1 de october de 2025

Countries with a double taxation agreement with Brazil: which ones?

Double taxation agreements are driving the market, but many people still don’t know exactly how these agreements work. Today, I will talk about double taxation agreement.

Investors and companies may also wonder which countries have this type of agreement with Brazil.

In this article, I’ve decided to illustrate the main questions on the subject and list the countries that have agreements with Brazil.

Follow along!

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What are double taxation agreements?

Double taxation agreements, also known as double taxation treaties, are international treaties signed by two different countries to prevent the same income, or even a single type of income, from being taxed twice.

For example, imagine that a Brazilian company manages to obtain profits from business with Italy. In theory, this transaction could be taxed in both Brazil and Italy.

Then, a double taxation agreement “enters the scene” and defines rules or even prevents this double taxation.

Which countries have a double taxation agreement with Brazil?

Currently, Brazil has double taxation agreements with several countries, both in Latin America and Europe.

In Latin America, these are:

Argentina:

The agreement prevents double taxation on income taxes, being an important instrument for bilateral economic relations.

Venezuela:

The convention aims to avoid double taxation on income and prevent tax evasion, promoting economic exchange.

Uruguay:

The agreement eliminates double taxation on income, which is essential for companies and investors operating in both countries.

Chile:

The agreement updates the rules to prevent double taxation and tax evasion, favoring reciprocal investment and tax cooperation.

Mexico:

The agreement prevents companies and individuals from being taxed twice on the same income, which is essential for trade relations between the two countries.

Peru:

The agreement prevents double taxation on income taxes, being a relevant instrument for bilateral trade and investment relations.

Ecuador:

The agreement, although under discussion, aims to cooperate to prevent double taxation and tax evasion, similar to other treaties already in force.

In Europe, some of the countries that have agreements with Brazil are:

Italy:

The convention establishes that taxes paid in one country can be offset in the other, which benefits investors and reduces the tax burden.

Germany:

It defines rules to avoid double taxation and prevent tax evasion, being crucial for trade and investment between the two countries.

Switzerland:

The agreement seeks to eliminate double taxation on income taxes, being essential for the flow of investment between Brazil and Switzerland.

Russia:

The agreement aims to avoid double taxation on income taxes and prevent tax evasion.

Sweden:

The agreement is one of Brazil’s oldest and aims to avoid double taxation on profits, wages, and other income.

Luxembourg:

The agreement seeks to avoid double taxation on income and capital, providing a safer environment for the flow of investments.

Netherlands:

The agreement is essential to avoid double taxation on corporate profits and wages, simplifying transactions for investors and expatriates.

France:

The agreement provides for tax offsetting between the countries, which benefits multinational companies, investors, and expatriates, ensuring legal certainty.

Portugal:

The agreement is important to avoid double taxation on income, which benefits the large flow of people and investments between the two countries.

Belgium:

The agreement establishes rules for the taxation of wages, profits, and other income, being essential for those with economic ties in both countries.

Spain:

The treaty prevents double taxation on capital gains, dividends, interest, and wages, being essential for companies and workers.

Finland:

The agreement, currently in the approval phase, aims to regulate air services and other types of income, ensuring a more favorable environment for companies in both countries.

Slovakia:

The agreement seeks to eliminate double taxation and prevent tax evasion, promoting a more favorable environment for bilateral trade.

Czech Republic:

The treaty aims to eliminate double taxation, boosting investment and economic cooperation between the two countries.

Austria:

It allows companies and individuals to avoid paying taxes twice on the same income, encouraging business between Brazil and Austria.

There are also agreements with other countries, such as China, Singapore, Turkey, the United Kingdom, Colombia, South Korea, and Japan.

It’s worth noting that the agreement with Colombia is not yet finalized; it is still in process. Some European countries, such as Norway, Hungary, and Denmark, are also involved.

How to take advantage of the benefits of double taxation agreements?

Taking advantage of the benefits of double taxation agreements can be complex, but it is essential for individuals and companies operating internationally.

The key is understanding the rules and being able to apply them correctly to your tax return.

For example, the first step is to identify the double taxation agreement between Brazil and the country of your choice. Some countries do not yet have this type of agreement with Brazil.

Next, you must correctly understand the rules regarding the agreement to avoid future problems, as each agreement has a different nature.

For example, a company’s profits are generally taxed in the country where the company is headquartered, whether in Brazil or abroad.

Interest, dividends, and royalties are usually taxed in the country of origin, but at limited rates.

And, in the case of wages, they are typically taxed where the employment occurred.

Additionally, you will need to prove that you paid the tax abroad. Therefore, keep all payment receipts, documents, statements, or receipts issued by the foreign tax authority.

The IRS requires this proof to grant the credit. Therefore, you must declare the income earned on your income tax return.

You can request offsetting of the tax paid abroad on your Brazilian tax return. In fact, you can often request offsetting of the tax paid abroad on your Brazilian tax return.

The IRS will use the foreign tax amount as a credit to offset the tax due in Brazil.

How important are double taxation agreements for Brazilian investors?

Double taxation agreements are of enormous importance to Brazilian investors.

The agreements are a fundamental tool for achieving legal certainty and financial predictability, which is crucial for those investing abroad.

The main benefit is the elimination of double taxation. If a double taxation agreement does not exist, this would significantly increase the tax burden, reducing the profitability of the investment.

With an agreement (when one exists), taxation would be adjusted so that the investor pays tax only once, or offsets the amount already paid.

Furthermore, the agreements make different types of investments more attractive, as investors know they will not face double taxation.

This, in addition to benefiting the investor themselves, is a great alternative for expanding Brazilian companies internationally, facilitating entry into new markets.

Beyond tax savings, the agreements provide a clear legal framework. They define the rules for taxing different types of income, such as interest, royalties, profits, and capital gains.

In other words, this reduces uncertainty and tax risk, allowing investors and businesses to plan their financial strategies with greater confidence.

Investors and businesses can know in advance how they will be taxed, which is extremely important for long-term business planning.

Conclusion

Today, you have a better understanding of double taxation agreements and a clear understanding of what double taxation actually is.

With a more globalized world, investors and companies around the world can take advantage of international agreements involving countries in different ways.

With greater predictability and reliable profits, the market can accelerate, helping the economy not only of one country, but of the entire world.

Investors and companies that are not yet familiar with Brazil’s double taxation agreements need to educate themselves to avoid headaches or even legal problems.

In fact, if you still have questions or need a more personalized assessment, I recommend seeking the assistance of a trusted specialist lawyer so that the professional can truly understand your main needs.