⚠ Prerequisite: requires Brazilian tax residency (VITEM XIV digital-nomad or VITEM XI investor visa + CRNM residence card). Tourists don't qualify. See the 3 paths in →
Brazil rewards founders, remote workers, and digital nomads who structure their income properly. Set up correctly, an effective tax rate of ~9% on $80k revenue is normal, fully legal, and survives audit.
For planning, not legal advice — real numbers depend on your CNAE / municipality / pro-labore. Hire a contador before you optimize.
Your effective tax
8.7%
On $80,000 annual revenue,
you keep $73,000 after all
Brazilian taxes — vs $50k–59k
in equivalent US states with personal income tax + self-employment tax.
Line-by-line breakdown
Each row is real Brazilian tax law. Click "What's this?" for plain English. The % column shows each line as a share of revenue.
Item
Amount
% rev
Annual revenue
Gross invoiced amount.
$120,000
100%
Presumed profit base
What's this?
Lucro Presumido doesn't make you prove your real profit. Receita assumes a fixed % of your revenue is profit (32% for most services) and taxes you on that. Your actual margin can be higher — you keep the difference.
$38,400
32.0%
– IRPJ (corporate income tax)
What's this?
15% on the presumed profit, plus a 10% surtax on the slice over R$60k/quarter (roughly R$240k/yr of presumed profit, ≈ R$750k/yr of revenue for service businesses).
−$5,760
4.8%
– CSLL (social contribution)
What's this?
9% of presumed profit. Funds Brazilian social welfare programs.
−$3,456
2.9%
– PIS / COFINS
What's this?
Combined 3.65% on revenue under Lucro Presumido (cumulative regime). 0% on service exports — the government wants you bringing foreign currency in.
−$0
0.0%
– ISS (municipal service tax)
What's this?
Set by your city, 2–5%. Floripa is typically 5% for software/consulting. 0% on exports per Lei Complementar 116/2003.
−$0
0.0%
– INSS on pro-labore
What's this?
You must pay yourself a minimum monthly "pro-labore" (CEO salary). On that salary the company contributes 20% INSS (social security), and you personally contribute 11%. Default of R$2,000/mo (~$380) sits just above the 2026 minimum wage — the legal floor most expat founders use to keep the INSS bill small while still earning SUS + retirement credits.
−$1,418
1.2%
– IRRF on pro-labore
What's this?
Personal income tax on the pro-labore portion. As of 2026 (Lei 15.270/2025), the first R$5,000/mo (R$60,000/yr · ~$11.4k) is fully tax-free — most expat solo founders never pay personal income tax at all because their pro-labore stays under that line. Above R$5k/mo a phased rate applies, capping at 27.5%. Dividends face separate 10% withholding only above R$50k/mo per shareholder.
−$0
0.0%
– Dividend WHT (10% above R$50k/mo)
What's this?
New from Jan 2026 (Lei 15.270/2025): dividends paid by one company to one individual above R$50,000/mo (~$9.5k) face 10% withholding tax at source. Solo: threshold = R$600k/yr (~$114k); couple owning 50/50: R$1.2M/yr (~$229k). Below the threshold, dividends remain tax-free at the personal level (Lei 9.249/95, art. 10).
−$0
0.0%
– IRPFM top-up (high-income minimum)
What's this?
Lei 15.270/2025 — Imposto de Renda da Pessoa Física Mínimo. If your total annual personal income (pro-labore + dividends + everything) exceeds R$600,000 (~$114k), Brazil enforces a sliding minimum effective rate. Formula: rate% = (income / 60,000) − 10. Climbs from 0% at R$600k to 10% at R$1.2M (~$229k); flat 10% above R$1.2M, applied to the entire annual income. From this minimum, your already-paid IRRF + dividend WHT are subtracted; you pay only the difference. Computed per shareholder — splitting with a spouse halves each person's income for IRPFM purposes too.
Your monthly "CEO salary" hits your personal account every month, after the 11% INSS deduction and any IRRF. At the default R$2,000/mo (~$380), INSS takes ~$42/mo, IRRF is zero (well under the R$5k tax-free line) — so almost the full amount lands in your pocket. This is your money, just labeled differently from dividends so the company can satisfy the legal pro-labore requirement.
$4,061
3.4%
+ Dividends to you (net of WHT)
What's this?
