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Permanent Departure and Non-Resident Taxation: do I owe more or less income tax?

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
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Opinion

When I talk about Declaration of Final Departure from Country (DSDP)and customers begin to understand the main consequences of the tax outputThe next question is: "How does non-resident taxation affect my situation in Brazil? Should I pay more or less income tax?". Although it's not a complex subject, there are so many hypotheses that people often feel a little confused.

The purpose of this text is to serve as a reference for those who live and work abroad, and want to understand how their change of status The text also applies to foreigners who have no assets in Brazil and want to make their first investments. The text also applies to foreigners who have no assets in Brazil and want to make their first investments. Of course, knowing the applicable tax rate doesn't always paint the whole picture. That's why, whenever necessary, we refer to other texts that go into more detail on a specific point (for example, the taxation of property rents in Brazil).

The Logic of Non-Resident Taxation

Tributação definitiva, tributação exclusiva na fonte, tributação do não residente
Non-Resident Taxation and Logic: do they meet at infinity?

Anyone who files a Final Exit Declaration and becomes a non-resident must submit their income or capital gains to Brazilian taxation only from a Brazilian source. Nothing you receive from a foreign source can be taxed in Brazil.

In Brazil, at least so far, there is no such thing as a non-resident income tax return. For this reason, income tax is levied in the form of withholding income tax (IRRF). IRRF must be withheld and paid to the tax authorities as normal by the source of payment.

Source of payment and exclusive taxation

Paying sourceIn our case, it's anyone who pays income from a Brazilian source. For example, the employer is the source that pays the salary to the employee, the bank is the source that pays interest to the account holder, the company is the source that pays dividends to the partner, and the tenant is the source that pays rents to the landlord.

Under the Brazilian model of non-resident taxation, each income is taxed as follows in isolation and exclusive (in other words, the source of payment is responsible for everything, not the taxpayer). As I said, in Brazil we don't have an income tax return that adds up all your income, entitles you to deductions and allows you to make adjustments or obtain refunds, although we do have suggested that the Federal Revenue Service create this mechanism for non-resident stock exchange investors.

In Brazil, you pay tax on that income and that's it. It is the taxpayer's state of residence that gives deductions or refunds1"State of residence" means the country or dependency in which the taxpayer is resident for tax purposes.The tax authorities have their own rules. These rules can take into account the tax paid in Brazil in order to avoid double taxation, especially if there is an international agreement providing for this type of relief.

Brazilian law also contains some hypotheses in which the IRRF is collected not by the source of payment, but by an attorney, resident in Brazil, representing the taxpayer. In this case, the logic is the same: all that changes is who has the duty to withhold and pay the tax to the tax authorities.

Another important change is the tax payment date. For tax residents in Brazil, the amount of tax withheld at source or paid by the taxpayer must normally be paid to the tax authorities by the end of the month following receipt of income. For non-residents, the IRRF must be paid on the same date as the taxable event, otherwise late payment fines and interest will be charged from the following day.

Non-resident taxation: rates

The most relevant tax changes for those who make the Final Exit Declaration and leave the status of tax resident in Brazil and become non-residents are as follows:

