Taxes & Law

• IRPF (Imposto de Renda Pessoa Física): personal income tax — residents generally on worldwide income; non-residents on Brazilian sources (details: Receita Federal)
• Progressive monthly/annual tables; from 2026 additional reduction rules that effectively ease low incomes (Lei 15.270/2025) — check current Receita tables
• Others: including ISS (municipal service tax), ICMS (state goods circulation), social contributions depending on activity
• Competent authority: Receita Federal do Brasil

Tax residency can arise from permanent stay, certain visas/residence or days present (rule of thumb often from about 184 days in 12 months — exact criteria and exceptions in Receita rules). Immigration status ≠ automatically tax status — consult an accountant (contador).

Incorporation typically goes through the Junta Comercial, CNPJ at Receita, municipal licenses and a bank account. Foreigners need valid immigration status/CPF. Budget for local advice.

• Account opening: usually CPF + ID (CRNM/passport) + proof of address; strict KYC
• PIX: instant transfers 24/7 — everyday standard
• Foreign cards: usability and IOF/fees depend on the bank; a local debit card is practical

The agreement between Germany and Brazil for the avoidance of double taxation of 27 June 1975 was terminated by Germany on 7 April 2005 and has been out of force since 1 January 2006 (BMF; confirmed by the German Embassy). In the BMF DTA overview as of 1 January 2026 Brazil is listed under ongoing treaty negotiations — a new agreement was not in force at that date.

In April 2026 both governments agreed in a joint statement to intensify talks on a new DTA. Signature, ratification and entry into force are pending — until then national credit/exemption rules and withholding rules apply. Clarify individual cases with tax advisors in both countries.