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What the IRS says about people who stop living in Brazil without submitting any declaration formalizing their tax exit
[See the full article at I didn't make a Declaration of Final Departure from Brazil: 3 conclusions about the risks]
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Hi, Dr. Vinícius!
I'm Brazilian and I've been living in the Netherlands for four years. In Brazil I declared income tax because of my salary and my son's alimony.I arrived in the Netherlands in June 2018. In 2019, I filed my last income tax return for the base year 2018, because I went on vacation there. I have no income in Brazil, no property, assets, etc. Nothing at all!
I didn't file the Notice of Permanent Departure from Brazil because I only found out today that I had to do so.
I'm returning to live in Brazil permanently in August 2022].
I have a job in Holland and I'm quitting to come back to our country.What should I do?
I want to pay the fines if I have to, but I don't want to come across as a tax evader or someone who doesn't comply with the law.What should I do?
I'm very worried because I've always been up to date with my obligations as a citizen.
Thank you in advance. -
Hello, Simone!
Thank you for your interest in our content. It's very difficult to give a recommendation to assess your case in a blog post. In any case, as you left Brazil less than 5 years ago, it is possible to rectify your 2019/2018 declaration to convert it into a declaration of definitive departure from the country. This should formalize that you ceased to be a resident in June 2018, if you haven't filed any declarations in the following years.
If you return to Brazil in August 2022, you will have to file a normal declaration next year stating your situation on the date of your return to Brazil. There are some specific rules for this situation, but they don't prevent you from correctly recognizing what actually happened: that you left Brazil to live abroad in 2018 and that in 2022 you will resume your tax resident status 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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Dr. Vinicius Tersi.
Congratulations on the clarifications in the article.
I have this doubt:
My son went to study in Canada in 2018 and finished his postgraduate course in 2020, during which time he did an internship at a company.
In 2021, he applied for a residential visa and was granted one on 10/2021.
He currently works for a registered company.
He's going to announce that he's leaving the country for good.
He filed all his tax returns and paid his taxes.
I'm wondering if the best way to legalize it is to rectify the 2018 declaration or to report the exit now in Feb/2022?thank you for your attention
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Hello, Nilson!
Thank you for your interest in our content. It's difficult to give a recommendation in a blog post about a specific case, without analysis. More generally, if your son had little income in Canada because he was studying, and has filed a tax return in Brazil every year stating this income, it is reasonable for him to leave only now. In the most recent article I published, about the "nebulous definitive mood", you'll see that the Judiciary considered a person who was in Boston for studies and didn't formalize their definitive departure to be domiciled in Brazil. It's a similar situation to your son's.
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, Dr. Vinícius.
I've been living in Germany for more than 15 years and I recently discovered that I should have made the Declaration of Final Departure and now I've seen that I can't do it retroactively for so many years. I have no income in Brazil, but I have a sixth share in an apartment where my mother lives. In Germany, I don't have any income of my own, but I'm married to a local man, we have a property and some investments. If we decide to move to Brazil and transfer our assets to a Brazilian bank, would we have any complications with the IRS?
Thank you.
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Hello Dr. Vinicius!
Thanks for the explanations!I'm Brazilian and I lived in Japan from June 2018 to October 2021.
I've never filed an income tax return and I haven't filed a final exit tax return either.
I went to Japan to work and sent monthly remittances to Brazil via Transfer Wise. While I was there, I filed an income tax return with the Japanese government.
This year I'm going to receive a transfer of money from Japan to my bank account in Brazil.In this context, I would like to know what you recommend.
Thank you in advance!
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Hello, Jamil!
Thank you very much for your comment! Yes, you can make international remittances as normal. If they ask for proof, you can present the DSDP as proof that you are no longer obliged to declare the amounts held in Brazil to the IRS. And other documents can prove that the funds sent are yours.
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, Perola!
Thank you for your interest. I understand that you didn't formalize your tax exit or file any income tax returns in Brazil. In this case, it's not possible to transmit the exit declaration from 15 years ago, but it is possible to at least request an update of your CPF status, either by opening an administrative process or by submitting a declaration from another year (in the latter case, we take some care with the information, so that the procedure can be clarified in the event of an inspection).
In any case, if you moved to Brazil, you would have to file a declaration involving all your assets in both countries. Hence the comments I made above, in this same text, on the position taken by the IRS in Consultation Solution 63/2021.
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, Higa!
Thank you very much for your interest in what we write. I can't give you a recommendation without analyzing the case further, but you should certainly file your annual tax return this year, including your assets in Brazil and Japan, as well as your income. As Japan has an agreement with Brazil to avoid double taxation, you can take advantage of the benefits, especially on the receipt of salaries.
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 the enlightening text. But I still have a question.
If a person continues to file a tax return every year, even after they have left Brazil, what form does the IRS use to identify that this person is no longer a tax resident in Brazil?
It seems to me that the IRS is totally blind at this point, as it doesn't check airline tickets in and out of airports, so I understand that I can put the date that I think is most beneficial to me on the Final Exit Declaration?
I have some financial investments that I'm going to redeem from 2024, and I'm leaving Brazil for Germany in the middle of this year, so it would be more interesting for me to communicate my departure after this redemption.
What are the consequences of doing this?
Does the German tax office communicate with the Brazilian tax office?
Thanks, Jacqueline -
Hello, Jacqueline!
Thank you for your interest in our content. Germany and Brazil are already part of a network of international treaties on the exchange of criminal and tax information, and have been exchanging information effectively since 2018. On the German side, we already have news of some inspections using information received from Brazil, but we don't yet have information about the opposite situation (the IRS fining people who have failed to declare income from Germany).
The tax office usually relies on the submission of tax returns ("normal" or final) to determine someone's tax status. And the Judiciary also uses this information as evidence, as I've explained in this text. My suggestion is that you go with the solution that is most coherent with the life situation you are experiencing, without exposing yourself to unnecessary risks.
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
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, Dr. Vinícius
I left Brazil at the end of 2018 to work in the United Arab Emirates and I'll be here indefinitely and I don't know if I'll return to Brazil either.
I didn't pay any attention to the fact that I did the DSD and continued to make my declarations as normal, as I have investments in Brazil.
What should I do? File an exit declaration now in 2022, or rectify the 2019 declaration? I filed declarations in 2020 and 2021.Thank you very much
Fernando
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Hello, Dr. Vinicius,
The work you do here through this blog is very important. I've been living in the Netherlands since 2016 and I didn't know I had to declare my permanent departure from Brazil. And every year I have been declaring IRPF in Brazil because I have an apartment and investments in the country. But I never declared my husband's income in the Netherlands (he doesn't own any property). I myself only started earning income in 2021. I want to legalize my situation and would like guidance on how to proceed.
Thank you in advance for your attention.
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Good afternoon... I have a huge question that is taking me away from sleep! I never filed an income tax return in Brazil, because I didn't work and only studied... I went to Japan in 2003 and I don't remember if I filed this return when I left... I came back in November 2006 and stayed here for 4 months on vacation and got back some of the money I earned there! I went back to Japan and stayed until January 2009, when the crisis hit and I lost my job! Before I came back I sent some money to Brazil and when I got here I withdrew some more... there was some money left at the Japanese Bank of Brazil... that was 12 years ago! When I came back I was only told that savings do not have income tax, so I didn't even make a declaration. 🙁 During that time I made some redemptions that increased my assets... Now in 2022 I found myself in the situation that I was eligible to declare in 2019 and I didn't... if I declare the arrears of 2019, 2020 and 2021, will I have problems with the revenue to prove the money in savings account? Thank you
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Thanks for the text. My sister-in-law has been out of the country for over twenty years. She hasn't left the country permanently and has never declared income tax in Brazil. She works abroad and is a salaried employee. In 2021 she started receiving a navy pension for the death of her mother, with income tax deducted at source. This year she intends to buy a house with the money she earned abroad and return to live in Brazil. What advice do you have for regularizing this situation with the tax authorities? thank you.
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Good afternoon Vinicius. Thank you for all your clarifications. It's great work. Thank you for sharing so much knowledge
I'm Brazilian and I've been living in Switzerland for 4 years and during those years I normally filed my income tax return in Brazil. I didn't know that I had to file a final tax return. Sorry for my ignorance.
Can I make my final exit declaration retroactively? I mean from 2018? Thank you -
Hello, Dr. Vinicius,
Thank you for your article and information.
I came here with one question and ended up finding another.
The first doubt is in relation to Mr. Jamil Bexara's question, which reads as follows:"I have a question about sending money abroad from Brazil, since I did my DSDP in 2022, as I left Brazil at the end of 2021:
Can I continue to send money abroad from my Brazilian account?"He replied that he could make international shipments normally, even though he had already submitted the DSDP.
My understanding so far is that anyone who does the DSDP becomes a non-tax resident in Brazil and can no longer have a bank account in Brazil unless it is a foreign domiciled account, or CDE. Most banks don't offer this type of account and treat their account holders as tax residents in Brazil, passing this information on to the IRS. By filing the DSDP he will not be taxed on any income he may have abroad and if he has income in Brazil, he will be taxed differently, as a non-tax resident in Brazil. But if you keep an account in Brazil as a tax resident even though you have already done the DSDP, this could cause future problems such as your account being frozen or your CPF being suspended.
Can you clarify that please?
My second question is this: I sent the entire balance of my account in Brazil abroad (related to the sale of real estate) and closed the account in mid-June/2021. I left Brazil at the beginning of July/2021 and did the CSDP on the same date.
I'm now filling in the DSDP/2022 and I'm wondering if it's necessary to inform the above-mentioned remittances abroad in the Assets and rights field of the DSDP.
It's worth mentioning that the Capital Gain tax paid and the closure of the account in Brazil were informed in the Breakdown, leaving my balance in Brazil at zero on the date of characterization of the non-resident status.Thank you very much for your kind attention!
