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For those who want an idea of how permanent departure affects how much they have to pay for what they still keep in Brazil, here's the logic (or lack of logic) of non-resident taxation
[See the full article at Permanent Departure and Non-Resident Taxation: do I owe more or less income tax?]
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I've been interested in investing in Brazil for a long time, even though I've lived in Germany for years.
But understanding how income taxation works, etc. has always been an obstacle.
I feel like I've found the right information in a clear way for the first time in years.Thank you very much for the excellent content
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Hello, João!
Thank you for your interest. Your question is very good. The Internal Revenue Service's position has been that all types of non-resident income that are neither exempt nor exempt are taxed at 15%. This understanding has been applied to amounts received in the form of donations and inheritances (which I don't agree with), and also to VGBLs, on the grounds that they are a type of life insurance, not a pension plan (which I do agree with). So the safe answer is to say that it is 15%. To argue that it would not be taxable, you would have to argue that it is not income, but a type of indemnity for loss, which is a little more difficult to do.
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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Vinicius, good afternoon! Very good article... I have some doubts about being a non-resident
1) Is the 15% rate independent of the amount of rent received?
2) Even if I leave the money received for the rent in Brazil, do I need to have an attorney to pay the tax?
3) The rule says that the attorney-in-fact must issue the DARF to pay the tax in his name, but can the payment come out of my bank account?
3) As a non-resident, can I have expenses in my name and pay these bills (e.g. IPTU, condominium, electricity, telephone, credit card)?
Thank you in advance! -
Hello Vinicius. As always, another excellent article.
My question: I am a retired civil servant who is exempt from income tax because I have a serious illness. If I decide to live in another country and make a definitive declaration, becoming a non-resident, will I have to pay 25% of income tax, even though I am exempt?
Thank you for your attention. -
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Hello, Roberta!
Thank you for your interest. If you've returned to Brazil, you'll have to file a "normal" income tax return the following year, stating your assets as of your return and reporting your assets and income in Brazil and abroad from then on. There are some peculiarities about how to fill in the DIRPF in this 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, Eduardo!
Thank you for your question. It's the first time it's come up for me. The IRS maintains the understanding that, unless there is something expressly saying that the exemption applies generally, the income would be taxable at 15% (or 25% in the case of income from work, retirement and pension). In the case of the IRPF exemption for serious illness, this is provided for in art. 6, inc. XIV of the Law 7.713/1988. Article 6 states that the income of "natural persons" is exempt, without specifying whether they are tax residents in Brazil or not.
COSIT, an agency of the Federal Revenue Service, on the occasion of the Sol. COSIT Cons. 541/2017In its ruling on the matter, the Federal Court of Appeals ruled that the IRPF exemption for serious illness does NOT apply to residents or domiciled abroad, taking the view that Law 7.713/1988 as a whole only applies to individuals who are tax residents in Brazil (art. 1), even though art. 6 only mentions "individuals" in a more general way.
I believe it's possible to challenge this reasoning in the courts, but at least we already know what a tax auditor's view would be in this 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, Ursula!
Thank you for your interest. Answering your questions:
1) Yes, that's right.
2) In accordance with the law, yes. The law dates back to the 1940s, which is why it wasn't even considered possible for the taxpayer to collect the tax spontaneously from abroad. The aim of the tax authorities is to have someone in Brazil who they can execute if the tax is not paid, hence the responsibility of an attorney in Brazil.
3) In principle, yes, because the attorney is acting on your behalf, managing your affairs, and not using their own assets.
4) Yes, you can. Some of them are deductible from the rent to calculate the IRRF (condominium, IPTU and collection costs, provided they are borne by you as the landlord).
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, Maria Antonia!
Thank you for your question. I have argued that the loss of "definite intent", leading someone to become a non-resident, is a de facto situation, which has legal consequences. The point is that the IRS has created ancillary obligations to formalize this change in tax status (the CSD and the DSDP). I've read that the delivery of these declarations is important evidence. When filed, the onus is on the tax authorities to prove that it was the other way around. When a normal declaration is filed, the proof is that the link with Brazil has been maintained, and therefore all income and assets must be reported in Brazil, whether in Brazil or abroad.
If the person has moved to another country and done absolutely nothing, it is possible to argue that they have become a non-resident, but the proof is less overwhelming.
The main question here is what should be declared and how Brazilian income tax should be collected. The answer to this question depends on the points I outlined above.
Your question was abstract, 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, Carolina!
Thank you for your interest in our content. I can't talk about American taxation, although I know professionals in the US who can advise you on this.
Get in touch with our team to make an appointment. Just call us at WhatsApp or by e-mail contato@tersi.adv.br!
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Wow! I'm glad I've found someone who seems to understand my question and I'd be very grateful for any clarification. I'm not a resident (I think I made that declaration of leaving the country years ago) and I'd like to buy an apartment in Brazil to spend my vacations. I don't have a bank account in Brazil or any kind of income. Nor am I thinking of renting. My only question is how to find out what taxes I will pay for this transfer (from foreign income to non-resident). Thank you very much in advance.
