Brazil : taxes that foreign nationals and Brazilians must pay

When it comes to Brazil (or other countries for that matter), there are several factors involved in the decision to relocate, including the tax significance. 

Whether you’re a Brazilian resident or not, you need to be aware of Brazil‘s tax requirements and laws and how they may apply to you. 

This article shed some light on your tax responsibilities as a foreigner in Brazil, and also as a Brazilian in foreign countries 

Who Must Pay Taxes in Brazil? 

Generally, foreign citizens are taxed depending on the visa they hold. 

Legal residents of Brazil for tax purposes include the following: 

• An individual who lives in the country more than 183 days per year in Brazil in any 12-month period. 
• Naturalized Brazilian residents 
• Non-Brazilians who hold a permanent or temporary visa with a local employment contract 
• Non-Brazilians who hold a temporary visa without a local employment contract. 

Brazil adopts a standard that tax residents should have their income taxed on a universal basis. Brazil has the privilege to tax income wherever it has been earned. For Brazilians who live abroad, but never formalized the tax exit, the CPF (Cadastro Pessoal de Pessoa Física /Individual Taxpayer Registry) registration with the Federal Revenue Service continues to inform the status of tax resident in Brazil. And the IRS (Internal Revenue Service) expects to receive the income tax return, which must include the income and assets existing overseas. 

The Brazilian Tax Year 

The tax year obeys the calendar year ending on December 31st, and Brazilian tax returns are filed yearly by April 30th. Taxes owed will be due by April 30th, with an alternative to pay in monthly installments, liable to interest. 

Individuals will file their Imposto de Renda Pessoa Física (IRPF)/individual income tax using a software released yearly from Receita Federal do Brasil (Brazil‘s federal revenue) 

Brazil’s Double Taxation Treaties 

Foreign citizens who are tax residents in Brazil must pay tax on income yielded in Brazil and abroad unless they are qualified for relaxation under a Double Taxation Treaty between Brazil and their home country. 

Brazil has double taxation treaties with several other countries, which indicate that tax paid in one country can be offset against any tax payable in the other. However, there is presently no such agreement between Brazil and the U.S., UK, or Germany. 

Luckily, for expats to and from those countries, Brazil recognises that the federal taxes paid in the UK, Germany, and the USA can be employed as a relief to tax which may be payable in Brazil. 

Brazilian income tax 

If you have a resident taxpayer status, then you are subject to pay income tax in Brazil on your universal income on a monthly cash basis, once personal allowances and double taxation treaties have been taken into consideration. 

This process is called Carnê-Leão and it involves income that wasn’t subject to withholding tax by another local source. Generally, this refers to offshore income and rental income received from other people. This tax is also evaluated based on a progressive tax table starting with the rate of 0% to 27.5%. 

Once a year, the individual’s total income and assets are reported to the administration via Declaração de Imposto de Renda. 

Additionally to reporting Assets and Income yearly under the Declaração de Imposto de Renda, Brazilian residents with foreign assets above US$100,000 are also compelled to declare those assets to Banco Central do Brasil. 

Inheritance tax in Brazil 

Brazil has no inheritance tax. But, some states may require a death transfer and a donation tax and rates will be specified by estate legislation. 

This is usually called Imposto de Transmissão Causa Mortis ou Doação (ITCMD or ITCD). Its rates can range from 0% to 8%. It is expected that rates will inflate in future years as estates look for more ways to raise funds, thus, a tax advisor is recommended to assist with succession planning. 

Municipal Tax

Some cities may charge a service tax on specific businesses or a real estate transfer tax. A yearly urban real estate tax for property owners is also applicable at virtually 0.6%, but in some areas, it can be as high as 1.4% of the assessed value of the property, but this will differ according to the city concerned. 