Success in everything! -
Dear Vinicius,
I haven't made my final exit declaration and I've been expatriating in Mexico since 07/2021. I would like to maintain tax residency in both Brazil and Mexico. I prepared my DAA in Brazil including the income received in Mexico and because the income tax rate in Mexico is higher than in Brazil it did not generate any amount to pay via carne-leão. I would like to know if it is necessary to include any reference to the existing treaty of non-bi-taxability between the countries in the DAA because it does not request any information in the DAA of the country where I received the income. What is the risk of doing the DAA in this way? Do you know anyone you would recommend to help you prepare the DAA? -
Good afternoon Dr. Vinicius,
Congratulations on the great article! This page has been extremely useful for so many Brazilians who now find themselves in the same situation as me.
I left Brazil in 1992, recently graduated, with no earnings and no tax return. My question concerns the calculation of the fine for late declaration, as well as the calculation of any tax due to the RF from 1992 until today.
Thank you very much. -
Thank you Vinicius for the incredible content of this and other posts on your page.
A question, please: I have been living in Hungary since 12/2020. Last year I filed my IRPF tax return, but I didn't file a Notification of Departure from Brazil, because I didn't know it was necessary and because I still have income in Brazil and I don't have any income here abroad. Regardless of the amount of tax, my intention is to be regular with the IRS (precisely because my income is all in Brazil today), in which case, do I need to declare exit and tax as a non-resident? -
Hello, Leonardo!
Thank you for your interest and your compliment. Your question is somewhat complex to recommend, precisely because the tax residency criterion adopted in Brazil is subjective. We have argued that it is possible for someone living abroad to maintain tax residency in Brazil even for periods of more than 12 months, as long as they keep a set of proofs of this situation (such as submitting their income tax returns, informing them of their assets and income in Brazil and abroad). So I don't think you'll have any problems.
Now, knowing whether this path is the most suitable or favorable for you really depends on a more detailed analysis, and is beyond the scope of a blog comment post. 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, Andressa!
Thank you for your interest. I have argued that the definitive exit notice (CSD) does not have the power to extend a person's tax residence for 12 months if it is not submitted on time. Therefore, what matters is the submission of the declaration of definitive departure from the country (DSDP). I deal with this issue explicitly in this text. So I don't think you'll have any problems.
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, Isaac!
Thank you for your interest. It's very difficult to give a recommendation in a blog post without analyzing the specific situation. As I understand it, your sister-in-law has not formalized her permanent departure and has not declared income tax in Brazil. This means that her CPF is still that of a resident, but there is no other evidence against her. My suggestion is usually to first formalize the facts that happened by means of a retroactive definitive departure declaration, and also to formalize her status as a non-resident to the Navy, so that they can withhold the tax from her correctly. These two measures avoid problems with cross-checking data with the IRS and formalize the fact that she was not required to declare her assets and income abroad in Brazil.
When she returns to Brazil, she should reverse this situation and declare her assets and income from the date of her return to Brazil onwards.
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, Kadu!
Thank you very much for your interest in our work! Your question is a bit complex to answer and give a recommendation in a blog post. In any case, there is a relevant general point: events that occurred more than 5 years ago cannot be rectified, nor can the IRS want to charge tax on them; those years have "lapsed".
As for the rest, it's not clear to me whether you haven't submitted any declarations in the last five years, or whether you've submitted declarations without informing the Japanese side. There are different ways to regularize your situation, which depend on the context of your case and your objectives.
Anyway, 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, Bianca!
Thanks for the compliment. The declarations for the last 5 years can be corrected, including to inform your tax exit. So on that point there wouldn't be so many problems. However, you need to be sure that the change affects the taxation of the income you earned in Brazil, in order to correct this aspect as well. Only with a specific analysis can you be sure.
It's worth mentioning that from 2022 there will be a Brazil-Switzerland agreement to avoid double taxation. It won't solve your past, but it could make it easier to solve current and future problems.
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, Sandra!
Thank you for your interest in our work. For events that occurred more than 5 years ago, we have the decadence period, in which the filing of the return and the collection by the tax authorities "lapse". So we are possibly only talking about the last 5 years. The minimum fine for submitting a final exit declaration is approximately R$ 170. From the context you describe, it seems that you were a non-resident and only failed to formalize the fact with the tax authorities. If this is the case, regularization is much simpler.
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, Drica!
Thank you for your interest. Brazil and the Netherlands have an agreement to avoid double taxation, and there are some benefits in it that help solve a problem like yours. It's difficult to give a recommendation based on a blog post discussion. The subject is more complex than that.
Anyway, I hope I've helped. I suggest you make an appointment with me. Just contact me at WhatsApp or by e-mail contato@tersi.adv.br!
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Hello, thank you very much for the post.
I came to do a professional Master's degree in the United States in July/2021 and received income in Brazil until June of the same year. I've filed my income tax return for the 2021 tax year and I'd like to know how to proceed this year in terms of communicating my departure from Brazil, given that I have investments in fixed income and funds that don't have daily liquidity.
Is it possible to declare my departure from Brazil and keep my money invested or do I have to expatriate all my capital?
Thank you
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Hello, Fernando!
Thank you for your interest in our content.
Considering the fact that the United Arab Emirates is on the tax office's list of tax havens, the most appropriate thing would be to recognize your tax exit from the time you moved. But there are specific rules involving tax havens that also affect the situation. Only now, in 2022, do we have an agreement in place with the UAE that confers better benefits.
It's difficult to give a recommendation via a blog post. It would be best to discuss it in a consultation. 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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Hi, Rick!
Thank you for your interest in our work. According to the law, there is nothing to stop you from keeping your investments in fixed or variable income in Brazil. The main difficulty comes from the lack of coordination between the Internal Revenue Service and the Central Bank in regulating this matter. We have been personally involved in trying to change this.
Basically, the IRS has defined a general regime for maintaining investments without much change from what you know. On the Central Bank's side, however, there are some controls on bank accounts and regulations on financial investments that mean that those who leave permanently are in an irregular situation (unless they manage to opt for the special "Investor 4373" regime, which has a very high cost).
You don't have to expatriate all of your capital, but you do encounter some difficulties, which I'll talk about below in this text. With the New Foreign Exchange Law, we have a window for the Central Bank to solve this problem once and for all from 2023.
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, Marcio!
Thank you for your interest in our content. I don't see any risk in you making a textual reference to the Brazil-Mexico agreement in your statement. We have acted in a similar way in the work we do. Today we have two groups, Tersi Advocacia (which deals with estate planning and is made up of lawyers) and Tersi Contabilidade Internacional (which deals with compliance, for example with declarations, and is made up of accountants). Unfortunately, OAB rules prohibit us from publishing topics that are not related to the legal profession on our website.
In any case, if you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
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Hello, Debora!
Thank you for your interest in our work. To add to one of your points, there is no obligation to report international remittances on the assets and rights sheet, only the account balance on each relevant date.
On the question of the foreign domiciled account (CDE), your description is correct. The IRS regulations, as far as we know, have nothing to do with bank accounts. Therefore, for the RFB, it doesn't matter what type of bank account you hold. The source of the difficulties comes from the Central Bank's regulations, which are expected to change by 2023, due to the entry into force of the New Foreign Exchange Law.
My comment to Jamil was that the obligation to close a bank account and open a CDE exists, but the Central Bank's forecast was on the bank's side, not the customer's. We didn't find a penalty for keeping the account as it is. There is no penalty for keeping the account as it is. But at the same time, keeping the account as it is means that the bank/brokerage will continue to send the RFB incorrect information about the financial investments linked to the account, as if the person were a tax resident in Brazil. This is where the CPF problems arise, whenever the IRS system considers that an income tax return should have been filed (which only arises because the IRS received the wrong information).
I hope I've clarified things for you. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
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Congratulations on the content, thank you for everything. My case I left Brazil December 30, 2021 and now when I decided to see about the subject I read in your article and on the revenue website that I should have made the declaration form of departure from Brazil and the communication until Feb 28. What should I do now? Is it possible to make these notices and declarations? I don't want any problems in the future. Can I do it today regardless of having to pay tax on this period??? Help please
Thank you
Carla -
Hello Dr. Vinicius Tersi, congratulations for the great post and clarifying many doubts of many people living abroad.
In my case, I've been living in Japan for over 20 years and I've never filed a tax return, and because I wasn't aware of the DSDP I didn't file one, and in 2021 I started investing in the stock market in Brazil and now I need to file a tax return, right? Because I used my cpf to open accounts at digital banks and brokers in 2021 and not as a foreign investor.
How should I proceed in this case?
Should I do the DSDP before declaring my income tax this year?
Thank you in advance for your attention and once again for the portal for clarification, which has been the best site I've found so far. -
Hello, Ney!
Thank you for your interest and your compliment. Brazilian rules should allow you to formalize your situation as a non-resident and make the financial investments you want. The practical difficulty today is that the regulations in your case are inadequate. We've been making an effort to talk to the Revenue Service, the Central Bank and the Ministry of Economy so that this can be resolved once and for all.
One possible situation would be to take advantage of the benefits of the Brazil-Japan agreement in situations of dual tax residence, but you need to know your reality to be sure if this applies to you.
I hope I've helped. This is a case where it would be best for you to make an appointment. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
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Hello, Carla!
Thank you for your interest in our content. I have argued that missing the deadline for submitting the Notice of Final Exit cannot have the effect of making you a tax resident in Brazil for another 12 months in a row, if you have already left Brazil with the intention of losing the "definitive spirit". I talk about this in this other text. I understand that you can take advantage of the deadline for submitting the Declaration of Final Departure from the Country (April 29) to get your situation in order.
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, Polliana!
Thank you for your interest in our content. I have argued that missing the deadline for submitting the Notice of Final Exit cannot have the effect of making you a tax resident in Brazil for another 12 months in a row, if you have already left Brazil with the intention of losing the "definitive spirit". I talk about this in this other text. I understand that you can take advantage of the deadline for submitting the Declaration of Final Departure from the Country (April 29) to get your situation in order.
Regarding international remittances, there is no explicit obligation to report them on your tax return, but rather the balances in your bank accounts on December 31st of each year (or on the date of the tax withdrawal, when this occurs on another day). At least considering the points in your post, you may be able to resolve 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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Hello Dr. Vinicius, thank you for your great work!