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Hello, Vinicius,
Congratulations on the article. Very enlightening.I'm living in New Zealand and I left permanently in 2020. I still have some money in a current account in Brazil and I want to transfer it here. When I tried to do it through the bank, I got the following message.
"In the case of selecting the nature of remittances for Maintenance of Residents and Students, dependent on Income Tax (IR), the customer must be aware that it will be DECLARED that this remittance is exempt from withholding and payment of Income Tax (IR), as the resident and/or student is dependent on the sender's Annual Adjustment Declaration, not representing income earned by the favored party, based on item IV, Art. 754, of Decree 9,580/2018.
In the case of selecting the nature of remittances for Maintenance of Residents and Students, not dependent on Income Tax (IR), the client must be aware that Income Tax (IR) will be levied on the total value of the operation in accordance with current legislation."
I'm no longer a resident, so what happens? Do I have to pay tax on this transfer? How much? I haven't found anything anywhere that addresses this.
Thank you,
Edson
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Hello, Mr. Vinicius!
First of all, congratulations on your blog! I now realize how important it is!
I make the declaration for my sister who has been living abroad for a few years.
I never made the definitive declaration that he was leaving the country.
And now I'm forced to provide her address abroad so as not to contradict the information provided by the INSS (she receives retirement income) in field "7 - Additional information" that she is a FOREIGN RESIDENT.
So, as I'm not very good at declaring income to the IRS, I just changed the address to the one where she lives abroad and indicated my wife's CPF as her attorney-in-fact (she really is her attorney-in-fact).
After sending the declaration, I noticed that there is a "communication to the source of payment" about this withdrawal.
Well, the INSS already knows, but the State of Rio de Janeiro (its other source of payment) does not.
However, I was unable to generate this communication. It gives an impossibility message.
On the other hand, she also has income from renting out real estate whose income tax is charged at source by the administrator.
How can these corrections be made?
Is it still possible to make a definitive exit declaration?
Thank you in advance for your attention! -
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Congratulations on the article! It helped me a lot! I left Brazil in 2007 and didn't file a final tax return. For the first few years I was away, I declared myself exempt since I had no income in Brazil. From what I checked with the Receita Federal, I have no problems with my tax status, my CPF is ok. Does it make sense to make the final declaration now? Is it possible to file retroactively? Thank you
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Hello Vinicius, good afternoon!
I left Brazil permanently 25 years ago and I don't remember submitting the DSDP, and I never did any DIRPF in Brazil, but the current status of my CPF is 'Regular'.
1. In this case, is it possible that I am in a 'non-resident' situation, how do I prove it?
2. And if I were to invest in Brazil in the near future and make capital gains, would it be enough to get an attorney to collect the DARF on my behalf and submit the DIRFs instead of the DIRPF?
3. And if I make a loss on my investments, what do I do about the deductions?Sincerely,
Antonio -
Hello, Fernanda!
Thank you for your interest. You have a CPF and you won't lose it, and that's the requirement to be able to buy a property in Brazil. So there's nothing to stop you from buying the property. Regarding the international remittance, if you want to send the funds directly to the seller, without having a bank account in Brazil, you will need to make a foreign exchange remittance with an institution authorized by the Central Bank. They will ask for proof of the lawful origin of the funds sent. In this case, there will be an IOF tax on the remittance (usually 0.38%) plus bank fees on the remittance of funds, which need to be quoted with the institution making the exchange. For the purchase of the property, there is also the municipal ITBI and the registration and deed costs to transfer ownership of the property.
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
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Hello, Antonio!
Thank you for your interest. Information about a person's CPF status as a resident or non-resident can only be obtained in person at the Receita, unfortunately. Allowing free access to this information at least on e-CAC was one of the tax reform suggestions I made to the Ministry of Economy recently.
With regard to the proxy, the procedure you say works when it comes to investing in real estate. For real estate, the law doesn't allow you to use losses from one operation in another (for anyone, whether you're a tax resident or not). There are only a few expense deductions from the amount of rent received.
For financial investments, today we have a mismatch between what the law says and how it is applied. According to the law, taxation on financial investments is levied on the source of payment (bank, broker), and not by the taxpayer or a proxy. Because of the lack of dialogue between the Federal Revenue Service and the Central Bank, regulatory obstacles have prevented the law from being applied as it should be, a topic I'll go into in more detail. in this text on financial investments.
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, first of all congratulations! The content you provide is very detailed and of great value to us who live outside Brazil.
I've been living abroad for six years and when I left I didn't file a final tax return because I didn't know how to. In my first year abroad I declared my income tax and then stopped because I wasn't receiving any income in Brazil or abroad.
