Also published on 3 March 2026, Decree No. 12 863 promulgates a protocol amending the 2003 Brazil–Chile double-taxation convention. The revision lowers the maximum withholding tax on cross-border technical-services fees from 15 % to 10 % and introduces an article recognising remote workdays spent outside the host country—crucial for the growing cohort of ‘near-shore’ Brazilian consultants supporting Santiago-based mining and fintech projects from offices in Porto Alegre.
![Chile tax-treaty protocol cuts withholding for Brazilian assignees]()
For companies managing these cross-border assignments, visa and immigration logistics remain just as critical as tax planning. VisaHQ’s Brazil portal (https://www.visahq.com/brazil/) streamlines the application process for Brazilian and Chilean entry permits, digital-nomad visas, and dependent passes, providing real-time status updates and customised documentation checklists—an efficient complement to the Decree’s new tax benefits.
For assignees on short-term projects (under 183 days in any 12-month period) the protocol confirms exclusive residence-state taxation, eliminating payroll-withholding triggers that had previously forced companies to register in Chile even for brief deployments. Trailing spouses with freelance income will also benefit from a new “other income” clause clarifying that non-business digital services (e.g., remote graphic design) are taxed only in the state of residence. Corporate tax departments should update assignment cost projections: simulations by EY Brazil show potential savings of US$9,600 per six-month assignment with a US$160,000 package. Nevertheless, the Chilean Internal Revenue Service plans to deploy joint compliance audits beginning in 2027; meticulous time-tracking remains essential. The protocol enters into force on 1 January of the year following ratification notifications, meaning practical changes are likely from 1 January 2027.
For companies managing these cross-border assignments, visa and immigration logistics remain just as critical as tax planning. VisaHQ’s Brazil portal (https://www.visahq.com/brazil/) streamlines the application process for Brazilian and Chilean entry permits, digital-nomad visas, and dependent passes, providing real-time status updates and customised documentation checklists—an efficient complement to the Decree’s new tax benefits.
For assignees on short-term projects (under 183 days in any 12-month period) the protocol confirms exclusive residence-state taxation, eliminating payroll-withholding triggers that had previously forced companies to register in Chile even for brief deployments. Trailing spouses with freelance income will also benefit from a new “other income” clause clarifying that non-business digital services (e.g., remote graphic design) are taxed only in the state of residence. Corporate tax departments should update assignment cost projections: simulations by EY Brazil show potential savings of US$9,600 per six-month assignment with a US$160,000 package. Nevertheless, the Chilean Internal Revenue Service plans to deploy joint compliance audits beginning in 2027; meticulous time-tracking remains essential. The protocol enters into force on 1 January of the year following ratification notifications, meaning practical changes are likely from 1 January 2027.
