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Those who leave the country permanently can invest in Brazil, but the regulations excessively restrict the freedom of non-resident investors.
[See the full article at Can people who leave the country permanently invest in Brazil?] -
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Hello Vinicius, thank you very much for the article, it clarified my doubts. I agree with you that it's very unfair to charge a monthly maintenance fee of up to 5,000 reais per month in order to have an investment account in Brazil after leaving the country! How absurd. Only large financial institutions can afford to pay these costs, so small investors like me end up being left out...
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Hello, Marlene!
Thanks for your interest and compliments!
Fortunately, there is some light on the horizon. The Foreign Exchange Bill should soon become law, and an opportunity will open up for the Central Bank to correct these regulatory problems. I'm due to write a post on this subject. Let's hope so!
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Hello, Vinícius,
I sent the Declaration of Final Departure from Brazil, but I still own shares and real estate funds.
I need to regularize my situation, but I have some shares at a loss at the moment.
Am I obliged to get rid of them immediately, or can I at least wait for them to recover their value?Thank you!
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Hello, Matthew!
Thank you for your interest. The main problem with maintaining financial investments and stock market investments in Brazil is not so much what the law says, but how it has been (poorly) regulated. The law doesn't prevent you from keeping your investments in shares indefinitely. It's the Central Bank's regulations that have made it impossible, in practice, to keep up with banks and brokers.
From next year, with the entry into force of the New Foreign Exchange Law (Law 14.286/2021), there is hope that these regulatory problems will be resolved. At the moment, unfortunately, the situation has pushed people to not inform the paying sources (in this case, banks and brokers) of their tax exit in order to maintain their investments. Here at the firm, we are committed to changing this scenario.
I hope I've answered your question, although it's not possible for me to give a recommendation in a blog comment without knowing your situation.
If you need more support, feel free to contact our team via WhatsApp or email!
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Good evening, Dr. Vinicius! I came across your blog researching tax exits and please, if you can help me with a question. I am Brazilian and recently moved to Europe, I did not make a tax exit and I do day trade in mini contract should I pay monthly DARF and does it remain 20%? Am I obliged to submit an annual declaration? What do you recommend for this situation?
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Hello, Leonardo!
Thank you for your interest in our content. To answer your question, the day-trading situation is unfortunately one of the most difficult today, because the regulations have not been well adjusted to the situation of those who move abroad. According to the law, your resident and non-resident taxation should be the same, except for the fact that the non-resident should appoint the bank/brokerage holding the securities as legal representative to calculate and collect the tax (in this case, the bank/brokerage would pay the DARF form for you). Unfortunately, this is not what has happened in practice today, as Central Bank regulations require all non-resident investors to meet the same requirements as a large investor (the 4373 investor). It is quite possible that from 2023 onwards this regulatory problem will be resolved, given the new Law 14.286/2021.
It's difficult to give a recommendation for a complex situation in a blog post. If you need our support, you can contact our team by WhatsApp or email to make an appointment with me, OK? Then we'll see what solution would be most appropriate.
Cheers!
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Hi Tersi! But this new Foreign Exchange Law (Law 14.286/2021) should help non-tax residents to have accounts in banks without having to make that damn foreign account that no bank accepts (or they charge a kidney)?
It's absurd that people who live abroad are "prevented" from having an account in Br.... I didn't inform the bank of my tax withdrawal, there's no way, I was scared to death that they would close my account, I have a private pension, I don't want to take it out of the bank, and when I go there, I'll still pay the condominium of my apartment, it's crazy... I hope something improves.... -
Hello, Vinicius,
Your blog is excellent, thank you so much for sharing your knowledge with us! I've been living abroad for 26 years and I've never filed an income tax return in Brazil since I was only 16 when I left the country. And I don't have any kind of income, real estate or other investments in the country.
My question is: I intend to invest in buying and selling real estate in Brazil. I intend to do this as an individual using my CFP, which is still in order. My intention is to take out a bank loan abroad and transfer the money to Brazil.
I would like to know if I need to do this "Declaration of Definitive Departure from the Country" process first and what the consequences would be if I, as a small investor, decide to do this procedure or not?
In this case, my future intention would be to open a small company (construction and real estate developer) in Brazil to manage this business. But what impact would this have on the DSDP process? What is the best thing to do in my case? What would you advise?
Thank you in advance for your help! -
Hello, Drea!
