Brazilian ‘IRS’ Q&A – New Rules for Non-Residents

As the Brazilian deadline approaches for filing the Annual Adjustment Return for Personal Income Tax – calendar year 2025, we are summarizing the main points of attention for Brazilian taxpayers who hold assets outside Brazil or who reside abroad. We recommend that you review your specific situation with a tax professional in each jurisdiction.
This notice consolidates the guidance issued by the Brazilian Federal Revenue Service in the “Perguntas e Respostas IRPF 2026” and is for informational purposes only.

1. Important Deadlines
The final deadline for filing the Annual Adjustment Return for fiscal year 2026 is May 29, 2026, as follows:

• Resident in Brazil and travelling abroad: the return must be transmitted via the Internet by 11:59:59 p.m. (Brasília time) on May 29, 2026.
• Permanent departure that occurred in 2025: Notice of Permanent Departure from the Country (CSDP) by the last day of February 2026 and Permanent Departure Tax Return (DSDP) by May 29, 2026 (deadline extended).
• Temporary absence for more than 12 consecutive months: required to file the CSDP from the moment the non-resident status is characterized, and the DSDP relating to the period of residency.

• Held, on December 31, 2025, assets or rights (in Brazil or abroad) with a total value exceeding R$ 800,000.00, approximately $160,000
• Elected the Tax Transparency Regime for a controlled entity abroad, declaring the assets, rights and obligations of that entity as if they were held directly by the individual.
• Was the holder (grantor or beneficiary), on December 31, 2025, of a trust or similar contracts governed by foreign law.
• Earned income or capital gains on financial investments abroad or intends to offset losses in subsequent years.
• Earned profits or dividends from entities abroad.
• Became a resident of Brazil in any month of 2025 and was in that condition on December 31.

• An individual who resides in the country on a permanent basis.
• A Brazilian individual who works for an agency or office of the Brazilian Government located abroad.
• A foreigner who enters Brazil with a permanent visa, as of the date of arrival.
• A foreigner with a temporary visa, as of the date on which they reach 184 days (consecutive or not) of stay in Brazil within 12 months, or upon obtaining a permanent visa or employment relationship.
• A Brazilian who reacquires resident status upon returning to the country with the intention of permanent residence.
• Anyone who leaves Brazil temporarily, during the first 12 consecutive months of absence.

• Anyone who leaves the national territory permanently, by filing the Notice or the Permanent Departure Tax Return.
• Anyone who is temporarily absent, as of the day following the date on which they complete 12 consecutive months of absence.
• A foreigner with a temporary visa, before 184 days of stay in Brazil within 12 months.

• File the Notice of Permanent Departure from the Country (CSDP) from the date of departure and by the last day of February of the following calendar year.
• File the Permanent Departure Tax Return (DSDP) covering the period in which they remained as a resident, by the last business day of April of the following year (in 2026, the deadline was extended to May 29).
• Pay in a single installment the assessed tax and other tax credits not yet settled, by the date set for filing the DSDP.

• Employment and services: 25% withholding rate.
• Royalties and technical/technical-assistance services: 15% rate (or 25% if the beneficiary is a resident in a favorable-tax jurisdiction).
• Retirement and pension benefits (non-alimony): taxation under the IRPF progressive table.
• Rents and other income: 15% rate (or 25% if the beneficiary resides in a favorable-tax jurisdiction).
• Capital gains on the disposal of assets located in Brazil: rates of 15% to 22.5%, without the exemptions and reductions provided for residents.
• Financial investments (CMN investor): 10% on equity investment funds, swaps and transactions in future-settlement markets outside the exchange; 15% in the other cases.
• Distribution of profits and dividends by Brazilian legal entities to non-residents will become taxable as of January 2026, regardless of the amount of profits and dividends paid. The legal entities in Brazil must withhold Income Tax on such payment at the rate of 10%.

• CPF (Individual Taxpayer Number) for non-residents: mandatory for non-resident individuals who hold in Brazil assets or rights subject to public registration (real estate, vehicles, vessels, aircraft, equity interests, bank accounts, financial investments and capital-market investments).
• Tax refunds for those abroad: the taxpayer must indicate a bank account held by him or her at any bank in Brazil authorized by the Federal Revenue Service, or provide the holder’s PIX key. If the taxpayer does not have a bank account in Brazil, it is necessary to appoint another individual with a power-of-attorney in the country.
• Brazilian who returns to Brazil: reacquires resident status on the date of arrival, if returning with the intention of permanent residence. Assets acquired while a non-resident must be reported in the Assets and Rights section of the first Annual Adjustment Return after the return; income earned abroad before the permanent return is not taxable in Brazil.