However, two years ago I started making investments (transactions and CDB-Fixed Income) in the stock market through brokerage houses with the money I had in savings in Brazil and I started working abroad as a salaried employee. Here in the country where I live I pay tax (20%) like a normal citizen, but in Brazil I stopped declaring 5 years ago.
What would be the best strategy in this situation?
- Transfer all my money to my country of residence and then make a final exit declaration?
- Do I file retroactive income tax returns, transfer my money from Brazil to abroad and then file a final exit tax return as described in this post?
- Or should I keep my investments in Brazil (they're not huge amounts) and declare them every year even though I live abroad?What would be the best strategy for me?
Thank you.
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Hello, Vinicius!
First of all, I'd like to congratulate you on your article. You've clearly explained the difference between tax rates for residents and non-residents using tables. Fantastic!
So I haven't been resident in Brazil for almost 20 years and I haven't declared my departure.
I have a few questions:
1- I will be contacting the IRS to regularize my situation. Will I have to pay a fine and tax on foreign assets/salary from the last 5 years?
2- I read on another website about a progressive reduction rate on the tax charged on renting a property to residents - in the future, I intend to buy an apartment for my own use and rent it out on Airbnb. Will I have to pay exactly 15% of the rent every month (or when the rent is paid) or will I get a reduction on top of that 15%?
3- I will be in Brazil for 12 months and I would like to know if a non-resident status will prevent me from using my digital bank account (opened with the resident status) or other activities that require a CPF?
Thank you in advance! -
Good evening Vinicius, I have a sister who left in November 2019, with the intention of returning before the 12 months were up, because she was going to see if she would adapt, so she didn't submit the definitive exit declaration. But the pandemic hit and she won't be coming back until 2022. She has filed her IRRF tax return every year and paid her taxes on time. What is her situation in this case? Is there an exception due to the pandemic?
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Hi Vinicius,
Thanks for the text, very enlightening.
I made my permanent exit declaration last year. I live in the Republic of Ireland.
I have an account with a digital bank, Banco Inter, which allows me to invest in Brazil, but I still don't quite understand if I have to have an Operational Code, (my CPF is ok), or if I have to register with the CVM as a non-resident investor, etc.In the past I've contacted brokers to find out and they told me I had to pay for a few things, a representative, a custody/administration fee, special 4373 accounts, and it would cost me at least 2000 reais a month to maintain the account, so I ended up putting it off until I understood better.
I'm keeping an eye on CVM resolution 64.
I've already sent an email to gain@cvm.gov.br to ask for directions but I'm waiting.At the moment I'm not sure what I should do, and how I should go about it so that I don't get into trouble with the IRS in the future.
Can I get advice from you through this channel, email or any other source of contact? -
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Vinicuis, a friend of mine left the country several years ago. She didn't file her final tax return at the time, but she's been living in the US for several years and files her IRPF there. However, in 2021 she acquired assets such as real estate, a consortium and financial investments in CDBs here. Should she file her annual tax return here in Brazil and declare these assets, even though she has no taxable or non-taxable income in Brazil?
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Good morning, Vinicius,
I'm Brazilian and I've been living in Spain for about 18 years. I have never made a declaration of permanent departure from the country (due to my ignorance on the subject), but I collect a widow's pension (from the Spanish government five years ago, for the death of my Spanish husband). Do I have to declare my income there in Brazil? Is there a Brazil/Spain agreement?
Thank you very much for your attention. -
Thanks for the post, very informative!
I have a question: I left Brazil 5 years ago and filed a final tax return. Now I'm returning and I intend to remit the amount received abroad (formal employment contract, with tax withheld in the country of the source of payment), what is the procedure for declaring it and what taxation may be levied on this remittance? -
Vinicius,
I'm a pensioner with the SP Military Police, and I'm planning to move to Spain in 2023.
If I leave Brazil permanently, I have to inform the source of the pension,
and what will be the total tax deducted from my benefit?
I already pay withholding tax, how much will the percentage increase?
Thank you in advance for your attention,
Marta Fraguas -
Good night
I'm a retired federal civil servant and my question is about how the income tax will be calculated if I decide to make a Final Exit Declaration, because I pay a pension to my granddaughter and I also get PSS, the civil servant's pension, deducted from my earnings above the INSS ceiling.
Is the calculation based on gross pay or is the pension and PSS deducted?
Another question: will I still have to pay the PSS?
The discount is scaled from 7 to 22.5% on the amount exceeding the ceiling.
I'd be grateful if you could enlighten me.
Thank you -
Good morning Leonardo. Thank you for an excellent and enlightening article.
My question concerns the payment of capital gains on the sale of an inherited property received by a non-resident. If the property is old, it is possible to update the value of the inherited property to the market price in order to receive tax exemption as stated below. How does this work for non-residents? It seems to me that these amounts are calculated and paid when you file your income tax return, but what about non-residents who don't file an income tax return?
