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Whether you’re a digital nomad or a retiree, Brazil offers something for just about everyone. Pristine beaches, lush rainforests, lively festivals, mouthwatering churrasco, a laid-back pace of life, and a relatively low cost of living are just a few of the reasons Americans flock to Brazil in droves. Before moving, of course, it’s important to consider practical matters, like taxes in Brazil.
Of course, taxes are complicated enough as-is. Factor in a move abroad, and they can feel downright overwhelming. As a dedicated US expat tax firm, though, we’re here to help. We’ve worked with thousands of clients in hundreds of countries around the world, including Brazil — so we put together a brief (but thorough!) guide on taxes in Brazil for foreigners.
Read on to learn what taxes people pay in Brazil, how to file taxes in Brazil, how your US tax obligations will change as an expat, and much more.
Snapshot of taxes for Americans living in Brazil
- Primary tax form(s): Declaração de Imposto de Renda Pessoa Física (DIRPF)
- Tax deadline: Last working day in April (individuals), last working day in July (businesses)
- Reporting website: Receita Federal e-CAC portal
- Administrative language(s): Portuguese
- US-Brazil tax treaty? No
- US-Brazil totalization agreement? Yes
Understanding Brazil’s tax system and deadlines
The Brazilian tax body is called the Receita Federal do Brasil — or in English, the Brazil Federal Revenue Department. The department is responsible for enforcing and collecting federal taxes, inspecting and auditing customs and imports, enforcing financial laws, and managing the national business registry, among other tasks.
The Receita Federal requires those who meet the following criteria to file a Brazilian tax return:
- Became a tax resident in any month during the tax year & remained so through the end of the tax year
- Received taxable income exceeding BRL 30,639.90 (~$5,106.14)
- Received exempt or non-taxable income (or income taxed exclusively at the source) exceeding BRL 200,000 (~$33,349)
- Possessed or owned goods or rights valued over BRL 800,000 (~$133,460)
- Received net gains from transactions on the stock, commodities, or futures markets (or similar markets) exceeding BRL 40,000 (~$6,673)
- Qualified for a capital gains tax exemption on the sale of a residential property, assuming they purchased another residential property within 180 days
- Owned trusts or similar arrangements
- Received taxable earnings from selling assets or rights in any month during the tax year
- Chose to reassess the market value of foreign assets
- Elected to report the assets, rights, & liabilities held by a controlled entity abroad as though they owned them individually
- Received gross revenue exceeding BRL 153,199.50 (~$25,552.84) from rural activities
If you don’t meet any of these requirements, you still may choose to file a Brazilian tax return to claim tax deductions, refunds, credits, or other forms of tax benefits or relief.
The tax deadline in Brazil is the last working day in April for individuals and the last working day in July for businesses. Typically, people file through the Receita Federal’s online portal.
Determining Brazil tax residency
Brazilian tax residents are subject to Brazilian taxes on their worldwide income. Those who meet the following requirements qualify as Brazilian tax residents:
- Brazilian citizens living in Brazil
- Brazilians who have moved abroad less than 12 months ago, unless they formally initiated the exit process
- Naturalized foreign nationals in Brazil
- Permanent visa holders
- Temporary work visa holders who have an employment contract with a Brazilian employer or the Mais Médicos program
- Temporary visa holders without an employment contract who have spent at least 183 days in Brazil within a 12-month period overlapping the tax year
- Temporary residents from Argentina, Paraguay, Bolivia, Chile, Colombia, Peru, & Uruguay
Non-residents are taxed only on their Brazil-sourced income. The following groups are considered non-tax residents for Brazilian tax purposes:
- Brazilians living abroad, if they formally initiated the exit process
- Brazilians living abroad who have been living abroad for more than 12 months, regardless of whether or not they formally initiated the exit process
- Temporary visa holders who have spent less than 183 days in Brazil within a 12-month period overlapping the tax year
Taxation of income in Brazil
Tax residents
Brazil levies progressive, marginal tax rates on ordinary earned income at the following rates:
Brazil monthly income tax rates, 2024
| Monthly income (BRL) | Monthly income (USD) | Tax rate |
| Up to R$2,259.20 | Up to ~$375.60 | 0.0% |
| R$2,259.20 – R$2,826.65 | ~$375.60 – ~$469.94 | 7.5% |
| R$2,826.66 – R$3,751.05 | ~$469.95 – ~$623.26 | 15% |
| R$3,751.06 – R$4,664.68 | ~$623.27 – ~$775.07 | 22.5% |
| R$4,664.68+ | ~$775.07+ | 27.5% |
Non-tax residents
Non-tax residents in Brazil, on the other hand, pay taxes at a flat rate of 25% on most types of Brazilian-sourced income. Rental income from property located in Brazil, however, has a tax rate of 15%.
