Social Security
Private pension distributions are taxable only in the country of residence, with no withholding at source. Government social security benefits are exempt from source-country withholding.
Source: Chile Treaty Reference
Comparative Context
🇧🇷Brazil's Network
Among Brazil's 25 active treaty partners, the 15% general dividend rate ranks 10th (median: 15%).
| Partner | Rate |
|---|---|
| United States | 0% |
| Japan | 12.5% |
| Switzerland | 15% |
| Chile (this treaty) | 15% |
| China | 15% |
| Czech Republic | 15% |
| Spain | 15% |
🇨🇱Chile's Network
Among Chile's 25 active treaty partners, the 15% general dividend rate ranks 10th (median: 15%).
| Partner | Rate |
|---|---|
| Austria | 15% |
| Australia | 15% |
| Belgium | 15% |
| Brazil (this treaty) | 15% |
| Canada | 15% |
| Switzerland | 15% |
| Colombia | 15% |