"For old properties bought by the deceased before 1969, the capital gains tax exemption is total. Properties purchased between 1970 and 1988 have a partial tax benefit, which varies from 95% discount on the capital gain for the property purchased in 1970 to 5% discount for the property purchased in 1988. The benefit decreases by 5% each year. Properties purchased before 1996 are also entitled to a 70% reduction on the capital gain. This discount is cumulative with the extra benefit mentioned above for properties bought before 1989."
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Good morning Dr. Vinícius. Thank you for an excellent and enlightening article. My question concerns the payment of capital gains on the sale of an inherited property received by a non-resident. If the property is old, is it possible to update the value of the inherited property to the market price in order to receive tax exemption as stated below. How does this work for non-residents? It seems to me that these values are calculated and paid when you file your income tax return, but what about non-residents who don't file an income tax return? "For old properties, bought by the deceased before 1969, the exemption from capital gains tax is total. Properties acquired between 1970 and 1988 have a partial tax benefit, which varies from 95% discount on the capital gain for the property bought in 1970 to 5% discount for the property acquired in 1988. The benefit decreases by 5% each year. Properties purchased before 1996 are also entitled to a 70% reduction on the capital gain. This discount is cumulative with the extra benefit mentioned above for properties bought before 1989."
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Good afternoon, Vinícius!
I left Brazil five years ago and did my DSDP. I kept my checking account in Brazil and I have a savings account. I'm a pensioner and I receive my salary from this account. At the time I didn't know that I would have to inform the bank of my permanent departure and then I realized that it would be very complicated and expensive to keep an account as a non-resident. I want to buy a property, but I don't know if the amount I have in Brazil is enough. Could I transfer money from the country where I live to Brazil? Which professional could advise me on this property purchase (documents, payment, etc.)? -
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Hello Vinicius ,
I moved to the United States in December 2017 and I haven't declared my definitive departure from Brazil. However, during the time I've been here, I've sent several remittances to my account in Brazil in order to finalize some business I had there, and I still continue to use my bank account there. But I don't want to have to keep sending them from here because I don't declare income tax there. At the moment I've bought a house and I need to send the money to my account every month to pay for it. I don't move around a lot with the money I send from here, but now I've come across this situation where, as well as having to send the money, the house I've bought is going to my name and I don't know if this could give me a problem with the tax authorities. If I make a declaration of permanent departure from the country, can I send these amounts and put the property in my name without any problems with the IRS? Or do I still have to declare the tax there in Brazil? -
Vinícius, your comments are very good, but two specific doubts remain, namely:-
1. I made a VGBL in my name for a non-resident son, with the same beneficiary. In the event of my death, should I understand that the bank will pay 15% on the income, regardless of how long it has been invested?
2. If I die, what is due to this son as a result of shared assets, what tax will be levied and how will it be collected? -
Dr. Vinicius, good afternoon!
I would like to ask about the payment of life insurance to a beneficiary who made the Declaration of Final Departure from the Country in 2012 and who does not have a bank account in Brazil. Will the insurance company charge income tax when remitting the money abroad, or is there no tax in this case?
Would it be possible to allocate the insurance amount to another beneficiary who lives in Brazil and then remit it abroad in stages to reduce the amount of income tax? -
Hello, good morning.
I've been out of Brazil for almost 12 months now, working and living abroad (Portugal).I have investments in Brazil and I enjoy taxation in Brazil because I don't pay dividends and I don't normally pay % of capital gains within the limit of R$10mil gross per month.
This year 2022 I declared last year's 2021 investments in Brazil and income tax here in Portugal.I have two problems, Brazil and Portugal.
Portugal:
-From what I've researched, those with Portuguese tax residency pay tax on dividends and capital interest, and I would be included in this as I have investments in both Brazil and the United States and earn monthly dividends.
So, my question. Even if I don't bring these dividends to Portugal, do I pay tax to Portugal?Brazil:
-Should I declare my departure from Brazil as soon as I have completed 12 months?
-As a foreign investor, what does my tax situation look like? Do I pay and declare taxes to Brazil through which I will no longer pay income tax?
-I consulted my broker, if I change my fiscal address to outside Brazil I will pay an absurd fee just to keep the account in Brazil, and this is in any Brazilian broker (BTG, XP etc).
So, can I keep my address with the broker in Brazil to avoid this tax but inform the IRS that I'm away? -
Hello, Vinícius. I have two questions about this:
1- Could you tell me what the rate would be on income from index funds (ETFs) for non-residents? Would it be the same rate on income from stock investment funds for those domiciled abroad, other than in tax havens, which is 10%, or capital gains, which is exempt?
2- For investments in cryptocurrencies (more specifically, bitcoins), are investors not domiciled in Brazil taxed at the same rate as residents, from 15% to 22.5%, or are capital gains also exempt? -
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Hi Vinicius,
Thank you very much for the excellent content!
