Understand the exact moment the Brazilian tax authority sees you as a taxpayer
Many people who move to Brazil or spend extended periods here don’t realize they may be legally required to declare and pay taxes — even if they continue earning in dollars, euros, or other foreign currencies.
This happens due to something called tax residency, which is different from your immigration status (like holding a temporary or permanent visa). Tax residency determines where you’re required to pay taxes on your global income, meaning everything you earn worldwide, regardless of the source.
Who becomes a tax resident in Brazil?
According to Brazil’s Federal Revenue Service (Receita Federal), you become a tax resident in the following situations:
- When you enter Brazil with a permanent visa — from the date of arrival;
- When you enter Brazil with a temporary visa, in these cases:
a) To work under a formal employment contract or to serve as a medical fellow under the “Mais Médicos” program — from the date of arrival;
b) From the 184th day (cumulative, not necessarily consecutive) of stay in Brazil within a 12-month period;
c) From the date you obtain a permanent visa or enter into an employment contract, if that occurs before reaching 184 days.
Many people cross this threshold without realizing it — and when they do, they’re subject to tax obligations in Brazil, such as filing an annual tax return (IRPF) and potentially paying taxes.
What changes after that?
Once you’re considered a tax resident, your relationship with Brazil’s tax authority changes significantly. Here’s what becomes required:
- Filing the Brazilian Individual Income Tax Return (IRPF), including all your income, even from foreign sources;
- Declaring assets held abroad, such as bank accounts, real estate, and investments;
- Converting foreign income into Brazilian reais using the official Central Bank exchange rate;
- Possible payment of taxes on income that you have already paid abroad (except when there is a double taxation avoidance agreement — which does not exist with countries like the U.S., for example););
- Facing fines or audits if you fail to declare or omit information.
In other words: being a tax resident in Brazil requires careful planning and organization, especially if you earn income or hold assets outside the country.
Important: Tax Residency ≠ Citizenship
You don’t need to be a Brazilian citizen or have a CPF to become a tax resident. The Brazilian tax system is based on how long you stay and the type of visa you hold, not your nationality.
Not sure if you’re already a tax resident or need to declare?
Talk to the Conliance team. We’ll review your case and help you avoid problems with the Brazilian tax authorities.