IncomeRate
work, with or without an employment relationship, or the provision of services in general0%-27,5%
(progressive table)
retirement or pension (public welfare)0%-27,5%
(progressive table)
alimony0%-27,5%
(progressive table)
rent or lease0%-27,5%
(progressive table)
interest on financial investments, income from investment funds in general22.5% to 15%
(depending on the application period)
stock exchange operations in general15% (common operations)
or 20% (day-trade)
capital gains on the sale of real estate, shareholdings, etc.15% to 22.5%
(depending on the gain value)
dividendsexempt
interest on own capital (JCP)15%
rural activity0%-27,5%
(progressive table, with special rules)
royaltiestechnical services, administrative assistance and the like0%-27,5%
(progressive table)
Private/Complementary Pension (PGBL or similar)0%-27,5% (traditional) or
from 35% to 10% (regressive)
Private/Complementary Pension (VGBL or similar)0%-27,5% (traditional) or
from 35% to 10% (regressive)
IncomeRate
work, with or without an employment relationship, or the provision of services in general2Work is carried out by an individual, while services can also be provided by a legal entity abroad. "Pejotization", involving work carried out by a legal entity in Brazil or MEI (individual micro-entrepreneur), is not the subject here.25%
(without progression)
retirement or pension (public welfare)3Whether it comes from the INSS or the public servants' pension scheme.
25%
(without progression)
alimony15%
(without progression)
rent or lease15%
(without progression)
interest on financial investments, income from investment funds in generalIt depends
(general regime vs. special regime)
stock exchange operations in generalIt depends
(general regime vs. special regime)
capital gains on the sale of real estate, shareholdings, etc.15% to 22.5%
(depending on the gain value)
dividendsexempt
interest on own capital (JCP)15%
income from rural activities15%
(no progression, no special rules)
royaltiestechnical services, administrative assistance and the like15%
(without progression)
Private/Complementary Pension (PGBL or similar)25%
(without progression)
Private/Complementary Pension (VGBL or similar)15%
(without progression)
IncomeRate
work, with or without an employment relationship, or the provision of services in general25%
(without progression)
retirement or pension (public welfare)25%
(without progression)
alimony25%
(without progression)
rent or lease25%
(without progression)
interest on financial investments, income from investment funds in generalAccording to the regime
general, in any case
stock exchange operations in generalAccording to the regime
general, in any case
capital gains on the sale of real estate, shareholdings, etc.25%
(without progression)
dividendsexempt
interest on own capital (JCP)25%
income from rural activities25%
(no progression, no special rules)
royaltiestechnical services, administrative assistance and the like25%
(without progression)
Private/Complementary Pension (PGBL or similar)25%
(without progression)
Private/Complementary Pension (VGBL or similar)25%
(without progression)

Notice Title

General rule for non-resident taxation

As a general rule, non-residents will be taxed at 15%4Law 9.549/1995, art. 28; Decree 9.580/2018 (RIR/2018), art. 744.. In other words, if in doubt, this will be the applicable rate, and all exceptions have been expressly provided for by law.

Income from work or services rendered

saida definitiva tributacao do nao residente trabalho jpeg
Does it make sense to tax labor more than capital?

This exception to the general rule of non-resident taxation applies to employment income, whether salaried (wages, overtime, Christmas bonus) or non-employment (self-employment). For these cases, the special rate is 25%5Law 9.779/1999, art. 7..

The same rate of 25% applies to the provision of services in general. This situation, however, is more confusing. The legislation treats services in general (25%) differently from royaltiestechnical, administrative and similar assistance services (15%)6Provisional Measure 2.159-70/2001Article 3; Law 10.168/2000Article 2a..

Despite the lower income tax, the royalties and these services are subject to another tax, CIDE-Remessas, levied at a rate of 10%7Law 10.168/2000art. 2, §4.. In other words, in both cases the tax burden in Brazil will be the same, but in the second case there are two taxes, only one of which is income tax. It will be even higher when PIS/COFINS-import and ISS on all services provided by non-residents are taken into account, which is beyond the scope of this article.

Retirement or pension income (public pension) and private pension income

Retirement or pension income is also subject to the rate of 25%In the same way as income from work8Law 9.779/1999, art. 7after amendment by Law 13.315/2016.. This treatment of non-residents is especially unfair to pensioners who receive low INSS benefits, for example, one minimum wage. They are exempt from IRRF as tax residents in Brazil, but become subject to 25% only because they have become non-residents.

This issue is under discussion in the Judiciary, and the STF recognized the general repercussion of this issue in October 20219See the procedural progress of ARE 1.327.491General Repercussion Topic 1174.. The STF's decision on the unconstitutionality of this discrimination between residents and non-residents will apply to all taxpayers.

The same provision also applies the rate of 25% for the taxation of non-residents on supplementary pensions (which includes private pensions), with the exception of VGBLs (see below).

Alimony

Alimony, despite its name, is not to be confused with pensions paid by the public social security system (death pensions, for example), so it is not an exception. The Income Tax Regulations expressly state that alimony is subject to the general rate of 15%10Decree 9.580/2018 (RIR/2018)Article 744, item I..