I've been living in the USA for 7 years and have left permanently. I would like to start investing in private pensions in Brazil.
1- Can I open a bank account?
2- Would the charge be 25% on the annual profit?
3- And in the future, when I start withdrawing, how will I be charged?On another subject, my husband moved here 5 years ago and still hasn't made his final exit because he worked as a PJ (MEI) in Brazil and "Exempt" as an individual. In July 2021 he started working here, but he hasn't closed his company, which is at a standstill, and he hasn't updated his residence.
4- Do we have to pay tax on his earnings here in the USA?
5- Is there a problem if he doesn't want to close the company in Brazil for future work as a freelance writer?
6- Does he need to leave permanently?Thank you in advance for your attention and patience.
Ma -
Hello Vinicius, good afternoon.
I left Brazil in 2014 and made my final exit declaration the following year, including my wife, who was accompanying me at the time.
The thing is, I'll still be living abroad and my wife has returned to Brazil, so she no longer has non-resident status, right?
That's where my doubts come in:
1) Does she need to "notify the Receita" that she has returned to Brazil?
2) If so, how?
3) If she receives rental income from real estate, she will pay income tax as if she were a normal resident, right?
4) She has a current account in her name. Can I be on this joint account with her?
Thank you very much in advance,
Rodrigo -
Hello, Vinicius
I've been living in Portugal for four years, I did the DSDP and now I've sold a property in Brazil, I know I don't have an exemption because I'm a non-resident. My questions are:
1- Do I calculate the Capital Gain and collect the Darf from here (Portugal)?
2- In 2023, do I need to file a DIRPF informing of this sale and capital gain?
Thank you in advance -
Dr. Vinicius, good evening!
My daughter is a non-resident (since 2015) in Brazil and lives in France;
- I have a PGBL where she has 33 % of entitlement in the event of my death, in which case she will have to pay 25% of income tax?
- I am a resident of Brazil and I have a little Euro deposited in a C.C. in my name in France and if I donate it to her C.C. in France, will I have to pay 15% of I.R. to Brazil as well as the ITCMD of SP (4 %)? Thank you! -
Hello, Vinicius,
Great article, congratulations!I moved abroad in 2017 and declared my departure in 2019. I had a financed property acquired in 2010 and sold it in 2022, but I didn't know (and neither did the real estate company) that the tax should be withheld by the buyer.
Reading your article:
(1) I understand that I cannot deduct the costs of the sale (real estate commission) when calculating the capital gain. Is this correct?
2. I understand that I will pay a fine and interest because the tax should have been withheld and paid by the buyer on the date of sale/disposal. Is this correct?
3. Can I pay the tax myself? By generating the DARF in the buyer's name and paying it...
4. If I pay myself, does the buyer still have to do anything? -
Hi, Jacqueline! What's up?
I will separate your questions into three distinct points to make them easier to answer and understand: (1) non-resident account; (2) international remittance; (3) purchase of property by a non-resident.
With regard to the first point, opening a non-resident account is now much more accessible than in the past,
When it comes to sending money to Brazil, the funds you transfer from your account abroad to your account in Brazil are not income, but assets, so only the IOF on the exchange transaction applies.
Finally, it is possible for non-residents to buy property in Brazil. We are currently working on this for a client. If you would like our support in this transaction, just contact us atWhatsApp or by e-mail contato@tersi.adv.br!
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Hello, Marlene! Thank you for your interest in our content.
When a resident leaves Brazil permanently without submitting the Communication or Declaration of Permanent Departure, the legislation understands that they are considered resident for the first 12 months after leaving and non-resident from the 13th month onwards. However, if the person maintains an interest in Brazil, the tax authorities may consider that the person has the definitive intention of residing in the country, which attracts double tax residency. The submission of the DAA corroborates this understanding, since only tax residents in Brazil are obliged to submit an annual tax return.
So, if your friend has a property in Brazil, but is not a tax resident because she lives and resides abroad, only having the property as an investment, she should not file an income tax return, but try to correct the CPF information with the Receita Federal.
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, Edson!
Thank you for the compliment and for your interest in our content.
When you transfer money between one account and another held by the same person, there is no income tax, because you don't earn income when you move your own money. There is, however, an exchange tax (IOF). Depending on the amount to be transferred, the bank may ask for documentary proof of the origin of the money. These requirements are only for the purposes of exchange control by the Central Bank, and not necessarily for tax collection.
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, Samuel! Thank you for your compliments and your interest in our content.
It's very difficult to give a concrete recommendation in a blog post, but I'll try to answer some of the questions you've raised.
Firstly, I would like to inform you that it is possible to submit the Declaration of Final Departure from the Country (DSDP) up to 5 years late, which means that if your sister left the country in 2017 (when the DSDP should have been submitted in April 2018) it would still be possible to submit the declaration retroactively.