I would like to ask a question: in this case, the person has declared their income tax in Brazil, but for 3 years they have been earning a salary in the US and paying tax in the US. The person has now decided to leave the country permanently, but missed the deadline for filing an exit tax return in February/2022. Could this person declare their departure on their 2021 income tax return without having communicated their departure? Also, could this person's departure date be considered to be 01/03/2022, for example, when they decided to leave permanently, or would it have to be 3 years ago since they started receiving a salary in the USA (there is nothing left of this salary and nothing has been sent to Brazil). This person would be in
Irregular situation? Thanks again! -
Dr. Terci!
Good afternoon!
Please enlighten me, if possible.
When a Brazilian makes a declaration in the USA, he is obliged to declare his assets in Brazil, correct?
If this declaration is retroactive, i.e. from 2018, would she pay tax in the US from that time?
Currently under the condition that:He doesn't know if he did the CSDP or the DSDP in 2001, he never declared IR in Brazil again:
1. has been receiving a pension in Brazil since May 2020 with IR deducted at source;
2. has no assets in excess of 300,000 (not including savings, which would be more)
3. he has his own bank account in which he has deposited the results of rural businesses, which in total have not exceeded the annual limit of 142,000 (so he has no obligation to file a tax return).I'd be grateful if you could give me a head start on these points, although I've already asked for a consultation with you via your whatsapp.
Thank you
Eliane -
Hello Dr. Vinicius Tersi! I loved your article, very informative, thank you very much for sharing.
I left Brazil in 2004, filed an exemption declaration for a few years and stopped. I have no assets or income in Brazil (apart from a future inheritance which is not taxable).
Unfortunately, I didn't declare or communicate my definitive departure from Brazil due to a lack of information.
My daughter and I plan to move to Brazil permanently in 2024. I will have a good amount of assets acquired through the sale of a property I bought here over the years. Could you please tell me what I should do to avoid paying capital gains on this asset?
Thank you in advance. -
Hello, Ana!
Thank you for your interest. With regard to your first question, I have argued that missing the deadline for submitting the Notice of Final Exit cannot have the effect of making someone a tax resident in Brazil for another 12 months in a row, if you have already left Brazil with the intention of losing the "definitive spirit". I talk about this in this other text. I understand that you can take advantage of the deadline for submitting the Declaration of Final Departure from the Country (April 29) to get your situation in order.
Regarding the choice of exit date, the legislation does not provide for choosing the most convenient date. It does provide for the tax exit date to be the day on which the person left Brazil to go abroad ("definitive exit" rule) or the day on which they completed 12 months of absence from Brazilian territory ("temporary exit" rule). There is no legal provision for a third rule, in which the person leaves for tax purposes on the date on which he or she ceases to have a definitive intention while abroad. It would be theoretically possible to defend this third position, but there are certainly legal risks.
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
I've read all your answers, very enlightening.
My question concerns a person who has been out of Brazil for 10 years in Argentina, and has always filed a tax return in Brazil as if he were living here. She receives a pension from the INSS and a pension from the Army in an account at BB, and she may never return to Brazil. So if she does the DSDP this year, for example, what consequences could it have for her income? Could she continue to receive it here in Brazil through the BB account as normal? Should she continue to file a DIRPF?
Thank you -
Good morning, Vinicius,
I'm Brazilian and I've been living in France since October 24, 2020 (in my case, I understand that it can be considered a permanent or temporary departure, as I had a work contract to stay in France, but I didn't know if I would stay for a long time or not).
I haven't yet done the Declaration of Final Departure or the Certificate of Final Departure. I've read that the final exit certificate isn't compulsory, and as I've missed the deadline I'm thinking of just doing the DSDP. In that case, should I :
- Do the DSDP with a retroactive date? (I understand that I can put a non-resident date of October 24, 2020 or October 24, 2021, depending on whether I'm considering permanent or temporary departure)
- I declared the taxes for all the months of 2020, if I became a non-resident on October 24, 2020, could I not have declared the months of November and December 2020?
- If I put the non-resident date as October 24, 2020, will I be exempt from taxes for 2021 (tax year 2022)? And if I put non-resident as October 24, 2021, will I be exempt from taxes for 2021 (tax year 2022)?
What would you advise me to do?
Thank you very much
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Good morning, Vinicius,
First of all, excellent material available on the site, congratulations!
I've been living in Ireland since May 2018, when I came to study, and in 2019 I received a job offer that made me change my plans, I wasn't fully aware that I would need to leave Brazil permanently after 12 months.
In other words, I didn't leave the country permanently, and my last tax return was in 2018, for 2017. (This last declaration was made considering that I was employed in Brazil, I left the company in 2017, this was my last record in my wallet)
I have a house that is rented out, but as I still pay mortgage and tax, I hardly make any profit each month.
I send money to my mother every month, she has a credit card linked to my current account, I make monthly payments as well, in other words I use my current account.What is my tax situation and how can I regularize it?
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Hello, Gisela!
Thank you for your interest in our content. If you have stopped living in Brazil in the last five years and have not filed any further tax returns, you can regularize your late departure by filing a tax return for 2018. In this case, only your rental income (the 15% of net rent) and financial income from your bank account earned after your departure would be taxable 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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Hello, Elena!
Thank you for your interest in our content. It's very difficult for me to give you a recommendation for a blog post; the best thing to do is to consult us. In general, I think you're right when you say that there are two possible tax exit dates under the legislation. To take 24.10.2020 into account, you will need to rectify the DAA 2021/2020 to replace it with a DSDP with that tax exit date. In this case, the program will calculate your tax proportional to 10 months (January to October), and subsequent income will not need to be declared. In this case, too, there would be no declaration to submit in 2022.
In the event of a tax exit under the temporary exit rule, you are obliged to report your French income until Oct. 2021, and you can take advantage of the benefits of the Brazil-France agreement to avoid double taxation.
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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Great content!
I have a question, I left Brazil in February 2019. I didn't file a tax return in Brazil because I didn't have enough income. Here abroad, I was an au pair, which means I was a nanny and lived with the family. It's a work exchange. Do I need to declare the salaries for the 11 months I worked in the United States or just the salary for January 2019 that I received in Brazil?
I've never sent money to Brazil.
I want to leave Brazil permanently, but I don't know how to proceed. -
Good morning, Vinicius,
Congratulations on sharing so much information with those who need it.
When a person leaves Brazil to go work abroad and does not leave the country permanently, being a tax resident in 2 countries (having income and investments in both and doing IR in both separately), but reporting in the IR of Brazil that he has a current account abroad, what is the risk and how is this regularized, since the person has dual nationality? -
Hello, Carla!
Thank you for your interest. It's very difficult to answer your question without knowing the facts and documents. Generally speaking, the information may have been omitted from the tax return only by mistake (fault) or with the intention of omitting information (willful misconduct). If there is willful misconduct, the IRS can not only charge the tax but also impose a 150% fine on the amount of tax due. If there is only guilt, the fine is 75%. If the tax returns are corrected and any tax due is paid before the tax authorities take any action, it is possible to pay only the late payment fine (20%) and, in special situations, to make a spontaneous report, in which the fine is zeroed out and only interest is paid.
But these are not the only variables. You also need to know the amount of tax paid abroad (to deduct from the tax due in Brazil), whether it is possible to apply any benefits provided for in an international agreement and also whether there are any other declarations to submit, such as to the Central Bank.
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, Jaqueline!
Thank you for your interest. Without understanding the details of your situation, just what you have reported, it seems that the simplest and most effective thing would be for you to submit the final exit declaration for Feb/2019, even if you pay a fine for late submission (approx. R$ 170). In this case, the salary received in Jan/2019 would be reported. This is just an opinion, not a recommendation, as I haven't had the opportunity to analyze the case.
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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Hello, Tania!
Thank you for your interest in our content. In this specific case, the biggest consequence after the tax exit on the Brazilian side would be the taxation of 25% of IRRF on INSS retirement income and Army pension. Regarding the bank account, BB doesn't accept foreign domiciled accounts (CDE). You could open one at another bank to receive your benefits. In 2023, it is expected that the New Foreign Exchange Law will change the account situation, and perhaps make it possible to keep the account with BB as normal.
After the tax exit, no income tax returns are filed, only withholding tax.
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 morning,
If you've been living abroad for more than 15 years and have never declared your definitive tax return, this year you bought an apartment in Brazil, what's the procedure? you've always declared your tax return in the country where you live. if you need to declare your definitive tax return, does it have to be for the year you left?
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Hi Vinicius
I moved to Canada in 1991 and until recently I'd never heard of this declaration, as I've never worked or had any assets in Brazil and I've never made any income declarations. But here in Canada I have always worked and I have 2 houses in my name. I would like to sell everything I have in Canada and move back to Brazil. I will receive a pension from my company here in Canada and also from the government. I'd like to regularize it as soon as possible because I'm buying an apartment in Brazil. How do I do that?
Thank you
Sakine -
Hi, Tatiana!
Thank you for your interest. The safest thing to do would be to formalize your status as a non-resident in Brazil, in order to reduce the doubt about having to pay tax in Brazil on your income from abroad. It's not possible to submit an exit declaration for the year you left, but you can do one of two things: (i). go to the tax office to ask for your CPF details to be updated, proving that you've been living abroad for several years; or (ii). submit a declaration for the oldest year possible (5 years ago), stating the facts that occurred, so that your CPF is automatically updated and you can prove the facts you've stated if you're questioned during an inspection.
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, Geanine!
Thank you for your interest. It's usually worth formalizing your status as a non-resident in Brazil to avoid legal risks when you return. Assets accumulated abroad can only be declared after you return to Brazil, as can income received from abroad. Today there is an exemption from capital gains in Brazil for assets acquired abroad as a non-resident. We usually take care to identify the assets benefiting from this exemption, in order to facilitate the return to 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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Hello, Eliane!
Thank you for your interest. I'm not in a position to deal with American legislation, but I do know that in the USA, the very fact of being an American citizen obliges you to pay income tax. This is not the case in Brazil. Being Brazilian is not enough to be considered a tax resident, but tax is still due on income from sources in Brazil.