VGBL

O VGBL (Life Generator of Free Benefits)This, in turn, is seen and marketed by insurance companies and pension institutes as a private pension option, a situation which is normally subject to the special rate of 25%.

However, the Federal Revenue Service has already stated twice, in Consultation Solutions, that the redemption of the VGBL is a redemption of Life Insurance with a Survivorship Coverage Clause. As it is life insurance rather than a private pension plan, the VGBL would be subject to the general rule of 15%11Sol. Cons. Disit/SRRF10 19/2013 e Sol. Cons. Disit/SRRF08 163/2013..

It is worth mentioning that the consultations found are not binding, and therefore, although the tax authorities have taken a favorable stance, they may still be subject to some questioning in an inspection.

Income from real estate (rent or lease)

For rental of real estate in Brazil by non-residentsNon-residents are taxed at 15%Some deductions provided for by law are allowed (condominium expenses, IPTU and others directly related to the property). Expenditure on renovation or depreciation of the property is not deductible.

This is also one of the situations in which the tax resident attorney in Brazil is responsible for paying the tax, and not the source of payment (the tenant)12Decree-Law 5.844/1943, art. 97§3º, and art. 100; Law 9.249/1995, art. 28; Decree 9.580/2018 (RIR/2018), art. 763..

Capital gains

Capital gains, whether they arise from the sale or disposal of real estate in Brazil, shareholdings or other assets and rights, are taxed in the same way as for residents. Non-resident taxation in this case is progressive, from 15% to 22.5%, as a result of the capital gain, as follows:

Capital Gain RangeRate
From zero to R$ 5,000,000.0015%
From R$ 5,000,000.01 to R$ 10,000,000.0017,5%
From R$ 10.000.000,01 to R$ 30.000.000,0020%
From R$ 30,000,000.01 onwards22,5%

The taxation of non-residents using the table above also applies to tax residents in Brazil, as does the provision that the sale of the same asset in parts, on different dates, be taken into account when setting the rate.

The biggest difference applies to capital gains on the sale of real estate, which, according to the IRS, do not bring with them the exemptions and reductions allowed to tax residents in Brazil.

Dividends, interest on own capital and other income from the financial and capital markets

The situation of non-resident taxation in the financial market is by far the most complex. This should not be the case. For the purposes of this article, tax legislation provides that non-resident financial investments may be subject to the "general regime" or the "special regime".

In very general terms, it can be said that:

  • the general regime equates the taxation of non-residents with the taxation of tax residents in Brazil;
  • the special regime ("Investor 4373") is a tax benefit, which offers lower taxation than that applicable to tax residents in Brazil.

The idea behind this distinction is that large non-resident investors, who are the beneficiaries of the special regime, would have a greater incentive to face the greater risk of investing in Brazil if they were subject to lower taxation. This benefit does not apply to non-residents who are in "tax havens", to whom the general regime applies.

The subject is so dense that it deserves its own text, as the points are beyond the limits of this article.

Income from rural activities

Taxation of non-residents in rural activities is also 15%This is the same as the general rule, but it has its own discipline. This is because the situation of a tax resident in Brazil has a series of tax benefits that no longer apply to non-residents. The differences are summarized below13Law 9.250/1995, art. 20; Decree 9.580/2018 (RIR/2018), art. 64; SRF Normative Instruction 83/2001.:

  • Residents are taxed from 0% to 27.5%, according to the progressive table, while non-residents are taxed at 15%;
  • the resident can choose to consider the 20% value of the income from this activity as the result of the rural activity, while the non-resident does not have this option;
  • residents can carry forward losses from rural activities from one year to the next, while non-residents do not have this benefit;
  • the resident assesses and pays his tax when submitting his income tax return (in March and April of the year following the year in which the facts occurred). The result of the non-resident's rural activity, on the other hand, must be calculated at the end of each calendar year (December 31st);
  • IRRF from rural activities must be paid by a tax resident attorney in Brazil;
  • IRRF must be paid on the date of the taxable event (December 31), or on the date the profits from the rural activity are remitted abroad, whichever comes first.