The Brazilian Tax Exit (Declaração de Saída Definitiva) 

As solidified by Brazilian Law, a person who ceases to live permanently in Brazil must transmit to the RFB (Receita Federal do Brasil – Brazil’s federal revenue) both the Communication (Comunicação de Saída Definitiva do País – CSDP) and the Declaration of Definitive Exit of the country (Declaração de Saída Definitiva do País – DSDP), which will indicate his/her residence for tax purpose upon leaving Brazil. 

However, if the person doesn’t file the CSDP, he/she is still regarded as a tax resident of Brazil for the first 12 months of absence. 

But if the individual files the reports and is no longer resident in Brazil, taxes will be paid differently generally via DARF or subtracted at source. 

Exchange of Information – OECD (Organisation For Economic Co-Operation And Development)

To assist evolving countries, the OECD established a multi-stakeholder Task Force on Tax and Development bringing together OECD member countries, arising and developing countries, global and regional organizations, civil society, and companies. Together, the objective is to take action to boost the enabling environment for developing countries to collect applicable and adequate tax revenues and to build effective states. 

Brazil is a signatory of the OECD Convention on Mutual Administrative Assistance in Tax Matters. And totally, there are over a hundred countries taking part in the program which enables the automatic exchange of large amounts of data. As an outcome, countries are better equipped to find foreign capital or income not formerly declared, working in cooperation to reduce universal money laundering. 

Every circumstance is unique and should be analyzed individually. The proper analysis must be conducted to determine the correct conclusion, taking into account the different ways that a Brazil non-resident is taxed differently from a resident. 

If you plan to invest into Brazil, to register your company or buy a real estate property, please contact your Damalion expert now. 

Brazil: taxes that foreign nationals and Brazilians must pay — residence rules, returns, income, capital gains, inheritance and gift taxes, property and municipal taxes, cross-border points, and 2025 reform notes.

For residents, non-residents, entrepreneurs, investors, and corporate officers • This page explains typical obligations in plain language. It does not replace personalized tax advice.

Last updated:

Overview

Brazil taxes individuals based on tax residence and the nature and source of income. Residents are generally taxed on worldwide income. Non-residents are taxed on Brazilian-source income only. The tax year is the calendar year. Individual returns are normally due in the first half of the year following the tax year. Deadlines can change by official act.

Important: Rates, brackets, and filing tools can be updated during the year by decree or law. Always check the current Receita Federal guidance before filing.

Tax residence: when are you a Brazilian tax resident?

• Presence tests and visa/contract status determine residence for tax purposes. A common rule is residence once you meet a 183-day threshold within a 12-month period, or upon obtaining certain residency statuses.
• Residents are expected to file the annual individual return and, when applicable, monthly self-assessment on specific income not subject to withholding.
• Individuals leaving Brazil should file a notice and a definitive exit return to end residence status for tax purposes.

Filing and payment

• Annual return (IRPF): Filed electronically using the Receita Federal system. Standard deadline is around April–May; confirm each year.
• Withholding and monthly self-assessment: Certain income is taxed at source. Other income (for example, rent from individuals or foreign income) can require monthly self-assessment and payment.
• Supporting documents: Keep proof of income, costs, acquisition dates, and tax paid in Brazil and abroad.

Income tax bands

Brazil applies a progressive monthly table to salaries and similar income, with five brackets from 0% up to 27.5%. The table in force was updated in 2025. Employers use it for payroll withholding; final reconciliation is made in the annual return.

Non-residents are usually taxed at a flat rate on Brazilian-source income, with higher rates for specific cases set by law. Deductions for non-residents are limited.

