Brazil

{"ftc_utility":"high","fbar_trigger_notes":"Brazilian banks require a CPF (tax identification number) to open accounts. Once a US person has a Brazilian bank account or financial accounts exceeding USD 10,000 aggregate at any point in the year, FBAR filing is required. Brazil's banking system is well-developed and USD 10,000 threshold is easily reached by expats maintaining operating accounts.","ftc_utility_reason":"Brazil taxes resident worldwide income at rates up to 27.5%, meaning Brazilian taxes paid on the same income are generally creditable against the US tax liability. Because there is no US-Brazil income tax treaty, the Foreign Tax Credit is the primary mechanism for avoiding double taxation. FEIE may be more efficient for earned income, but FTC is useful for investment and passive income taxed in Brazil.","presence_day_count_notes":"Brazil grants permanent residency visas and various long-stay visas (including retirement and investment visas) that do not impose short exit requirements. The 330-day physical presence test is practically achievable. US citizens who establish Brazilian tax residency (generally triggered after 183 days in a 12-month period or upon obtaining a permanent visa) should note that Brazil will also tax worldwide income, creating a potential double-tax situation absent a treaty.","typical_qualifying_method":"either","housing_exclusion_available":true,"physical_presence_test_applies":true,"estimated_housing_exclusion_usd":18000,"local_tax_rate_on_earned_income":0.275,"bona_fide_residence_test_applies":true}

{"pension_income":{"notes":"Foreign pension income is taxed as ordinary income in Brazil at progressive rates up to 27.5%. Brazilian domestic pension income from INSS or private plans receives a monthly deduction of BRL 1,903.98 per beneficiary for taxpayers aged 65 and over in the simplified calculation, but this relief does not extend to foreign pensions. No blanket exemption applies to foreign-source pension distributions.","tax_rate":0.275,"locally_taxed":true},"social_security":{"notes":"US Social Security benefits received by Brazilian tax residents are included in taxable income and subject to progressive rates up to 27.5%. There is no US-Brazil income tax treaty or totalization agreement to provide relief. Brazilian residents above age 65 receive a monthly exemption of BRL 26,963.20 (the zero-rate bracket), which may shelter a portion of Social Security income.","locally_taxed":true,"treaty_protection":false},"roth_distributions":{"notes":"Without a US-Brazil tax treaty, Roth IRA distributions have no special treatment in Brazil. Brazilian tax residents receiving Roth distributions must include them in their annual return. The portion attributable to previously taxed contributions may be arguable as a return of capital, but the Receita Federal generally treats all distributions from foreign pension-type accounts as taxable income. Individual tax advice is strongly recommended.","locally_taxed":true},"us_401k_ira_distributions":{"notes":"Brazil and the United States do not have a bilateral income tax treaty as of the last verified date. US 401(k) and IRA distributions received by Brazilian tax residents are treated as foreign pension or retirement income and included in the annual adjustment return, subject to progressive personal income tax rates up to 27.5%. No treaty exemption or reduced rate applies.","tax_rate":0.275,"locally_taxed":true,"treaty_protection":false}}

{"rate":0.15,"notes":"Brazil taxes individual capital gains at progressive rates from 15% to 22.5% depending on the gain amount. Real estate sold abroad by tax residents follows similar rules.","details":{"tax_type":"Capital Gains Tax","country_name":"Brazil","country_iso_code":"BRA","source_references":["PwC Worldwide Tax Summaries - Brazil","Receita Federal do Brasil"],"last_verified_date":"2026-06-03","general_description":"Capital gains on asset disposals are taxed separately from ordinary income under a progressive CGT schedule. The rate depends on the total gain realized in the transaction. Gains on Brazilian-listed equities sold on stock exchange are taxed at 15% for swing trades and 20% for day trades, with a monthly exemption of BRL 20,000 for listed shares sold at a gain.","corporate_capital_gains":{"rate":0.34,"tax_treatment":"Corporate capital gains are included in taxable income and subject to the standard corporate income tax rate of 15% plus a 10% surtax on profits exceeding BRL 240,000 per year, plus a 9% social contribution on net profits (CSLL), resulting in a combined effective rate of up to 34%."},"individual_capital_gains":{"rate":0.15,"tax_treatment":"Progressive rates apply: 15% on gains up to BRL 5 million, 17.5% on gains from BRL 5 million to BRL 10 million, 20% on gains from BRL 10 million to BRL 30 million, and 22.5% on gains above BRL 30 million. Gains must be reported and paid by the last business day of the month following the sale using the GCAP program."}}}

{"notes":"Brazil currently exempts dividends paid by Brazilian companies from withholding tax at the shareholder level, as the corporate profits are already taxed at the entity level. Legislation proposed in 2024-2025 would introduce a 15% dividend withholding tax, but as of mid-2026 this had not yet been enacted into law. Dividends received from foreign companies by Brazilian tax residents are included in the individual's annual tax return and taxed at progressive personal income tax rates up to 27.5%.","rates":[{"rate":0,"type":"exempt","notes":"Dividends from Brazilian companies paid to resident or non-resident shareholders are currently exempt from withholding tax under existing rules. Proposed reform to introduce 15% WHT had not been enacted as of the last verified date."},{"rate":0.275,"type":"progressive","notes":"Dividends received from foreign entities by Brazilian tax residents are taxed as ordinary income at progressive rates up to 27.5% in the annual adjustment return."}]}