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For those who live abroad and receive rent in Brazil, there are no restrictions on buying property. But for non-residents, the rules on rentals apply a little differently than usual. This text explains the main points about the taxation of rent received by residents abroad.
[See the full article at I live abroad and receive rent in Brazil: what do I do?]
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Good afternoon,
I live abroad and receive rent in Brazil, but I issue and pay the DARF myself on the day I receive it, using my CPF. Is there a problem with this? Is it really necessary for an attorney in Brazil to make the payments? I checked the Receita Federal website, and it shows all the payments for these DARFs, and no pending issues.
Thanks for the great article.
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Hello, excellent article! I just had one question: how is taxation when there is a double taxation agreement between countries if the person maintains tax residence in both? Is the rent taxed by the progressive table in Brazil and the person's income abroad taxed in the foreign state? Is it necessary to indicate the income abroad in the income tax return in Brazil? Thank you!
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Hello, Douglas! Thank you for contacting us!
From our practical experience with American rules, yes, rental income from Brazil is taxable in the United States for those who are considered tax residents there. The US tax residency rules are very different from ours, and have to do with US citizenship, type of visa for non-citizens and length of stay in US territory. By reciprocity, the 15% of tax in Brazil can be deducted from income tax federal American tax, but not state or municipal tax, if any. It's worth checking where you'll be living to get an idea of the total income tax.
Feel free to contact us by email or WhatsApp if you need our work.
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Hello, Priscilla! Thank you very much for your interest!
Thinking first about double tax residency without an international agreement, each country will calculate its own income tax using the progressive table, according to the rules in Brazil and the other country. If there is reciprocity, the tax paid in one country can be used as a credit to reduce the tax in the other. In Brazil, you have to report the foreign income and the tax paid abroad in order to take the credit.
When it comes to the international agreement, it's the same thing, but the agreement in question can bring extra benefits that Brazilian law hasn't provided for. To this end, all agreements include an article with "tie-breaker rules", precisely to solve problems of double tax residence. It then depends on the situation envisaged in the agreement between Brazil and the specific country.
I hope I've helped! If you need support, just contact us by WhatsApp or email!
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Hello, Victor! Thank you for your interest!
This is a very common situation, precisely because the IRS doesn't provide good guidance on how to comply with the proxy rules. What's more, the law was made in the 1940s, when what you're doing (preparing and paying a DARF form via Internet Banking, in real time) wouldn't even have been possible to imagine.
Legally, the tax obligation is extinguished if the taxpayer has fulfilled the task that would have fallen to the tax substitute (the attorney). So I'd say there are no problems. The important thing is to make sure that you are paying the DARF form using the correct non-resident code and to know if the amount of income requires you to submit the Dirf (Withholding Tax Return).
If you need support, just contact us by WhatsApp or email!
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Hello Vinicius and Victor. Thank you for raising such a controversial topic.
I confess I was confused!If the amount requires the submission of the DIRF, what about the situation of non-residents who pay their own DARFs?
In this case, there is no tax representative. In this case, must or can the non-resident submit their own DIRF?Thanks for the great article.
Cheers. -
Hello, Vitor,
thank you for your interest. This is really an issue that was not foreseen by the legislation, as it was created at a time when there was no possibility of paying tax via Internet Banking from abroad.
It is possible to understand that the law created the attorney as a tax substitute. In this case, if the taxpayer spontaneously pays the tax, the tax obligation is extinguished. In order for the IRS to "match" the payment of income tax with the person's situation, however, it is advisable in this case to send the Dirf informing the payment of income tax. In this case, it would be a Dirf prepared by the taxpayer himself. The consequence of this is to say that the taxpayer withheld tax from himself and paid it, and informed the tax authorities that he had paid it.
If you need support, just get in touch with the team via WhatsApp or email!
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Hello, Marcela!
Thank you very much for your interest.
A foreigner who pays rent for a property in Brazil (i.e. is a tenant) does not, in principle, have a specific obligation to comply with the Brazilian tax authorities.
The landlord of the property is the one who owes income tax on the rent, and the landlord's status as a tax resident in Brazil or not determines how the tax should be calculated and paid to the Receita Federal.
I hope I've been able to resolve your query. If you need any more information, feel free to contact our team by email or WhatsApp!
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I've been living in the USA for over 20 years and I filed for permanent departure at the time. After that, I bought a property in Brazil and rented it out. With the tenant's tax return, my CPF was suspended because I hadn't declared this income. Two or three years later, I filed a tax return for the year in which I received these rents, and the system generated a DARF for me to pay the tax due. My CPF is back in order. My questions: did I do it wrong? If so, how can I correct it? Do I have to rectify my final tax return by including this property that I bought after I moved out?
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Hello, Matheus!
Thank you for your interest. A case like yours would normally require you to rectify your declarations and pay the corresponding taxes, offsetting what has already been paid, in order to make it clear that you are a non-resident and would no longer have to file income tax returns. It is also necessary to take into account the years you have declared (only the last 5 years can be rectified, but also only the last 5 years can be collected by the tax authorities).
Situations like yours often need to be looked at in more detail to give complete guidance. If you are interested in talking to us, please contact the team by email or WhatsApp!
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Good morning.
I live in Germany and I found the explanations very good (both in the text and in the answers).
I am married in Brazil and the last rental contract for my house in Brazil was made out in my name and my wife's name, citing both CPFs. But I've been paying the DARF regularly on the total amount using only my CPF (I don't make 2 DARFs with 50% of tax for each of us).
Is that a problem? Or can it go on like this?
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Hello, Carlos!
Thank you for your interest. In its Q&A, the IRS advises that income from the couple's joint assets can be taxed 100% in the name of one of the spouses or 50% in each spouse's name, at the taxpayer's choice (see Question 205 of the IRPF 2021 Q&A). https://www.gov.br/receitafederal/pt-br/acesso-a-informacao/perguntas-frequentes/declaracoes/dirpf/pr-irpf-2021-v-1-0-2021-02-25.pdf). Assuming nothing else is different, I understand that you can continue following the same procedure.
If you need more support, just get in touch with our team by email or WhatsApp!
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Good morning,
Great article Vinicius, congratulations. I have a slightly different question that I think you might be able to help me with. I intend to buy an apartment in Brazil this year as a form of investment and rent it out. However, I live in Belgium and I've already declared that I'm leaving the country a few years ago. My idea was to pay cash or borrow the money in Belgium as a personal loan to pay for the apartment in Brazil, but I know that there are limits on transferring money from foreign accounts to Brazil. Do you have any idea if it's possible to transfer, for example, 200,000 to 300,000 in just two or three installments? And how does the tax part work in this case?
Thank you so much! -
Hi Vinicius!
First of all, congratulations on the article, man.