In the experience of our clients, it is possible to regularize income tax in the USA if you meet the requirements of the streamline procedure, which involves paying tax and filing returns for the last few years.
The questions go a little beyond what can be answered in a post. 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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Hello, José!
I hope you're well. Your situation has been frequent. Unfortunately, I don't know of a bank that would open a CDE today for a lower fee than Banco Rendimento. In 2023, it is expected that the New Foreign Exchange Law will change the account situation, and perhaps make it possible to maintain your bank account normally, allowing you to inform the bank that you are not a tax resident in Brazil.
You are the most important person to make a decision about your affairs, José. From our side, we are here to support your decision-making. I hope I've helped you. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
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Hello, Dr. Tersi,
Congratulations on your work and the high quality of the information you share with us.
I've been living in the UK since 2018, with a salary there. However, I haven't left and I continue to declare tax every year in Brazil, due to my investments (fixed and variable income). My question is:
1) Can I continue to do this? If so, should I declare the income from abroad? Will I be taxed twice?
2) If I continue to do this, do I run the risk of being punished in the future when I decide to return to Brazil and bring back the assets I acquired abroad?Or would it be better to get rid of everything, leave permanently and expatriate the money?
Thank you so much!
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Hello, Fabio!
Thank you for your interest. As long as you remain tax resident in Brazil, your salary in the UK is still taxable here in the eyes of the tax authorities. You can offset the amount of UK tax you pay in Brazil, but if this is less than the 27.5% of tax in Brazil (which is usually the case), you will still have to pay the difference in Brazil.
For those who don't do this, in addition to the risk of a tax assessment, they will have difficulty sending the funds they have accumulated abroad back to Brazil, as they are undeclared assets.
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 Vinicius,
I left Brazil more than 10 years ago to study abroad and never came back. I never worked in Brazil and never declared income tax, and I didn't know that I had to declare my definitive departure from Brazil. Do I still have to declare my departure, and if I do, will I have to pay a fine and tax because I started working 8 years ago? Thank you very much!
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Hello, Isa!
Thank you for getting in touch. It is no longer possible to submit a definitive exit declaration for the year in which you left Brazil, because it has been more than 5 years since this happened. Today, I believe that you are listed as a resident by the Receita Federal, but there has been no cross-checking of data that would require you to file an income tax return, so I imagine that you have never had any difficulties.
I have said that it is possible for you to justify that you ceased to be a tax resident in Brazil even without integrating the Declaration of Final Departure from the Country. In this case, you would have to gather evidence of the facts you have told. You can do this if questioned one day, or by going directly to the Receita Federal to ask for your CPF to be updated. You can also submit a DSDP for a more recent year, explaining the situation and paying a small fine.
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 have lived abroad for 25 years and have dual citizenship. I don't have any income or assets in Brazil, but I'm going to receive a house as an inheritance. I have never made a declaration of permanent departure from the country and I would like to know how much tax I would have to pay if I sell the house and remit the value abroad, since I have no plans to live in Brazil.
Thank you so much! -
Good evening, Dr. Tersi!
I filed my last income tax return in 2013, including my address in Berlin, Germany, where I still live. I have nothing left in Brazil, no assets, no bank account, nothing. I only found out about this Communication and Definitive Exit Declaration in 2022.
Do I need to make the Communication and Definitive Exit Declaration this year 2022? and from which year should I download the Receita Federal program 2013 or 2022?
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Hello, Erica!
Thank you for your question. Assuming you formalize your non-resident status, there are two stages to the taxation of receiving property as an inheritance: one is the transfer of the property to you by the estate. There is an IRPF tax benefit on the transfer of real estate as an inheritance, which allows you to anticipate tax by paying a lower amount. This is particularly beneficial when the heir is a non-resident, as the IRS understands that they are not entitled to tax benefits on the sale of real estate. There is a window to take advantage of this benefit.
The other stage is the sale of the property you already own. In this case, the tax on the sale is 15%-22.5%, depending on the gain (15% for a gain of up to R$ 5 million). This tax is withheld at source by the buyer and declared to the tax authorities by him, or by an attorney for him who is a tax resident in Brazil. You don't have to file an income tax return in Brazil because you have received an inheritance or sold a property. The way the tax authorities receive information is different.
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, William!
Thank you for your interest. There is no possibility of submitting a tax return from more than five years ago, so there is no way of submitting a tax return for 2013. At the same time, submitting an exit declaration now in 2022 would mean that you were a tax resident in Brazil in previous years (and therefore had to pay global income tax on the amounts received before then).
It's usually a case of being sure of the context of each client. In cases where no return has been filed in the last 5 years, one possible way is to file the DSD for the oldest possible year (currently 2018/2017), paying a late penalty (approx. R$ 170). When dealing with this type of service, we take care to report the facts as they occurred, to minimize the risks in the event of an inspection.
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 content, Vinicius, congratulations!
I've been living with my family outside Brazil for 5 years and my wife and I have declared our permanent departure.
We're going back now in July, as I've got another job in Brazil.
When I left, I kept my bank account in Brazil because of my investments and my international credit card.
We managed to save part of our salaries and were told that this amount cannot be credited to our accounts in Brazil at the moment. I only just found out that my account would have to be converted when I left the country, which the bank never told me...
Have you ever witnessed a similar case? -
My case is a little different, I lived abroad for almost 3 years and returned to Brazil in November. As soon as I arrived, I started transferring money from my account abroad to my account in Brazil (in real), I know that I would only have to declare this next year, but could you direct me? Would I have to make this definitive exit declaration?
How would I be able to declare these amounts received and which option would I select?
*I asked a local accountant and he said he has no experience with this.Thank you in advance for your attention and content
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Hello, Vinicius,
Could you answer my question? I really need some information.
I left Brazil in 2021, and submitted the Communication of Definitive Departure from the Country.
The next step would be to submit the Declaration of Final Departure from the Country (DSDP) by the last working day of April this year. As far as I know, this declaration would be an income tax declaration for 2021. However, I have never worked in Brazil and have never had any kind of income in Brazil.
How should I proceed? Am I exempt from this declaration?
Thank you,
Diego. -
HELLO DT. VINICIUS, I WOULD LIKE AN INFORMATION, I HAVE LIVED OVERSEAS FOR 15 YEARS, I HAVE NEVER DECLARED INCOME TAX IN BRAZIL. while living abroad i bought a property in brazil, i didn't declare this property last year because i don't have a deed, since i started investing in the stock market, last year i declared it for the first time, in fact those of us who live abroad, a large part of us don't even know if we have to declare it, i would like some information.
WHEN DOWNLOADING THIS YEAR'S FEDERAL REVENUE PROGRAM, IT SAYS THIS.
IRPF2022 WILL BE INSTALLED. DECLARATION OF ANNUAL ADJUSTMENT, END OF EPISODIUM AND DEFINITIVE EXIT FROM THE COUNTRY ON YOUR PC. DO YOU WANT TO INSTALL IT?
WILL IT FALL INTO THE FAMOUS FINE MESH?
THANK YOU IN ADVANCE. -
Good afternoon Dr. Vinicius,
Thank you very much for the information, so far it's the best I've found on the internet.
Please, I'd like to know:
I left Brazil for the UK in 2010.
1) If you can only update the last 5 years, what are the implications for previous years?
2) Do I need to declare my UK salary on my tax return?
3) Amount in savings that was transferred from the UK, how do I declare it?
4) What information do I need to send the declaration?
Thank you very much,
Marina -
Hello, Dr. Vinícius.
I came to the USA in September 2019 as a student and, like most people here, I didn't know about this Permanent Departure Declaration. I've never declared income tax in Brazil because I'm exempt. How can I make the Declaration of Final Departure from the Country without having a receipt for the last income tax, since this field is mandatory in the application?
Thank you in advance!
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Hello, Fabio! Thank you for the information. I have two cases:
(1) I currently live in another country, but have a car financed in Brazil. I still pay INSS and work as a member of a Brazilian cooperative. Do I have to fill in the exit declaration? Will this mean that I have to return to the country or visit my family?
2- my partner is Peruvian, he spent 2 years working in Brazil (2020 and 2021) and is now back in his country. He filed his income tax return and has to pay a high amount to the tax office, more than 8,000 reais. Should he submit the exit declaration instead of the income tax? Or should he file both? Will he still be able to return to the country as a tourist? Also, he has a labor case in Brazil, would the exit declaration mean anything?
Thank you so much!
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The information I'm looking for is about my brother's income tax, which I do ....He's a pilot for an airline abroad and he's been working abroad for three years.
He left the country when he went to work abroad but last year he started receiving a pension here in Brazil (Aerus) so this year (2021) I must declare this income that he receives here in Brazil. My question is:
Should I just make his declaration as normal?
He hasn't moved back to Brazil yet, he only comes sporadically but he receives this pension from Aerus and has a bank account here in Brazil.
Should I only declare what he has received even though he is still working outside the country and has declared his departure from the country? How should I proceed in this case? Thank you -
Hi Vinicius, thanks for your website, information and explanations.
I'd like you to talk a bit more about this "More complicated is for those who live a "double life", acting as tax residents in Brazil without informing data about their life abroad."
that's my case. I declare in two different countries, and none of them know that I also have a tax residence elsewhere. In fact, I didn't even know this was a problem. In this case Brazil - France.
Thank you
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Hi Vinicius, thanks for your website, information and explanations.
I'd like you to talk a bit more about this "More complicated is for those who live a "double life", acting as tax residents in Brazil without informing data about their life abroad."
is my case. I declare in two different countries, and none of them know that I also have a tax residence elsewhere. In fact, I didn't even know this was a problem. In this case Brazil - France.
Thank you
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Hello,
where is the exact place on the tax office's website or application to make the declaration of definitive departure from the country with a retroactive date? I didn't make the notification of leaving the country within the 12-month period.
On the tax office's website, I only found the place where you can file a notice to leave the country within 12 months. -
Hi Vinicius,
I left Brazil in 2019 and completed the process of Definitive Departure from Brazil in 2021, as a retroactive due to having left in 2019. My question is, I still live abroad but I would like to return to investing with the option of using my CPF from Brazil, where the same would apparently make me have to declare taxes in Brazil and in the country where I currently live. Is there any communication or process that I have to carry out because I have already done the process of Definitive Exit?
