Resident versus Non‑Resident
The taxation of income in Brazil depends on the individual’s tax residence status. A foreign individual who is considered as a tax resident in Brazil will be treated as a “resident taxpayer”. Individuals who did not trigger a tax residency in Brazil (as per local tax rules) may be considered as a “non-resident taxpayer”.
Resident individuals are taxed on a worldwide and cash basis for each tax year (January 1st to December 31st, except for the arrival and departure years), whether or not their income is remitted to Brazil, while non-residents by contrast are taxed on income from Brazilian sources only.
Besides paying taxes, Brazilian taxpayers are also required to meet a number of tax obligations, such as preparing and submitting tax returns, advance the payment of income tax (withholding or carnê-leão), presenting Brazilian Central Bank assets return, etc., as we will cover next.
Resident Taxpayers
The following individuals are considered residents for tax purposes: (1) an individual who resides permanently in the country; (2) naturalized foreigners; (3) foreigners who hold a permanent visa or a temporary visa with a local employment contract, from the date of arrival; and (4) foreigners who hold a temporary visa but no local employment contract, after completing 183 days (whether or not consecutive) of physical residence in Brazil in any 12-month period.
Non‑Resident Taxpayers
If you do not meet one of the residence tests above, you may be regarded as non‑resident in Brazil for tax purposes.
The table below summarizes the residency status applicable to each type of visa.
| Visa Type | Residency Rule |
|---|---|
| Business Visa | Non-resident¹ |
| Temporary Visa with a local employment contract | Resident as from first date of entry into Brazil with a valid visa |
| Temporary Visa without local employment contract | Resident after completing 183 days (consecutive or not) of presence in Brazil within a 12 month period commencing from the first entry date² |
| Permanent Visa | Resident as from first date of entry into Brazil with a valid visa |
¹ If the period determined by the immigration authorities is respected (90 days, renewable once for an equal period of 90 days).
² Days spent in Brazil, in the same 12 month period, under a business visa are included in the 183 day count.
