Taxes

Personal income tax is levied on income and earnings from Brazilian sources and is payable by taxpayers living within or outside Brazil.

Tax rates are based on income levels, which means that people on low incomes are taxed at a lower rate or do not pay income tax at all. All foreign nationals living in Brazil, whether on a permanent or temporary basis, who are resident in the country for more than 184 consecutive days in a given 12-month period, must register with the federal tax authorities.

All foreign nationals must file the same type of income tax return as Brazilian citizens and are subject to the same rules.

Switzerland and Brazil signed a double taxation agreement (DTA) on 3 May 2018. In 2018, Switzerland and Brazil entered into an agreement on the avoidance of double taxation, which came into force in 2022.

This agreement is especially relevant to Swiss nationals living in Brazil who (continue to) receive certain types of income from Switzerland, including income from property, gainful employment, pensions, dividends and interest. The agreement restricts Switzerland's right to tax income derived from sources in Switzerland and/or requires Brazil to offset Swiss taxes against Brazilian tax payable in respect of that income.

A tax information exchange agreement between Switzerland and Brazil entered into force on 4 January 2019. It provides for the exchange of information on request in relation to tax matters. The agreement applies to requests for information for tax years commencing on 1 January 2020 or subsequent tax years. Switzerland and Brazil signed a joint declaration in Brasilia on 18 November 2016 on the introduction of the automatic exchange of information (AEOI) in tax matters. Swiss financial institutions have been collecting information regarding accounts held by Brazilian taxpayers since 2018. Since 2019, the Federal Tax Administration has been sending the information automatically to the Brazilian tax authorities on an annual basis, with the Brazilian tax authorities providing equivalent information to the FTA. AEOI affects, for example, Swiss nationals who are domiciled in Brazil for tax purposes and hold an account or custody account at a Swiss financial institution. AEOI also extends to information on accounts set up to facilitate state pensions payments.