Thank you very much for your interest. It's been a struggle in recent years to raise awareness of this issue in order to bring about change. At the moment we can only hope that things will really change next year. I hope to be able to talk to DEREG again this year, so that I can push for a more rational rule. Cheer me on.
Cheers!
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Hello, Fabiana!
Thank you for your interest in our content. Submitting the Declaration of Final Departure from the Country is recommended in order to update your CPF information and to avoid the risk of taxation in Brazil on your income from abroad. It is also recommended to justify that the source of the funds you sent to Brazil to buy the property comes from assets you built up abroad as a non-resident, and which have therefore not been subject to income tax over the years or to filing returns.
After formalizing your permanent departure as a non-resident in Brazil, you can also be a partner (and in some cases a director) of a new company incorporated in Brazil. In this case, there are some differences in relation to the same investment made by the tax resident, but nothing that would jeopardize your objectives. It's difficult to give a more concrete recommendation in a blog post, as it's necessary to better understand your reality. But from the information you have provided, it is possible to do what you want.
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 Blog, thank you very much for the information, extremely useful and I hope that you will be able to influence the debureaucratization of non-resident accounts in the face of the new law of 2021.
I have been living abroad for two decades and left Brazil 15 years ago. Since I filed my tax return, I have obviously not paid any income tax in Brazil. However, in the year of the tax withdrawal, but after the tax return had already been filed, I opened a savings account and did not inform the bank where the savings account was created at the time because I did not know that it was necessary (and I don't really know if it was because it was before 2014) to inform that I was not a tax resident in Brazil. Would there be any tax on the income from this savings account in Brazil if I were a non-resident?
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Hello, Solomon!
Thank you for your interest. The general taxation regime for non-residents with regard to financial income boils down to treating them the same as residents. So interest on savings remains exempt, regardless of the status of your account.
On Friday, we won a small victory, dealing directly with the Ministry of the Economy in conjunction with the Internal Revenue Service. The hope is working! We'll publish what happened soon.
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, very interesting site.
I have a question. I've been living abroad since 2007 and I made a permanent departure, etc. At the time I transferred part of my assets abroad but the bank didn't say anything about canceling the account. But my question is this. I have a pgbl and vgbl pension plan which is subject to regressive taxation. I'm thinking of canceling this plan and putting it into other investments. As a non-resident, I would pay a different tax rate (if I don't say I'm not a resident). If I transfer this money abroad (to avoid double taxation) the bank will probably cancel the account, right? Thank you very much. -
Hello, M.L.!
Thank you for your interest. Non-residents are taxed differently on private pensions. As a rule, it is 25%, and in the case of the VGBL, the IRS has stated that it would be 15%, as it is more like insurance than a pension plan. It is possible to maintain a private pension even if you don't have an open bank account, as the rules for the account and the private pension are 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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Here's my case.
I'm 37 years old and I've never filed a tax return because I've never had an income above the ceiling.
I left Brazil in April 2018, got married in Switzerland in 2019 and am currently living here.
I work and declare my income here.
In Brazil, I've been investing in the stock market since 12/21.
Because up until now my intention had been to make the declaration of definitive departure from the country, so that I would no longer have any obligation to the Brazilian tax authorities.
However, I've read some texts about how people who make this declaration can't open an account in Brazil or have difficulty finding a brokerage firm that opens accounts for non-residents.
So the question would be what to do?
I've read that I should declare in Brazil my income earned here in Switzerland, deducting the percentage of Swiss taxation, but this would be financially unfeasible.Is there a solution to this?
Thank you very much for your time and education.
Cheers Diego Bluyssen
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Hello, Diego!
Thank you for your interest in our content.
Your post makes two points. The first is that it would be better to formalize the tax exit from Brazil, considering the fact that you have income from abroad, which would otherwise be subject to Brazilian taxation.
With regard to stock market investment, unfortunately you're right about the regulatory restrictions. Brazil and Switzerland signed an international agreement to avoid double taxation, which came into force on January 1, 2022. The agreement brings some extra benefits to avoid double taxation of your income. Depending on your specific situation, there may be an alternative scenario, at least as long as the regulations remain inadequate.
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 evening!
In 2019 I made the declaration of definitive departure from Brazil, as I started living in the USA.
However, in 2021 I invested in some CDBs, Treasuries and some shares in Brazil through brokers using my home address in Brazil.
