🇨🇦🇨🇱

How are pensions taxed under the Canada-Chile tax treaty?

Under the Canada-Chile tax treaty, private pensions are generally taxable only in the country of residence — meaning no withholding tax applies at source (0%). This is favorable for retirees who have moved between the two countries, as their pension income will not be subject to double taxation. Government pensions may have different rules under a separate treaty article. This 0% rate compares to a median of 0% across Canada's 51 active treaty partners, and 0% across Chile's 25 active partners.

Network Comparison

Canada

Rank 8 of 51 active treaties (lowest rate = #1)

Lower rates with: Bulgaria (0%), Brazil (0%), Switzerland (0%)

Higher rates with: China (0%), Cyprus (0%), Czech Republic (0%)

Chile

Rank 5 of 25 active treaties (lowest rate = #1)

Lower rates with: Australia (0%), Belgium (0%), Brazil (0%)

Higher rates with: Switzerland (0%), China (0%), Colombia (0%)

Sources

Data last reviewed: 2026-04-07

Important: Treaty rates require proper claim forms (e.g., IRS Form W-8BEN for U.S. treaties, HMRC DT-Individual for U.K. treaties, CRA Form NR301 for Canadian treaties) filed before payment. Limitation on Benefits (LOB) provisions may restrict eligibility. A 0% withholding rate does not mean no tax — the residence country may still tax the income. This is not tax advice.

Related Questions: Canada - Chile