Main taxes that individuals encounter

Area	Residents	Non-residents
Employment income	Progressive monthly table; annual reconciliation	Flat withholding on Brazilian-source income; no annual reconciliation unless law requires
Self-employment / services	Monthly self-assessment when not withheld; annual return	Withholding at source on Brazilian services; other rules can apply
Investment income (interest, funds)	Withholding or specific regimes depending on the product	Withholding at source on Brazilian-source income
Capital gains on assets	Progressive rates on gains; exemptions and thresholds may apply per law	Tax on Brazilian assets; foreign gains generally outside scope
Dividends from Brazilian companies	Rules under discussion in 2025; check current law before filing	Special rules for non-residents; check current withholding rules
Inheritance and gifts (ITCMD/ITCD)	State tax; rates and bases vary by state	Tax can apply to Brazilian-situated assets; state rules control
Property and municipal taxes	Annual real estate tax and transaction taxes vary by city/state	Same as residents for Brazilian property ownership or transactions
Cross-border payments (IOF and others)	IOF may apply to financial and FX operations; rates vary by type	Same when using Brazilian financial system

Cross-border points

• Double tax treaties: Brazil has DTAs with several countries. Relief depends on the treaty text and domestic rules.
• Dividends and high-income rules: Proposals discussed in 2025 include dividend taxation and minimum effective taxation for high earners. Always check what is enacted before filing.
• Consumption tax reform: A multi-year reform replaces several indirect taxes with new dual VAT-type taxes. Transition starts in 2026 with staged effects through the 2030s; corporate systems should be updated accordingly.
• IOF on financial/FX operations: IOF rates and rules were adjusted in 2025; some previous schedules to reduce IOF over time were revoked or changed. Check the rate that applies to your specific transaction.

Frequently asked questions

1) Who is a tax resident in Brazil?

An individual becomes a tax resident under criteria set by law, including presence days and immigration status. A common threshold is 183 days in any 12-month period, or earlier upon obtaining certain visas or employment links. Residence starts from the legally defined date. Always confirm the current rule before filing.

2) Do residents pay tax on worldwide income?

Yes. Residents are generally taxed on worldwide income under Brazilian law, subject to specific exemptions and treaty relief where applicable.

3) How are non-residents taxed?

Non-residents are taxed on Brazilian-source income at the rates set for non-residents. Withholding at source is common. Non-residents do not claim resident deductions unless the law grants them.

4) What is the filing deadline for the annual IRPF return?

The annual return is typically due in the first half of the year following the tax year (calendar year). Receita Federal can alter the exact window each year by normative act. Late filing penalties and interest apply.

5) What changed in the 2025 monthly income tax table?

In 2025 the monthly progressive table used for payroll withholding was updated, preserving five brackets up to 27.5%. Employers must apply the in-force table; individuals reconcile in the annual return.

6) Are dividends from Brazilian companies taxable to individuals in 2025?

Rules on dividend taxation were the subject of legislative proposals in 2025. Application depends on what is enacted and from which effective date. Verify the law in force for the year of receipt and consider treaty effects.

7) How are capital gains taxed for individuals?

Capital gains realized by individuals are taxed at progressive rates under federal law, with specific thresholds and reporting deadlines. Calculation depends on acquisition cost, adjustments allowed by law, and currency rules. Exemptions may apply to certain small real estate sales or reinvestments when conditions are met.

8) Is there inheritance tax in Brazil?

Yes. Inheritance and gift taxation (ITCMD/ITCD) is levied by states. Rates, exemptions, and taxable events vary by state within federal limits. Estate and gift planning should consider the rules of the competent state.

9) How are foreign assets reported by residents?

Residents report worldwide income and assets in the annual return. Additional obligations can apply for foreign assets above certain thresholds, including declarations to the Central Bank when required by regulation.

10) What is the tax treatment of rental income?

Rental income is taxable. If not subject to withholding, monthly self-assessment applies with payment by the statutory due date. Deductions are allowed as defined in law. Non-residents earning Brazilian rent are typically taxed via withholding.

11) How are mutual funds and financial investments taxed?

Financial investments follow specific regimes with withholding at standardized rates depending on product type and holding period. Funds can have their own tax timing rules and adjustments at redemption or at year-end as defined by regulation.

12) What is IOF and when does it apply?