After the company pays its taxes and any 10% dividend WHT on the portion > R$50k/mo per owner, the remainder flows to you tax-free at the personal level under Lei 9.249/95, art. 10. For most expat solo founders below ~$110k/yr revenue, the WHT is zero and 100% of dividends are tax-free.
$95,716
79.8%
Annual take-home
Pro-labore (after personal tax) + dividends. Before contador fees.
$109,564
91.3%
Effective tax rate
8.7%
Subtract separately
Contador fees: $840 – $2,400 / yr($70–$200/mo depending on complexity).
Lucro Presumido requires monthly filings — handled by a CRC-licensed contador. Not included in the percentages above because price varies 3× between firms for the same workload; shop around. Take-home net of fees: $107k – $109k.
Things this calculator doesn't model: ICMS (only matters for physical goods), Simples Nacional regime (better for very small revenues under R$4.8M, simpler but slightly higher rates than Lucro Presumido at most service-export volumes), CFEM/IPI (industry-specific), recent IBS/CBS reform that phases in from 2027. Talk to a contador.
Setup timeline
Decision to first invoice: ~10–14 weeks.
Realistic, not best-case.
The full path from "I'm doing this" to "my Floripa CNPJ is invoicing foreign clients" takes about three months. Most of that is paperwork waiting at the consulate and Polícia Federal — none of it is hard, but it can't be parallelized past a point.
01
2–6 weeks
Visa application
Apply at the Brazilian consulate covering your country for VITEM XIV (digital-nomad · proof of $1,500/mo foreign income) or VITEM XI (investor · R$500k real estate or R$700k+ startup). Standard docs: passport, background check, sworn translation, criminal record certificate, proof of income / investment. Full visa walkthrough →
02
1–3 days · in Floripa
Land + register at Polícia Federal
Within 90 days of arrival, book an appointment at the PF Floripa to register your visa. You receive a CRNM protocol number on the spot — that already counts as residence. Physical CRNM card arrives 6–12 months later.
03
Same day · free
Get your CPF
The CPF is Brazil's universal personal tax ID — you need it for literally everything. Issued instantly at any Receita Federal branch or online (with apostilled passport). Can be obtained before you arrive.
04
1–3 weeks
Open a Brazilian bank account
With CPF + CRNM protocol you can open at Nubank (fully digital, ~3 days), Inter, Bradesco, or Itaú. Required for your future CNPJ. Some banks delay until the physical CRNM card lands — Nubank does not.
05
5–15 business days · R$1,500–3,500
Form the CNPJ via your contador
Your contador drafts the contrato social, picks the right CNAE codes for service export, files with the Junta Comercial de Santa Catarina, and registers with Receita Federal + Floripa municipality. You sign two times (digitally) and they handle everything else.
06
1–2 weeks
First invoice → first dividend
Activate NFS-e (electronic municipal invoice) on the Floripa city portal, issue your first exported invoice in USD/EUR via the câmbio system, and you're operational. First dividend can be declared the quarter that follows.
Can you compress this?
Yes — if you arrive on a tourist visa, get CPF online beforehand, and front-load the contador work, you can have a working CNPJ in ~6 weeks. But you must also have a valid residence visa underway to stay legal as a tax resident. Without CRNM, your CNPJ exists but you don't qualify for tax-resident treatment — Receita will treat you as a non-resident with 25% flat withholding on most outflows.
The Brazilian tax field guide · 2026
Everything a remote worker or founder actually needs to know — structured.
Brazil's tax code has a justified reputation for complexity — but most of that complexity falls on physical-goods importers and multi-state retailers. For a remote-friendly service business invoicing foreign clients, the rules below are the entire surface area. They're current as of 2026 and sourced from official portals.
01 · Dividends · NEW Jan 2026
Tax-free up to R$50k/mo per shareholder · 10% above
0–10%
Brazil's three-decade-old dividend exemption (Lei 9.249/95, art. 10) was partially scoped in late 2025. Under Lei 15.270/2025 (effective 1 Jan 2026), dividends paid by one company to one individual face 10% withholding at source on the portion exceeding R$50,000/month. Below the threshold, dividends remain 100% tax-free at the personal level.
Solo shareholder · monthly
R$50,000 ≈ $9,500
Tax-free per month per company. R$600k/yr (≈ $114k/yr) tax-free in total. Excess gets the 10% WHT at source.
