Tax Exit from Brazil
Understand how the tax exit process works and when it makes sense for your international wealth strategy.
What Is a Tax Exit?
A tax exit is the formal process by which a Brazilian taxpayer notifies the Federal Revenue Service that they are no longer a tax resident of Brazil.
In Brazil, the principle of worldwide taxationapplies, where tax residents are taxed on all their global income. By performing the tax exit, you become taxed only on income sourced in Brazil.
"The tax exit is a legitimate and legal strategy for those who establish life in another country. It brings transparency and regularization of your international tax situation."
Advantages of a Tax Exit
Benefits for those who establish residence abroad
End of Worldwide Taxation
After the tax exit, you are no longer taxed on income earned abroad.
Wealth Protection
Greater legal security for your international assets.
Global Freedom
Flexibility to choose the most favorable jurisdiction for your investments.
Regularization
Tax situation regularized with Brazil's Federal Revenue Service.
Strategic Planning
Ability to better structure your international investments.
Tax Savings
Potential significant reduction in overall tax burden.
Points to Consider
Important aspects to weigh before deciding
Loss of Benefits
By performing the tax exit, you lose access to some Brazilian tax benefits and may face restrictions on investments in Brazil.
Real Estate Taxation
Rental income from properties in Brazil continues to be taxed in the country, though at a different rate.
Investments in Brazil
There are restrictions for non-residents on certain types of Brazilian investments.
Process Requirements
What is needed to carry out the tax exit
Residency Abroad
Prove permanent residency in another country
Final Exit Declaration
Submit the Final Exit Declaration
Exit Notification
Notify the Federal Revenue Service of the exit
Asset Regularization
Declare all assets and rights in Brazil and abroad
Frequently Asked Questions
What is a tax exit from Brazil?
A tax exit is the formal process by which you notify the Federal Revenue Service that you are no longer a tax resident of Brazil. This changes your tax obligations in the country.
When should I file the tax exit?
The notification must be made when you acquire permanent status in another country or after 12 consecutive months outside Brazil.
Can I keep assets in Brazil after leaving?
Yes, you can keep real estate, investments and other assets in Brazil. However, taxation on those assets will follow specific rules for non-residents.
Is the tax exit reversible?
Yes, you can return to Brazil and re-establish your tax residency at any time by following the proper procedures.
Plan Your Tax Exit
Our team of specialists can assess your situation and guide you on the best strategy for your internationalization.