South America
Brazil: tax at a glance
Residents are taxed on worldwide income. Dividends become taxable again in 2026, and a dual VAT, called CBS/IBS, begins a multi-year phase-in.
Worldwide (residence-based)
Last verified
Ways to relocate to Brazil
The residency and citizenship routes that lead here, weighed against the tax picture above.
The taxes
- Personal income (top)
- 27.5%Progressive to 27.5%. From 2026, monthly income up to ~BRL 7,350 is exempt, and a new minimum tax (IRPFM) of up to 10% applies to very high incomes (>=BRL 1.2M/yr).
- Corporate income
- 34%
- Capital gains
- 15%–22.5%, progressive by size of gain.
- VAT / IBS/CBS, replacing ICMS/ISS/PIS/COFINS.
- ~26.5%, the IBS+CBS reference rate, phasing in 2026–2033.
- Dividends (WHT)
- 10%, starting in 2026. Previously exempt.
- Interest (WHT)
- 15%
- Royalties (WHT)
- 15%
- Social security (employee)
- 7.5%–14%, INSS, capped.
- Social security (employer)
- ~20% (INSS), plus other payroll charges.
- Wealth tax
- None
- Inheritance / estate
- ITCMD, a state tax of up to 8%.
- Property tax
- IPTU, an urban municipal tax, at roughly 0.3%–1.5% of assessed value.
- Other
- A consumption-tax reform is underway: CBS, a federal levy, and IBS, a subnational one, form a dual VAT phasing in from 2026.
How the system works
- Tax system
- Worldwide (residence-based)
- Foreign income
- Taxed (worldwide)
- Taxes by citizenship
- No
- Exit tax
- No
- CFC rules
- Yes
- CRS
- Participating
A special regime for new arrivals
None favourable. Lei 14.754/2023 taxes offshore company profits annually at 15% whether or not distributed and treats foreign trusts as transparent to the settlor.
The rates below are indicative headline figures (top marginal, standard, and headline rates), reviewed 2026-07. Brackets, surcharges, and state, provincial or cantonal taxes vary. Treat this as a reference map, not advice.