Couple owning 50/50 · monthly
R$100,000 ≈ $19,000
Each spouse gets their own R$50k threshold. Joint R$1.2M/yr (≈ $229k/yr) tax-free. The threshold is per individual per company, not per household.
Grandfather rule — major loophole for early movers
Profits earned through 31 Dec 2025 with distribution approved by the same date can be paid out tax-free in 2026, 2027, and 2028 — regardless of size or schedule. If you already have an active CNPJ, vote a formal distribution resolution before year-end 2025.
Practical for most expat founders: at typical service-export revenue ($80k–$110k/yr USD), distributable dividends stay well under R$50k/mo even solo — so this WHT is effectively zero for the small-CNPJ majority. It only bites above ~R$700k/yr (~$135k/yr USD) revenue solo, or ~R$1.4M/yr (~$270k/yr) for a 50/50 couple.
02 · Personal income (IRPF)
First R$5,000/mo (~$950) · zero income tax
R$60k ~$11.4k
As of January 2026 (Lei 15.270/2025), the first R$5,000/month (~$950) — R$60,000/year (~$11,400) — of any personal income — pro-labore, foreign-source wages, freelance — is fully tax-free at the federal level. Above that, a phased rebate (desconto) runs up to R$7,350/mo (~$1,400), then the classic progressive table kicks in.
Monthly income (R$)
USD ref
Marginal rate
Effective rate
Up to 5,000
up to ~$950
0%
0%
5,000 – 7,350
~$950 – $1,400
15% (phased)
2–5%
7,350 – 10,000
~$1,400 – $1,900
22.5%
~10%
Above 10,000
above ~$1,900
27.5%
15–22%
The expat-founder play: set pro-labore to R$2,000/mo (~$380) — just above minimum wage — pay zero personal tax, and take everything else as dividends (tax-free up to R$50k/mo per shareholder, 10% WHT above). The mechanism is fully legal under Lei 8.212/91 and Receita Federal IN 971/2009.
⚠ Watch the ceiling — IRPFM
Lei 15.270/2025 also introduced a minimum personal-income tax (IRPFM) for high earners. If your total annual income — pro-labore + dividends + everything — exceeds R$600,000 (~$114,000), a sliding-scale minimum rate kicks in, climbing to 10% effective at R$1.2M (~$229k). Most expat solo founders never hit this; high-revenue agencies or 2-person co-founder shops should model with a contador.
03 · ICMS & service exports
Most services pay zero state & federal turnover tax
0%
Brazil's "VAT-equivalent" — ICMS — only touches physical goods, transport, telecom, and electricity. Consulting, software, design, marketing, content, coaching — none of it triggers ICMS. On top of that, when you invoice a foreign client for a service "consumed abroad," two more taxes drop:
→ ISS 0%Municipal service tax exemption on exports per Lei Complementar 116/2003, art. 2. Floripa's default ISS for software/consulting is 5%; exports drop it to zero.
→ PIS/COFINS 0%Federal turnover-tax exemption on exports per Lei 10.637/2002 and Lei 10.833/2003. Combined rate of 3.65% (cumulative regime) goes to zero on exported services.
→ IOF 0%FX-conversion tax on inbound USD/EUR is 0% (or near it) for service-export receipts — invoices marked as exports settle through the regular câmbio system with full conversion to BRL.
Paper trail required: service-export status is documented on every nota fiscal (NFS-e). Floripa uses the unified Nota Carioca–style system at nfse.pmf.sc.gov.br. Wrong CNAE classification on the invoice undoes the exemption — pick the right code on day one.
04 · INSS & healthcare
Your 11% INSS = SUS access, retirement, sick leave, parental leave
11%
INSS is the Brazilian social-security system. The contribution on your pro-labore isn't a tax that disappears — it credits toward an entire bundle of state benefits, even for non-citizens:
Healthcare (SUS)
Free access to Brazil's Sistema Único de Saúde — applies regardless of INSS status (it's universal), but INSS contributions guarantee priority enrollment for chronic-condition programs and reproductive health.
State pension
15 years of contributions + age 62 (women) / 65 (men) qualifies for a monthly pension — regardless of citizenship. Contributions from foreign countries can sometimes be aggregated under bilateral treaties (US, Spain, Italy, Portugal, France).
Sickness benefit
Auxílio-doença pays 91% of your last salary for incapacity over 15 days. Eligible after 12 months of contributions.