Deductions & allowances
Tax residents of Brazil are eligible for various allowances and deductions. This includes:
- Business expenses associated with self-employment
- Mandatory social security contributions
- Contributions to private pension plans (up to 12% of your income)
- Court-ordered alimony & child support payments
- A deduction of BRL 2,275 (~$377) per qualifying dependent
- Educational expenses up to BRL 3,561 (~$590) per year
- Certain types of unreimbursed medical expenses
- Certain types of charitable contributions & investments, up to 3% or 6% of your tax bill
Alternatively, you can take a standard deduction of 20% up to BRL 16,754 (~$2,777) rather than itemizing the expenses above.
Other taxes in Brazil
Withholding taxes
Certain types of income are subject to automatic withholding taxes in Brazil, including:
- Dividends: 0%
- Interest
- Residents: 15% to 22.5%, depending on term length
- Non-residents: 15%, unless they live in a “tax haven,” in which case, the rate increases to 25%
- Royalties
- Residents: 0%
- Non-residents: 15%, unless they live in a “tax haven,” in which case, the rate increases to 25%
Capital gains taxes
Brazil levies capital gains taxes on the sale of real estate, vehicles, art, collectibles, foreign stocks, and foreign interest income at the following rates:
| Gains (BRL) | Gains (USD) | Tax rate |
| Up to R$5 million | Up to ~$829,036 | 15% |
| R$5 million – R$10 million | ~$829,036 – ~$1,658,787 | 17.5% |
| R$10 million – R$30 million | ~$1,658,787 – ~$4,976,362 | 20% |
| R$30 million+ | ~$4,976,362+ | 22.5% |
There are some exceptions, however:
- Gains from sales of Brazilian stock are taxed at a flat rate of 15%
- Note: Day-trade transactions of Brazilian stock are taxed at a flat rate of 20%
- Those who sell their primary residence & purchase another within 180 days may apply for a capital gains tax exemption
Social security taxes
Mandatory social security contributions are automatically withheld from employees’ monthly income at the following rates:
| Income (BRL) | Income (USD) | Tax rate |
| Up to R$1,412 | Up to ~$233.85 | 7.5% |
| R$1,412.01 – R$2,666.68 | ~$233.86 – ~$442.15 | 9% |
| R$2,666.69 – R$4,000.03 | ~$442.16 – ~$663.29 | 12% |
| R$4,000.04 – R$7,786.02 | ~$663.30 – ~$1,291.09 | 14% |
Self-employed individuals can pay social security taxes at a rate of 5%, 11%, or 20%, depending on factors like their salary, industry, and personal circumstances.
Corporate taxes
Brazil’s standard corporate income tax rate is 15%. On top of that, there’s a 10% surtax on businesses with taxable profits of over BRL 240,000 (~$40,022). Businesses must also pay a social contribution tax of between 9% and 20%, depending on the industry.
Property taxes
Some of Brazil’s primary property taxes include the:
- Municipal Property Tax (IPTU): An annual tax — typically .3% to 1.5% — based on the fair market value of urban properties
- Municipal Property Transfer Tax (ITBI): The tax levied on real estate property transfers, typically at a rate between 2% and 6%
VAT
Brazil has three different kinds of value-added taxes, including:
- VAT on Sales & Certain Services (ICMS): 0% to 35%, depending on the state. São Paulo has a standard rate of 18%, while Rio de Janeiro has a standard rate of 20%
- Excise Tax (IPI): Starting at 0% for basic goods to up to 300% for luxury goods
- Service Tax (ISS): Generally 2% to 5%
Gift, inheritance, & estate taxes
Brazil’s estate and gift tax is called the Imposto sobre Transmissão Causa Mortis e Doações, or ITCMD. It places a tax of up to 8% on transfers of financial assets and property by donation or inheritance. Non-tax residents only pay the ITCMD on assets located in Brazil.
