Thank you for this video. Exactly the overview that I have been looking for. My (Brazilian) wife and I are moving to Sao Paulo from the USA next year. No doubt that I'll have to get a CPA to help with the tax reporting.
I think a US expat in Brazil would have income taxed by the IRS and Brazilian authorities. So if I worked remotely for an American company in Brazil the higher salary(compared to a Brazilian company)wouldn't be as good a deal as it first seems.
Not only Dividends are free of taxes as well as Rents from FIIs (Fundos Imobiliários), which are Brazilian equivalents to REITs in EUA. I prefer to receive Rents from FIIs than from physical properties because they're free of taxes. No tax @ call. Simple like that ! Also, trading FIIs "quotes" (shares/units) is way easier, more versatile and liquid than trading whole properties themselves. One that trades shares will trades FIIs shares (units) very easily as well. Capital gains on selling FIIs (REITs) are taxed however at a fixed rate of 20 %. But on the other hand when you have losses they have the "PREJUÍZOS A COMPENSAR" feature, just as stocks do (mentioned @ another comment here). This is very good !
@@whereeaglesdare9584 "pessoa jurídica". It's basicaly a way to be reconized as a company. Every brazilian has a CPF number. Every company has a CNPJ. CPF means "cadastro de pessoa física"(phisical person register) and CNPJ "cadastro nacional de pessoa jurídica"(something like legal/judicial person national register). You become a PJ, you get an CNPJ.
@@whereeaglesdare9584 PJ (Pessoa Jurídica) means registering as a small business in Brazil. Freelancers use it to lower taxes, paying around 6-15% instead of up to 27.5% personal income tax.
Thank you, very informative. I have been trying to get a little better understanding of how Brazil taxes global income, as I am considering moving there. I am specifically curious if you have any understanding of how Brazil taxes retirement accounts held in the US for a Brazilian tax resident? I have both Roth and traditional retirement accounts. If you aren't aware, the traditional US retirement account is taxed as income as I distribute assets and the Roth is not taxed at all when distributed. Neither is taxed on the income or gain within the account.
If you become tax resident in Brazil you will have to pay tax on your worldwide income. I do not have a Roth but I do have other tax exempt investments in Sweden but now that I am resident in Brazil I have to pay capital gains tax on these in Brazil when I sell and make a capital gain. With regards to overseas retirement accounts, I believe you pay income tax in Brazil when you distribute assets but I am not an expert on this so worth asking an expert.
Brazil lawyers / accountants informed me that... oversees income is not taxed if it is payed on a foreign account. They advise to use your debetcard from abroad. Same with rental income from abroad. Same if you keep your assets, shares, etfs in Europe. But brazilian lawyers and etc are not what you call... trustworthy. 😂
Hi, very informative video, just a quick question. I'm planning to move to brazil at some point and was thinking about crypto taxes. As you said if I start everything from zero ( brazil accounts) I don't have to pay capital gain on crypto up to 7000$, is that right? many thanks
Hi, that's right, no tax up to $7000 of crypto sales per month. Just be aware that the government may be removing this exemption for crypto held on Brazil as well in the future.
Hi, good video, i think the 15% capital gains tax on property is a bit harsh, i have lived in the same house here in Brasil for 15 years and now want to downsize, the house has doubled in value and unfortunately i have to pay 15% on any profit, a little harsh don't you think considering this is my only property and that the value has increased naturally .
Check the policy for rebuying your only residence within a time frame. You will pay no taxes (at least on the value that you reinvest on your new residence)
I do my own taxes now so I don't use an accountant. To get a CPF you have a fill out a form on the brazilian tax office website servicos.receita.fazenda.gov.br/Servicos/cpf/CpfEstrangeiro/default.htm Then take this form to a Brazilian embassy or consulate in your country. Or if you are in Brazil you can go to a local tax office.
This is a video about Taxes. Which is money. So I will ask it here. Do you know of a good Brazilian Credit card for traveling from Brazil to Europa. (My mother and father in law is traveling for the first time.)
I like Wise and Revolut international debit cards as they have very low fees but they are debit cards and not credit cards. If you really need a credit card then nubank has an international credit card but the fees are higher than the wise and revolut debit cards
That also makes the rental income on Brazilian predios drop to 15%. If it's less as 19.000 reais per month you normally don't show up on the radar and gross = nett. In the northease.
Keep making videos. You have some of the best content on the realities of life in Brazil.
Thank you!
Thanks for the information. Great work.
Glad it was helpful!
Thank you for this video. Exactly the overview that I have been looking for. My (Brazilian) wife and I are moving to Sao Paulo from the USA next year. No doubt that I'll have to get a CPA to help with the tax reporting.
Always good to get a cpa to do your tax return the first year or two.
Thanks for this. Looking forward to watching
Hope you enjoy it!
I think a US expat in Brazil would have income taxed by the IRS and Brazilian authorities. So if I worked remotely for an American company in Brazil the higher salary(compared to a Brazilian company)wouldn't be as good a deal as it first seems.
There is a double taxation agreement between the 2 countries so you would be able to offset the tax paid in the US against your Brazilian tax.
Having to pay state income tax in addition to federal income tax is a pain.
