From January 1, 2026, Brazil withholds 10% on dividends paid abroad. Who it hits, what is grandfathered, the refund mechanism, and what it means for EWZ holders.
Brazil imposes a 10% withholding tax on dividends starting January 1, 2026, ending 30 years of tax-free outbound dividends. The change reduces net returns for foreign fund holders and investors, signaling tighter fiscal conditions in emerging markets.
LATIN AMERICA · INVESTING · 2026
Key Facts
—The change: a 10% withholding tax on dividends paid to nonresidents, effective January 1, 2026, under Law 15.270/2025.
—The break from the past: Brazil had exempted dividends since 1996, a key draw for foreign capital.
—Grandfathering: dividends on 2025 profits, formally approved by December 31, 2025, stay exempt.
Brazil · Tax Law Key Facts —The fresh ruling: A Brazilian federal court suspended on Friday the application of the dividend…
Brasil ha modificado una premisa que, durante casi tres d�cadas, acompa�� a la inversi�n extranjera en sociedades brasile�as: la…
É possível evitar retenção antecipada sem deixar de pagar o imposto no ajuste anual
EXPATS IN BRAZIL · BRAZIL, 26 MAY 2026 Key Facts —Foreign investors must obtain a CPF (Brazil’s tax ID) before opening any…
Tax residency in Brazil for expats: the 183-day rule, Carnê-Leão, the DIRPF return, double-taxation treaties and how to plan the…
Uruguay's new rules tax foreign income at 12% and end the cheap residency-by-property route. Here is what is changing in 2026 and…