It's not clear from your story whether you continued to file your sister's income tax return in the years following her move, but if you did, you would need to file an amended return for each year to inform her of her non-resident status.
Once the DSDP has been submitted, the IRS provides a model letter to be sent to the sources of payment, which will contain the information that your sister has acquired non-resident status. As for rents, the rate for non-residents is 15% and the DARF must be paid monthly, under the CPF of the attorney or non-resident, with the presentation of the Dirf.
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, Carolina! Thank you for the compliment and for your interest in our content.
It is possible to submit the Declaration of Final Departure from the Country (DSDP) with a delay of up to 5 years, i.e. if you left the country in 2007, it would only be possible to submit the declaration retroactively if it related to the 2017 calendar year.
It's not clear from your account how far back you filed your income tax return, but if you filed the 2018 IRPF return (for the 2017 calendar year) you can file a rectifying return to inform your non-resident status.
This declaration is made in the same program as the income tax declaration and, for your protection, must be filed even if you have no income in the country, since filing it will prevent future taxation in Brazil of income earned abroad.
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, Jadiel! Thank you for the kind compliment and for your interest in our content.
I can't give you a concrete recommendation based solely on the information you've given me. For that I would have to know the country in which you currently reside, your overall income and your intentions for the future.
I will say, however, that all the strategies mentioned are possible, but they have different consequences that must be analyzed according to your expectations and plans, which prevents me from advising you through a comment on a blog post.
If you need our support, you can contact us atWhatsApp or by e-mail contato@tersi.adv.brThis is an opportunity for us to discuss all these points, taking into account your personal interests.
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Hi, Josiane!
The taxation of non-residents in the case of private pensions is slightly different from that of residents. When the beneficiary of the VGBL is a non-resident, tax is withheld at the rate of 15% on the difference between the contributions and the final value of the benefit (capital gain), while the PGBL is taxed at the rate of 25% on the value of the redemption of the benefit.
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, Neila! Thank you for the kind compliment and for your interest in our content.
With regard to your questions, I don't have all the information I need to give you a direct answer, but I can give you a general idea:
1. Payment of the fine/tax will depend on whether you have filed returns in recent years, whether you need to rectify them and whether you need to inform the RFB of your income in the other country;
2. Rental income received by non-residents is taxed at the flat rate of 15%, there is no rate reduction for non-residents;
3. The impediment to operating a bank account depends on the paying sources informing you of your non-resident status. This is because the RFB has a duty of secrecy and does not communicate directly with the banks and other sources of payment of the non-resident.Despite the 12-month provision, I have argued that being absent from the country for 12 months gives rise to a presumption of loss of tax resident status in Brazil, but this legal presumption can be overturned by other evidence, such as the filing of income tax returns.
Although I've made some brief remarks due to limited space and information, I hope I've helped to clarify some of your doubts.
If you need our support, just contact us atWhatsApp or by e-mail contato@tersi.adv.br! -
Hello, Ana Claudia! Thank you for your interest in our content.
Some countries have relaxed the rules for determining tax residency during the pandemic period, and the OECD (Organization for Economic Cooperation and Development) itself has issued guidance to countries on the rules for determining tax residency.
impacts of Covid-19 on international treaties for the avoidance of double taxation of
income in April 2020. The IRS has not issued an opinion on the matter, so this issue in Brazil remains open.If your sister has lived abroad all this time, but has continued to file income tax returns normally, the assumption is that she is still considered a tax resident in Brazil.
If you'd like a detailed analysis, I'd be happy to arrange a chat with you, just call me onWhatsApp or by e-mail contato@tersi.adv.br!
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Hello, Francisco! Thanks for the compliment and for your interest in our content.
According to the Central Bank's rules, non-residents cannot keep ordinary accounts once they have left the country, so the institution has rules for opening a special account for people domiciled abroad, known as a "non-resident account". "CDE account".
In addition to the requirement for a CDE account, the CVM establishes rules for non-resident investors, to which you referred, the cost of which is impractical for investors who are not large. At the moment, these rules persist, but we have been working to make it possible for non-residents to invest in Brazil at more affordable costs. We recently proposed an amendment to Provisional Measure 1,137/2022, which is still being voted on in Congress and which, if approved, will bring us closer to this goal.
I hope to bring you better news in the future. As you have signaled your interest in receiving our guidance, I suggest you contact us atWhatsApp or by e-mail contato@tersi.adv.brIt will be a pleasure to serve you!
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Hello, Eliana! Thank you for sharing your question with us.
The tax charged on the sale of the property is levied on the capital gain and not on the total value of the sale.
It is important to note that the capital gain earned by a resident or domiciled abroad is calculated and taxed in accordance with the rules applicable to residents in Brazil. The Internal Revenue Service understands that only tax benefits (reduction of gain due to time, for example) are no longer applied to non-residents. The real estate agent's commission can be deducted from the gain.
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, Leandro! Thanks for your interest in our content.