Parental leave
Salário-maternidade pays 100% of your average salary for 120 days. Eligible from the first contribution if you're a CLT-registered employee; 10 months for autônomos.
The framing shift: the calculator counts INSS as "tax" because it leaves your pocket — but for most expat founders it's the closest thing they've had to negative tax in years. State pension alone is worth ~R$1,500/mo for life after 15 years of even minimum-wage contributions.
05 · Capital gains
Flat 15% on listed stocks · exempt below R$20k/mo
15%
Brazil splits capital-gains taxation by asset class — none of them feed into the progressive personal table:
Asset
Rate
Exemption
Brazilian-listed stocks (B3)
15%
≤ R$20k/mo sold
Real estate (residential)
15%
Reinvest within 180 days
Crypto (any chain)
15–22.5%
≤ R$35k/mo sold
Foreign stocks & ETFs
15–22.5%
≤ R$35k/yr gain
Day-trading profit (any asset)
20%
None
FIFO required. Brazil uses first-in-first-out for cost basis. Loss carryforward is allowed within the same asset class. Listed-stock dividends from B3 are also tax-free at the personal level — same Lei 9.249/95 mechanism as company dividends.
06 · Regime choice
MEI · Simples · Presumido · Real — which one for you
Picking the right regime can swing your effective rate by 8–15 percentage points. The decision is mechanical for most service exporters: revenue + activity type points to one answer.
Heavy COGS, multi-state retail, high-margin SaaS > R$10M
★ Why Lucro Presumido wins for service exports. The PIS/COFINS export exemption (saves 3.65%) only applies fully under cumulative regimes — Simples bundles those taxes into its single rate and you can't unbundle them. Below ~R$300k/yr revenue the Simples 6% bracket may still beat LP; above that LP dominates almost universally.
07 · Who actually does the paperwork
Contadores are licensed — like lawyers, not bookkeepers
Brazilian accountants — contadores — are licensed professionals registered with the Conselho Federal de Contabilidade (CFC) and the state-level CRC. Same licensing model as realtors needing CRECI or lawyers needing OAB. Always check your contador's CRC number is active before signing — it's a 6-digit ID listed on their card and verifiable at the CRC-SC site.
Monthly fee
R$350 – R$1,000
Lucro Presumido + service export, simple payroll. Varies by city.
DEFIS, ECF, ECD. Sometimes bundled into monthly, sometimes separate.
Shop around. Floripa pricing for the same workload varies 3× between firms. English-speaking contadores who specialize in foreign founders are a small market — expect a 20–50% premium over generic ones. The "Talk to a contador" form above connects you with CRC-verified Floripa firms who handle service exporters daily.
08 · Double-taxation treaties
Already paying tax somewhere? You probably won't pay it twice.
37 + 3
Brazil has ratified 37 bilateral double-taxation agreements ("Acordos para Evitar a Dupla Tributação") plus 3 reciprocity arrangements with the US, UK, and Germany. The mechanism is symmetric — tax paid abroad on the same income is creditable in Brazil up to the Brazilian liability on that income, and vice versa.
If you pay tax abroad first
Credit it against Brazilian tax
When you file your Brazilian IRPF, the foreign tax paid on the same income (US W-2, EU freelance withholding, etc.) is deducted from what Brazil would otherwise charge — up to the Brazilian liability on that income, never below zero. Documented with the foreign tax certificate.
If you pay tax in Brazil first
Credit it in your home country
If you're still filing in your home country (e.g. as a US citizen — always — or during the year you transitioned), the Brazilian IRPJ/IRRF/dividend WHT counts as foreign tax paid. Form 1116 for US filers, equivalent forms for other jurisdictions.
Brazil has no ratified DTA with the United States, United Kingdom, or Germany — but the Receita Federal officially recognises reciprocity of tax treatment with each. Practically identical effect: tax paid in one country can be offset against tax due in the other on the same earnings. The mechanism is in Receita Federal Ato Declaratório rulings rather than a treaty.
A US-Brazil treaty has been under negotiation since the 1990s but never ratified. A UK-Brazil treaty was signed Nov 2022 and is in transition. Until then, reciprocity remains the operating standard.
