How to maintain tax residency in Brazil?

I've had a few questions from people who live abroad and want to know how to maintain their tax residency in Brazil. In some cases, the person decides to travel to Brazil every year in order not to complete 12 months of absence and thus not meet the requirement for temporary departure.

It is not necessary to travel to Brazil every year just because you want to remain a tax resident in Brazil. Brazilian legislation, in the case of Brazilians, is clear in stating that the element that establishes tax residence is subjective (the intention to remain linked to Brazil) and not objective (the length of stay). 

Trips to Brazil are useful as a means of proving that a person has ceased to be a resident without formalizing the tax exit, not the other way around. The interest of the Brazilian tax authorities is to continue taxing a person's income on a universal basis, even if they have moved abroad. Remaining resident is the standard, and the IRS is unlikely to want to question this. status.

So how do you keep your tax residence in Brazil?

To maintain tax residency in Brazil, all you have to do is continue operating, filing income tax returns and keeping up with your obligations. In order to remain regular, the Brazilian income tax return must report the income and assets earned abroad and, if possible, offset the tax paid abroad against the Brazilian tax.

I also recommend reading the text with guidelines on dual tax residence: "Living in Brazil and in another Country: Dual Tax Residency, Brazilian Agreements and Reciprocity", in which the requirements for declaring income tax in Brazil in harmony with the legislation of another country are detailed.

On this blog you will always find relevant information and up-to-date information on the subject, as well as guiding you to avoid problems with the tax authorities and other authorities. Feel free to tell us about your experience, share the content with other friends who need guidance and contact us by e-mail at contato@tersi.adv.br or via WhatsApp. Click here to send a message now.

Check out more posts on taxation and estate planning at information for residents abroad.

Count me in!

A big hug,

Vinicius Tersi

This text about How to maintain tax residency in Brazil was prepared by Vinícius Tersi Advocacia, a law firm specializing in International Tax Consulting.