Remittances from an account in Brazil to another account abroad are subject to IOF at a rate of 0.38% on the value of the transaction. If the remittance is made between accounts of the same ownership, the rate rises to 1.1%.
I hope I've helped. If you need our support, just contact us atWhatsApp or by e-mail contato@tersi.adv.br! -
Hello, Renato! Thanks for the compliment and for your interest in our content.
Non-residents are not required to file an income tax return. It is usually the buyer of the property who is responsible for paying the tax, who must withhold the corresponding amount at source when paying the price. In addition, tax exemptions and reductions do not apply when calculating a non-resident's capital gain
provided for residents of Brazil, so it will not be possible to benefit from the rule for old properties. For the RFB, only the real estate agent's commission is deductible.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,
Thank you very much for sharing this information, but after reading it I have an important question. I am the majority shareholder of a small company in Brazil and I will receive dividends in 2023. During this period I will have the NHR regime in Portugal. Normally, in Brazil, these dividends would be tax-free. As a general rule, under the Portuguese non-habitual resident regime, it seems that these dividends would not be taxed in Portugal either. Can you tell me if this deduction is correct?
Thank you for your attention,
Pedro -
Good morning and congratulations on your work!
My son has been in Australia for 10 months to accompany his wife (in a stable union) who is doing a doctorate. They are due to return in 3 years. She has decided to do the DSDP because she receives a scholarship from the Australian university. But my son doesn't want to do it because he wants to keep his tax residence in Brazil and continue to file his IRPF in Brazil. Is this an acceptable situation? Thank you in advance. -
Hello Dr. Vinicius, I really enjoyed your work.
I've been living abroad since 2007, when I declared that I had left the country permanently.
In 2020 I applied for old-age retirement under the Brazil/Portugal agreement, the pension was granted and I started receiving it here in Portugal (with the 25% discount, of course!!!) at the end of 2021.
I've been told that because I've started receiving the pension, I'm now obliged to file an IRPF.
Is that right? Or am I still exempt from filing the IRPF? If I need help, can I contact you? -
Hello, Dr. Vinicius. Can you clarify please.... am a retired civil servant from the state of São Paulo and I intend to live in the United States next year. I will make a declaration of permanent departure from the country and notify my employer, in this case the T.J.S.P. With this, the withholding income tax will cease? and I will pay 25 % on my retired salary, which will be credited to a bank account in the country where I will be living? is that it? or will I pay income tax at source plus the 25 percent? Thank you!
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Dr. Vinicius, good morning! Congratulations on your excellent article! But I have a question - Considering a non-resident Brazilian setting up a company opting for Simples Nacional with activity taxed by Annex V subject to the R Factor, is there any tax specificity in relation to the calculation of taxes of this PJ?
The income of the PF (owner or partner) as a pro-labore is subject to exclusive taxation at source at the rate of 15%, right? activity of medicine (technician).
Are profit distributions exempt or not in the case of non-residents?
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Hello Vinicius, good evening.
First of all, congratulations on the content published on this site, it has a lot of valuable information and is very enlightening. Thank you.
My son, who lives in Ireland, filed a retroactive DSDP this year for his departure from Brazil in 2019. From 2019 until now, he has a bank account and a small investment in a brokerage, some shares, DI funds, Treasury Direct, etc., which in total does not reach 10 thousand reais.
I learned from your website that people who have DSDPs cannot have bank accounts or investments in brokerage houses.
In this case, he needs to open a CDE account, but it's expensive to maintain, especially for a small investor. Is there another way out? What happens if he doesn't open the CDE account? I'm his proxy/representative here, could I manage his accounts without having to close them? -
Good afternoon.
I'll be leaving Brazil permanently in March 2023, but I'll be withdrawing my private pension from a closed entity of my former company in Brazil. If I receive the withdrawal from the private pension before filing the declaration of permanent departure from Brazil, will I pay 25% (already considering the non-resident rule) or will I still be paying the regressive tax table for Brazilian tax residents?
Thank you,
Rodrigo. -
I did the DSDP in 2012 for my son who is living in Japan. He is the beneficiary of my life insurance policy. I saw that residents do not pay income tax or ITCMD to receive life insurance. However, Non-Resident beneficiaries must pay taxes when they receive it, but the instructions are not clear. I would like your help to find out which taxes must be paid when sending the amount of the insurance payment abroad and/or using the account in Reais of the Non-Resident in the Country.
1) What rate of income tax should be paid?
2) When sending this money abroad, what tax must be paid?
3) He doesn't have a CDE account, but he does have an ordinary account with no movement and with the NEW CAMBIAL LAW, what would change in terms of taxes?
Thank you very much for your feedback. -
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Hi Vinicius, congratulations on the article, very objective and enlightening.
