As Brazil grows in popularity and more retired expats, investors, and remote workers flock to the country, it’s a must to get to terms with taxes in Brazil to get the most out of your finances.
The Brazilian tax system is tricky, with different rules based on residency status and income sources. This guide gives you the run down on what you should know to figure out Brazil’s financial system.
Tax Residency in Brazil
A foreigner is considered a tax resident in Brazil if they meet one of the following conditions:
- They obtain a permanent visa.
- They stay in Brazil for more than 183 days (consecutive or not) within a 12-month period.
- They have a temporary visa with an employment contract in Brazil.
Tax residents in Brazil are subject to taxation on their worldwide income, while non-residents are taxed only on Brazilian-source income.
Overview of Brazil's Tax System
Brazil’s tax system is a tangled web, with several layers of taxation at the federal, state, and municipal levels. The primary Brazilian tax authority enforcing tax laws is Receita Federal do Brasil (RFB).
Individuals are taxed according to their residency status, with tax residents paying worldwide income taxes. Non-tax residents pay Brazil taxes on Brazilian-sourced income.
The country operates a progressive income tax structure, with rates reaching up to 27.5 percent. Businesses pay 15 percent corporate income tax (Imposto de Renda sobre Pessoa Jurídica—IRPJ) and social contribution tax (Contribuição Social sobre o Lucro Líquido—CSLL).
Brazil’s tax authorities also impose consumption taxes, including state value-added tax (Imposto sobre Circulação de Mercadorias e Serviços—ICMS), federal contributions (Programa de Integração Social/Contribuição para o Financiamento da Seguridade Social—PIS/COFINS), and municipal service tax (Imposto Sobre Serviços—ISS)
Thise makes indirect taxation a heavy load. Given its complexity, working out the Brazilian tax system needs proficient guidance to keep your finances legit and make taxes work for you.
Personal Income Tax for Foreigners
Brazil income tax rates follow a progressive system. As of 2025, the tax rates are:
| Up to BRL 2,112 per month: | Exempt |
| BRL 2,112.01 – BRL 2,826.65: | 7.5 percent |
| BRL 2,826.66 – BRL 3,751.05: | 15 percent |
| BRL 3,751.06 – BRL 4,664.68: | 22.5 percent |
| Above BRL 4,664.68: | 27.5 percent |
Brazilian employers deduct income tax at source for salaried workers, while self-employed individuals must file monthly tax payments.
Brazil taxes for self-employed individuals
Self-employed individuals in Brazil are labeled as autônomos in the tax system and must pay several taxes.
- Income tax: 0 to 27 percent
- Social Security: 5 to 20 percent
- Service tax: 2 to 5 percent
While the overall income tax for self-employed people in Brazil is relatively high, the Brazilian government provides a simplified tax regime known as Simples Nacional to combine levied taxes and lower the total rate.
The gross income threshold is BRL 4.8 million (USD 840,000), and qualified taxpayers can lower their income tax rate to 4 to 19 percent, depending on the business type and income source.
Brazil Citizenship
Foreign income tax
Brazilian tax residents must include income earned abroad on their tax return as Brazil charges worldwide income tax at the ordinary income tax rates. Taxpayers can avoid double income taxes if the income is earned in a country with Brazil having a double taxation treaty.
Corporate Tax for Foreign-Owned Businesses
Brazilian companies, whether foreign or locally owned, are subject to a 15 percent corporate income tax plus a 10 percent surcharge for profits over BRL 240,000 (USD 42,000) annually.
Work accident insurance (RAT)
Work accident insurance or workplace injury coverage (Risco de Acidente de Trabalho—RAT) is accident insurance levied on Brazilian employers. The tax rate is between 1 and 3 percent of the employee’s gross salary, depending on the company’s risk level.
Social Security Contributions
All employees working in Brazil must contribute to the National Institute of Social Security (Instituto Nacional do Seguro Social—INSS). The rate is a 20 or 22.5 percent tax, and the contribution is made by both the employee and employer.
Under international agreements, workers for foreign companies may be exempt from INSS. Brazil has social security treaties with several countries, including the United States, Canada, France, and Germany, exempting individuals working for corporations headquartered in these countries from paying Brazil’s Social Security tax.
Pension contributions
Brazil’s government fund for workers (Fundo de Garantia do Tempo de Serviço—FGTS) is a pension, severance pay, and unemployment fund where employers contribute 8 percent of their monthly salary.
Property Tax
Both federal states and local authorities charge Brazil property taxes. Brazil’s primary real estate tax is Imposto Predial e Territorial Urbano (IPTU), charged by municipal governments on urban properties. Imposto sobre a Propriedade Territorial Rural (ITR) is a Federal Revenue Service (Receita Federal) tax charged on rural properties.
The IPTU tax rate is based on the property’s assessed value and the municipal government’s tax rate, and the ITR tax rate is based on the property’s total area and use.
- IPTU: 0.2 to 1.5 percent
- ITR: 0.03 to 20 percent
Other property taxes in Brazil
Imposto de Transmissão de Bens Imóveis (ITBI) is Brazil’s property transfer tax. It is a municipal tax verying from 2 to 4 percent of the property’s sale price and paid by the buyer.