IOF is a federal tax on financial operations, including credit, insurance, securities, and foreign exchange. Rates are set per transaction type and may change by decree. Always verify the applicable IOF rate for your exact operation date and category.

13) How are stock gains treated for non-residents?

Non-residents investing through compliant channels can benefit from specific rules. Gains may be exempt or taxed depending on the market, asset class, and investor jurisdiction. Registration and documentation requirements must be respected.

14) Do double tax treaties change the outcome?

Treaties can reduce withholding or allocate taxing rights. Relief depends on residency, beneficial ownership, and meeting treaty conditions (including limitation-on-benefits or substance rules). Proper certification is needed to claim treaty rates.

15) What is required when leaving Brazil to stop being a tax resident?

File the communication of departure and the definitive exit return within the legal deadlines. From the effective date recognized by Receita Federal, income is treated under non-resident rules. Failure to file can keep you resident for a defined period.

16) Are cryptocurrency transactions taxable?

Yes. Gains on disposal of crypto assets are taxable under capital gains rules when thresholds are met. Reporting duties can apply for exchanges and individuals, including transaction reporting above set amounts.

17) How are foreign pensions and salaries taxed for residents?

Residents include foreign salaries and pensions in worldwide income. Foreign tax paid may be creditable subject to domestic law and treaty limits. Exchange rate rules apply at legally defined conversion dates.

18) Are gifts between family members taxed?

Gifts are generally subject to state gift tax (ITCMD/ITCD). Rates, exemptions, and valuation rules are determined by the state where the taxable event is located. Documentation is important for audits.

19) What municipal and state taxes affect property?

Cities levy an annual urban property tax and a tax on property transfers. States levy taxes on certain transactions and inheritances/gifts. Rates and bases vary by location; consult the competent municipality and state rules.

20) What should executives and founders consider in 2025?

Review compensation split (salary, bonus, equity), cross-border roles, treaty positions, exit/entry dates, and documentation. Check 2025 updates on withholding tables, IOF changes, indirect tax reform timelines, and any enacted rules on dividends or minimum effective taxation for high incomes.

Related reading

• More articles on Brazil tax
• Brazil individual income tax insights
• Brazil company formation & compliance
• Brazil withholding tax and IOF  

10 Best Things to Do in São Paulo, Brazil in 24 Hours

Maximize a tight schedule with iconic, easy-to-reach highlights centered around Paulista, Centro, and Vila Madalena.

1. MASP – São Paulo Museum of Art — landmark on Avenida Paulista. Jump to map
2. Pinacoteca de São Paulo — Brazilian art in a historic building at Luz.
3. Farol Santander — observation decks, exhibitions, skyline views.
4. Theatro Municipal — belle-époque opera house; check guided tours.
5. Parque Ibirapuera — green heart with museums and pavilions.
6. Mercado Municipal (Mercadão) — classic market; try mortadella sandwich.
7. Liberdade District — Japanese heritage streets, shops, eateries.
8. Beco do Batman — open-air street-art alley in Vila Madalena.
9. Catedral da Sé & Old Center — plaza, colonial origins at Pátio do Colégio.
10. Instituto Tomie Ohtake — contemporary art and design shows.

Back to list

10 Best Hotels in São Paulo

1. Hotel Unique — design icon near Ibirapuera.
2. Palácio Tangará (Oetker Collection) — luxury oasis by Burle Marx Park.
3. Rosewood São Paulo — high-end city resort at Cidade Matarazzo.
4. Hotel Fasano São Paulo — classic luxury in Jardins.
5. Emiliano São Paulo — boutique sophistication on Rua Oscar Freire.
6. Tivoli Mofarrej São Paulo — upscale address off Paulista.
7. Renaissance São Paulo Hotel — business & leisure hub in Jardins.
8. Grand Hyatt São Paulo — modern luxury in Berrini/Brooklin.
9. Hilton São Paulo Morumbi — skyline views near business district.
10. InterContinental São Paulo — refined stay close to Paulista.