For this reason, the lower rate of 15% can be misleading. It is common for the result of a non-resident's rural activity to be subject to a higher tax burden in Brazil.

Special situation: people resident in "tax havens"

saida definitiva tributacao do nao residente paraiso fiscal jpeg
How much does it cost Brazil to live in a tax haven?

The comments above assumed taxation of non-residents in "normal" situations. Brazilian law, however, made a distinction for the taxpayer "resident or domiciled in a country that does not tax income or taxes it at a maximum rate lower than 20%". In this case, the non-resident will not be taxed at 15%, but at 25% income tax at source14Law 9.430/1996, art. 24; Law 9.779/1999, art. 8..

These are the "countries or dependencies with favored taxation", better known as "tax havens". Currently, the Federal Revenue Service maintains a "black list" of jurisdictions that it considers to correspond to this concept of "tax haven"15SRF Normative Instruction 1.037/2010, art. 1..

This means that the taxation of people living in these countries will always be 25%, unless there is an express exception for residents of these jurisdictions. Most of the exceptions apply to legal entities rather than individuals, so they are not mentioned here.

It is worth mentioning that permanent departure for those moving to a "tax haven" must also meet specific requirements, otherwise the person will continue to be considered a tax resident in Brazil16Law 12.249/2010, art. 27..

Non-resident taxation: conclusions

I can say that the model under Brazilian law should be a simple one. All tax is due from the Brazilian source of payment, apart from a few exceptions in which tax is demanded from the attorney that the non-resident maintains in Brazil. The taxpayer is never sought out because he lives and resides abroad.

This simplicity, however, hides some injustices, such as the taxation of lower pensions. It also stems from a vision of a Brazil that is closed off and distant from the rest of the world, which suspects that if the tax is not paid immediately, it will never be paid again.

Other countries, such as the United States, the Netherlands and France, allow non-residents to declare their income and be entitled to similar deductions to residents. The more I share the journeys of clients who live abroad and have different interests in Brazil, the clearer it becomes that Brazil has already changed phase and deserves to become a more open country.

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

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Author

  • Vinicius Tersi

    Vinicius Tersi is a lawyer and specialist in international tax law. He also has a degree in Accounting and a Master's in Tax Law from USP, and is familiar with different legal and accounting systems. He specializes in international transactions for entrepreneurs and families with tax residency and assets in multiple jurisdictions. He is qualified to act in Brazil and Portugal.

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Home › Forums › Permanent Departure and Non-Resident Taxation: do I owe more or less income tax?

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    • 2 de February de 2022 at 6:07 pm #6491
      Vinicius Tersi
      Keymaster
      0
      ::

      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?]

    • 20 de March de 2022 at 8:25 am #7342
      Leonardo Schlossmacher
      Participant
      0
      ::

      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

    • 25 de March de 2022 at 10:18 am #7343
      Vinicius Tersi
      Keymaster
      0
      ::

      Thank you very much for the compliment, Leonardo!

    • 27 de March de 2022 at 12:52 pm #7344
      Joao Camargo
      Participant
      0
      ::

      Vinicius, good morning, your work is very good, but I still have a question about income earned in Brazil for non-residents, I have been researching and have not found any mention of life insurance received by beneficiaries heirs and taxed or not? thank you very much.

    • 29 de March de 2022 at 2:53 pm #7345
      Vinicius Tersi
      Keymaster
      0
      ::

      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!

    • 29 de March de 2022 at 8:16 pm #7346
      Ursula
      Participant
      0
      ::

      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!

    • 1 de April de 2022 at 11:50 pm #7347
      Eduardo Vieira
      Participant
      0
      ::

      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.

    • 9 de April de 2022 at 8:34 pm #7348
      Roberta Leitão
      Participant
      0
      ::

      Hello, Vinícius,
      I worked for 30 months in Portugal, and made a declaration when I left. During this period I didn't have any form of income in Brazil. I have returned to Brazil and would like to know if I have to do anything.

      Congratulations on the content.

    • 11 de April de 2022 at 2:42 pm #7349
      Vinicius Tersi
      Keymaster
      0
      ::

      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!