Typical treaty withholding caps (source-country)
Income type
Without treaty
Treaty cap
Notes
Dividends
15–25%
10–15%
Typically lower if ≥ 25% ownership
Royalties
15%
10–15%
Software/IP licenses
Interest
15–25%
10–15%
Cross-border loans
Business profits (no PE)
25%
0%
Source-only if no permanent establishment
Capital gains
15%
Residence-only
Usually taxed only where you live
Bonus: social-security totalization (different from DTA)
Separate from income-tax treaties, Brazil has social-security totalization agreements ("totalização previdenciária") that let you aggregate INSS contributions with foreign social-security credits — useful if you want to qualify for a Brazilian pension without losing your home-country credits, or vice versa. Currently active with: 🇺🇸 USA · 🇨🇦 Canada · 🇨🇱 Chile · 🇫🇷 France · 🇩🇪 Germany · 🇬🇷 Greece · 🇮🇹 Italy · 🇯🇵 Japan · 🇰🇷 South Korea · 🇱🇺 Luxembourg · 🇵🇹 Portugal · 🇪🇸 Spain · plus Mercosul (Argentina, Paraguay, Uruguay) and the multilateral Ibero-American convention.
The good news for service exporters: if you invoice a foreign client and they pay you in USD/EUR without withholding any tax (the typical case for B2B service contracts), there's nothing to credit — Brazil taxes the full amount and that's the entire bill. The DTA mechanism only kicks in if your client's country withholds something at source (rare for service work, common for royalties / SaaS licenses). The bad news for US citizens: the US taxes citizens worldwide regardless of treaty, so you must keep filing 1040 + form 1116 forever — the Brazil-side relief only goes one direction.
Phase-in: 1% test rate in 2026, full migration by 2033. Service exports remain exempt under the new system. What changes for service-only CNPJs: probably very little; the PIS/COFINS/ISS exemptions translate directly. What changes for product-handling CNPJs: potentially significant — model with your contador before scaling.
US incl. federal + SE 15.3%. Indicative; Receita Federal + OECD.
🇧🇷 Floripa LP
~9%
🇵🇹 PT NHR
~20%
🇪🇸 ES Beckham
~24%
🇺🇸 Texas
~28%
🇺🇸 California
~38%
🇩🇪 DE Freib.
~42%
Tax residency
Am I a Brazilian tax resident? The 183-day rule explained
This is the most-asked question for digital nomads in Brazil — and the most misunderstood. The answers below are verbatim from the most common forum questions, answered directly.
Is the 183-day count a rolling 12 months or a calendar year (January–December)?▾
Calendar year (January 1 – December 31). Brazil counts 183 days within a single calendar year — not a rolling 12-month window. If you arrive in August and spend 5 months in Brazil, you have 0 days in January–July and ~150 days in August–December. You'd need to stay past ~January 3 of the next year to hit 183 in a single calendar year.
The legal basis: Instrução Normativa RFB 208/2002 and Instrução Normativa RFB 1.500/2014. "Consecutive or not" means you don't need to stay 183 days straight — it accumulates across separate trips within the same calendar year.
Note: Brazil also has a second residency trigger — a visa that explicitly establishes residency intent (e.g., VITEM XIV, RNE/CRNM). If you hold such a visa, you may be considered resident from visa issuance, even before 183 days. Consult a contador on your visa type.
Does a single overnight count as a full day toward the 183?▾
Yes, generally. Brazilian tax law counts any day of physical presence in Brazil — including partial days (arrival or departure day). In practice, the Receita Federal uses entry and exit stamps (or SINCRE system records) to count presence days. Each calendar day you are physically in Brazil counts as one day.
So if you fly in Monday night and leave Wednesday morning, that's 3 days (Monday, Tuesday, Wednesday), not 1.5 days.
Can I leave Brazil before 183 days and restart the clock by re-entering?▾
No. Days accumulate within the calendar year regardless of how many trips you take. Leaving and re-entering doesn't reset the count — the 183 days are cumulative across all entries in the same calendar year.
Example: Jan 1–Mar 31 in Brazil (90 days) → leave for 3 months → return Sep 1–Dec 31 (122 days) = 212 total days in the calendar year → tax resident for that year.
Exception: if you formally communicate tax non-residency to the Receita Federal before leaving (Comunicado de Saída Definitiva), a different set of rules applies for that final year.
Does having a CPF automatically make me a Brazilian tax resident?▾
No. A CPF (Cadastro de Pessoas Físicas) is just an identification number — similar to a US Social Security Number or UK National Insurance number. Having a CPF does not make you a tax resident. Tax residency is determined by your physical presence (183+ days per calendar year) or the nature of your visa.