A question has arisen in my case. I made my tax withdrawal a few years ago, finalized all my investments in the stock market, closed my current account and opened a special current account for non-residents, etc. After I left the country, I bought land and apartments in Brazil, sending money from abroad to the non-resident account and making payments through it. My question is, in a few years' time, when I return to Brazil and become a tax resident again, will I have any problems because of the purchase of these properties? Will I have to pay any tax on them?
Thank you in advance,
Douglas -
Hi Vinicius, the post is very didactic and explanatory.
I have some doubts in my specific case. I hope you can answer some of my questions.
I've been living in Germany for a few months and intend to return to Brazil in about 4 or 5 years. My question is whether to leave permanently or not. I've done some research and it's not clear to me whether Brazil and Germany have any agreements in place to avoid double taxation. The only additional income abroad would be my salary.My questions:
(1) Do the two countries have this agreement that I could be exempt from paying any tax if I transfer part of my salary from Germany to my investments in Brazil? Or would I have to pay the tax in Brazil again even though the salary from Germany has already been taxed here abroad?
(2) If I do the DSDP, will all the capital I take with me when I return to Brazil not be taxed? Do I just have to declare the assets on my return and I won't be taxed?
(3) If I don't file the DSDP but do file an annual income tax return, what percentage of tax do I pay on my salary from abroad?
(4) If I don't file the DSDP and also don't file the annual income tax return, what is the percentage of tax and what is the percentage of penalty on all the capital I take back from what I have accumulated abroad at the time of my return?Thank you very much for your help.
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Dear Vinicius, your blog is sensational. I've been researching the subject on the internet for weeks, and at each site I end up with more questions than answers. You are very clear, thorough and provide complete and objective information. Congratulations on your excellence!
Vinicius, I'm moving to Germany this year. I have no income, I haven't retired yet and I don't use the income from a PGBL. So my IRPF every year is zero to pay, it's just the work of declaring it.
I have 2 young children who are still financially dependent and an elderly mother who remains in Brazil. So I'm going to keep real estate, accounts and investments in Brazil, there's no way.
Honestly, I'm wondering why I should give up? I can't keep filing my tax return every year (it's going to be zero to pay anyway...) and not worry about all these exceptions. I come to Brazil at least twice a year to see my family.
I'm going to study in Germany and I'll still have no income. When I file my tax return in Germany, I'll probably be taxed twice for rental income and investments, but I think it's an irrelevant amount compared to the limitations and bureaucracy imposed on non-residents here. Does that make sense? -
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Good morning, Vinicius!
What an enlightening post, thank you!
Please, one situation that does not appear in your text, in the specific case of rent: when for some reason the tenant misses the deadline for paying the rent and pays 01 working day later and, even so, the non-resident landlord ends up paying the DARF on the agreed date.
In other words: the DARF is paid on Friday the 10th, but the rent itself was paid on Monday the 13th.
Is that a problem? Or must the IRRF DARF be paid on the same day as the deposit, neither before nor after? And how can this exception situation be corrected?Point 2: when the non-tax resident landlord has a specific checking account for this status in Brazil, he can pay the DARF himself, right? Or do they still have to be the attorney-in-fact for their respective checking account?
Thank you very much!
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... pardon me, one last practical question: having a CDE account just to be able to collect the rent and pay expenses (IPTU and condominium etc.) is expensive, at least Itaú charges a monthly fee of over 400.00!
Can this bank fee be deducted from the IRRF tax base? Or just condominium and IPTU?
Thanks again 🙂
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Hi Vinicius, good morning!
Very good work! Congratulations!I went through all the "questions and answers" and couldn't find my question: I'm an expatriate living in a "tax haven - the Arab Emirates". I have a property in Brazil and have put it up for sale.
I would like to know if the IRRF will be 22.5% or 25%?
I read in one of the comments that the real estate commission can be deducted. Does this also apply to people living in tax havens?
Thank you, -
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Hello,
Your article/post is very enlightening. Thank you.I am a non-resident for tax purposes in Brazil and I would like to know how to pay the appropriate tax (the 25% of IR) on future consultancy services that will be carried out in Brazil virtually. I know I can't open an MEI as a non-resident, but I haven't yet understood how I can legally earn from this service. Thank you.
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Hi Vinicius, thanks for the information.
If a non-tax resident, who has left the country permanently and does not file an annual tax return, receives a property as a gift from his parents (for the same amount as when it was bought), what taxes would be due? It seems to me that ITD would be due. Would IR and ITBI be levied? Would it be necessary to file an income tax return the following year?
Thank you in advance -
Good morning, I loved the article. Congratulations!
I have a very specific question that I haven't found the answer to anywhere.
If you are a non-resident, with your tax return duly filed, but have received an amount related to a labor lawsuit, and have had income tax withheld from the amount to be received, do you still have to file a tax return to report the amount withheld and the income tax paid? Even if he is a non-resident? And is there any other tax rate to be paid due to not being a resident? I haven't found anything about paying any extra tax because you're a non-resident.
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