    • 11 de April de 2022 at 4:22 pm #7350
      Vinicius Tersi
      Keymaster
      0
      ::

      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!

    • 13 de April de 2022 at 10:07 am #7351
      MARIA ANTONIA
      Participant
      0
      ::

      What happens to a person who starts living abroad without having communicated their definitive departure and continues to earn income in Brazil? What about income tax returns? Do they normally file as if they were resident?

    • 13 de April de 2022 at 3:56 pm #7352
      Vinicius Tersi
      Keymaster
      0
      ::

      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!

    • 13 de April de 2022 at 6:00 pm #7353
      Vinicius Tersi
      Keymaster
      0
      ::

      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!

    • 13 de April de 2022 at 7:57 pm #7354
      Carolina Ciriaco
      Participant
      0
      ::

      Hello, I would like to know how to declare the VGBL plan held in Brazil in the USA. What taxation will apply here in the US?

    • 14 de April de 2022 at 8:30 am #7355
      Vinicius Tersi
      Keymaster
      0
      ::

      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!

    • 20 de April de 2022 at 1:01 pm #7356
      Raquel
      Participant
      0
      ::

      Hi Vinicius, I'd like to thank you for the valuable material you provide on the Internet, which is free and very educational. I've read all your articles and had all my questions answered. Thank you and all the best to you and your team!

    • 22 de April de 2022 at 3:02 am #7357
      Fernanda
      Participant
      0
      ::

      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.

    • 22 de April de 2022 at 7:56 pm #7358
      Edson de Sousa
      Participant
      0
      ::

      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

    • 23 de April de 2022 at 4:10 pm #7359
      Samuel Kaplan
      Participant
      0
      ::

      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!

    • 23 de April de 2022 at 4:24 pm #7360
      Samuel Kaplan
      Participant
      0
      ::

      Correction: I confused the discount on the property management fee with tax at source. Forgive me.

    • 25 de April de 2022 at 12:04 pm #7361
      Carolina Borba
      Participant
      0
      ::

      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

    • 25 de April de 2022 at 7:14 pm #7362
      Antonio da Silva
      Participant
      0
      ::

      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

    • 27 de April de 2022 at 3:57 pm #7363
      Vinicius Tersi
      Keymaster
      0
      ::

      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!

    • 28 de April de 2022 at 10:57 am #7364
      Vinicius Tersi
      Keymaster
      0
      ::

      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!

    • 1 de May de 2022 at 4:08 pm #7365
      Jadiel Mendes
      Participant
      0
      ::

      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.

    • 2 de May de 2022 at 6:44 pm #7366
      josiane
      Participant
      0
      ::

      If a resident leaves a progressive VGBL and another regressive VGBL to a non-resident beneficiary, what would the tax charge be?

    • 3 de May de 2022 at 7:13 am #7367
      Neila Santos
      Participant
      0
      ::

      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!

    • 9 de May de 2022 at 9:42 pm #7368
      Ana Claudia
      Participant
      0
      ::

      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?

    • 10 de May de 2022 at 11:17 am #7369
      Francisco
      Participant
      0
      ::

      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?

    • 26 de May de 2022 at 5:04 pm #7370
      Eliana
      Participant
      0
      ::

      Vinicius, I have a question:
      I live abroad and have a property that I'm going to sell in Brazil. The tax (in my case 15%) will be on the capital gain or on the total amount of the sale. I filed an exit tax return in 2016. Thank you

    • 27 de May de 2022 at 2:45 pm #7371
      Leandro
      Participant
      0
      ::

      Hi Vinicius, what's up?
      I'm moving abroad and I'd like to know what the IOF would be on remittances of dollars after I report my departure from Brazil.
      Thank you!

    • 30 de May de 2022 at 12:38 am #7372
      Marlene A. Ferreira
      Participant
      0
      ::

      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?

    • 31 de May de 2022 at 11:17 pm #7373
      Rivas
      Participant
      0
      ::

      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.

    • 1 de June de 2022 at 2:36 pm #7374
      Luiz Gabriel
      Participant
      0
      ::

      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?