You can hold a CPF as a non-resident for years — for example, to open a Brazilian bank account, buy property, or register a CNPJ — without triggering tax residency.
What happens if I accidentally cross 183 days — can I fix it?▾
If you cross 183 days in a calendar year, you're considered a Brazilian tax resident for that year and must file a Declaração de Ajuste Anual (annual tax return) by late April of the following year, declaring worldwide income for the calendar year in question.
The practical options are: (1) file the return and pay any tax owed — the rates via individual filing (Carnê-Leão) can reach 27.5%, or (2) retroactively open a CNPJ if you were doing B2B work — some contadores can structure this, but timing constraints apply. The safest approach is to count carefully before you reach 183 days, not after.
Sources: Instrução Normativa RFB 1.500/2014 · Lei 7.713/1988 Art. 2
Decision guide
CNPJ vs Carnê-Leão: pick your tax path
Once you're a Brazilian tax resident, you have two options: file as an individual (Carnê-Leão) or operate via a Brazilian company (CNPJ). The math usually favors CNPJ above a certain income threshold.
Factor
Individual (Carnê-Leão)
CNPJ (Lucro Presumido)
Tax rate on income
7.5%–27.5% progressive
~14–17% effective
Break-even monthly income
CNPJ wins above ~$4,000/month (varies by service type)
Monthly accounting cost
~$0 (self-file)
R$400–R$1,000/mo (~$80–200)
Can invoice USD / EUR clients
Yes (via wire to personal account)
Yes, with formal export exemption
ISS / PIS / COFINS on exports
N/A
0% (service exports exempt)
Setup complexity
Low — just file monthly
Med — requires accountant + CNPJ opening
Residency required to open
Yes (tax residency)
No — VITEM XIV is sufficient
Can a foreigner open a CNPJ without permanent residency?▾
Yes. A CNPJ can be opened by a foreign national holding a valid Brazilian visa that permits economic activity — including VITEM XIV (Digital Nomad), VITEM V (work), or any temporary visa with work authorization. Permanent residency (CRNM) is not required.
What you do need: a valid CPF, a Brazilian address (a coworking address works for registration purposes), and a licensed accountant (contador) to file the registration. The process typically takes 2–6 weeks from document submission to having an active CNPJ.
At what income level does CNPJ save more than filing as individual?▾
The crossover point depends on your service type and whether you're exporting 100% of revenue. For typical service exporters (software, consulting, design):
Below ~$2,500/mo: Carnê-Leão may be simpler (low rate + no accounting fees)
$2,500–$5,000/mo: CNPJ often wins depending on revenue mix
Above $5,000/mo: CNPJ almost always wins — the effective rate gap (27.5% vs ~14%) exceeds accounting costs
Use the tax calculator above with your actual numbers — the breakeven is precise to your situation.
How much does it cost per month to maintain a CNPJ?▾
Typical monthly costs for a single-owner service CNPJ (Lucro Presumido, export-only):
Accountant fees: R$400–R$1,000/mo (~$80–200 USD)
INSS prolabore contribution: ~R$750/mo minimum if drawing prolabore (required)
Tax filings: IRPJ, CSLL (quarterly); PIS/COFINS (monthly) — handled by your contador
Bank fees: some Brazilian banks offer business accounts from R$30–80/mo
Total fixed overhead: ~$150–350/month at typical exchange rates. This is why at very low income levels, Carnê-Leão is simpler — the accounting fees aren't worth it until the tax savings exceed them.
Can my CNPJ invoice US clients in USD?▾
Yes. A Brazilian CNPJ can issue international invoices (nota fiscal de serviços) in USD, EUR, or any currency, and receive foreign currency payments via international wire transfer. The funds are converted to BRL on arrival in Brazil through a formal FX transaction (câmbio), which your bank handles.
For service exports (software, consulting, marketing services, design), the transaction is classified as an export of services — which is exempt from ISS, PIS, and COFINS. Your contador will classify it correctly in the nota fiscal.
Popular options for receiving international payments: Wise Business (holds USD/EUR before conversion), Banco BS2, Banco Topázio, or a regular large Brazilian bank with an international wire capability.
