Based on analysis of Brazilian‐Spanish cooperation in Latin America, this article aims to contribute to the discussion on whether South–South Cooperation (SSC) represents an alternative model with specific and differentiated objectives, or if it largely reproduces the constraints and interests traditionally associated with the North–South model, but with new institutions and actors. We start by analysing the main criticisms levelled at cooperation in the literature, emphasising the identification, review and comparison of the mechanisms of domination and dependency that derive from the bilateral and multilateral practices of traditional development cooperation. We then construct a synthetic dependency index to measure the ability of Spain and Brazil – as representative cases of North–South Cooperation (NSC) and SSC with Latin America – to influence the foreign trade, investment and foreign policy decisions of aid recipients, and to empirically contrast the lower level of verticality that much of the available literature assumes about SSC schemes. The empirical analysis suggests significant differences between NSC and SSC in terms of their ability to reproduce dependency patterns and validate the discourse that tends to identify the latter as an alternative cooperation model.