Not only Dividends are free of taxes as well as Rents from FIIs (Fundos Imobiliários), which are Brazilian equivalents to REITs in EUA. I prefer to receive Rents from FIIs than from physical properties because they're free of taxes. No tax @ call. Simple like that ! Also, trading FIIs "quotes" (shares/units) is way easier, more versatile and liquid than trading whole properties themselves. One that trades shares will trades FIIs shares (units) very easily as well. Capital gains on selling FIIs (REITs) are taxed however at a fixed rate of 20 %. But on the other hand when you have losses they have the "PREJUÍZOS A COMPENSAR" feature, just as stocks do (mentioned @ another comment here). This is very good !
You raise good points about FIIs. I might do a video about this in the future
In the US, the standard deduction for a single person is almost 15,000 so actually someone making 11,000 in a year pays no federal income tax.
Thanks for the info!
great video....
Thanks!
There are some other potential ways to lower your taxes for some areas, if you use PJ you can pay around 10% of taxes instead of maximum 27.5%.
Good point!
What's pj?
@@whereeaglesdare9584 "pessoa jurídica". It's basicaly a way to be reconized as a company. Every brazilian has a CPF number. Every company has a CNPJ. CPF means "cadastro de pessoa física"(phisical person register) and CNPJ "cadastro nacional de pessoa jurídica"(something like legal/judicial person national register). You become a PJ, you get an CNPJ.
@@whereeaglesdare9584 PJ (Pessoa Jurídica) means registering as a small business in Brazil. Freelancers use it to lower taxes, paying around 6-15% instead of up to 27.5% personal income tax.
Thank you, very informative. I have been trying to get a little better understanding of how Brazil taxes global income, as I am considering moving there. I am specifically curious if you have any understanding of how Brazil taxes retirement accounts held in the US for a Brazilian tax resident? I have both Roth and traditional retirement accounts. If you aren't aware, the traditional US retirement account is taxed as income as I distribute assets and the Roth is not taxed at all when distributed. Neither is taxed on the income or gain within the account.
If you become tax resident in Brazil you will have to pay tax on your worldwide income. I do not have a Roth but I do have other tax exempt investments in Sweden but now that I am resident in Brazil I have to pay capital gains tax on these in Brazil when I sell and make a capital gain.
With regards to overseas retirement accounts, I believe you pay income tax in Brazil when you distribute assets but I am not an expert on this so worth asking an expert.
Brazil lawyers / accountants informed me that... oversees income is not taxed if it is payed on a foreign account. They advise to use your debetcard from abroad.
Same with rental income from abroad.
Same if you keep your assets, shares, etfs in Europe.
But brazilian lawyers and etc are not what you call... trustworthy. 😂
I’m PJ working for UK and I’m paying 4.25% in taxes in Brazil.
Good point, PJ can reduce down tax significantly
Hi, very informative video, just a quick question. I'm planning to move to brazil at some point and was thinking about crypto taxes. As you said if I start everything from zero ( brazil accounts) I don't have to pay capital gain on crypto up to 7000$, is that right? many thanks
Hi, that's right, no tax up to $7000 of crypto sales per month. Just be aware that the government may be removing this exemption for crypto held on Brazil as well in the future.
In the US, capital gains can be 0 depending on how much one makes.
Hi, good video, i think the 15% capital gains tax on property is a bit harsh, i have lived in the same house here in Brasil for 15 years and now want to downsize, the house has doubled in value and unfortunately i have to pay 15% on any profit, a little harsh don't you think considering this is my only property and that the value has increased naturally .
I agree its harsh
Check the policy for rebuying your only residence within a time frame. You will pay no taxes (at least on the value that you reinvest on your new residence)
Thanks for this. Do you have an accountant there? Also, how do you get a CPF?
I do my own taxes now so I don't use an accountant. To get a CPF you have a fill out a form on the brazilian tax office website servicos.receita.fazenda.gov.br/Servicos/cpf/CpfEstrangeiro/default.htm
Then take this form to a Brazilian embassy or consulate in your country. Or if you are in Brazil you can go to a local tax office.
@@nordicinvestor Thanks, NI. This is a big help.
It's horrible. If I knew before I'd have thought twice to come here. At the end I guess I wouldn't have
😂
This is a video about Taxes. Which is money. So I will ask it here. Do you know of a good Brazilian Credit card for traveling from Brazil to Europa. (My mother and father in law is traveling for the first time.)
I like Wise and Revolut international debit cards as they have very low fees but they are debit cards and not credit cards. If you really need a credit card then nubank has an international credit card but the fees are higher than the wise and revolut debit cards
Indeed Nubank or Willbank. Both online. Here Bradesco also does a... good job.
Am forex trader, what is the tax for 20k euro profit per month?
If you are a forex day trader, you would pay 20% tax on your gains.
Det finss oxå pension skatt, det kan äta upp till 40% allt du får
I guess it might be a good idea not to stay in Brazil for more than 6 months a year.
😂
That also makes the rental income on Brazilian predios drop to 15%. If it's less as 19.000 reais per month you normally don't show up on the radar and gross = nett. In the northease.
I want to visit in Brazil. Can anyone invite me??
😂
@@nordicinvestor you are bad men, no good heart