I have a question, not necessarily for those who receive rent. In my case, I left Brazil two years ago but I have an apartment financed in my name that my mother lives in and pays for, would that fall under "rent"? Would there be any tax changes? I made my exit permanent but I'm afraid the bank wants to change my interest rate. Thank you. -
Hello, Ana Paula!
Thank you for your interest. I plan to write some articles on international remittances soon. Basically, there is no income tax to pay on the transfer if you are transferring funds between your own accounts (there is only the IOF). What there is is the need to confirm that the origin of the funds is lawful. This is necessary for any remittance over USD 10,000. Your final exit declaration plus your Belgian declaration can be proof of this.
I hope I've answered your question. Feel free to get in touch with the team by WhatsApp or email if you'd like to find out more!
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Hello, Ana!
I really appreciate your interest. If I understand you correctly, you bought a property in Brazil with a mortgage. The property is yours, but your mother lives in it, and pays the mortgage installments (I'm guessing, but the fact isn't 100% clear in your message).
For income tax purposes, it is possible for you to lend the property to your mother (cede it to her) without it being considered that you are receiving rent. There is a specific income tax exemption for properties lent between first-degree relatives (i.e. from parents to children and vice versa). In this case, your mother's payment of the installments would be a form of donation (possibly subject to state gift tax rather than income tax), not rent.
The alternative would be to consider that you receive a rental amount that happens to correspond to the payment of the mortgage installment, in which case you would have to pay the 15% IRRF.
But you'd have to be sure whether that's your situation or not. Also, the comment I made takes Brazilian legislation into account. It may be that the legislation of the country in which you are a tax resident sees the same situation differently.
If you need our support, feel free to contact our team via WhatsApp or email!
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Good morning,
My husband left Brazil in May 2021. We haven't declared our permanent departure from Brazil yet. He rents property here in Brazil and I pay Darf 27.5 % with code 0190 on his cpf. If I declare the definitive departure now, will I have to change all these paid darfs? And issue them with another code on my cpf as attorney-in-fact?
Thanks in advance and thanks for the great article. -
Hello, Ely,
thank you for your interest. As the Declaration of Final Exit is a "broken year" declaration, it will only have space to report rents received until May, and not from June 2021 onwards. This could lead to cross-referencing problems with the IRS, especially if your rents are received through a real estate agency.
There is a REDARF procedure, which allows you to change the tax payments you have made from code 0190 (carnê leão) to 9478 (non-resident rent). The system would then use all the tax you have already paid. It can also switch from your husband's CPF to yours. In this case, in February 2022 you will have to file a Dirf (income tax return at source) to report the income received by your husband from June to December 2021. As the tax rate is different, there may be tax differences to pay or offset.
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
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Hello, congratulations on the article.
I declared my permanent departure from Brazil in 2015 and my wife is still a resident. Before I left, I declared a property financed in my cpf, but since I left Brazil, I've started declaring all the payment of the financed installments of the property in her name. It is now paid off.
Last year, we bought another flat. We both signed the contract but the installments are on my cpf. What is the best option in this case? Keep it in my cpf and only declare everything when (and if) I return to Brazil? What about the mortgage?
Or keep everything in my wife's cpf and report all the amounts passed on to her to pay the installments? -
Good afternoon Vinícius, congratulations, what an enlightening article, thank you very much for sharing.
I'm a non-resident who has already left the country permanently, but I have rental income in Brazil, I did my studies on my way out, I appointed an attorney-in-fact, and he collects the DARF on my behalf. I'm in doubt about the DIRF, under amount paid do I put the amount I receive in rent (but with deductions), or does it have to be the gross amount? Are my tenants also obliged to file a DIRF?
Thank you in advance
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Hello Vinicius, your article is very good, but I have a question...
I'm currently living in Italy (I have dual citizenship), but I don't declare Italian income tax, only Brazilian, since my money currently comes from the company I work for in Brazil (remote).
Every month I send the money I receive in my account in Brazil to the account in Italy and carry on with life as normal, would it be right for me to pay tax again here in Italy / declare income tax here?
Congratulations on your posts, they're great!
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Hello, Glecivaldo!
Thank you for your interest in our content.
It's difficult for me to give a recommendation within a post. I can give you two general pieces of information, however. The first is that there is nothing to stop you and your wife, as non-residents, from buying a property with a mortgage, or financed by the builder when you buy it "off the ground". The biggest difference is the obligation to declare the property, which only exists for residents (non-residents only keep a record of the cost, to calculate any capital gains in the future).
It is legally possible for one member of a couple to be a tax resident in Brazil and the other not. The difficulty lies in the fact that the IRS has not regulated how income tax returns should be made in this case. If the property is jointly owned (if you and your wife bought the property under a community of property regime), the guidance from the IRS is that 100% of the property should be reported by one of the spouses (in this case, your wife). But there is no field in the declaration that clearly states that the source of the income for the purchase of the property was from the other non-resident member of the couple.
This is general information. It would be necessary to analyze your situation more carefully in order to give you proper advice. In any case, I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
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Hello, Patrícia!
Thank you for your interest. The Dirf would normally be transmitted by the source of payment (the tenant), but the tax law expressly replaced the tenant with the attorney-in-fact to play this role. So only the attorney-in-fact would need to submit the Dirf. The Dirf is a very simple declaration. It has no space to detail the calculation of the net rent (gross minus deductions). It only gives the calculation basis and the corresponding tax. As the calculation basis is the net rent, we understand that only this should be reported.
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
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Hello, Rodolfo!
Thank you very much for the compliment. To answer your question, in principle the answer is yes, but it is hoped that a professional in Italy will be able to give you a definitive answer to your question. The law of a country can decide whether to tax all income from abroad or to exempt you from this work. I can say that the Brazil-Italy agreement allows Italy to tax Brazilian income, deducting the amount of tax paid in Brazil. There is only an exemption as an exception to the rule.
We hope in the future to be able to form a partnership to better meet the needs of people in Italy, but we are still designing this solution. For now, at least, I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
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Thank you very much for the information, I love reading the articles on your site especially for those who are living here and this whole taxation issue is always very complicated hehe.
In the case of Italy, I'm going to contact an accountant/lawyer here...
One last question, if I moved to Portugal, would the profit distribution from my company in Brazil / Remote Salary that I receive from Brazil and are already taxed, have to be taxed again in Portugal?
Or is it easier for Portugal, for example with my Brazilian income tax I can declare the income tax in Portugal without having to pay the tax twice, something like "Non-Taxable Income" like we have here lol? -
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Hi Vinicius. Your article was very useful. Thank you!
I have a question and I'd like to know if you can help me clarify it.
