Menu
Expat.com
Search
Magazine
Search

Brazil Authorizes Legal Residency for Digital Nomads January 24, 2022

Cakinator

Same here. I've gone 4 times.

As a bookkeeper, I don't think you will be taxed in Brasil.  Now it's new but you aren't a resident.  So my guess is it's like any other visa and the income you make is as if you were here on a visitor visa.

My understanding is you are only taxed on income made from a Brazilian company.  I could be wrong but this is what I am remembering from a book I read of a colleague of mine.  He is an accountant who deals specifically with expats.

You should check it out.  His name is Vincenzo Villamena.  Even if you are taxed you should get the earned income exclusions etc et. Al on the US taxes.  https://www.amazon.com/US-Taxes-America … mp;sr=8-10

sprealestatebroker

It needs to be something published at the Receita Federal ( your equivalent to the IRS ) for anything to be clear..  And since Receita is piss poor at publishing updates, unlike the IRS, then you need to get a knowledgeable accountant to do the searching for you.

https://www.gov.br/receitafederal/pt-br

In person appointments are on indefinite hold, I tried this at my local regional office.   And once you get in there, you undergo triage to get to the person best qualified to give you the right answers.

Inubia

Have read his book....the USA IRS wants to believe that they are the only country in the world which is authorized to tax all of its residents, whether citizens, green card holders, or illegals, on all of their income from all over the world.
However this is not true, Brazil has the same overall philosophy.
The details get unbearably complicated.  I even wrote the authors of the book but they did not want to take me on as a client, my life is far too complicated.  You can slip and slide if you are a poor nomad but wealth attracts attention.

Cakinator

For sure.  I do the business financials for several expats and it does get complicated.

sprealestatebroker

completely wrong.

In Brazil, once you leave the country for undetermined amount of time, you must claim your change of residency at the following tax year.  At that point and beyond, and up until you reinstate your Brazilian Residency, you are not liable for gains abroad, and such gains only become subject to taxation once you bring monies into the Country, and have the  to bear gains that are non tax exempt ( outside bonds,  and other tax shelters ). 

You only become liable for gains abroad if they resulted from undeclared and under reported gains  obtained while you were a Brazilian Resident.  That is you previously committed Tax Evasion.

As an example, if you sold property in Brazil and shuffled the result of the sale  to overseas without declaring Capital Gains on the Brazilian sold property, then you are liable for tax evasion. And that Capital Gains Tax has exemption categories, under which you are not obliged  to pay taxes. 

What is arcane in Brazil, is Estate Taxes.  The US Threshold, witch varies by State, is a whole lot higher than Brazil's as a whole when it comes to what amount becomes taxable or not.

The US, on the other side, does tax expats, but it sets limits on what is taxable income. It isn't such as the IRS taxes every penny you earn abroad.  Besides, there is not payroll deductions or banking forfeiture that forces you to pay before you declare, as this is unfeasible.  So the IRS establishes a taxation threshold, yet you must declare under FATCA, even if you have earned zilch.  They are after big dividends.  Your salary, unless you are an executive earning the big bucks, is not worthwhile for them to expect you to pay up.

You are spreading misinformation based upon your opinions.  I suggest you read on the subject before you go about blablering nonsense.

Cakinator

Ok, folks.  I have some interesting thoughts.  My boyfriend and I just read through the actual resolution and we believe there are actually two different approaches.

If you are abroad you apply for a digital nomad visa.
If you are in Brazil you file for residency.

We base this on the fact that the resolution intentionally separates the requirements for those going to the consular (Section 3) and those in Brasil (Section 4).  For example, via the Consular you provide insurance and a visa application but via already being in Brasil insurance is not a requirement and you complete the Annex (application provided in the resolution).

If you read through both it reads, at least in my opinion, as separate processes not a continuation or added from the first section.

https://portal.in.gov.br/web/dou/-/reso … -375554693

abthree

03/15/22

Cakinator wrote:

My boyfriend and I just read through the actual resolution and we believe there are actually two different approaches.

If you are abroad you apply for a digital nomad visa.
If you are in Brazil you file for residency.


That's true, and is consistent with other requests for residency as well. 

The challenge is that the in-country process is totally at the discretion of the Polícia Federal.  They are permitted to grant an Authorization for Residency if they choose, but they are not required to do so.  garethandrews is encountering some encouraging signs at the PF office in Rio; hopefully, you'll have a similar experience in Curitiba.

Xpat-Forever

This new Nomad Visa seems like a huge hassle. It's better to get a long term Visa leading to citizenship.

Cakinator

Xpat-Forever wrote:

This new Nomad Visa seems like a huge hassle. It's better to get a long term Visa leading to citizenship.


Ehhh, I like to think of it as an adventure in discovery.  lol

abthree

03/16/22

Xpat-Forever wrote:

This new Nomad Visa seems like a huge hassle. It's better to get a long term Visa leading to citizenship.


A long term visa leading to citizenship isn't always an option for everyone.

It's a hassle now, but so was the current Retirement Visa (also a VITEM XIV "Immigration Policy" Visa) when it was introduced a couple of years ago.  There was a lot of initial resistance to that, too, but a few brave souls persevered and got the first ones, and then the door squeaked open.  There are still some questions about the long term, but the immediate question, of whether a person who qualified and had their documents in order, would get the retirement visa, was answered "yes".  This one will probably turn out similarly, once a few people work through the "bleeding edge".

ltoby955

Hi re this way of getting a residencia here, does anyone know if you can add pensions to your income from working online with customers living in other countries? Can I also ask a question on how this works if you are a self-employed remote worker?