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Good afternoon, Vinicius.
Thank you for sharing on the subject and in a way that is easy to understand.A person who moved to the United States in 2014 and, due to a lack of knowledge, didn't file a final exit tax return, has been filing an income tax return every year.
In this case, it's possible to file a Declaration of Definitive Exit retroactively (which in this case I believe would be from 2016) and ask the IRS for a refund of the income tax overpaid, since in comparison to what he would pay as a resident abroad, it's lower than as a resident in Brazil.
Thank you in advance for your attention.
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What precious information Mr. Vinicius has made available to us, very well explained.
I just have a question. I left Brazil in 2018 and I didn't file an income tax return, because I was exempt on income that didn't meet the minimum required to file.
I currently live in Portugal and I didn't get to do the DSDP, and in 2022, I started investing in variable income and I would like to know if I can still do the DSDP and inform that my departure was in 03/2018 and I will have to inform my income that I have earned in Portugal so far?And since I invest through a Brazilian brokerage house, my address is in Brazil, if I do the DSDP, would there be a problem between the RFB and the brokerage house?
Thank you in advance.
Cheers. -
Hi Tersi, what's up?
What about those who live a "double life" as you mentioned earlier? The case in question, receives monthly income in Brazil and has assets, but is declared as a resident (and lives) in another country through a spousal visa? Are there any regular alternatives for this case? Thank you in advance. -
Thanks Vinicius, my situation is complicated to understand and solve, I left Brazil in 2018 definitively for Canada, recently I learned about DSDP, and I have some small investments in LCI, it turns out that I want to regularize my situation, but the bank is confusing and some people say that I can leave my investments there, another factor is that I want to return to Brazil definitively in 3 years, so I don't know if I make the declaration now, or if I leave it to solve it personally when I return. I'm already all wrong, and the IRS and the Central Bank being so confusing makes it even more difficult for me to discern what would be the right thing to do, so for now I'm just researching how I'm going to sort it all out.
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Good evening Dr.
I left Brazil in March 2022, I work in the USA as an employee in a company, in Brazil I am an MEI, just to maintain my social security contribution.
What about my situation?
Do I have to maintain tax residency in Brazil and declare my US income?
Or can I keep my Mei, always presenting it without movement and make the definitive Exit Declaration?
It's worth noting that my Mei is completely motionless. -
Good afternoon, my name is Valdirene and I would like to know how to proceed. Leave
from Brazil in 2020 to Portugal plus I filed my IRS in 2021 from Brazil. I didn't file an exit tax return and I have a financed property. My question is, do I have to file an exit tax return even if I have a mortgage? Do I have to declare my income abroad due to the financing in Brazil or is it not obligatory? Do I have to continue doing the IRS with my income from here because of my mortgage?Thank you very much.
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Hi Vinicius,
Congratulations on the blog!
I have a question. I've been living in England for four years and I've never filed a DSDP, and I've never filed a tax return in Brazil because I don't earn enough. Now I'm in the process of buying an apartment in Brazil, but I want to file the DSDP to avoid any complications in the future.
From what I've read, I'll have to pay 7.5% (my income tax is 20%) + a fine for not filing the DSDP earlier.
My question is: How do I declare this? The IR website asks for the company's cnjp. However, companies in the UK don't have a CNPJ. Any ideas?
And is it possible to pay this debt in installments?
Thank you.
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Hello, Dr. Vinicius
In Oct/21 I started working for a company abroad that pays my salary directly in Brazil, but I'm taxed according to the tax laws of that country.
To top it all off, in April/22 I physically moved abroad (I still don't know if I'll stay permanently), but I continue to earn a salary in Brazil.
1) When would I have to declare the permanent/temporary departure?
2) If I didn't submit the Declaration of Final Departure from the Country on time, I would have to pay a fine, but where would I be able to do this in arrears? I'm asking because I couldn't find an option to file this form on the Receita website.Cheers,
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Hello, Vinicius,
I left Brazil in 2018 and, due to a lack of information, I continued to file the IRPF in Brazil and do another one in my current country, with my income from here.
I understand that my case is not like that of the example and I ask what should be done then?
I've heard that doing something retroactively can lead to fines, is there any way of simulating how much that would be?
And what would be better to do now? Simply stop filing the IRPF? Or declare it as if you were just leaving?
I still have investments in Brazil.
Thank you -
Hi Vinícios, I'm leaving the country on business and I'm going to do the DSD.
But before I do the DSD, I'm going to cancel my MEI.
Please help me with my questions:
A) Any advice on closing the MEI?
B) Do I have to cancel my BB savings account or not, and why?
C) Can I pay INSS as a self-employed person (1007)? Why?
I look forward to hearing from you. -
Hello Mr. Vinicius
I'm 67 and receive two pensions: one from the INSS and the other from the private sector.
I don't pay income tax in Brazil because I'm exempt due to severe heart disease.
I intend to move to Spain in 2023. Would I be obliged to pay 25% tax in Brazil if I declare my permanent departure?
Do I lose my income tax exemption for serious illness with this permanent departure?Thank you very much
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Hello, Dr. Vinícius!
I'm married to a Spanish woman and have a son born in Spain. I'm 67 and receive two pensions: one from the INSS and the other from the private sector. I don't pay tax in Brazil because I'm exempt due to severe heart disease.
I intend to move to Spain in 2023. My question: am I obliged to pay 25% tax in Brazil if I declare my permanent departure? Do I lose my sickness exemption if I leave permanently? -
Good morning, Vinicius,
First of all, thanks for your help! I have a problem, I left Brazil in 2001, I never made a declaration of leaving the country! I don't intend to return to Brazil, and I received a donation from my father! He wanted to transfer the value of the donation to my bank in Germany, but his bank asked him for the tax regulation for resident abroad! I don't know what I should do, because I can no longer make this declaration of departure, my CPF is regular! Thank you if you can help me with this! -
Vinicius,
I left Brazil in June/21 and made my exit declaration. I currently live in Israel but my bank hasn't closed my current account. According to my manager, the investments are exempt from income tax - VGBL - so I don't have to declare them. But there is a balance to pay some bills. The credit cards (from another bank) stopped working and Paypal asked me to close the account and reopen it in Israel (just after the tax deadline - which I did this year).
Don't I have to declare income from investments?
Thank you! -
Hello Vinicius! Thank you for this content! I have a question: I left Brazil in Sept/21 already on a permanent basis and then made the communication of definitive departure. Because now at the time of the IR declaration I ended up making the normal declaration instead of choosing the DSDP option.
I tried to rectify it, but it wasn't possible. Since I communicated my definitive exit at the correct time and filed a normal declaration, can I be audited by the tax authorities for this action? How can I rectify this situation?Thank you in advance!
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Hi Vinicius,
The exchange of messages is very interesting, but I'd like to ask you a few questions.
I've been living in France for 24 years now (1998), and I've never done either the CSDP or the DSDP (2002 regulations). My CPF was suspended, and I just updated it last week on the Receita Federal website, indicating my current address and the date I left Brazil (1998). And that's when I "discovered" that the CSDP and DSDP existed!
France has a non-taxation agreement with Brazil, and I have no assets in Brazil. I haven't filed any tax returns since I left Brazil.
As I said, I have no assets in Brazil (yet) and no income. And I have dual nationality. Should I do the CSDP and DSDP normally through the Receita Federal website, putting in the data from 1998? What possible consequences could these late CSDPs and DSDPs have?
Thank you very much for your clarifications. -
I came to the US in 2019 on a student visa and US law doesn't consider a student to be a tax resident, so I didn't leave Brazil permanently, otherwise I wouldn't have been tax resident in both countries. Now in 2022 I received my green card, but I still have income in Brazil and because I am a partner in a company I don't want to leave and be treated as a foreigner and I also have more than 20 years of INSS contributions. How would my situation be in this case, if I leave permanently can I retire in Brazil? And if I don't leave permanently, can I be penalized in any way?
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Good afternoon, Dr. Tersi,
This website really has excellent content and explanations about living in another country! Thank you for the information.
I've lived in the US for over 20 years, I'm an American citizen and I've never worked in Brazil, so I didn't file a tax return. In 2012, when my father died, I started to file a tax return because of the inventory. At the time, I did my income tax with an accounting firm and asked if, because I didn't live in Brazil, I would have to file a different return. They told me that the deadline for declaring permanent departure had passed, so there was nothing to do, and they prepared the declaration as a normal resident of Brazil. The following year I asked again and they said the same thing. Since then I've been declaring as a resident and the only income I have is from renting the property I inherited from my father.
This year, I discovered that I should have updated my CPF to non-resident and not filed any income tax returns in Brazil, but only paid 15% tax on the rents at source.
What should I do? Is it possible to rectify these declarations? What about the income I earned abroad during those years?
Thank you in advance. -
Good afternoon, Vinicius,
I would like to ask for your help.
I've been living abroad since 2008 and I've never made a final exit declaration.
Since 2008, I've been living in Italy with my dual citizenship, and all my income here, as well as my economic and real estate assets, have been obtained by paying all the taxes in Italy as an Italian citizen.
Today I'm thinking of selling everything and moving back to Brazil with my family, but I'd like to avoid double taxation.
Is it possible to correct the current situation?
Today I made the declaration of the date of definitive departure from the country as if it were 01/01/2022.
I look forward to hearing from you and, if possible, I'd like to know what your services are and the cost of fixing any problems. -
Hello Dr. Vinicius . In December it will be 5 years that my husband and I are living in the United States but I did not make the declaration of definitive departure from the country, but during this period I sent several remittances to my account in Brazil because I was and continue to move my account there. Can I declare my departure with a retroactive date of 5 years? And if I do, do I have to pay tax in Brazil on the money I sent? I have my declaration from here.
Thank you in advance -
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Good morning Vinicius
My name is Maria Betania. I left Brazil in 1990, at the age of 19, and went to France. I never filed an income tax return in Brazil because I earned very little at the time. Now I'm 51 and self-employed in France. I'd like to buy an apartment in Rio. The payment will be made in cash.