I'm going to be living abroad indefinitely and I'll be keeping an apartment in Brazil that will generate me a rental income. I understand that I have to appoint an attorney to collect the taxes and everything else. My question is, does this rental income impact on the attorney's income or is he just an intermediary? Do these amounts go into my bank account or into the attorney's account? My attorney is on a scholarship and his income cannot exceed a precise amount. That's it.Thank you in advance if you could enlighten me.
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Hello, Marcelo!
Thanks for the compliment. I did a quick simulation on the SicalcWeband I had no trouble issuing a DARF slip with code 9478. Perhaps you should try again. We've had difficulties with the site before, and then it worked again.
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
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Hello, Fabricio!
Thank you very much for your interest in our content. An attorney is exactly that: someone who acts on your behalf to solve your problems. That's why he's just an intermediary. The money he receives from you is not his income, but yours. He could keep the funds for you, as long as it is clear in his declaration that this "extra" amount is a credit in your favor, not his property.
The Central Bank's regulations on non-resident bank accounts are a little more restrictive when it comes to the use of bank accounts, so it's a good idea to check with the bank or brokerage firm that will be making the exchange in advance so that they can send you the rental funds (when and if they do), in order to anticipate what documents they might ask for. This prevents bureaucracy from holding up your funds in Brazil.
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
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Good afternoon, Vinicius,
first of all thank you for sharing your knowledge, your article is excellent!
I have a question about declarations. I made a declaration of permanent departure from Brazil in April 2020, in which I appointed an attorney-in-fact and I continue to receive rents from a property in Brazil, collecting Darfs 9478. Now, who would need to declare the DIRF, me or the attorney-in-fact? And should the property management company declare me or the attorney-in-fact on its IRPF? And do I have to declare the DIRF every year that I continue to receive the rents? Thank you in advance! -
Hi, Camila!
Thank you for your interest in our content. This subject is really quite confusing. The Dirf regulations and the Dirf Questions and Answers manual say nothing about the attorney-in-fact's responsibility for submitting this declaration. The logic is that if the attorney-in-fact is collecting the DARF forms under his CPF, he is the one who must submit the Dirf, to allow the IRS to cross-check the data about him. The real estate agency is not the source of payment (the source is the tenant), and is not obliged to take on the role of attorney-in-fact. The real estate company submits a different declaration, called DIMOB. I understand that it is you who should be listed as the landlord of the property.
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
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Hello Vinicius, congratulations on the text, it is very explanatory and helped me a lot but I have doubts that I have not been able to solve.
I work for an accounting firm and a few days ago we were hired by a person who has his CPF blocked by the IRS and the reason is the failure to submit the DIRF, he left the country and made the definitive declaration in 2001 and he did not leave an attorney here in Brazil, the IRS is charging the DIRPF exer. 2020 and 2021.
Is it necessary to make these DIRPFs?
Even if he's abroad, does he still have to declare the money that leaves the country? -
Mr. Vinicius,
first, THANK YOU for sharing and clarifying such confusing information. Congratulations on your excellent and detailed work. I wish you and your team every success.My question:
When I pay or receive a Dirf, the tax is withheld at source on the same day I receive the credit (rent). However, there is no cash book. But I paid the expenses before the rent credit. For example: on December 6, 2021, the following were paid: Cond. Light, IPTU for December, and even the IPTU (total amount) for the following year, but the seasonal rent (the platform) began to be paid after these dates, so the rent was also received later (on December 27, 2021).
Can I calculate these expenses from 06.12 to deduct the taxes from 27.12?I've only just learned (here) about non-resident laws, so I'm going to pay the Darfes in arrears today (25.02.2022), but the amount of expenses that can be deducted is higher than the taxes to be paid.
Is it possible, is it legal, (since it's not so clear in the legislation) to split the expenses into other Darf's for the same or another month? Since with vacation rentals it's possible to have more credits in the same month?
How do I know the net amount of the Darf to be paid without having the cash book?
Note: I've handed in my definitive exit document from Brazil.Sorry for leaving such a long message, I've tried to read everything that's been suggested, but I don't understand.
Thank you for your attention.
Claudio Valentim -
Hello, Marco Antônio!
Thank you for your interest. This client of yours doesn't need to declare the money that has left the country. Most likely, a paying source in Brazil paid him income and reported it to the tax authorities as resident income. This led to the CPF status "pending regularization". It would be necessary to find out who informed the IRS incorrectly, present the letter stating that he was a resident and forward the information to the RFB, asking for the pending status to be removed and the CPF to be regularized. This should be a simple procedure, but the person receiving the request doesn't always have experience with this type of problem.
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
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Hello, Claudio!
Thank you for your interest in our content. The IRS does not offer guidance on your question. However, if the resident's situation is any guide, you could use all the expenses incurred in the same month to calculate the rental tax as you wish. The expenses allowed by the legislation refer to condominium, IPTU and collection costs (i.e. platform costs) borne by the landlord. The electricity bill was not included as a deductible expense.
Since the Dirf program only informs you of the income and the tax withheld, then in this case you would have to do the calculation manually and keep the memory.
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
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Thanks for the reply and clarification (also on the electricity bill).
So is it possible to pay the DIRF by adding/deducting the expenses (IPTU and Cond.) for the month? Got it, THANK YOU.To contribute to the forum, I would like to share the agreement between Brazil and Germany, which avoids double taxation between residents of the two countries (the document is in Portuguese, German and English).
Unfortunately, I only found the agreement a few days ago, which means I wouldn't have needed to make the "Declaration of Final Exit". Avoiding some headaches and paperwork.
I wish you success in your work. Thank you for creating such an enlightening source of information.
Claudio V. -
Good morning, Dr. Vinicius,
I read most of the doubts in the comments made, and your clarification of them helped me a lot.
However, I would like to mention my case.
I came to Japan in 1991, and when I decided to stay here, I made the Final Exit Declaration.
Since then I haven't filed my annual income tax return.
The property I owned was rented out years later and I never paid the Leão tax, as I didn't think it was necessary as it didn't exceed the exemption threshold.
Today, that same property is still rented out to another tenant and I found out about the need to pay income tax, regardless of the amount, through this channel, as I am considered a non-resident.
As you said, I have to appoint a proxy. Can it be my wife? She is in Brazil (she is a tax resident in Brazil) and also has rental income in her name, but that does not reach the limit of
exemption. You have no income that exceeds the limits that require you to file a declaration.
How can I solve this problem? Could you guide me?
Honestly, thank you! -
Hi Vinicius,
Excellent article and answers to readers' questions! I moved to the USA in 2006 and filed my Exit Declaration that same year. Since then I've always paid my own DARF's through Internet Banking, on my own CPF, but I've never filed the DIRF. In fact, I never knew about this obligation or when it was created. My tax situation has always been and continues to be regular with the SRF. From your answers to the previous questions, I understand that there is no problem in continuing to pay my own DARFs, but what about the DIRF? Start submitting it from 2022? Go back to previous years? If so, when was it created? How do I file my DIRFs late? Are there any penalties for late filing?
