🇧🇷 Taxes · Brazil
Taxes in Brazil
Brazilian residents pay tax on income earned anywhere in the world, non-residents only on income earned in the country. Here are the rates for individuals and business.
The Brazilian tax system splits taxpayers into residents and non-residents. Residents pay tax on income earned anywhere in the world, non-residents only on income earned in Brazil.
Who counts as a tax resident
For tax purposes, the following count as residents of Brazil:
- Brazilian citizens living in the country.
- Brazilian residents living abroad for less than 12 months.
- Naturalized foreign nationals living in Brazil.
- Foreign nationals with permanent or temporary work visas who have signed an employment contract with a Brazilian company.
- People entering Brazil on a temporary visa to work as doctors under the Mais Médicos program.
- Foreign nationals on a temporary visa without an employment contract with a Brazilian company - after 183 days of actual presence in Brazil (consecutive or not) within 12 months.
- Citizens of the Mercosur countries (Argentina, Paraguay and Uruguay), as well as Bolivia, Chile, Colombia and Peru, applying for temporary residence in Brazil.
Personal income tax
The personal income tax rate runs from 0% to 27.5%. Residents of Brazil pay tax on income earned anywhere in the world. Non-residents are taxed only on income earned in Brazil, at a flat rate of 25%.
Your rate depends on your residency status and income sources. On a free consultation we go through your situation and work out your tax burden.
Business taxes and other taxes
- Corporate profit tax - 34%.
- Social contributions - 7-14% for employees.
- Inheritance and gift tax - up to 8%.
- Property tax (IPTU) - charged annually on the market value of the property at a rate of around 1-1.5%; the exact percentage depends on the municipality and the location.
- Tax on renting out property - 15%.
Key features of the Brazilian tax system
Tax based on residency
Non-residents pay tax only on income earned in Brazil, at a flat rate of 25%, with no need to declare income from other countries.
A progressive scale for residents
For residents the personal income tax rate rises gradually, from 0% to 27.5%, depending on the level of income.
Straightforward property tax
IPTU is charged annually at a transparent rate of around 1-1.5% of the property's market value.
FAQ
Who counts as a tax resident of Brazil?
What is the personal income tax rate in Brazil?
What profit tax do companies pay in Brazil?
What is the tax on renting out property?
Is there an inheritance tax in Brazil?
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