    • 9 de June de 2022 at 4:40 pm #7375
      Marta Fraguas
      Participant
      0
      ::

      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

    • 2 de July de 2022 at 7:01 pm #7376
      Juliete Pereira
      Participant
      0
      ::

      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

    • 3 de July de 2022 at 12:12 am #7377
      Renato Pereira
      Participant
      0
      ::

      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."

    • 3 de July de 2022 at 12:13 am #7378
      Renato Pereira
      Participant
      0
      ::

      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."

    • 4 de July de 2022 at 2:03 pm #7379
      Jacqueline
      Participant
      0
      ::

      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.)?

    • 6 de July de 2022 at 12:36 pm #7380
      Gabriela Ferreira
      Participant
      0
      ::

      Thanks for the information. Currently rent-paying sources are defending the rate of 22% and 25 % for non-residents established in the USA. Is this correct? Has there been a change in legislation?

    • 21 de July de 2022 at 5:48 pm #7381
      Joyce
      Participant
      0
      ::

      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?

    • 27 de July de 2022 at 12:20 pm #7382
      Fernando Penna Botto
      Participant
      0
      ::

      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?

    • 4 de August de 2022 at 6:57 pm #7383
      Terezinha
      Participant
      0
      ::

      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?

    • 8 de August de 2022 at 8:42 am #7384
      Marcos
      Participant
      0
      ::

      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?

    • 12 de August de 2022 at 1:26 pm #7385
      Vinícius
      Participant
      0
      ::

      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?

    • 6 de September de 2022 at 5:24 pm #7386
      Caio Soares
      Participant
      0
      ::

      Suppose you are a non-resident (with a Declaration of Permanent Departure) and you live in a country like the United States. If he sells a property in Brazil, will he have to pay capital gains tax in Brazil and the United States?

    • 20 de September de 2022 at 3:16 pm #7387
      Leandro
      Participant
      0
      ::

      Very good article. My question is how to fill in the Darf (which code and reference number) for receiving an inheritance from a non-resident. Should the darf have the CPF of the executor or the non-resident?

    • 25 de September de 2022 at 12:20 pm #7388
      Ma
      Participant
      0
      ::

      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

    • 29 de September de 2022 at 4:55 pm #7389
      Rodrigo Silveira
      Participant
      0
      ::

      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

    • 19 de October de 2022 at 7:26 am #7390
      Gyslana
      Participant
      0
      ::

      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

    • 19 de November de 2022 at 9:04 pm #7391
      Nilton P F Leite
      Participant
      0
      ::

      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!

    • 23 de November de 2022 at 9:58 am #7392
      C.T.
      Participant
      0
      ::

      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?

    • 12 de December de 2022 at 4:27 pm #7393
      Vinicius Tersi
      Keymaster
      0
      ::

      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, In this article I list the main requirements, banks and costs of the CDE account.

      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!

    • 12 de December de 2022 at 4:39 pm #7394
      Vinicius Tersi
      Keymaster
      0
      ::

      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!

    • 12 de December de 2022 at 4:50 pm #7395
      Vinicius Tersi
      Keymaster
      0
      ::

      Hello, Raquel! Thank you for your compliments and your interest in our content. It gives us great joy to know that our efforts to keep up to date and provide quality material for those who need it are paying off.

      Cheers!

    • 12 de December de 2022 at 4:51 pm #7396
      Vinicius Tersi
      Keymaster
      0
      ::

      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!

    • 12 de December de 2022 at 4:52 pm #7397
      Vinicius Tersi
      Keymaster
      0
      ::

      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!

    • 12 de December de 2022 at 4:53 pm #7398
      Vinicius Tersi
      Keymaster
      0
      ::

      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!

    • 12 de December de 2022 at 4:54 pm #7399
      Vinicius Tersi
      Keymaster
      0
      ::

      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.

    • 12 de December de 2022 at 4:55 pm #7400
      Vinicius Tersi
      Keymaster
      0
      ::

      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!

    • 12 de December de 2022 at 4:57 pm #7401
      Vinicius Tersi
      Keymaster
      0
      ::

      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!