Thank you! -
Hi Vinicius,
In addition to my previous comment: When I read the DIRF 2022 questionnaire, I understood that the obligation to submit the DIRF lies with the person who pays the income, in the case of rental income, the tenant, whether or not there is a withholding tax. I therefore understand that I, as the recipient of the income, have no such obligation to the SRF. As I said in my previous question, I don't have an attorney as the recipient of my rents in Brazil, I pay my DARFs in my own name and CPF. Therefore, I don't understand when you recommend that the recipient of the rent, me in this case, make the DIRF declaration. Once again, thanks for the clarification!
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Thank you so much for sharing this important content with us!
I have a very specific question: if the IPTU for a higher amount than the rent was paid in a single installment by the non-resident Landlord, how should this tax be deducted for the purposes of calculating the IR for that month? Is it possible to make the calculation as if the IPTU had been paid in installments?
Or does the Landlord keep a "credit" and settle it in the following months?
Thank you in advance! -
Hello, Claudio,
Thank you for sending the text in its original trilingual version. I just need to make a note: the text is no longer in force, so you probably made the best decision.
Brazil and Germany no longer have an agreement to avoid double taxation since 2006. Germany denounced the agreement, basically because it didn't agree with how the IRS was applying it in practice, following a totally divergent line from the OECD. At the same time, Spain also complained, but reached an agreement with the IRS on our interpretation of the agreement.
In 2013, the IRS signaled that it would be willing to sign a new agreement with Germany along the same lines as the one we signed with Switzerland, which came into force in 2022. But as far as I know, Germany has not commented on the matter.
We have lost a lot by no longer having an agreement with Germany, and even more by not having an agreement with the United States. Since Brazil has finally decided to change tack and join the OECD, it's possible that things will change. In fact, the new agreements with Switzerland and the United Arab Emirates show that we have evolved as a nation.
Thanks again for all your interest in our work!
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Hello, Pedro!
Thank you very much for your interest in our content. Basically, what you earned more than 5 years ago has already been reached by the statute of limitations, so neither you can declare it, nor the IRS has the right to collect it. So we're really talking about the last 5 years.
Your wife can act as your proxy in Brazil to pay the taxes. This is fine if the property is your private property (i.e. if you are married with separation of property, or if you owned the property before you were married with partial communion of property).
If the property in question is jointly owned by you and your wife, the IRS allows 50% of the rent to be attributed to each of you or 100% of the rent to be attributed to one of you. Perhaps this is another way to regularize your situation.
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
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Hi, Leandro!
Thank you for your interest in our content. This issue of the prosecutor really is a "Bermuda triangle" in terms of the rule. As I said, the original law dates from the 1940s. As a general rule, you're right: the tenant is the source of payment, and he should withhold the tax himself and pay it to the IRS. But the 1940s law created the figure of the procurator precisely because it was thought that the tenant wouldn't do a good job.
When I consulted the old Income Tax Regulations (1980s), it said that the attorney-in-fact would submit the information to the Revenue, on paper, including a copy of the power of attorney. I don't believe this happened in practice, as this provision disappeared in the 1990s.
What I believe happened is that the Revenue Department never thought to provide for the obligation of the attorney to submit the Dirf. When the system went off the drawing board and became automated, starting in the second half of the 1990s, there was a gap in the rules, which was prolonged simply due to a lack of revision.
It's possible to say that, in terms of the system, submitting the Dirf is the best way for the IRS to cross-reference information on payments and associate it with a person. Without submitting the Dirf, the information is "loose" in the system. But there is, at least today, no express obligation for the attorney-in-fact to submit it (except for a brief comment in Question 192 of the IRPF 2021 Questions and Answers Manual(which is just a guideline from the IRS). The IRS could carry out this work with a pen stroke, simply by updating the normative instruction that deals with Dirf, without even having to tinker with the Dirf program.
In legal terms, I believe that this loophole prevents you from being penalized for not having filed the Dirf in the past. Last Friday, we created a first channel to contribute to an IR Tax Reform, and the result was very positive. One of the points would make it possible to improve the situation of rents.
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I hope I've helped, Leandro. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
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Hello, Bianca!
I'm the one who thanks you for your interest in our work. The tax office doesn't give guidance on this point, but it's reasonable to think that the same logic would be adopted as with the "carnê leão", which works on a cash basis: you become entitled to deduct once you've paid the expense, and the excess expense could be carried forward to future payments. In this case, the IPTU paid in a single installment would zero out the tax for the month in which the rent is lower, and the excess would be charged against the next month's rent, as a "credit".
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
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Good afternoon,
Thank you for your clarifications.
I have two questions:
- What is the threshold for mandatory submission of the DIRF?
- I pay the DARFs in my own name and I don't have an attorney in Brazil. Can I submit the DIRF in my own name and CPF?I looked for this information but couldn't find it.
Sincerely,
Edson. -
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Hello, Edson!
The minimum threshold for mandatory submission of Dirf to report non-resident income is R$ 28,559.70/year.
You can send the Dirf having been the one who collected the DARFs in your own name and CPF. In the body of the Dirf you identify that the payment refers to you.
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
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Hello, Liamara!
Thank you for contacting me. The ideal thing is for you to deliver the letter that the IRS asks for, informing them that you have become a non-resident, so that at least from then on the withholding tax will be levied using the correct code. With regard to the past, the legal entity tenant could rectify the Dirf they submitted and correct the payments, but it is very difficult to convince the company to do this. In this case, it's best to leave it as it is and, if your CPF is pending regularization because of the incorrect information, open an administrative process with the IRS asking for the matter to be dropped, presenting a copy of the letter.
Unfortunately, the procedure is laborious, but we have already managed to do it successfully.
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
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Hello, I wish you all the best!
I moved to Germany in mid-2021 and made the announcement to leave Brazil.
Now the tax return period has opened and I went to do some research on permanent withdrawal (which I didn't know about until I saw it) and learned about the issue of rental income.
I have an apartment that has been rented out (the amounts don't reach the ceiling) where the rental costs are used to pay the financing costs and the condominium fees and other expenses and I would like to know how to proceed in order to comply with the rules. My father, who is in Brazil, has power of attorney. The property has been rented since November 2021. -
Hello, Thiago!
Thank you very much for your interest. Brazilian rules don't allow you to deduct the value of the installments with the financing of the property from the rental tax. The value of the installments is added to the cost of acquiring the property in order to calculate the capital gain on the sale of the property in the future.
In your case, for rent, the condominium, IPTU and real estate agent's commission are basically deductible, as long as the burden is borne by you as the landlord. We know from the German Desk's experience that the taxation of the same rents in Germany allows for more generous deductions than this.