Property tax exemptions and reductions
Individuals such as low-income property owners, senior citizens, and people with disabilities can be exempt from or reduce their property taxes.
Social housing projects, agricultural real estate, and other special properties like churches can qualify for reduced property tax rates or exemptions.
Capital Gains Tax
Brazil capital gains tax is levied at progressive rates:
| Up to BRL 5 million: | 15 percent |
| BRL 5 million – 10 million: | 17.5 percent |
| BRL 10 million – 30 million: | 20 percent |
| Above BRL 30 million: | 22.5 percent |
Capital gains from overseas assets are taxable for Brazilian tax residents.
Inheritance Tax
Brazil inheritance tax (Imposto sobre a Transmissão Causa Mortis Doação—ITCMD) is charged against the transfer of property and other assets through inheritance or donations. As a Brazil state tax, the rate varies based on where the transfer is made.
Recipients pay inheritance tax, typically 2 to 8 percent. The Rio de Janeiro and São Paulo ITCMD rate is 4 percent. Charitable donations are normally exempt from ITCMD, and spouses and direct descendants, such as children and grandchildren, often qualify for favorable rates.
How to Become a Brazil Tax Resident
The Brazilian tax system follows the 183-day rule for tax residency. Individuals who reside in Brazil for more than 183 days in 12 months gain Brazilian tax residency.
To legally reside in Brazil, you must qualify for a residence permit, which includes the following options:
- Investor Visa
- Retirement Visa
- Digital Nomad Visa
- Work Visa
Getting a tax identification number (Cadastro de Pessoa Física—CPF)
After landing in Brazil, you’ll need to a apply for a Brazilian tax identification number known as a CPF. Citizens, foreign residents, and visitors to Brazil can apply for a CPF with the Federal Police.
Filing Taxes in Brazil
Individuals
Foreigners who are tax residents must file an annual income tax return (Declaração de Imposto de Renda) by April 30 for the previous year’s earnings. Non-residents are generally not required to file unless they earn income in Brazil.
Corporations
Companies operating in Brazil must file an annual corporate income tax return (Declaração de Imposto de Renda Pessoa Jurídica—DIPJ) for the previous year’s earnings by April 30.
Tax deductions for foreigners in Brazil
Foreign Tax Credit: The US Foreign Tax Credit (FTC), available through FORM 1116, allows Americans in Brazil to deduct Brazilian earnings on their tax return.
Capital Gains Tax exemption: Non-UK residents are exempt from paying tax on capital gains on most UK assets, except for residential property and specific business-related assets.
Foreign Earned Income Exclusion: The US Foreign Earned Income Exclusion (FEIE), available through Form 2555, allows Americans with Brazil tax residency to exclude income earned in Brazil from their US taxable income.
RRSPs and Pensions exemptions: Under specific treaties, Canadian citizens withdrawing from registered retirement accounts like RRSPs or RRIFs may reduce withholding taxes.
Foreign Housing Exclusion: Americans who own a primary residence in Brazil can deduct housing-related expenses from taxes owed to the IRS, including building tax, maintenance fees, and mortgage interest paid to banks in Brazil.
Brazil Double Tax Treaties and Agreements
Brazil has numerous Double Taxation Treaties signed with countries worldwide, including:
- Germany
- Argentina
- Canada
- France
- Japan
- Portugal
- Italy
- India
- Spain
- China
- United Kindom
Additionally, the Government of Brazil agreed to the Organization of Economic Cooperation and Development (OECD) Convention on tax matters, facilitating the automated exchange of financial accounts among member states.
Your trust, our priority
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Frequently Asked Questions about Taxes in Brazil
Is Brazil a high tax country?
Brazil’s taxes account for one-third of its total GDP, and they are relatively high, positioning the country among other high-tax countries like Sweden, France, and Norway.
How much tax do you pay in Brazil?
How much tax you pay in Brazil depends on how much you earn, what you do for work, and where your income is earned. Most Brazil tax residents pay 7.5 to 27.5 percent in income taxes.
Does Brazil have a tax treaty with the US?
Brazil and the United States do not have a tax treaty, meaning US citizens in Brazil may be subject to double taxation.
What is the minimum wage in Brazil?
As outlined by the Ministério do Trabalho e Emprego do Brasil, the minimum wage in Brazil was raised 7.5 percent from BRL 1,412 in 2024 to BRL 1,518 in 2025.
Does Brazil have a tax treaty with the UK?
The Brazil and UK governments signed a double tax treaty on 29 November 2022, allowing UK taxpayers living in Brazil to avoid double taxation.
What is the IRS of Brazil?
Brazil’s tax authority, like the IRS, is Receita Federal do Brasil.
Is Brazil a tax free country?
Brazil is not a tax free country. In fact, Brazil is considered to impose relatively high taxes compared to many other countries.
Does Brazil tax US Social Security benefits?
As Brazil and the United States do not have a tax treaty, US citizens living in Brazil would be required to pay Brazil tax on Social Security benefits they receive in the country.
What is VAT in Brazil?
Brazilian Value-Added Tax (VAT)or sales tax In Brazil is known as Imposto sobre Circulação de Mercadorias e Serviços (ICMS), applied to the sale of goods, transportation, and communication services. The standard ICMS rate varies by state, typically between 17 and 19 percent.
