The Director of International Tax at CCL Auditores Consultores, a leading national firm in consulting and auditing, spoke exclusively with Aqua about the benefits and opportunities available to the aquaculture industry through the use of the Double Taxation Agreement between Chile and the United States.
Read the full interview on Aqua.
The treaty, which has been in force since early 2024, offers significant benefits for Chilean investors in the United States, who can access more advantageous investment structures, reduced tax rates on services, interest, royalties, and dividend distributions, among others. This is particularly relevant given the increase in outbound investment and portfolio diversification in recent years.
What is the overall assessment after the first year of the Double Taxation Agreement between Chile and the United States?
In general, the market has made a very positive assessment of the agreement’s entry into force, with trade between both countries exceeding USD 30 billion in 2024.
Specifically, we have observed sustained interest in investing in the United States in passive income, real estate, and operational businesses, along with an increase in individuals seeking to relocate to the U.S. Regarding U.S. investment in Chile, we have also seen a significant increase. In fact, InvestChile reported that in 2024 U.S. investment grew by 107%, linked to concerns about the expansion of Chinese investment in strategic sectors such as lithium and port infrastructure.
In that context, based on the data you mentioned, what benefits or opportunities have emerged for the aquaculture industry?
We have closely observed growing interest within the industry and its suppliers to expand operations into the U.S. market, leveraging the tax benefits of the Agreement as well as the incentives offered by certain states or counties.
In practical terms, the Agreement allows for reduced tax rates and exemptions, lowering withholding taxes in both Chile and the United States. At the local level, it also removes the 4% cap on royalty payments to related parties residing in the United States.
Where does Chile and its aquaculture industry stand compared to countries that do not have this agreement? How can the sector make better use of it?
The Agreement represents a major milestone, allowing Chile to enter the U.S. market much more competitively than the rest of Latin America, as only Mexico and Venezuela currently have similar agreements in the region.
This positions the Chilean industry more favorably and enhances competitiveness compared to countries that already had agreements with the United States, such as Norway, Sweden, or Canada.
For investors who have not yet used the Agreement but are interested in doing so in the future, what steps would you recommend to begin or evaluate?
The first recommendation is to define, together with advisors in both countries, the most appropriate investment structure for the specific case, considering both Chilean and U.S. legal and tax perspectives. The recommended structure may vary depending on the type of investment or operation, as well as the short-, medium-, and long-term objectives and specific characteristics of the investor.
Secondly, it is important to clearly understand the compliance and reporting costs and obligations in each relevant jurisdiction.
New Trump administration: There is concern about potential tariff policies that the Trump administration may apply to various countries. Do you think this will happen, and if so, could it affect Chile’s export industry?
Concern about the possible implementation of tariffs is valid. In fact, President Trump has already openly stated that he is evaluating potential tariffs on copper, which could certainly have a significant impact on Chile. However, it is also important to wait prudently to see how such tariffs would be implemented and whether they would be applied universally or on a country-by-country basis.