Tax on Expat Disability Pay

Does the Brazilian government treat a foreign expat's disability benefits and pay (received in their native country) as income, and thereby impose the same taxes on such funds?

They do not if you pay taxes in the US.
Mine is directly deposited into a US bank account (checking). Many checking and savings do not create much income. (Now mine is military and never have to pay tax on his,
Same on SSN disability.

Thanks for the response. I'm also a veteran with a 100% VA disability rating and so my disability is tax exempt in the United States. For this reason, I don't have to pay taxes in the U.S. So, just to confirm are you saying that you're not taxed as a U.S. expat living in Brazil on a permanent basis? I'm moving to Rio de Janeiro in May on a retirement visa and I haven't found any information that specifies whether or not my disability pay would be taxed.

@dgwarmyman were you able to get a retirement visa and move to Brazil? Are there any taxes associated with your compensation? Let me know, I'm about to do the same thing.

Hi sanderson7252,

Welcome to expat.com 1f603.svg

You are commenting on a thread that has been inactive for more than a year. It is therefore unlikely that there will be any replies.

If you want to discuss a specific topic, please do not hesitate to create a new discussion on the Brazil forum. I would also recommend you to read our Living in Brazil guide, where you will find a lot of useful information.

Vero
Expat.com team

Hi sanderson7252,


There have been recent discussions on sites such as:

"How to Stay in Brazil as a US Citizen"

As to your question. My VA disability is not taxed but, I direct deposit into my US bank and wire funds to my BR Bank is needed.

Just start a new question or look for the above site to start.

@Texanbrazil


Have you ever been in a situation that required you to file taxes in Brazil?

I am trying to buy a home here, financing partially, and it seems that no one has answers of wether or not I am required to pay taxes on my VA disability income...


any insights are appreciated

thanks


   02/14/24  @Texanbrazil
Have you ever been in a situation that required you to file taxes in Brazil?
I am trying to buy a home here, financing partially, and it seems that no one has answers of wether or not I am required to pay taxes on my VA disability income...
any insights are appreciated
thanks   

    -@jenerny


Welcome, jenerny.  Unfortunately, Texanbrazil passed away last April.  He did file taxes in Brazil while he was a permanent resident, as do I.  This is an old thread, you may find this one more current and  informative:


https://www.expat.com/forum/viewtopic.php?id=1027832


The short answer is that Brazil taxes a resident's worldwide income, and does not legally exempt disability income.  Brazil does, however, have a longstanding policy against double taxation, i.e., against taxing income that's already been taxed elsewhere, so the combined effect of those two policies ends up being positive for many people.  Its effect on you will depend on your personal circumstances, and you should find a Brazilian accountant local to where you live that you like and trust, review your total situation with that person, and follow his or her advice.

@jenerny


If you are American living in Brazil, you file taxes in both countries on incomes from both countriee . The taxes you pay in one country deducts from what you might owe on the same income in another country. That way you wint get double taxed.