According to the Federal Revenue, an individual is considered a non-resident for income tax purposes under the following conditions:

• Those who do not reside in Brazil on a permanent basis and do not meet the definition of a resident.

• Those who permanently leave the national territory on the date of departure, with the submission of the Definitive Country Exit Declaration or the Definitive Country Exit Communication.

• Those who enter Brazil with a temporary visa and:

  • Stay up to 183 days, consecutive or not, within a 12-month period, or

  • Stay until the day before obtaining a permanent visa or employment relationship, if this occurs before completing 184 days, consecutive or not, within a 12-month period.

  • Are temporarily absent from Brazil, starting from the day following the completion of 12 consecutive months of absence.

The Federal Revenue indicates that an individual entering Brazil is considered a resident for income tax purposes under the following conditions:

• With a permanent visa, on the date of arrival.

• With a temporary visa, after completing 184 days, consecutive or not, within a 12-month period.

• Those who temporarily leave Brazil or permanently withdraw without submitting the Definitive Country Exit Communication, during the first 12 consecutive months of absence.

No, your immigration status abroad does not directly affect your tax residency status in Brazil.

Your immigration status determines whether you can stay in a particular country and what activities you can undertake there.

To understand your tax obligations, you need to determine your tax residency status in both Brazil and New Zealand, if you are living here. This will help you understand how to comply with tax regulations in both countries.

If you need assistance navigating these complexities, our team is here to help.

Yes, if you permanently leave Brazil, even if you have been out of the country for more than 12 consecutive months, you must submit the Definitive Exit Declaration to change your status to non-resident for tax purposes in Brazil.

Yes, if you have been permanently absent from Brazil for more than 5 years, you can formalize your Definitive Exit in two ways:

1. Make a Retroactive Definitive Exit Declaration: Use the maximum retroactive date allowed by the Federal Revenue Service or specify a date to be determined.

2. Request a change of registration data: This can be done through the Brazilian Consulate in your current country of residence. Fill out the request form available at this link: Update of CPF residing abroad.

However, there are exceptions. For example, if you continued to submit the Adjustment Statement after leaving, the date of the Definitive Exit Declaration cannot be earlier than the declarations already submitted.

We can assist with both services in a personalised manner, guiding you through the best regularisation options for your specific situation and accompanying you throughout the entire process.

Yes, there are penalties. The fine for late submission of a Retroactive Exit Declaration ranges from a minimum of BRL 165.74 to a maximum of 20% of the tax calculated as due. It’s crucial to comply promptly to avoid these penalties.

The Retroactive Exit Declaration involves preparing a Final Exit Statement with a date prior to the current fiscal year. The Definitive Exit Communication is an obligation that involves informing the date the taxpayer permanently left the country. Submitting the Definitive Exit Communication does not exempt you from delivering the Definitive Exit Declaration.

After submitting the Definitive Exit Declaration, it is recommended to close your resident bank accounts and open a non-resident bank account in Brazil. Keeping an active resident account can lead to issues with the Federal Revenue as banks and brokers send regular balance and movement statements.

Yes, it is common to own, acquire, or sell real estate in Brazil after the Definitive Exit. You will need an attorney to manage documents, signatures, and fee collection on your behalf.

Yes, non-residents can receive rent from their Brazilian property, provided the payer withholds and collects the income tax on rent for non-residents at a rate of 15%. For beneficiaries in countries with favorable taxation, the rate is 25%. Refer to the Federal Revenue Service’s Withholding Income Tax Manual for more details.

No, submitting the Definitive Exit Declaration exempts you from filing the Annual Income Tax Adjustment Declaration until you return to Brazil. Owning real estate does not require an Annual Adjustment Declaration as a non-resident. If you mistakenly filed an income tax return after your exit, contact us for regularization.

No, you must close the MEI CNPJ before submitting the Definitive Exit Declaration, as MEI status requires residency in Brazil.

No, the Definitive Exit Declaration is submitted once when you leave the country permanently. You will only file the Annual Income Tax Adjustment Declaration upon returning to Brazil.

Yes, as of 1 December 2002, CPF registration is mandatory for non-residents owning property or assets subject to public registration in Brazil, including real estate, vehicles, vessels, aircraft, shareholdings, bank accounts, and investments.

Yes, according to Normative Instruction No. 208 of 2002, Article 2, Item IV, a Brazilian returning to Brazil permanently becomes a tax resident on the date of arrival. You will need to file an Annual Adjustment Declaration for the calendar year you return to residency. For example, if you return on 1 November 2024, you must file the Annual Adjustment Declaration between March and May 2025. Always check deadlines and necessary documents with a specialised professional to ensure compliance.