If Proof of Income and the Income Tax Return are necessary documents for the buyer, how should I proceed since I have never made a final exit declaration?
Thank you for your reply. -
Good evening Vinicios, I left Brazil in 1990 and went to France when I was 19. I worked here in Brazil at the time, for very low wages, so I didn't need to file any tax returns. I never had any income or any kind of assets. I've lived in France for over 30 years, where I've built a family and we pay our taxes. I work there and intend to continue living there. I want to buy an apartment in Rio de Janeiro for cash. Today I found out about this declaration of definitive departure from the country on the internet. I'd never heard anything like it before, neither from Brazilians nor from embassies. I spent all day reading everything I could find on the subject. What should I do to regularize my situation? I read that the retroactive declaration is counted back five years. Will I have to pay taxes in Brazil on what I earned there? When I get the apartment, I intend to rent it out, pay the taxes and do everything necessary to avoid any problems. Where should I start to regularize my situation?
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Hello Dr. Vinicius. Congratulations on the content of the website, it's very enlightening.
In my case, I left Brazil in August 2014. In 2019 I filed my Final Exit Declaration with the 2016/2015 income tax (I considered that I became a "non-resident" after 1 year living abroad in August/2015).
Just this year I noticed some errors in my tax returns that I would like to rectify if it were still possible. In the 2015/2014 tax return I didn't inform about the current account I opened abroad, and in the 2016/2015 tax return I only informed about the change of address (without informing about a shared account with my mother in Brazil, and the current account abroad). I had no income in 2015.
I also realized that when I changed my address on the DSDP, I provided my 2019 address and not my 2015 address. I lived at the 2019 address from December 2015, but in August 2015 I was at another address.
If I move back to Brazil and/or have to file a tax return in Brazil again, could I have any problems with the IRS because of these mistakes?
In a hypothetical situation, if I could rectify these old declarations that are more than 5 years old. Would it be possible for me to convert the 2015/2014 declaration into a Final Exit Declaration and exclude the 2016/2015 declaration (which was used as a Final Exit Declaration)?
As a note. Both declarations appear on the refund consultation website as processed and "with nothing to pay and nothing to refund".
Thank you very much for your attention,
Daniel -
Hi Vinicius, congratulations on this very enlightening post.
My situation is a bit confusing. I left Brazil in 2020 to live in the UK, where I worked as a postdoctoral fellow on a tax-free salary or stipend (stinped, as they call it here). And now, in 2022, I've started working as a research assistant, and I pay tax at source, duly. Since I left Brazil, I haven't filed a tax return because I didn't have any income or assets. It's only now that I've learned that I should have filed a DSDP, and since I've never filed one, nor have I declared what I've received in grants here until now, I'd like to know if I should file a retroactive declaration and then file a DSDP.
Thanks and hugs!
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Hi Vinicius!
I came to the US in 2014 after taking a 3-year leave of absence for private interests, after which I resigned from my position in the Public Prosecutor's Office. Since I came to the US, I haven't filed a tax return or declared my departure from Brazil. I own a house in my name. My CPF is in order and I have an active bank account there. This year I thought about investing in direct treasuries and CDB, CDI, etc., and that's when I discovered that I had to file this tax return. Here in the US, I'm my husband's dependent for income tax and I'm a housewife, so I don't file a tax return. What do you think I should do? Thank you! -
Good afternoon, Dr. Vinícius!
Congratulations on your enlightening articles!!! I have a question.
I left Brazil in 2010 to study in the United States on a scholarship, but I never went back. I got married, started a family in the US, started working here in 2016 and have been back to Brazil a few times, most recently in 2019. I've never worked in Brazil, but I have investments, a checking account, savings, fixed income and a VGBL that my father had made for me (no more contributions) and no obligation to file a declaration in Brazil for this income.
I've never declared income tax in Brazil and I didn't know that I had to declare my definitive departure from Brazil.
I would like to regularize my situation as a non-resident. I've seen on the blog that some of your answers indicate that I should do the 5-year retroactive DSDP, but in my case, I have paying sources (banking institutions) that I haven't informed of my departure.In view of this, do you think it would be better for me to file the notice of withdrawal in 2022, inform the sources paid in 2022 and submit the DSDP in 2023, in order to regularize my CPF with the IRS?
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Hello, I'm an MEI with a registered address in São Paulo. I'm currently working remotely on a project for a company, also in São Paulo, which is due to end in three years' time.
My intention is to move to another country in a year or so and continue with this project until the end, or for a few months until a new job opportunity arises in that country. My concern is about Simples Nacional and tax residency. If I pay the DAS and declare IR normally, even if I stay for more than 12 months, would I still be a tax resident in Brazil? The intention is to keep the address registered with MEI, which is my parents' house and where I currently live. Could this pose any problems? If so, would it be a solution to constantly return to Brazil, even for a few weeks less than 12 months?
Would it be feasible to maintain dual tax residency? Or would it be illegal because it is under the Simples Nacional system?
Thank you very much for your clarifications -
Good afternoon
I do my income tax every year, I have apartments in Brazil.
My father passed away, we have a private pension to receive, all my siblings who live in Brazil have already received their shares and the bank is asking me to send this Declaration of Leaving the Country, which I have never done.
I've been living in Portugal for 15 years. I've already sent several documents proving my permanent residence here and I still haven't managed to resolve the issue.
Can you guide me? -
Hello Dr. Vinicius, good afternoon.
I'm planning to live in another country with the income I receive from investments in Brazil. I don't intend to work and earn income in the new country, just live and make a living from the income from shares, fixed income, funds and rents in Brazil. Is this possible? I will continue to declare and pay taxes in Brazil.
Thanks .
Rodrigo -
Hello, Dr. Vinícius.
I've been living in the Netherlands for more than 21 years. When I came to live here, I'd never heard that I had to make a Declaration of Final Departure and I've seen that I can't do it retroactively for so many years. I have no income in Brazil, but I am entitled to an inheritance (1/5 of 1/10) in Brazil. I don't have any property or assets in my name in the Netherlands, let alone investments. Could you help me by telling me what I should do in my situation?
Thank you very much,
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Hello, Vinicius,
Congratulations on your work!
I moved to Germany at the end of August 2018, as soon as I graduated. Until then I had never declared income tax because I didn't have enough income, real estate, etc. to do so. I never declared permanent departure due to lack of knowledge.
My question is this: How can I retroactively declare that I have left the country without having the income to do so?Thank you in advance,
Raiza
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Good afternoon, Vinícius. My sister left Brazil in 2003 and went to work in the USA. She hasn't made a definitive declaration of departure from Brazil to date and only comes to Brazil to visit her family.
The only asset she has is a plot of land in Brazil and she wants to sell it. Since that's all she has, she wouldn't pay income tax. In the US, she earns very little. Every year she receives a tax refund there.
In that case, can she declare her departure now? She hasn't declared income tax here since she left Brazil. Does she run the risk of filing the declaration now and having to pay tax on the money she received there, even though it's enough to get by without any luxuries or anything?
I'd really appreciate it if you could reply.
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Vinicius, thanks for having all this information, it helps a lot.
I've been living outside Brazil since 1992 and I've never made a final exit declaration. I don't have an account or any property in Brazil. For a while I did exempt tax but then I stopped doing it.
As I understand it, in order to regularize the situation, I could do the DSD from 5 years ago, 2017. My question is this. When I make this declaration back to 2017, do I have to declare my assets and income from the country where I live? Will I have to pay tax on this? What do I need to inform in the retroactive declaration?
thank you
Jorge -
Hello, Vinicius,
Thank you very much for your work, I read almost all the comments but I didn't find a similar situation so I hope you can help me, please:Is there any way to offset income tax withheld abroad for countries without a double taxation agreement with Brazil? I'm referring to salary in this case and I'm in a country without an agreement with Brazil to avoid double taxation.
Thanks in advance
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Hello, my name is Michael and I have been living in the Netherlands for almost 3 years. In the last two years I have declared myself exempt in Brazil and this year 2022 I have not declared anything yet, I did not know that I had to make this definitive departure,
I want to do the right thing so that one day I can return to Brazil clean, but I already pay 49% in tax here in the Netherlands and I don't want to have to pay two years' back taxes double.
Should I file my exit tax return now in 2022 without reporting retroactively? I haven't accumulated any assets and I don't have any income in Brazil. -
Please, I've been living abroad for 3 years, I'm a permanent resident, but I haven't made my permanent departure and I've never declared tax in Brazil because I didn't meet the income threshold while I was living there, in the first 12 months abroad I believe I didn't meet the income threshold either. Now I'm going to another country but I need to take my money back to Brazil and I don't know what my situation is, if I have to pay tax in Brazil on this income, and how I can regularize my situation. Thank you very much.
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Hi, I've been living abroad since 2019. I never filed a tax return in Brazil because I never had enough income. I paid all my taxes in the US, but I didn't file a tax return in Brazil because I didn't think I needed to. I want to regularize the situation with the retroactive declaration. How do I do that?
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Hello Dr. Vinicíus, thank you for the excellent content on this confusing subject!
I left Brazil in February 2020 for a cultural exchange and returned in March this year.
I never filed a tax return because I didn't reach the ceiling, I didn't file a tax return when I left the country due to lack of information and during my exchange I sent money to Brazil (I didn't reach the annual ceiling and I didn't think I needed to file a tax return).I'll need to file a tax return next year as my income after returning to Brazil will reach the ceiling. My questions are:
1) If I do the Retroactive DSDP and become a non-tax resident, will this have a negative impact on my bank accounts (savings, salary and investments)?
2) Will I have to pay anything back for the exchange period, which was paid?
3) Once I've sorted out everything about the exchange, can I file the IR 2023 as normal and become a tax resident again?
Thank you very much for your time.
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Good afternoon Dr. Vinicius
I left Brazil in 2002 and didn't make a final exit because I didn't know. I made an exempt declaration for a few years, but then it was no longer allowed to make this type of declaration. I have a bank account in Brazil, but no assets. I don't intend to return to live in Brazil. How could I
regularize the situation? Could I leave permanently? Thank you very much. -
Hello, F. Rodrigues!
