Brazilian tax for non-residents — what is withheld and when

Resident or non-resident

Instrucao Normativa RFB 208/2002 defines tax residency: a holder of a residence authorisation is resident from arrival, while other arrivals become resident after 183 days of presence, consecutive or not, within a twelve-month period. Residents are taxed on worldwide income; non-residents only on Brazilian-source income, generally by withholding.

Leaving Brazil does not end residency by itself: the Comunicacao de Saida Definitiva do Pais and the final return under IN RFB 208/2002 close the resident position.

Withholding on Brazilian-source income

The rate depends on the income type and the beneficiary jurisdiction; many payments abroad are withheld at 15%.
Lei 9.779/1999, art. 7: 25% withholding on income from work, with or without an employment relationship, and on services paid or remitted to persons resident or domiciled abroad.
Rent from real estate located in Brazil paid to a non-resident is subject to withholding under the rules consolidated in IN RFB 1.455/2014.
Withholding is the Brazilian payer obligation, so contracts with foreign counterparties should state the tax treatment explicitly.

Dividends remitted abroad from 2026

Lei 15.270/2025 amended art. 10 of Lei 9.249/1995: profits or dividends paid, credited, delivered, used or remitted abroad are subject to 10% withholding income tax. Profits determined up to calendar year 2025 are excluded where the distribution was approved by 31 December 2025 and is due under civil or corporate law, on the conditions set out in the law.

Capital gains and treaties

Gains on the disposal of assets and rights located in Brazil are taxable in Brazil, including between two non-residents; since Lei 13.259/2016 rates are progressive from 15% to 22.5%. A double tax treaty, such as Decreto 9.115/2017 with Russia, can reduce or reallocate Brazilian tax, but relief requires evidence of residence and correct classification of the income.

Contact

Arasari & Partners — Rodovia José Carlos Daux 4190, Florianópolis, Santa Catarina, Brazil. Email: info@arasari.com.br. Working languages: Portuguese, English, Spanish, Russian.

Engagements are non-discretionary advisory: we structure, coordinate licensed providers and track deadlines; decisions remain with the client.