It depends. As a non-resident, some tax rules differ, potentially resulting in higher taxes on Brazilian income, such as capital gains from real estate sales or rental income. Non-resident tax rates are generally 15% to 25%, while resident rates range from 7.5% to 27.5%. Planning and scenario simulation are recommended to understand your specific situation. We offer consultations to help with tax planning before leaving Brazil.

An attorney named in the Definitive Exit Declaration represents you before the Federal Revenue Service, managing fees and documents, and providing a Brazilian address for correspondence. They will need a specific power of attorney for full access to Federal Revenue services.

Indicate your Brazilian bank account or PIX key in the declaration for refund payment. If you do not have a Brazilian bank account, appoint an attorney in Brazil to receive your refund.

Yes, you can enter and leave Brazil normally after making the Definitive Exit Declaration. Upon permanent return, you must resume filing your annual Income Tax Return.

Yes, a non-resident can open or maintain a company in Brazil, but the company cannot opt for Simples Nacional. You must appoint an attorney to manage the company, and if the capital is from abroad, register with the Central Bank of Brazil.

No, non-residents do not qualify for the tax exemptions and reductions available to residents. Brokerage costs can be deducted from the capital gain calculation if paid by the non-resident. The paying source must withhold and collect the income tax on capital gains. For specific advice, schedule a consultation with us.

Yes, the Income Tax Regulation requires a 15% or 25% withholding tax on inheritances for non-residents, despite state-level inheritance taxes. This has led to legal debates. A consultation is recommended to discuss specific cases and find practical solutions.

Yes, as long as you are not declared as a dependent in the year you submit the Definitive Exit Declaration. Assess the benefits of including dependents and rectify previous statements if necessary. Contact us for advice on whether you or your dependents need to file a declaration.

Yes, you can opt for the optional collection rates of 11% or 20% for INSS contributions.

Pensioners continue to receive their pensions normally, but the withholding income tax rate changes to 25%. Even those exempt from tax as residents are subject to taxation upon definitive exit. Consultations are recommended for specific cases, especially if the INSS does not deduct the due percentage correctly.

If the Communication is not submitted, you will remain a tax resident in Brazil for one year after your temporary or permanent departure, or the date you became a non-resident.

This means that you will need to calculate and pay the monthly Carnê-leão on any foreign income and pay the due income tax during this period.

No, you cannot have a MEI (Microempreendedor Individual) and submit the Definitive Exit Declaration. Similarly, you cannot be a partner in a company that has opted for the Simples Nacional.

The legislation for the Simples Nacional explicitly states that to qualify, a company or individual entrepreneur cannot have partners who are not residents of Brazil.

Art. 17. Micro or small businesses may not collect taxes and contributions under the Simples Nacional: […] II – those with partners domiciled abroad; [Federal Complementary Law No. 123/2006]

However, it is possible to be a partner in companies that have opted for the real or presumed profit tax regimes in Brazil. If you are a sole partner, majority partner, or administrator, you will need to update the articles of association before your non-residence is formalised.

Yes, you can keep your loan. If you close your bank account in Brazil for any reason, you can continue to make payments via boleto or another method agreed upon with your lender.

Yes, after submitting the Definitive Exit Declaration, you can still send money to Brazil, purchase goods, and conduct other activities. There will be no declaration required by the Federal Revenue of Brazil (RFB). Additionally, when sending money to your own bank account or purchasing property, there will be no income tax applied.

However, if you send money to a third party as a donation, loan, or in exchange for services/trade, the recipient must declare the amount received.

Absolutely! You can invest in Brazil while living abroad, but the process varies depending on your tax residency status.

If You Maintain Your Tax Residence in Brazil: You can invest just like any Brazilian resident. For tax purposes, you're still considered a resident, allowing you to open accounts with banks and investment brokerages in Brazil without any special restrictions.

If You No Longer Have Tax Residency in Brazil: You can still invest, but your options are more limited. Brazilian law technically allows non-residents to hold bank accounts in Brazil, but few banks and brokerages offer this service, and those that do often charge high fees. This can make it impractical unless you have substantial financial resources.

However, non residents can invest in Brazil through American brokers and brokers from other countries. Here are some alternative ways to invest in Brazilian assets:

1. American Depositary Receipts (ADRs): ADRs are a convenient option. They represent shares of Brazilian companies but are traded on the American stock exchange. This way, you can indirectly own shares of Brazilian companies without needing a Brazilian bank account.

2. International Funds and ETFs (Exchange-Traded Funds): Consider investing in international funds or ETFs that focus on Brazilian assets. For example, ETFs replicating the EWZ index (Ibovespa in dollars) allow you to gain exposure to the Brazilian market. There are also various international funds that invest in Brazilian markets.

3. Research and Explore: Look into other investment vehicles like active international funds that allocate part of their assets to Brazil. Thorough research can uncover more opportunities suitable to your investment goals.