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Brazil’s New 10% Dividend Withholding Tax Ends Three Decades of Tax-Free Payouts for Foreign Investors

Law 15.270/2025 introduced a 10% withholding income tax on dividends paid to non-resident shareholders, fundamentally altering the total return calculus for Brazilian equities starting January 1, 2026.

By Diane Cole

Published
Brazil’s New 10% Dividend Withholding Tax Ends Three Decades of Tax-Free Payouts for Foreign Investors
Illustration — BRZ.news

Law 15.270/2025 introduced a 10% withholding income tax on dividends paid to non-resident shareholders, fundamentally altering the total return calculus for Brazilian equities starting January 1, 2026.

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