Residence in Brazil for Foreign Retirees: Immigration and Tax Considerations

Brazil offers a residence authorisation to retired and/or pensioned immigrants who can demonstrate a monthly transfer of at least USD 2,000 into the country. The initial residence permit is valid for two years and may be renewed for an indefinite period, allowing the individual to reside in Brazil without local employment ties.

Tax Obligations for Retirees and Pensioners in Brazil

The tax obligations of a retiree or pensioner living in Brazil will vary depending on their specific circumstances, such as the length of stay in the country and the nature of their income. However, some general rules apply.

If the individual is considered a tax resident in Brazil, they are subject to the same income tax rules applicable to Brazilian nationals. This includes filing the annual income tax return (Declaração de Imposto de Renda da Pessoa Física – IRPF) and paying income tax on taxable earnings such as pensions, retirement income, and rental income, following the progressive tax rates that currently range from 0% to 27.5%. Income earned abroad is also subject to taxation and must be reported monthly through the Carnê-Leão system.

On the other hand, if the retiree or pensioner is classified as a non-resident for tax purposes, only their Brazilian-source income is subject to taxation. In this case, income is typically taxed at a flat withholding rate, and there is no obligation to report foreign income or file an annual income tax return in Brazil.

Determining Tax Residency Status

An individual is considered a tax resident in Brazil if they remain in the country for more than 183 days within 12 months, whether consecutive or not, or if they obtain a residence permit and choose to stay indefinitely. Tax residency status determines whether a person will be taxed solely on income from Brazilian sources or on their global income, which has significant implications for planning and compliance.

Foreign retirees and pensioners living—or planning to live—in Brazil should seek professional guidance to understand how tax residence, international treaties, and local compliance requirements may affect their financial and legal responsibilities. Proper planning can help mitigate risks, avoid double taxation, and ensure peace of mind during this new chapter of life.

At our firm, we help foreign retirees navigate immigration procedures and tax matters in Brazil with clarity and security. If you are planning your retirement in Brazil—or already living here—reach out to learn how we can support your transition.