I would like to know if I am obliged to declare these investments since they are already deducted at source.Thanks in advance!
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Hi Vinicious! I was researching this subject and found your article. I have the following question, I am leaving Brazil now next April 26, 2022 and I already want to make the communication of definitive exit. Can I do it now and submit the Definitive Exit Declaration until April 2023? And I would also like to know about the part of paying sources, the money that was stuck in the FGTS account and savings amounts should I declare or only if I have some amount from a company to receive?
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Vinicius, thank you so much for the information!!! I left in 2014 and kept my investments in fixed income funds at the bank. However, I didn't inform the bank of my withdrawal... Can I change my investment strategy (to take advantage of the current scenario)? I understand that taxes are collected at source, correct?
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Hi Vinicius, congratulations on your work, very interesting article.
Could you please answer one question?
I'm going to work in the Middle East in a country that doesn't have an agreement with Brazil, with a 40-day work schedule and 20 days off, and my family will stay here in Brazil. I'm leaving permanently, so I can send my salary to Brazil every month without incurring tax or bring in a larger sum once a year to buy a property, for example.
As I understand it, in Q&A No. 113, if you've left the country permanently, when you return to Brazil you can bring all the money back without incurring tax, but in my case I'd be sending it every month or sporadically to Brazil.
Would I fit into this example you gave of an investor or could I send this money without incurring future tax?
If, in the case of an investor, would there still be a fee of 3,000 to 5,000 for an individual?Thank you very much
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Dear Vinicius,
I left Brazil permanently in March 2022. However, I still have savings in one bank and direct treasury and shares in another in Brazil. Both banks suggested opening a foreign account, which would solve the savings problem because I managed to negotiate an exemption with one bank for this account if I keep the amount of savings in a CDB. I can also withdraw the direct treasury and leave it in the foreigners' account. My problem is with shares. The bank with the foreigners' account doesn't hold the shares and I won't be able to hold them, nor do I want to sell them all at once because of their current value. How should I declare this in my tax return, considering that the end date of my last return (for 2023) will be March 2022 and I still have these shares? I haven't officially informed the custodian bank with the letter generated by the Central Bank because they're going to cancel my account and I still don't have a solution for porting the shares. How should I proceed?
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Good morning, I'm Brazilian, I've lived in Germany since 1999 and I've had German citizenship since 2012. I left the country permanently (CPF suspended) and I don't even have a bank account in Brazil. However, I would now like to invest in Brazil. Is this possible and what do I need to do? In Germany, financial gains are taxed at 25%, including gains abroad. With dual citizenship, is there any possibility of paying income tax in Brazil despite having tax residence in Germany?
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Hello, Vinicius,
I think this is the only site I've found so far with more complete information, congratulations!
I've been living abroad since 2013, and I work for an international organization, which gives me tax exemption (at least on my salary). I have some investments in Brazil and I wanted to expand them by changing my brokerage, which in turn only accepts investors who have a domicile in Brazil. I left permanently in 2017 and have never withdrawn the money I have invested.
In the case of my investments, I would like to know if I would really pay the tax only at source or how I should proceed, and if it is possible to maintain a domicile in Brazil even though I have made the tax exit.
If you think you can help me, we can also talk by e-mail.
Thank you,
Andressa -
Hello Vinicius, I understand that those who don't make a definitive declaration of departure are subject to taxation on transfers to Brazil and those who make a declaration are exempt from this taxation. Is that right? I live in the USA and I didn't make this definitive declaration, and since then I've been sending money to Brazil and paying a very high tax, through Carnê Leão. I invest in real estate.
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Hello Vinicius, thank you very much for the article.
Well..... I've been living abroad (Norway) for 8 years and I've never declared my permanent departure from Brazil. Some years I filed a tax return and others I didn't (because it wasn't necessary). I keep my address, my house and my bank account in Brazil. This month I sent some money from Norway to Brazil and now they (BANCO BRADESCO) have asked me for a tax return from Brazil and Norway for the years 2021 and 2022 (the money is still held at Central Bradeso) will I be taxed again for this? what should I do? -
Vinicius,
And in the case of an investment in an LC (bill of exchange), which has fixed-income taxation, just like the CDB, I invested in it while I was living in Brazil, today I've moved to the US, I've made the declaration, but my LC is still active in the institution in Brazil. When it matures, will it be taxed at source, according to Brazilian taxation? And can the payment be made to my current account in Brazil?