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
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Hello good morning, first of all I would like to praise you for your clear answers.
I have a question, I left Brazil permanently in June/2021 and in July I started to receive rent from the real estate company for my apartment that is rented, I didn't know that I needed to withhold the 15% of tax now that I am considered a non-resident, how should I proceed? I don't have an attorney in Brazil and I'm going to file my last tax return now, I wanted to regularize this situation because I will surely fall into the fine mesh if I don't regularize it.
Sincerely,
Ewerton
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Hello, Dr. Vinícius.
I'm renting the apartment of a brother who lives abroad and has left permanently.
In our case, the rental income stays with me, part for expenses and part to help me supplement my income.
Your explanations were enlightening, but as for the specificity of the amount not going to the owner, I couldn't get a final understanding from your explanations. Could you help me clarify? -
Vinicius, I'm a non-resident with commercial property in Brazil. The tenant (PJ) withholds the 15% IRRF and deposits the net amount in my CDE account in Brazil. There is no attorney or real estate agent. What about the DARF process? Who is responsible? Should the tenant issue/pay the DARF on the same day as the rent deposit? Should I demand payment receipts from them every month?
Thanks Vinicius, with so many Brazilians abroad this subject becomes more important every day!
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Hello, Ewerton!
Thank you very much for your interest. The legislation didn't provide for the situation of taxpayers who spontaneously collect the rental tax, because the law, when it was created (1940s), didn't even imagine this possibility. One possibility would be to collect the DARF forms from your CPF and submit this year's Dirf. In this case, there will be some fines for the delay. Legally, if the taxpayer fulfills the tax obligation of the person who was responsible (the attorney-in-fact), the obligation is extinguished in the same way.
I hope I've helped. We can provide support if you need it. Just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
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Hello, Cristoban!
Thank you for your interest. Yes, in this specific case, the tenant is normally responsible for collecting the 15% of IRRF and informing the tax authorities of the collection by submitting the Dirf. I suggest you contact them and confirm that they are doing so (if they are withholding the 15% from you, they probably are). You can demand proof, even to comply with the tax authorities of the country you're in, if they tax the Brazilian rent.
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
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Hello, Adriene!
Thank you for your interest. I'm not sure I understand your question very well. Are you representing the person paying the rent, withholding 15% tax? Or are you a proxy for a person abroad who is earning this income?
The 15% of IRRF for non-residents has no progression, so it is not appropriate to apply the amounts of the income tax table (this is only for residents).
If you are on behalf of the tenant, then the rent, including the IRRF, can be deducted from income tax depending on the tenant's tax regime (in this case, it is deductible from the IRPJ and CSLL due by the Brazilian company opting for real profit, and in some cases it can also become a PIS/COFINS credit under the non-cumulative regime).
Forgive me if my answer seems confusing. I'm not sure I understand the question, so I've answered two different potential questions.
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
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Hello, Marilia!
Thank you for your interest. The difficulty in answering your question is knowing how much of your brother's money remains with you. If you're just a proxy and you're managing the property for him, then you're managing your brother's business, and the amount left over after your brother's expenses constitutes an amount you owe him.
If whatever is left over stays with you, with no obligation to return it to your brother, then you are receiving donations. They may be taxable by ITCMD, depending on the amount and the state in question (ITCMD is a state tax).
It's difficult to give a good answer to your question because there's a lack of information. But I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
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I have the same question as Leandro. To me, it makes more sense for the tenant himself to provide information on the DIRF because only he can tell me the date of payment, whether there was a fine for late payment and everything else. He is the only individual or legal entity who can provide data to be cross-referenced with the information on his DARF.
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Good afternoon. I have a rented apartment in Portugal and I pay income tax there. The rent is not transferred to Brazil.
How should I declare this rent? Income tax is higher in Portugal. So, as I understand it, it's worth the higher amount, correct?
In the IR2022 program there is a "Darf Pago" column. Where should I enter the amount to be paid in IR (in Portugal it's after the calculation here in Brazil)? Month by month at the Portuguese rate (28%) or in December the total?Thank you in advance
Charles -
Vinicius, good morning
Thank you for all the information you have given us, it has been very important.
I receive rent from my son who lives abroad, and I pay the monthly Darf under code 9478. I have to do the Dirf, I downloaded the program, my question is this: do I do the Dirf on my CPF and in the Beneficiary box do I put my son's CPF?
Thank you very much in advance, see you later, and thank you very much -
Hello, Maria!
Thank you for your interest in our content. The logic of the Dirf really is this: if you collect the DARF form in code 9478 in your name, then you submit the Dirf. On the form dealing with residents or domiciled abroad, you provide the name and other details of your son as beneficiary, and the list of DARF forms you have collected, along with the rental amounts.
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
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Hello, Charles!
I hope you're all right. In the IR 2022 program, the "Darf Pago" column refers to amounts collected in Brazil, not in Portugal. On another tab, "Tax Paid/Retained", the second field asks you to enter, in Reais, the amount of tax collected in Portugal (the total for the whole year). With this, the program itself calculates the credit and deducts it at the end of the declaration. In this way, you only report rental income in the "Abroad" column on the "Carnê leão" form (income received from PF/exterior).
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
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Hello, Patricia!
Thank you for your question. If the rent is paid to a non-resident, the answer is yes. The law makes no distinction as to who pays when it determines the tax due date, unfortunately.
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
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Hello, Patricia!
Thank you for your interest. If the rent is paid to a non-resident, the answer is yes. The law makes no distinction as to who pays when it determines the tax due date, unfortunately.
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
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Patricia,
I understand your point. Normally that would be the law's solution, as the tenant is the source of the income. The law, however, distrusts the tenant, creating the figure of the landlord's attorney as an alternative. The logic of the law is to have someone in Brazil from whom you can collect the tax in a tax execution if the tax payment remains unpaid. That's why it prefers the attorney over the tenant.
In fact, I think it would be best, in the case of rentals, to hold the real estate agent, if there is one, responsible. This is because the real estate company already provides the tax authorities with a declaration called DIMOB, in which it reports all the rents, commissions, etc. of the rental contracts it manages.
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
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First of all, thank you for taking the time to answer questions from residents outside Brazil. If you can help me with this, I would be grateful.
I am a partner in a Ltd. company in Brazil that was inactive because it had no income, but a shed owned by the company will be rented out, so how will this income be taxed since I live in Japan? -
Hello, Sheila,
thank you for your interest. If the company owns the shed and rents it out, it will no longer be inactive and will be taxed on the rent. Any profits that the company makes and that are distributed to you, who live in Japan, will be treated as dividends, exempt in Brazil (and possibly taxed in Japan).
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
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I'd like to say thank you once again and recommend the Tersi team's advisory service to everyone.