Thank you for your interest in our content.Double tax residency can have many consequences, which will depend on the country where you have tax residency in addition to Brazil. Some countries have agreements with Brazil to avoid double taxation in these cases, others can offset the tax paid abroad in Brazil through reciprocity, and others have no special treatment. The most common consequences can be summarized as follows: 1) the person in a situation of double tax residence must submit all income to taxation, no matter where it is or where it comes from; 2) each country taxes or exempts the income in question (and the same income can be exempt in one country and taxed in the other); 3) depending on the relationship between the two countries, it may be possible to take advantage of the tax paid in one country to reduce the tax due in the other country; and 4) if the income is not declared and paid in Brazil, the person may be subject to a tax assessment with fines and interest and have difficulties sending the funds they have accumulated abroad to Brazil.
Despite all the points above, what happens is that Brazil has created so many difficulties for non-residents to remain regular with financial investments in Brazil that, in some cases, double tax residency can be advantageous.
I would stress that each situation is unique, so this is only a very general summary, since in order for me to give you a complete answer I would need to know the details of your current situation.
If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
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Hello, Conrad!
Thank you for your compliments and your interest in our content.
Some people who have already sought our advice have told us about similar situations. As a rule, when submitting the declaration of definitive departure from the country, the IRS informs about the need to communicate the sources of payment, and leaves it up to the person who has acquired the status of non-resident to make this communication.
At the time you left the country there were few financial institutions offering this service (non-resident account), and the few that did offered it at very high rates, so that many people were either unaware of the existence of the CDE account (non-resident account) or found it impractical to open one.
However, even in the absence of a non-resident account, there are ways of bringing the amounts saved to Brazil through international remittances.
Because of the few details provided in the comment, it's not possible for me to give you a concrete recommendation, but we're happy to help if you think it's necessary.
If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br! -
Hello, Diego!
Thank you for your interest in our content and I hope that my explanations can help you.
Regardless of whether you are exempt in Brazil because you did not earn any income while living in the country, the IRS recommends that you submit the DSDP when you no longer intend to remain in Brazil.
This declaration will serve as proof of the income you receive in the country where you have established residence and prevent you from being taxed twice.
To submit this declaration you use the same program as the DAA (annual adjustment declaration), which can be done retroactively to cover the period in which you left the country.
If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
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Hello, Robson! Thank you for your interest in our content.
It's very difficult to give a recommendation to assess your case in a blog post, but I'll try to answer some of the questions you've raised.
From your story I understand that you filed your income tax return in Brazil in 2021 (for the calendar year 2020), so the tax authorities may interpret that you are a tax resident in Brazil.
Depending on the country in which you currently reside, it may or may not have signed a double taxation agreement with Brazil, which will influence how you will be taxed.
It's not possible to specify how this taxation will take place because I don't have all the data on your current situation. However, I can tell you that just installing the IRPF program is not enough for you to fall into the fine mesh. The same application is used to prepare all income tax returns, both the annual adjustment return ("normal" return) and the final withdrawal return.
If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br! -
Hello, Ricardo! Thank you for your interest in our content.
I can't give you a recommendation on the best solution for your case because the information provided is very superficial, so I would run the risk of giving you wrong information.
However, I can tell you that the CSDP can only be submitted until February of the year following departure. The DSDP, on the other hand, can be filed retroactively (up to 5 years ago), with information on the actual date of departure from the country. It is also possible to maintain dual tax residency, as long as you report universal income in both countries, complying with the main and ancillary obligations of each country.
If you would like our support in finding the best solution for your specific case, just contact us atWhatsApp or by e-mail contato@tersi.adv.brIt will be a pleasure to serve you!
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Hello, Michele! Thank you for your interest in our content.
Income from financial investments has tax withheld at source by the paying financial institution itself, which is responsible for declaring this income to the RFB. As the bank informs the RFB of these operations, depending on the amounts and operations involved, the IRS considers that the individual is required to file an annual tax return.
In Brazil, the non-resident is not obliged to file an income tax return, so if the DSDP has been filed, the DAA is not due.
This cross-checking of information between the source of payment and the Receita Federal can lead to some headaches, such as your CPF being suspended or even your accounts being blocked, but in our experience these events can be circumvented.
If you want to avoid these problems, a good solution is to close your ordinary bank account and open a CDE account:
I hope I've helped. If you need our support, just contact us atWhatsApp or by e-mail contato@tersi.adv.br! -
Hello, Celso! Thank you for your interest in our content.
Unfortunately, the IRS believes that the exemptions provided for in article 35 of the RIR/2018 do not apply to non-residents, so that when you formalize your permanent departure, you would lose the right to the exemption and would be taxed at source at the flat rate of 25%. This is a case in which it would be possible to challenge this understanding of the Revenue in court, but we are not aware of any cases that have been judged in this regard.
I hope I've helped. If you need our support, just contact us atWhatsApp or by e-mail contato@tersi.adv.br!
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Hello, Vinicius!
I really enjoyed your article, but I was very worried...
I married an American in December 2016, and we moved to Dubai in March 2017.
Even though I live in Dubai, I filed my income tax returns in 2017, 2018 and 2019. I didn't work in Dubai, I just accompanied my husband, so I had no income to declare, but I put my mother's address and my maiden name on the declaration, because I understood two facts as follows: 1) my father died in 2014, and my two sisters and I each inherited 1/6 of the house where my mother lives to this day (she owns 3/6 of the property). What I understood was that this 1/6 of the house, legally, in a way, would be property to declare, even though I don't live there; 2) my marriage took place in the United States and was never ratified in Brazil. I figured that, on the one hand, I had the obligation to declare my 1/6th of the house, and that I couldn't put my married name on it, since I didn't have my marriage certificate ratified in Brazil. At the time we went to Dubai, I already knew that his job would be temporary, and I had no idea if the marriage would work out. So I kept my bank account in Brazil, and never did the DSDP, because I wasn't sure if my departure would be permanent. In July 2019, we moved to the United States. I only started the green card process in 2020, and received my permanent resident document in May 2021. My questions: is it worth looking for ways to submit the DSDP now? Have I created a legal problem by submitting these tax returns with a Brazilian address, even though I've been living abroad since 2017? I've never "evaded" tax, as I haven't worked since I left Brazil. What should I do to correct this situation, if anything? -
Hello, Dr. Vinícius.
I'm Brazilian and I've been living in Portugal since 2020. I don't have a residence permit yet, but according to Portuguese law, I'm already a tax resident. When I left Brazil, I didn't declare my definitive departure (I didn't know this obligation existed until today), so in the federal revenue system I'm still a tax resident in Brazil. Apparently I lead a "double life". I want to start investing, but from what I've seen here on the blog this could be a problem.
What I want to know is whether I can invest normally as a resident and whether I run any risk because of this.
If I can't, what should I do to be able to invest legally and regularly?Thank you in advance.
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Hello, thank you very much for the content.
I've lived in Belgium for 13 years. I work here and pay taxes here, I've bought a house and other property...
I'd never heard of this so-called declaration. Now I want to invest in Brazil, buy a property. Can I make this declaration as if I were leaving now?
If I buy a property in Brazil, will I be fined? -
Good morning Dr. Vinicius
Congratulations on the content!
I left Brazil at the end of 2022 to work in France. Until then, I had been working in Brazil and filing my tax returns as normal. I will now do the CSD and DSDP as required in 2023. I will still have investments in Brazil (CDB/Shares, Funds, etc.) and I will not migrate everything to a CDE account, I will keep it in my current accounts and brokers.
As I understand it, in 2024 I will fall into the fine mesh because of the movements I had in 2023 (sale of shares, redemption of CDBs or funds, remittance of money to Brazil, etc.) since I will not be submitting the annual declaration because of the non-requirement via DSDP. In this case, my CPF will be "Pending Regularization".
In this regard, I have 2 questions
1- How can I regularize my CPF in this case, having done the DSDP but also maintaining active movements in Brazil? What can the IRS ask for in order to regularize it, a copy of the DSDP is enough?2 - Could I theoretically regularize this CPF issue every year and simply keep moving my accounts/brokers in Brazil?
Thank you very much!
Rafael
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Hello, Vinicius. First of all, congratulations, excellent post!
I've been doing a lot of research but I can't find any good information about the following scenario: the person leaves BR, makes the communication and declaration, but they still have real estate in BR, receive a pension in a current account in the country, have investments on the stock exchange. What does this situation look like? Do you really not declare anything until you return to Brazil, since you have formalized that you no longer have a tax residence in the country? What about these assets, can't you sell the property? Or continue to hold them in investments, or even redeem them to reallocate them to other assets with the brokers here? Difficult situation.... and I can find almost NOTHING about this situation. What I do find is people who leave completely illegally (then it's all over), or who leave correctly but don't leave anything in Brazil (which makes the situation much easier). If you can at least give me some guidance... I'd appreciate it. Cheers.
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Hi Dr. Vinicius, how are you? I've been living in Japan since 2011, and at the end of 2015 I started investing monthly in direct treasuries. I had never declared income tax or tax returns from Brazil.
I've been sending money to Banco do Brasil all this time. But I realized the errors!
How screwed am I? I could lose my savings, be sued in the future. ? etc.
Thank you, congratulations on the site. -
Hello, I'm in the same situation. I submitted the normal declaration, but I could have submitted the outgoing declaration. How do you rectify it? In the program, when you select the outgoing declaration, it opens a new declaration, so would you have to fill in everything from scratch?
When I select to rectify the declaration that has already been submitted, nowhere does it appear to inform me that it is an outgoing declaration.
Thank you very much. -
Dear Vinicius. I've been living in Canada since 2011 and I've never heard of this declaration. I tried to enter the site and make the document and it does not accept the date of 2011. I don't know what to do. I don't have any financial experience in Brazil and I don't intend to return. My cpf is up to date. The only thing I can do is justify my vote online. Any tips on how to proceed? Thank you very much
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Congratulations on the article Vinicius. Very explanatory.