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Hello.
I'm moving to Spain to work for a Spanish company (indefinite contract).
According to the Spanish Beckham Law, my income tax in Spain would be 24%. In Brazil it would be 27.5%.
I have FGTS, private pension, savings, a property and some small investments in Brazil
Do I make a permanent tax exit or not? Which is more advantageous?
I would like to continue with my investments in Brazil, my FGTS, private pension, savings and real estate.
If I don't make a permanent tax exit, what will I do? Will I have to declare income tax in both countries? How do I avoid double taxation?
About Beckham's Law. Is it beneficial for me to enlist in it? How do I enlist?
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Good afternoon Vinícius, congratulations on your blog.
I have an investment account with a broker (Real Estate Fund, Fixed Income, Stocks and Funds). I have citizenship in Portugal and I'm going to move there and transfer my tax residence there. My bank accounts will be blocked, right? and my investment account and my investments? will I be able to move them? (sell Fiis buy CDB for example, or vice/versa). Gains on shares/FIIs I must pay DARF and present to the IRS how? if I redeem them, can I send them there after the transfer? thanks! -
Good afternoon, I love reading the comments and always learn a little more from your blog. Thanks for the content.
I have a question: My brother left Brazil and made a tax exit, but he would like to invest some money in a brokerage in Brazil, in a Petrobras paper. Would that be possible in his case? How would withholding tax be on the income from the paper, given that he no longer files a tax return from next year onwards (only the final tax return. He left the country this year and went to the US)? could he invest? he hasn't canceled his bank account. What impact could this have? -
Hello, I live in the United Arab Emirates, I haven't filed a declaration of departure from Brazil, but my husband has and he has put me down as a dependent. First point: I have an investment in Treasury Direct, I would like to know how my situation is in relation to this. And secondly, I'd like to invest in shares. Can't I invest in shares in Brazil? If I do, will I be penalized by the tax authorities? Should I invest in shares from here? Thanks in advance!
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Hello, Rafael, thank you for your interest.
If you make a permanent withdrawal, income from abroad is not taxable in Brazil. Therefore, the funds you transfer from your account abroad to your account in Brazil are not income, but assets. There will be IOF on the exchange transaction, but no income tax. This applies to transfers of any value or frequency.
The value of the shipment only affects the documentation required by the Central Bank, not its 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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Hi Vinicius, I've been living in Brazil for 18 years, I've never made an income declaration in Brazil because at the time I was 19 years old I needed it for the amount I received... with the years outside of Brazil I've always sent money to my family, I've kept my cpf, I've bought lots, apartments and shares. I never left Brazil permanently ... I don't know how to "sort out" all this ... I want to pay tax, but it's unfair that working so hard and so many years away from my family ... I feel like a criminal because I pay tax here in Spain, all the money I send has already been taxed here and I'm very afraid and because I don't know how to solve this, I keep buying apartments, shares ... in short, I'm just increasing the snowball of money but also of problems ... where do I start to solve all this? I've been investing like this for 18 years and I want to have a clear head and not be afraid of losing everything. Thank you
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Hi Vinicius, how are you? I've already left the country, but I've kept my money in investment funds with a broker. As I can't make any more contributions due to my departure, would it be possible to invest in CDBs? What's more, I haven't told the broker that I'm a non-resident. And if I do now, is it possible to keep this type of investment in this case? Thank you!
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Hi Vinicius, your blog is fantastic. Thank you very much for the content.
I left Brazil for good, but I keep sending money to the country to invest in shares, real estate funds, direct treasuries, etc.
My questions are: if I return to Brazil and cancel my permanent exit, will I have problems because of the capital increase? I transfer money through cryptocurrencies and convert it into Brazilian Real back in Brazil.
If I sell shares in Real Estate Funds at a profit, should I do DARF normally, as if I lived in Brazil?
Thank you!
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Hello, Dr. Vinícius.
Congratulations on the site and your explanations.
I'm a Portuguese-Brazilian citizen and I'm retiring in Brazil in two years' time. I want to go back to Europe, buy a house so I can live there, a car and have some rental houses to keep me there so I don't have to keep exchanging money and losing it. I have a bank account here in Brazil where my salary and pension go. I also have some rental houses here and some bank investments. What would be the best solution for me? -
Hello, Danielly!