I recently moved to Panama and had these doubts about living abroad and owning property in Brazil, the implications and difficulties. I searched the internet thoroughly but it was only after reading this article that I felt confident in the content and decided to try the consultancy. After the session, it was pure peace of mind. With the content presented plus the advice, many things were demystified for me and now I have confidence in the subject.
That's why I recommend that everyone who has read this content and still feels insecure about the subject (like me) should have a session with the consultancy, it's really worth it and then you can sleep with a clear conscience haha.
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Dr. Edson, good afternoon!
First of all, congratulations on the excellent material you have made available.
Does a person who has rental income in Brazil, residing abroad (New York), and who has left the country definitively, duly notified to the IRS, also pay tax on this income in the country where they are currently residing?
In other words, does he need to notify the US government of the amount he receives from renting in Brazil and add that to the amount he receives in the US and pay tax there? -
Dr. Vinicius Tersi, good afternoon!
First of all, congratulations on the excellent material you have made available.
Does a person who has rental income in Brazil, residing abroad (New York), and who has left the country definitively, duly notified to the IRS, also pay tax on this income in the country where they are currently residing?
In other words, does he need to notify the US government of the amount he receives from renting in Brazil and add that to the amount he receives in the US and pay tax there? -
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Hi, Juliana!
Thanks for the question, I think it's the first time I've heard it. Payments made by the attorney in the interest of another person are not reported on the attorney's income tax return, but on the Dirf (withholding tax return). This is a separate declaration, filed by the attorney in February of the year following the events. It indicates the beneficiary of the payments and in which country they live.
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
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Excellent answer Vinícius, very enlightening, as I am in a similar situation. I'm the attorney for my brother who moved to Portugal (we have dual citizenship) and it took almost 3 years to convince one of our tenants (PJ) to sign the Notice ("and I know if he's really living there?" was one of the answers we heard) and we still have another who hasn't signed the Notice yet (the tenant is Banco Santander - believe it or not...) because the Amendment to the Lease Agreement stating that my brother is living abroad would be enough. In both cases, the tenants are already paying the IR at the linear rate of 15% (less bad), but 1 of them kept the previous tax code and sent us the IRRF Proof. I'll do as you say. If the Receita summons me, I'll bring all the documentation;
Another question, as my brother still has a current account in Brazil, is it possible for him to receive the gross rent in his account and pay the 15% himself? And in the case of rents that are paid by bank transfer and, when they arrive in the account, there is no time to issue and pay the DARF, mainly due to the time zone...? -
Good afternoon, Vinícius.
I've been living abroad since 2014 and I've always paid the 15% tax on the rents of two apartments I own in Brazil, under my own CPF, even though I filed my final tax return in 2014. These payments were always made on the day I received the rents.
When I log in to e-CAC with my CPF, all the payments I've made so far appear there, but according to your explanation, my method would be wrong (I should do it with a proxy).
Considering the above information, what problem could I have and how could/should I solve it? I've never refused to pay the taxes due, but I'm afraid I might have problems, even though I don't intend to live in Brazil any more.
Could you clarify?
Hugs and thanks.
Renato -
Very enlightening article, which helped clear up many of my solicitor's doubts 🙂
But I have the following situation:
- CDSP in June/2021
- First rent received in August/2022
-> All with the appropriate DARFs paid to the CPF of the attorney-in-fact, who submitted the DIRF in February/2022
- DSDP delivered in April/2022In the DSDP I didn't report any rent received, since the program doesn't even allow you to declare rent received after the date of permanent departure.
However, in the DSDP processing statement, there is a pending issue regarding the rents, since the real estate company made the DIMOD for my CPF.What do I need to do to resolve this? Do I wait for communication from the IRS and present the necessary documentation to demonstrate that the rents were received after the date of departure?
Thank you!
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Hello, my name is Vinicius.
See if you can help me, I have a friend who is living abroad, and who has made the declaration of definitive departure from the country, but he has a rented property in Brazil and receives the value of the rent in a current account of his here in Brazil, my question is how to declare these values and collect the taxes even if in arrears?
Thank you in advance.
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Dr. Vinícius,
thanks for the great article!
I read the IN RFB 1990/2020 and was confused about the obligation to submit the DIRF.
Reading the instruction, I understood that the rental limit would be R$ 6,000.00.
I'm the attorney for my son who lives in England and I pay the DARFs every month.
Until 2020 I did the DARF on his CPF. In 2021 I started doing it on my CPF and doing my IR Declaration this year I understood that I should present the DIRF. But if the limit is R$ 28,559.70, as you replied to Edson, I'm even exempt from paying a fine, since the deadline was February 28. Phew! -
Good afternoon, Vinicius
Could you help me with a question, my attorney-in-fact made the payments of the DarFs issued by his CPF in 2921. is it not necessary to file a DIRF for annual amounts of less than 28,559.70 / year?
Isn't it advisable to file a DIRF so that these tickets appear as payments made by a non-resident?
Should you declare it in your annual tax return? In the declaration subject to exclusive taxation box?
Thank you for your attention.
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Good morning, Vinicius.
First of all, congratulations on the article, which addresses a subject that is so nebulous and little publicized, even in a reality where we have many Brazilians living abroad.
I have some questions about the topic (and other related ones), if you could answer them, please.
- I've been living and working outside Brazil for a short time and have no intention of returning in the short term (i.e. I won't be returning for a year). Should I declare my definitive departure from the country after 12 months away or before?
- I have a property in Brazil, which I have put up for rent and which already has tenants. The income from this rental will be included in next year's tax return (March/2023), and if I don't file my tax return before then, my tax residence will still be in Brazil, right? That said, I'll enter the rents as normal (through Carne Leão), as a resident in the declaration, correct?
- Finally, I read an excellent article of yours about Brazilian accounts living abroad. The only way to keep a "normal" account (without the astronomical maintenance fees of the banks in this modality) would be to not declare the definitive exit, and for this, to continue declaring IRPF in the country, right or wrong? And just by continuing to declare the rental income in the country, would I be guaranteed resident status or would I need to come to the country within 12 months?
Thanks again and congratulations on your work.
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Hi Vinicius, how are you?
I moved abroad in the middle of 2021 and left my rented house the month after I left. I submitted my final tax return at the beginning of May and, when I consulted e-cac today, it showed that there are pending issues because I didn't declare what I received from the real estate agency. I've always paid the tax since I started receiving it. How should I proceed?
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Hello, Vinicius.
I'm negotiating the lease of a property whose owner lives outside Brazil and has already withdrawn it from the IRS.
In this case, if I don't have a tax attorney resident in the country, I would be responsible for collecting the tax and if I don't, I can answer to the IRS, correct?
If the property manager, hired by the landlord, collects the DARFs for the rent, would this be in accordance with the law and would I be in legality with the tax authorities? In other words, would I be free of any tax collection charges?