US taxes for expats in Brazil
The US has a citizenship-based taxation system, which makes all American persons (i.e. citizens and permanent residents) subject to US taxes. Americans who earn above a certain threshold have to file (and potentially pay) federal income taxes. In some cases, expats may be on the hook for state taxes (and in rare cases, even local taxes).
Most Americans know April 15th as the tax return deadline, but expats receive an automatic two-month extension until June 15th. You can extend this an additional four months to October 15th by filing Form 4868. If you need more time to file, you can receive an extension to December 15th by writing to the IRS.
However, even if you receive a filing extension, you must still make an estimated tax payment by April 15th to avoid late penalties.
Note:
If any of these dates fall on the weekend, the deadline will change to the next business day. For example, since June 15th falls on a Sunday in 2025, the expat tax deadline changes to June 16th.
Americans who also owe taxes in Brazil run the risk of double taxation. Fortunately, you can typically avoid this by claiming one or more of the following expat-specific tax breaks:
Foreign Tax Credit (FTC)
Claiming the FTC gives you dollar-for-dollar US tax credits on any foreign income taxes you pay. In this way, you can essentially subtract your foreign income tax bill from your US income tax bill. To qualify for the FTC, foreign taxes must be legal, based on income, paid or accrued, and made out in your name specifically.
If you pay a higher tax rate in Brazil than in the US, the FTC often not only eliminates your US tax liability, but even gives you surplus tax credits. You can then apply these excess credits to US tax bills up to ten years in the future.
To claim the FTC, you must file Form 1116.
Foreign Earned Income Exclusion (FEIE)
The other primary expat tax break is the FEIE, which allows eligible Americans to exclude a portion of their foreign earned income from US income taxes. Note that this applies only to earned income (e.g. salary, wages, commission, bonuses), and not passive income (e.g. rental income, dividends, capital gains).
The amount you can exclude under the FEIE increases slightly each year due to inflation. In 2023, qualifying expats could exclude up to $120,000. For the 2024 tax year — aka the taxes you’ll file in 2025 — that figure increases to $126,500. In tax year 2025, the limit increases to $130,000.
To qualify for the FEIE, you’ll need to meet one of two tests:
- The Physical Presence Test: Be physically present outside of the US for at least 330 days (consecutive or not) in any 365-day period overlapping the relevant tax year
- The Bona Fide Residence Test: Have lived as an official resident of another country for at least anthe entire tax year and be able to prove it through documentation upon request (e.g. residence permit, rental contract, foreign income tax return, etc.)
Passing either of these tests also qualifies you for the Foreign Housing Exclusion or Deduction (FHE/FHD). This tax break allows you to offset a portion of qualifying foreign housing expenses like rent, utilities, residential parking, and more.
To claim the FEIE, you must file Form 2555.
B!T note: While the federal government recognizes the FTC and FEIE, state governments rarely do. As such, you typically can’t claim these tax breaks on state tax returns.
Reporting obligations
Although living abroad may result in additional tax breaks, it can also complicate your US reporting obligations. Americans living abroad may need to file one or more of the following reports:
- The Foreign Bank Account Report (FBAR): A mandatory report for those with accounts in foreign financial institutions whose total exceeds $10,000 at any point in the year
- The Statement of Specified Foreign Assets (Form 8938): A mandatory report for those whose foreign assets exceed $200,000 on the last day of — or $300,000 at any point during — the tax year
- Note: The Form 8938 reporting thresholds are higher for married couples filing jointly and lower for US-based filers
Enjoy Brazil while Bright!Tax handles your US expat taxes
As you can probably tell by now, living in Brazil as an expat can significantly complicate your taxes. The good news? With expert help, you can often greatly reduce — if not completely eliminate — your US tax bill with minimal effort on your part.
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