I tried to find a question similar to mine in the comments, but I couldn't find it. I don't know if you can help me.
My husband and I left Brazil in April 2022 to come to the USA and we thought that the deadline was one year from the date of departure and unfortunately when we looked it up the deadline was February 2023. We're pretty desperate about what to do. Can we just file a tax return for permanent departure and then file a return for departure next year? If that doesn't work, in addition to being taxed at 24% here, will we still be charged another 27.5% in Brazil?Thank you!
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Good morning,
I handed in my notice of permanent departure from Brazil in 2022 when I went abroad.
At the end of 2022 I retired to Brazil and started receiving the benefit, but I didn't inform them that I wasn't a resident.
I now see in the 2023 declaration that I would even be entitled to a refund of the income tax paid on the INSS benefit.
Questions:
Can I (should I) not declare the IR2023 in Brazil, even if I see the report in the pre-filled IR declaration with the INSS payment? Will there be any consequences if I do this? Will I have any problems with fines or a blocked CPF in this case?
I don't think I can declare it, because in that case I'd run the risk of becoming a resident and having to pay double income tax on income from abroad, correct?
Do I have to make any other kind of declaration to the RFB this year, like this declaration of definitive departure from Brazil, or is the communication I made at the beginning of 2022 enough?
Thank you -
Hi, Vinicius. Thanks for the post. Nice work and content, congratulations.
I have two questions, if you can help me.
I spent 1 year and 7 months abroad and returned. I didn't do the CSDP or DSDP. I would like help to know what is fair or correct for me to do.
1. Do I have to make the DSDP declaration retroactively?
2. Should I declare the amount in a bank in Europe in the DIRPF? I'll explain the details below.I left Brazil in April 2018 and returned in December 2019 (1 year and 7 months, by my reckoning). I didn't file either the CSDP statement or the DSDP declaration.
During this time away, I didn't have a job in Brazil and the income from investments (none in the stock market), because it was low, didn't add up to an amount to declare DIRPF (which I also didn't do in 2018 and 2019, for this reason).
Abroad, in Ireland (Europe), I entered with European documents (I'll comment if this interferes with anything, tax-wise). I worked and I understand that the taxes were paid at source there. The money I received for the work I did is in a European bank. Should I declare this in the DIRPF?
Thank you for this channel of communication and for your service, my friend. I am trying to be a good and truthful person, and do what is fair and right to do as a citizen. Sometimes I get a little lost with the laws (lol) and I need and want help. Please also let me know if I need to pay you for the consultation.
Cheers.
Glauber -
Hello, Dr. Vinicius,
Great explanation on the subject, this information is valuable as it is not found on the RFB website.
I ask for your help with a query, in 2016 I left Brazil and made my IRRF declaration in fiscal year 2017 / calendar 2016 informing the definitive departure from Brazil (the declaration was processed and since then I have not declared more).
To my surprise, I've now discovered that it was also necessary to give notice of definitive withdrawal (which seems redundant).
I checked my CPF and it's "Regular".
In this case, what should I do? The RFB website has no information on this case.
Thank you very much for your attention and support.
Congratulations on your blog, success!!! -
Hello,
Thank you for the excellent content and clear information.
I've been living in the USA for over 20 years (where I work, earn income and own property) and because I don't know the law, I haven't filed a DSDP and I still file annual tax returns (nothing to pay as I only have a savings account in Brazil).
I recently discovered the existence of these requirements and would like to regularize my situation. What is the best way to proceed?
Thank you very much.
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Hi Vinicius,
First of all, I'd like to thank you very much, as I really enjoyed the article.
If possible, I'd like to ask for help with a question too.
My case is the same as yours. I was born in Brazil, worked in Brazil for about 4/5 years, but never declared because my salary was always below the minimum required to start paying tax.
In 2019 I moved to the UK and I've been living and working there for almost 5 years.
I left Brazil without submitting an exit declaration or anything like that.
In the last almost 5 years of living in the UK, I've been to Brazil to visit family, but I've never spent more than 6 months in 1 year in Brazil.
One important detail is that in Brazil I had a "Limited Company" with my mother. In this case, I was a minority shareholder with (I believe) only 1% of the company.
Now, in 2023, I finally quit the company, because I found out that only residents of Brazil (tax citizens in Brazil) can have this type of company active.Thinking about returning to Brazil in the future and bringing back any earnings I've made abroad, I wonder if I've invalidated my departure from Brazil because I've kept this "Sociedade Empresaria Limitada" linked to my name during the years I've lived abroad, thus remaining a tax citizen in Brazil even while living abroad.
I understand that it's a complicated situation and that you can't give me certainty, but I'd just like to know if my reasoning is correct and if, in your opinion, the IRS could use the fact that I have a company in Brazil to charge me taxes for the years I lived abroad.
Apart from this company that I kept in Brazil, I also kept a current account in which I managed to move some money around and I also used the Brazilian credit card a few times (from the same bank), usually while I was in Brazil visiting family. However, I must make it clear that the money in the account did not come from Brazil. I had no income in Brazil during the years I lived abroad.
Thank you very much for any help you can give me, Vinicius!
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Vinicius Tersi, excellent post and congratulations for the dedication in the answers. I hope you can help me or at least show me the right way, I moved to the USA in February 2022 and this year I made my exit declaration, but I still receive rents in Brazil, and because of that, I fell into the fine mesh. When I try to rectify it, I don't have the option of informing that I received rent in the months of March onwards, what should I do to regularize my situation?
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Hello, Dr. Vinícius,
thank you very much for the content, it's very helpful for us Brazilians who live abroad and don't understand much about permanent departure.
I've lived in Germany for 15 years and in Brazil I was a university student and never had a job. I left when I was 19 and I still live abroad today. I can prove that I've been living here for 15 years (I'm even registered with the embassy and have voting papers for the last 3 presidential elections). I have never declared my departure from Brazil (this information is very rarely disclosed, even at the embassy), I don't own any real estate (either in Brazil or abroad), I don't have a bank account in Brazil and I don't have any inheritance or fixed income (in Brazil or abroad). I have paid all the taxes required by Germany in my last few years of employment.
I'd like to move back to Brazil (for the company I work for) and I'd like to know: is there any risk of them wanting to tax me retroactively, even if I can prove, even through the Embassy, that I haven't been a resident for the last 15 years? I know that there is a document at the Embassy, used for removals, where they prove people's residence abroad in order to be exempt from the tax on removals. Could this document be used?
Thank you very much for your work and I wish you a good day. -
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Vinicius, I found this post while I was researching my situation and it helped me a lot! I'd like to know if anything has changed since then, since the post is from 2022.
Do you still have the same whats and email?
A summary of my situation.
I'm Brazilian, I've been living in Germany since 2018, I haven't left the country permanently. I came to Germany to do a master's degree and ended up getting a job and staying here. But I'm thinking of returning to Brazil in 2024, and I'd like to know how to declare all the money I received in salary in Germany and which I was going to transfer to my accounts in Brazil.
1) Should I declare Final Departure with Retroactive Date?
2) I shouldn't worry, because as I understand it, the Consutla Receita informs me that even if I don't hand in the definitive exit form, after 12 months I'm already considered not to be living in Brazil? -
Hi Dr. Vinicius, how are you?
I would like clarification on the following:
My daughter hasn't lived in Brazil for more than five years and she hasn't made the Declaration of Final Departure from the Country or the Communication of Departure.
Every year he comes to Brazil once or twice for a vacation or necessary event.
During this period, I always filed my annual tax return here, but without any income from legal entities, just keeping the list of assets and rights that I had at the time (financial investments at Itaú bank).
During this period he also worked for a company abroad, paying taxes in the resident country.
This amount earned abroad was never mentioned in the declaration filed with the IRS in Brazil.
Questions: Can I file an Exit Declaration in 2023?
Or do I have to leave with a retroactive date of up to 5 years, which is allowed?
If it's retroactive, will I have to rectify all the declarations submitted?
In the event of a rectification, will I have to include the foreign earnings with the taxes paid?
She currently lives and works in Madrid, Spain.
Dr. Vinicius, thank you in advance for your guidance. -
Something similar happened here. I can't recommend it, but I would do the DSDP for the previous 5th year. In other words, if I left in 2000, I can't do the year 2000 but the year 2018 or 2019 (you have to check which program is released today).
If we don't do the CSDP at the time of departure, then it's all over.
Double tax residency for me is the coldest thing, except if you have a lot of wealth in Brazil and want to keep your investments, even if they produce great returns through a regular bank account. If you have a CDE account with the right to invest, that's fine.
Giving it away is an option for me because after accumulating it in euros, imagine if you don't give it away and when you try to get it back, the government will want its share with interest and fines... -
Good afternoon, Vinicius,
I have done a lot of research, but only here have I been able to get clear and precise information on the subject. My husband is being transferred to Mexico, but his salary will be paid in the US, which does not have a tax agreement, we have 2 adult children who will stay in Brazil, 1 in college, supported by us and another already working, but with some occasional help. We're leaving 1 rented property and buying another, we have an investment here. Only he declares IR, since I have no source of income. I received 1 property as a donation that I haven't yet transferred into my name. I understand that closing the current account is not a requirement of the RFB, but a recommendation of the Central Bank. I have a few questions:
Could we keep our current account as normal, receiving the rent and paying the bills in Brazil by doing the DSDB (he is the account holder)? Would there be any tax penalties?
If we do the DSDB, do we only have to declare the rental income, the investments and the deductibles of the child who is studying?
Can we send remittances to our children normally to their accounts?
Is there any difference in transferring the donated property before or after the final withdrawal?
The bank manager doesn't recommend that we leave permanently, from the "banking" point of view, would we be irregular with the RFB?
What is the maximum time limit for regularizing permanent exit, 5 years? Can't we regularize it after that?
We don't intend to live abroad "forever", but we don't have a date to return, so I thought we'd wait 2/3 years or so to regularize our tax situation, is that possible?
I have an inventory of my father open in court, with no deadline for completion. How would it look if I received something while I was living abroad?
Thank you for your excellent work!!!
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