If this is possible, it is the landlord's right to include a clause in the contract requiring the management company to present proof of payment of the DARF each month and the DIRF at the end of the year, am I right?I'm in an urgent need to sign a contract and this is the only obstacle that I still have doubts about in order to be sure of signing it.
Sds
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Good evening, Doctor. Your explanations are fantastic.
I'm a tax resident in the USA and I declared my non-resident status to the Brazilian tax authorities years ago. I'm about to start receiving rents from a property I own in Brazil.
My question is simple. Is there a double taxation agreement or reciprocity agreement between Brazil and the United States? Does this agreement (if it exists) exempt me from paying the 15% of tax in Brazil on the rent received?
Thank you very much -
Hello, in my case, I am a non-resident and I receive rent from an individual through a real estate agent, who is responsible for paying the tax? me through the Darf, or the real estate agent withholding it at source? if it's me, or a proxy, should I consider the date of paying the tax to be the day the Tenant pays the Real Estate Agent, or the day the Real Estate Agent passes it on to me? thank you,
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Hi Vinicius,
Since I left Brazil permanently in 2016, I have been paying the 15% rental tax using the code 9478 in my CPF. I use the SICALC system normally and with barcode generation. I was surprised to learn that the tax should be paid by a proxy and that this would also require the generation of a DIRF. In this case, do you have any suggestions on how to proceed with regularization? Thank you.
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Hello, Vinicius!
Could you answer a question?
Residents abroad do not have an attorney-in-fact in Brazil. Income tax is paid by the resident himself under code 9478.
However, he has a property management company that looks after his apartment and he handed over Dimob with the amount of income and commission.
However, because there was no attorney-in-fact, the foreign resident was told to file his income tax return. He submitted it and put it in the field of income subject to exclusive/definitive taxation (along with his other bank income). However, he received an inconsistency notice stating that no taxable income from legal entities had been declared to the paying sources.How to proceed in this case?
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Hello, Vinicius,
I am the attorney for an individual who has become a non-resident. She has a property rented to a legal entity.
Do I have to inform the tenant that the landlord has become a non-resident so that they don't withhold and pay income tax? Should I do the annual DIRF? Is there anywhere that regulates this?
Thank you for your attention.
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Hello Vinicius, how are you?
I have been living in New Zealand since 2015 and as a non-resident in Brazil, because I filed a Declaration of Definitive Departure, which was filed and processed on 04/02/2017, I have been receiving rents from my apartment financed by Caixa since then in the amount of 1200 per month at my bank in Brazil.
How should I proceed in this case? -
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Hello Vinícius, your articles are very good. Congratulations.
My question is quite specific. My brother left the country around 1990, and he NEVER filed a Notice of Exit or a Declaration of Final Exit.
However, his CPF has already had an address abroad since 2006.
He has a rental property here in Brazil that earns around R$ 1,400.00 and he has never paid tax on it, because we didn't know that non-residents are not entitled to the R$ 1,903.00 exemption.
My question is: after all this time, is it necessary to file a Notice of Exit, given that his CPF already has an address abroad? -
Hello Vinícius, first of all congratulations on the article as it is very enlightening.
However, I have a question: apart from the IPTU, condominium and real estate commission, are there any other expenses that can be deducted? Specifically, I'm interested in the building fund, which is a burden on my income.
Thank you.
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Hello, Vinícius. Good afternoon.
Thank you for your clarifications, but I have one question...
My sister-in-law, who lives in the United States, inherited a property and will receive the rent.
As far as taxation in Brazil is concerned, all the procedures to be followed (calculating income tax, paying the DARF and submitting the DIRF) have already been made clear... But how to proceed in the United States? Does this income have to be declared? Will tax be payable there? As we're talking about American legislation, I hope you can give me some guidance.Thank you in advance for your attention.
Flavia -
Dear Vinicius, good evening!
Excellent explanation!
In the case of a person who has left the country permanently (going to Germany), has a property here in Brazil and rents it out to Airbnb, i.e. receives it for lodging, and can receive it more than once a month, can they pay the tax on the last day of the month, being the sum of the month?
Thank you in advance for your help! -
Good afternoon Vinicius, I'd be grateful if you could help me.
I live abroad, I receive the rent for my house in Brazil directly into my Brazilian account and I pay the monthly income tax myself, but I inform the CPF of my attorney in Brazil on the DARF. He, in turn, has never reported these DARFs on his annual tax return.
Could you please tell me what would be the best way to regularize this situation? -
Hi Vinícius, what's up?
I have a question regarding the payment of overdue DARF.
For example, if I receive the money in my bank account today and forget to generate and pay the DARF, how should I issue the DARF tomorrow? Should I issue a DARF tomorrow and add some kind of interest? Or is this interest calculated in the DIRF? Do I have to calculate it all manually?
Thank you,
Bruno. -
Hello, Vinicius,
Congratulations on the site, one of the best I've ever seen on this subject, very didactic and objective.
I have the following situation: I was a non-tax resident until April 2021, then I became a resident again, I own a rental property, I collected the DARF with code 9478 until April and 0190 after April. In the 2022 declaration, base year 2021, I declared only the rental income after my return, but the real estate company declared the entire year in the Declaration of Information on Real Estate Activities (DIMOB), generating a divergence and a fine mesh in the amount of income from January to April.
I hadn't formally informed the real estate company of my tax exit, should I ask them to rectify the DIMOB using a code for non-tax resident for the months up to April? I looked up the revenue codes for the DIRF on the RF website and couldn't find any that mentioned non-tax resident. Any suggestions as to what I should do? -
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Hi Vinicius
Thanks for the article, very detailed and enlightening.
I have already made the Declaration of Permanent Departure and I own a property in Brazil, which I am renting out on a vacation rental basis through a very popular platform.
They are often renters who only stay for a few days, and the amount received for each stay doesn't even cover the cost of the condominium.
First question: do I have to pay the DARF even if there is no benefit? (zero tax, but it is recorded that there was rent)
Second question: if the first stay of the month does not cover the value of the condominium but the sum of all the stays of the month does, how should I proceed? The fact that the declaration isn't monthly like the Carnê Leao makes it very difficult to deduct the expenses, which are effectively monthly....
Thank you so much!
Caroline -
Thank you very much for the content!
My sister and brother-in-law live in the USA and filed their final exit papers this year. I'm their attorney-in-fact and now we need to change the way we receive the rent for their apartment. The rent is paid through a real estate company that already withheld the tax and deposited the amount in the account they still had in Brazil. Now that the account will be extinguished, we will have to make this change. Your explanations have helped a lot, but I still have some questions:(1) Does this change in the tax collection process have to take effect from the date the outgoing tax return was sent, or from the beginning of this year?