    • 12 de December de 2022 at 5:03 pm #7402
      Vinicius Tersi
      Keymaster
      0
      ::

      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!

    • 12 de December de 2022 at 5:42 pm #7403
      Vinicius Tersi
      Keymaster
      0
      ::

      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!

    • 12 de December de 2022 at 5:44 pm #7404
      Vinicius Tersi
      Keymaster
      0
      ::

      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!

    • 12 de December de 2022 at 5:44 pm #7405
      Vinicius Tersi
      Keymaster
      0
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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!

    • 12 de December de 2022 at 5:55 pm #7406
      Vinicius Tersi
      Keymaster
      0
      ::

      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!

    • 30 de December de 2022 at 7:28 pm #7407
      Pedro
      Participant
      0
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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

    • 10 de January de 2023 at 10:39 am #7408
      MARIA RITA SOARES
      Participant
      0
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      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.

    • 13 de January de 2023 at 3:05 pm #7409
      Luiz
      Participant
      0
      ::

      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?

    • 30 de January de 2023 at 12:23 pm #7410
      Angélica Alvarez
      Participant
      0
      ::

      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!

    • 7 de February de 2023 at 8:53 am #7411
      Rudimar B Defreyn
      Participant
      0
      ::

      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?

    • 23 de February de 2023 at 7:20 pm #7412
      Jairo F. Calheiro
      Participant
      0
      ::

      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?

    • 1 de March de 2023 at 3:14 pm #7413
      Rodrigo
      Participant
      0
      ::

      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.

    • 4 de March de 2023 at 11:18 pm #7414
      Maria
      Participant
      0
      ::

      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.

    • 20 de March de 2023 at 5:19 pm #7415
      Mariana
      Participant
      0
      ::

      Hello, Vinicius! Congratulations on your work!

      How does non-resident taxation work in the case of a PGBL pension redemption under the regressive regime?

      Thanks in advance!

    • 31 de March de 2023 at 10:41 am #7416
      Douglas
      Participant
      0
      ::

      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

    • 11 de April de 2023 at 1:27 pm #7417
      Gustavo Silveira
      Participant
      0
      ::

      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.

    • 26 de April de 2023 at 12:00 pm #7418
      Christine
      Participant
      0
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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?

    • 2 de June de 2023 at 6:14 am #7419
      Henry
      Participant
      0
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      I left Brazil permanently in 2017 and I have a regressive PGBL in Brazil that is 10 years old. Two questions: 1) If I redeem it in a bank account outside Brazil, what tax will I have to pay in Brazil? 2) Will a PGBL redemption be treated as income on my US tax return?

    • 27 de June de 2023 at 10:06 am #7420
      João Guilherme
      Participant
      0
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      Good afternoon, I made a declaration of permanent withdrawal when I submitted my tax return for 2022. I would like to know if this gives me the right to withdraw my FGTS? Or will I only be able to withdraw it when I have been inactive for 3 years?

      Thank you very much.

    • 28 de July de 2023 at 11:28 am #7421
      Marcelo J
      Participant
      0
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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!

    • 28 de July de 2023 at 12:01 pm #7422
      Marcelo J
      Participant
      0
      ::

      ... 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 🙂

    • 31 de July de 2023 at 9:50 am #7423
      Reuben
      Participant
      0
      ::

      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,

    • 27 de August de 2023 at 3:54 pm #7424
      Thiago
      Participant
      0
      ::

      For those who work remotely (Home Office), it can be interesting to reside abroad, especially if you want to avoid future property taxes for residents with MP's 1171 and 1172, which have lapsed, but may return in a bill, as well as the property tax bill.

    • 22 de October de 2023 at 5:42 pm #10207
      Cristiane
      Participant
      0
      ::

      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.

    • 29 de January de 2024 at 10:42 am #10236
      Philip
      Participant
      0
      ::

      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

    • 31 de January de 2024 at 1:26 pm #10237
      Ana Carvalho
      Participant
      0
      ::

      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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Vinicius Tersi is a lawyer, specializing in International Tax Law.

(61) 99683-8894
contato@tersi.adv.br

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Hi, I'm Vinicius Tersi, a specialist in international tax law.

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