Thank you for your interest in our content.
The procedure laid down by the authorities is exactly what you've described: make the communication of definitive departure (CSD) when you leave the country and submit the declaration of definitive departure from the country (DSDP) the year after you leave the country. According to your account, your declaration must be submitted in April 2023 and all your assets and rights must be declared, including the amounts in savings and the amounts withdrawn from the FGTS account (but not those still deposited).
If you have any further questions about this procedure, you can contact us at WhatsApp or by e-mail contato@tersi.adv.br! so that we can help you in the best possible way. -
Thank you for your interest in our content.
The IRS leaves it up to the person who has acquired the status of non-resident to inform the paying sources of this status, due to the IRS's duty of confidentiality. As you haven't communicated this, you are still considered a resident by the bank.
The taxation of financial investments in both cases is the same. However, if you don't inform the bank of this change, the bank will report your income to the RFB as if you were still a resident. Depending on the amounts and transactions involved, this could lead to a pending tax return being filed as a resident. In more extreme cases, it can also lead to your bank account being blocked, an issue that can be resolved with the tax authorities by explaining that you failed to deliver the letter.
If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br! -
Hello, Soraia! Thank you for your interest in our content.
It is possible for non-residents to invest in Brazil. Unfortunately, regulatory problems have made it too expensive for smaller investors to maintain financial investments on a regular basis. If this is not a major obstacle for the investor, the procedure for opening a non-resident investor account involves appointing the financial institution (or intermediary institution) as the legal representative in the country before the CVM.
What's more, Brazil and Germany no longer have an agreement to avoid double taxation, so Germany will be able to tax the income from these financial investments, even in a situation of dual residence. We know that Germany allows income tax paid in Brazil to be used as a credit.
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, Felipe! Thanks for your interest in our content.
The information you have provided is too superficial for me to be able to give you a recommendation. In general terms, the criterion of tax residency in Brazil is subjective, so it is possible for a person to be tax resident in both Brazil and Canada, even if they have a greater presence in Canada than in Brazil.
As I don't have all the necessary information, I can't tell you the best solution for your case, so I suggest you contact us atWhatsApp or by e-mail contato@tersi.adv.br if you would like a specific recommendation. We'd be delighted to help you!
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Good evening, I am evaluating a job offer in Portugal, but I have investments in Brazil in real estate funds, shares, cdb, and coe.
My husband will be in Brazil for a year yet and we have a property in addition to the applications mentioned.
What is the procedure in this case? Can I keep these investments in Brazil? Should I make the exit declaration or continue declaring in Brazil and do it in Portugal as well? -
"As a rule, non-residents can only invest in savings accounts, CDBs and private pension funds."
Vinícius, please could you indicate which Central Bank rule mentions this?
I tried searching, but to no avail.
I left the country in 2018, filed a declaration of permanent departure and sent it to the bank. As my property is rented, I continued to invest in fixed income on a monthly basis.
Only now in 2023 has the bank decided to block my access to investing in the fixed income fund!!!
Only in BR... 🙁 -
Hi Vinicius, I'm moving to the United States in January next year, when I'll also be giving notice to leave. However, I have investments in Brazil (e.g. third-party CDBs, long-term funds) that I don't want to redeem due to the huge financial loss of selling them "on the market". I will be informing the financial institution, which has told me that the investment can be kept and that new contributions are prohibited.
How do you see this situation? Do you see any problems when it comes to redeeming these investments since this shouldn't happen until 2026?
Thank you
Renato -
I've lived in Japan for 5 years and started investing in bonds and treasuries in December 2022.
I didn't declare my address abroad to the brokerage house. And I can't declare my fixed assets because I also need to declare the cnpj of the source of payment, which in my case is abroad. I don't know what to do. -
Hello, I left Brazil permanently in 2017.
In 2020, I made a digital bank account (with my Brazilian address) and started investing in the Brazilian stock market by buying stocks and real estate funds that I still have (approximately 50 K).
I saw that a new CVM resolution number 64 came out in 2022 that exempts non-resident investors from registration, apparently they just need to notify the CVM before they start investing, but in my case, I started investing before.
I'm worried about what might happen in this scenario and what would be the best way to reduce any risk of problems with the tax authorities, since I receive dividends.
What should I do, file IR on my investments? Sell them, inform the CVM that I am not a resident and then start investing again? Help -
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