2. Is it compulsory to set up a domiciled abroad account (CDE)? Or can I keep the money received in my account and use it for their expenses here and eventually make international transfers to their account in the USA?
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Good afternoon Vinicius
Reading all the posts left me with a question.
How does the IRS cross-reference the information from the DIRF filed by the attorney (real estate agent) x DIMOB (real estate agent) x (Tenant).
How should it be reported so that there is no duplication, since the tenant also reports it on his Dirf?
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Good afternoon Dr. Vinicius Tersi, following your articles I could not fail to mention the quality and practicality of the articles published here, I take the opportunity to request guidance if possible, as below:
-Taxpayer left the country on 01/1999;
-Received American citizenship on 06/01/2006;
-He hasn't announced his definitive departure from Brazil;
-Did not make a declaration of definitive departure from Brazil;
-In the 2018/2017 IRPF he informed that there had been a change of address to the USA, the prosecutor also informed;
-In the 2018/2017 - 2019/2018 - 2020/2019 and 2021/2020 IRPF, he declared rental income as if he were resident in Brazil, paying income tax in the annual adjustment according to the calculation;
-Following your guidelines, I understood that the rental income received should be taxed at the rate of 15% and collected by the carnê leão under code 0190, since there was no statement of definitive departure from Brazil, correct?
-A IRPF 2022/2021 was transmitted without movement, but rental income continued to come in normally and no income tax payments were made.
-Can I rectify this 2022/2021 declaration by informing the definitive departure from the country, taxing the income received at the rate of 15% at the time of receipt throughout the calendar year, in code 9478, in the CPF of the attorney?
-In this case, I will only be informing the definitive departure from the country in the 2022/2021 IRPF; What would the definitive departure from the country communication form look like?
-Taxpayer in this case is a tax resident in Brazil because he didn't make the announcement although he changed his address in the 2018/2017 IRPF, correct? From what I've seen in the legislation, his income in this case received in the US would also be taxed in Brazil, is that correct? Would there be an offset?
-Once the situation has been regularized, how will the rental income received in Brazil be taxed?
Note: Will professional fees be charged for providing guidance?
Hamilton Camilo - Accountant -
Good afternoon.
First of all, thank you for the information and congratulations on your work. Very enlightening.
I have a question.
I have an apartment in partnership with my brother in Brazil, and we pay rent. I recently moved country and will be filing my tax return soon. How would this be in the case of an apartment where the rent is split? -
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Hi Vinicius!
My husband left BR in 2017. He has a property rented in BR through a real estate agency that collects the 15% with code 9478. We never knew we had to file an annual DIRF. Checking the IRS website doesn't show any pending issues, just "Not Submitted".
Does this DIRF have to be done for the last 5 years? He doesn't have a designated attorney. The total gross amount received last year (2021) was R$ 36,400.00.
I (wife) am resident in Brazil, we bought a piece of land last year and I declared only my share, i.e. 50% of the total value, in my declaration, stating that the other half belongs to my husband. Did I do the right thing, or should I have declared 100%?
Thank you very much for your help, your site is very enlightening and useful!Vania
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Hello, Matheus!
Thank you for your confidence in our work and for sparing no praise when you commented on your experience with us.
Our efforts are always aimed at helping them and it gives us immense joy when we receive reports from clients who have gained the confidence to continue their international endeavors.
Cheers!
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Hello, Vinicius!
I'd like to thank you (again) for the content!
I have two questions. I hope you can help me.
I am a non-resident and receive rent from an individual in Brazil. Every month, when my current account is received, my attorney-in-fact pays the income tax, indicating his CPF and code 9478 on the Darf).
The next step, by the end of February, is for my attorney-in-fact to file the DIRF, right? (even if the amounts received never passed through his account).Second question: if the rental is managed by a real estate agent, will my attorney continue to be responsible for the Darfs and the DIRF (or will the tax liability become the real estate agent's)?
Thank you very much in advance!
Have a great 2023!
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Hello, Vinicius,
First of all, congratulations on a very useful blog.
To put it in context: I've been living abroad for 4 years and I've already made my permanent departure from Brazil, but I have a rented property (being managed by a real estate agency), I also have a person representing me by power of attorney, I asked the real estate agency to make the payments to my attorney, the real estate agency is depositing in my attorney's account, but the invoice is coming out in my CPF, because they claim that because I am the owner the invoice should come out in my name.
My question is: Couldn't the invoice be issued in the name (CPF) of my attorney? Is there any legal reference for this?
Thank you in advance and congratulations once again on your blog.
Mike -
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Hello, Vinícius.
I made the Final Exit Declaration last year and I have a property that was rented out this year (2023).
As I don't have an appointed attorney in Brazil, can I pay the tax through a DARF (Code 9478) in my name and CPF?
In the following year, will I also be able to declare the DIRF in my name and CPF, even if I am a "non-resident"?) -
Thank you so much for so much valuable information!
I have a question about what to enter in the sicalc system to issue the DARF with code 9478. What should I fill in under Consolidation Date and Calculation Period? I noticed that the date entered in the Calculation Period must be complete (dd/mm/year), unlike the DARF for carnê-leão. This date is automatically used by the sicalc system as the DARF due date. -
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Good afternoon!
I work in a company where the office is rented.
Today, I learned that 2 of the 5 landlords live abroad.In the text, I had understood that the person responsible for paying the DARF would be the attorney in Brazil, but reading the questions, in one of them, you state that the payment can be made by the tenant and I was in doubt.
In the case of collecting DARFs and submitting the DIRF, who is responsible? The renting company, an attorney/administrator of the property or the landlords?
In the payments made from January to April/2023, the 15% withholdings were not taken into account. We made the payments in full. In this case, would it be correct for the property's attorney/administrator to pay the tax and submit the DIRF?
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Hello,
I have a question. We have calculated the 15% rental tax for an owner who lives abroad. The calculation due should be 15% on the net, but the fact is that it was calculated on the gross deducting only the property management fee. As a result of this error, more DARFs were paid during some months of 2023.
The question is, is it possible to request a refund or rebate on future DARFs? How would this procedure work if a refund is possible? -
Dear Terci,
In the case of non-residents abroad, is the attorney responsible for paying the DARF for individuals and companies or only for individuals? If the attorney-in-fact is collecting the tax and paying the DARF for legal entities and individuals, why does the IRS ask on the receipt of the definitive communication that the tenant must inform the paying sources ("communicate, in writing, to the paying source, if you receive income from Brazil, so that it may withhold income tax in accordance with the legislation")? Is there a problem if the paying sources are not informed since they are not deducting the payment of 15% from the IIRRF (since it is the non-resident via a proxy who is already withholding the 15%)? Is there an obligation for the non-resident to inform the PJs and the real estate company that manages the property that the attorney-in-fact is collecting 15% for DIMOB and legal entity accounting purposes?
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