Brazil

Visas

The Brazilian Migration Law (Law 13,445), in force as of 21 November 2017, formally revoked the ‘Foreigner Statute Law' (Law 6,815/1980), defining the rights and obligations of foreign individuals in Brazil, either as residents or visitors.

Brazilian authorities may grant visit or temporary visas to foreigners who intend to visit or live in Brazil. 

A Visit Visa (VIVIS) will be applied for those who come to Brazil for tourism, business, transit, and for the performance of audit and consulting activities for up to 90 days. The law prohibits any remunerated activity under this type of visa; however, the foreigner visitor may receive daily allowances for travel expenses.

A Temporary Visa is necessary for any type of work with or without an employment contract, such as technical services or maritime work. It also applies for those coming to Brazil for research, health treatments, study, vacation or summer jobs, family reunion, and investments, among other situations.

Official, diplomatic, and courtesy visas are generally applicable for foreign government representatives or private employees who travel to Brazil for an official visit, under a temporary or permanent nature. 

Residence authorisation

The residence authorisation may be granted to foreigners while in Brazil depending on the circumstance. Citizens from countries located on the border of Brazil, as well as those who are from countries that are part of the Mercosul agreement, have a more expedited application process. 

The aforementioned legislation also affects the current individual tax residence rules with respect to foreign individuals in Brazil, which will need to be duly updated by the Brazilian IRS to take into account the new types of visas and new rules for residence authorisation.

Brazilian Central Bank Reporting Requirement

In accordance with Brazilian Central Bank (BACEN) published rules and requirements, all individuals or corporate entities resident, domiciled, or headquartered in Brazil, who had foreign held assets and rights valued (individually or not) at 100,000 United States dollars (USD) or more as of 31 December of each year, should file an informative return with BACEN reporting all foreign-held assets. In case of not complying with such obligation, the taxpayer will be assessed to pay penalties.

The deadline for the delivery of such reporting requirements is 5 April, according to the rules annually issued by BACEN.

In addition, the fiscal residents who hold foreign-held assets and rights where the value is equal to or more than USD 100 million as of 31 March, 30 June, and 30 September of each year must file the Brazilian Central Bank Report on a quarterly basis.　

The non-compliance with the Brazilian Central Bank obligations may subject the individual to penalties that may reach up to BRL 250,000.

Departure from Brazil

A resident taxpayer of Brazil who leaves the country permanently or becomes a non-tax resident after 12 months outside of the country (due to a temporary departure) must file a Communication of Definitive Departure to the Brazilian tax authorities.

The deadline for filing a Communication of Definitive Departure from Brazil is up to the last business day of February of the calendar year subsequent to the year of departure from Brazil on a permanent or temporary basis, as follows:

• Permanent departure: as of the date of departure and up to the last business day of February of the subsequent calendar year.
• Temporary departure: as of the date when the status as a non-resident is typified until the last business day of February of the subsequent calendar year.

Additionally, a resident taxpayer must file a Definitive Departure Income Tax Return, which will comprise the period of fiscal residency in Brazil. The filing deadline of a Definitive Departure Tax Return is the last business day of April of the following calendar year. At that time, the individual must also file any annual Brazilian income tax returns due and not yet filed as well as request for an issuance of a Tax Clearance Certificate before the tax authorities.