Do I need a Brazilian accountant, or can I do it solo?▾
A licensed contador is strongly recommended for a CNPJ — not legally mandatory for all activities, but practically essential. Brazilian tax law requires a CRC-registered accountant to sign off on most formal tax submissions. For Carnê-Leão (individual), you can self-file if you read Portuguese and understand the IRPF system.
For foreign founders especially: mistakes in CNPJ filings can result in penalties (multas) that exceed what you saved. The accounting fee (~R$400–R$1,000/mo) is cheap insurance.
For US founders
Your Delaware LLC in Brazil: what actually happens
Moving to Brazil with a US LLC is one of the most anxiety-inducing scenarios for American founders. Here are the questions that come up in every forum, answered directly.
If I'm a US citizen with a Delaware LLC, do I pay Brazilian taxes on my LLC's profits?▾
Yes, once you're a Brazilian tax resident. Brazil taxes residents on worldwide income. If your Delaware LLC is a single-member LLC (disregarded entity for US tax purposes), its profits flow through to you personally — and Brazil treats that pass-through income as your personal income, subject to Brazilian individual income tax rates (up to 27.5% via Carnê-Leão).
The practical solution most US founders use: instead of keeping the Delaware LLC as the operating entity, they open a Brazilian CNPJ that invoices clients directly. The LLC may remain as a holding/treasury entity but stops being the primary invoicing vehicle.
Brazil has no tax treaty with the US — does that mean I get double-taxed?▾
Not fully double-taxed, but it's complicated. The US taxes citizens worldwide, always. Brazil also taxes residents on worldwide income. With no bilateral tax treaty, there's no automatic relief mechanism between the two countries.
However, there are partial mitigation paths:
US Form 1116 (Foreign Tax Credit): If you pay Brazilian tax, you can claim a credit against your US tax bill for the same income — reducing (not eliminating) double taxation.
FEIE (Form 2555, Foreign Earned Income Exclusion): If you qualify as a bona fide resident of Brazil or meet the physical presence test, you can exclude up to ~$126k/year (2025 limit) of earned income from US tax. Note: FEIE doesn't apply to self-employment taxes (SE tax) or passive income.
CNPJ structure: If you operate via a Brazilian CNPJ, the entity pays Brazilian corporate tax. You as a US person own a foreign corporation — triggering different US reporting (Form 5471) but potentially a cleaner separation between the two tax systems.
This is genuinely complex tax territory. A US-licensed CPA with Brazil experience is worth it here — the cost is far less than the tax mistakes.
Is it better to keep my US LLC or open a Brazilian CNPJ?▾
For most US founders billing B2B clients in USD:
Keep LLC + FEIE: Works if income is all earned income, you qualify for FEIE, and you're not staying in Brazil permanently. Simple US side, potential issues on Brazil side if you cross 183 days.
Open CNPJ, close (or dormant) LLC: Cleaner separation. CNPJ bills clients, pays ~14% effective Brazilian tax. US files FBAR + Form 5471. No FEIE needed. Better if you plan to stay in Brazil long-term.
LLC as holding + CNPJ as operating: Common structure. LLC holds equity/savings; CNPJ does all client work. Requires careful legal structuring so the LLC is not deemed a "controlled foreign corporation" with problematic US tax implications.
Model your specific numbers with the CNPJ calculator above, then bring the output to a CPA who knows both US and Brazilian tax.
Can I use the Foreign Earned Income Exclusion (FEIE) to avoid double-taxation in Brazil?▾
FEIE (Form 2555) lets qualifying US citizens exclude up to ~$126k/year (2025) of earned income from US federal income tax. You qualify via the bona fide residence test (residing in Brazil for a full tax year) or physical presence test (330 days outside the US in any 12-month period).
What FEIE covers: wages, self-employment income (though self-employment tax still applies). What FEIE doesn't cover: passive income (dividends, interest, capital gains), self-employment SE tax (~15.3%), business income from a US entity.
The catch: claiming FEIE means you can't also claim a Foreign Tax Credit for the same income. If your Brazilian tax rate exceeds your US marginal rate (unlikely for most), the FTC is better. For most nomads earning $80k–$200k/yr, FEIE is usually the simpler and better choice for the first few years — but model both with a CPA.
Source: IRS Publication 54 — Tax Guide for U.S. Citizens and Resident Aliens Abroad
Need a US-Brazil bilingual accountant?
We work with CRC-registered Brazilian contadores who have experience with US citizens — they know both Form 5471 and SPED at the same time.