Banking, Money and Taxes in Brazil

With an efficient and well-developed banking system, managing banking, money and taxes in Brazil is fairly straightforward for expats. A fair amount of documentation and bureaucracy is required, as is commonly the case with financial matters.

Currency in Brazil

The Brazilian currency is the real (BRL), which is divided into 100 centavos.

• Notes: BRL 2, BRL 5, BRL 10, BRL 20, BRL 50, BRL 100, and BRL 200
• Coins: 5 centavos, 10 centavos, 25 centavos, 50 centavos, and BRL 1

Banking in Brazil

Expats in Brazil have a variety of options and services available for managing their finances. Traditional banks like Banco do Brasil, Bradesco, Itaú, Santander, and Caixa Econômica dominate the market, and digital banks such as Nubank, Inter, C6 Bank, and PagBank have revolutionised banking with low fees and user-friendly apps. Banking can be costly, as traditional banks charge users a percentage for every transaction. Expats are advised to shop around to find out which bank will offer them the best deal for their needs.

Online banking is popular in Brazil, and PIX – Brazil’s instant payment system – has become the most widely used payment method since its launch in 2020. You can pay utility bills online and make instant transfers through PIX at any time, even outside banking hours. Expats should note that many online services are only available in Portuguese. Banking hours in Brazil are generally Monday to Friday, from 10am to 4pm.

Opening a bank account in Brazil

Opening a bank account in Brazil is straightforward. That said, you’ll need a residence visa to open an account. The CPF (Cadastro de Pessoas Físicas or taxpayer’s number) is absolutely essential – no bank account can be opened without one. Other required documents usually include a valid identity document, proof of domicile, and proof of residence. The documents necessary may differ depending on the bank and type of account in question.

ATMs and credit cards in Brazil

ATMs are widely available in Brazil. You can withdraw cash as well as make bill payments at ATMs.

Brazil has adopted digital payments through PIX, which allows instant transfers and payments using a phone number, email, CPF number, or QR code. Many Brazilians now prefer PIX to cash or cards for everyday transactions. Still, some parts of Brazil remain largely cash-based economies, so it’s wise to always carry sufficient cash on hand. International debit and credit cards are widely accepted in larger metropolitan areas.

Visas in Brazil

Taxes in Brazil

Brazil has a pay-as-you-earn (PAYE) tax system, whereby income tax is based on worldwide income and is generally paid monthly. Residents who pay income tax in Brazil are also required to file an annual income tax return. The Brazilian tax year is from January to December. Income tax rates range from 0 to 27.5 percent, and social security contributions are also deducted from salaries.

The rate at which expats pay tax in Brazil depends on their tax residency status. For tax purposes, a person is deemed a resident of Brazil if they hold a permanent visa, or if they hold a temporary visa and stay in Brazil for more than 183 days within a 12-month period.

Residents are required to pay tax on their income worldwide. Brazil has double taxation treaties with several countries, although notably not with the United States or the United Kingdom, which can leave expats from these countries at risk of double taxation.

Given the complexity of expat taxation in Brazil, expats should consider consulting with a tax professional who is familiar with the Brazilian tax system.

Working in Brazil