Filing Your US Expat Taxes in Brazil
February 26, 2025 | Country Guides |
Expat Tax Blog. Tax Tips for US Americans abroad.
Updated
All blogs are verified by Enrolled Agents and CPAs
All blogs are verified by Enrolled Agents and CPAsUpdated
Brazil is famous for its vibrant culture, including its love for soccer, colorful carnivals, and samba! You might be drawn to move to Brazil for its warm climate and relaxed lifestyle but one thing that doesn’t change if you move here from America is the need to file your US taxes. You’ll definitely want to avoid double taxation and ensure you are tax compliant. To make it as simple as possible, here’s our complete Brazil US Expat Tax Guide. You’ll find info on key tax forms and deadlines, expat tax benefits, and tips for managing your US taxes while living abroad.
What’s in the Guide?
Who Needs to File US Expat Taxes?
IRS Deadlines for US Expat Taxes in Brazil
Catch Up with the Streamlined Procedure
Tips for Managing US Taxes in Brazil
Who Needs to File US Expat Taxes?
If you’re a US citizen or a Green Card holder and have income over the minimum threshold, the chances are that you need to file with the IRS every year.
In 2025, you’ll need to file your 2024 US taxes if:
- You earn more than $14,600,
- You’re married, filing jointly, and earn over $29,200,
- You make any self-employment income over $400, or
- You’re married, filing separately, and earn any worldwide income over $5.
That’s right, no matter where you live in the world, if you meet or pass any of these thresholds, you’ll need to file your US taxes.
You might be thinking, “why not renounce my citizenship?”. Well, this is not a decision you should take lightly. The process is irreversible, the renunciation costs $2,350, and you may be subject to a hefty exit tax.
Luckily, filing doesn’t need to be that complicated. Don’t believe us? Read on!
IRS Deadlines for US Expat Taxes
US expats receive an automatic filing extension to June the 15th, and you can apply for a further extension!
| Standard Filing Deadline | April 15th |
|---|---|
| Automatic Extension for Expats | June 16th |
| Deadline for Expats Filing an Extension (file by June 15th) | October 15th |
| FBAR Deadline for Expats | October 15th |
| Deadline for Expats if you Filed a Second Extension | December 15th |
Get your email reminders about upcoming deadlines!
Expat Tax Filing 101
Filing Status
Selecting the right filing status can help you save money on your US taxes, and determining the best option is easier than you might think. Your marital status is the first factor to consider. If you’re married, you’ll need to decide whether to file jointly or separately from your spouse. Your spouse’s citizenship also plays a key role, especially if you live abroad.
If your spouse is a US citizen or Green Card holder, Married Filing Jointly is usually the best option, as it allows for a higher standard deduction and better tax credits. If your spouse is a non-US citizen and does not hold a Green Card, they don’t need to file a US tax return. In this case, Married Filing Separately is typically recommended to keep their financial details separate from the IRS.
There’s also another option. If you pay more than half the costs of maintaining your household and support a qualifying US dependent, you may qualify for Head of Household status, which often provides better tax benefits than filing separately. Understanding these distinctions ensures you make the most tax-efficient choice for your personal situation.
Key Tax Forms for US Expats
When filing your US taxes from abroad, understanding the forms required is essential for a smooth and compliant process. Each form serves a specific purpose, from reporting foreign income to declaring overseas assets. Below is a breakdown of the most important forms you should be familiar with as an expat.
Individual Tax Return
Form 1040 is the same Individual Tax Form you need to file when you’re resident in the US. So no surprises here!
FBAR
The FBAR (the Foreign Bank Account Report) is a reporting requirement that tackles tax evasion and financial crimes. You’ll need to file the FBAR if your foreign financial accounts’ combined maximum balances exceed $10,000 in total at any time during the calendar year. Unlike regular tax forms, the FBAR is filed electronically through the Financial Crimes Enforcement Network (FinCEN), not the IRS.
While there’s no additional tax to pay when you file your FBAR, failure to file can result in severe penalties. Compliance is essential for US expats and anyone with overseas assets.
You can file your FBAR with MyExPatTaxes, or file your taxes & FBAR together for more savings!
FATCA
The Foreign Account Tax Compliance Act (FATCA) tracks foreign assets to ensure tax compliance by US taxpayers. FATCA applies to a wide range of foreign assets, including stocks, bonds, and retirement accounts. If you have foreign accounts and assets that exceed certain thresholds (starting at $200,000 for single filers), you’ll need to file Form 8938.
Haven’t filed from abroad before? No worries!
The Streamlined Procedure offers a stress-free way for US expats to catch up on overdue tax filings. The IRS understands that honest mistakes happen, and this program is designed to help taxpayers get back on track.
Eligible taxpayers can become fully compliant by submitting just three years of tax returns and six years of FBARs. Best of all, the IRS waives failure-to-file penalties. It’s important to note that the program is only available if you file BEFORE the IRS contacts you, so don’t delay!
With the right guidance, filing through the streamlined process can be a hassle-free way to regain full compliance.
Moving to Brazil
Dreaming of a future sipping Caipirinhas on a white sandy beach? Somewhere your US Dollars can afford a more comfortable lifestyle? Brazil ticks a lot of boxes, and here are a few points to consider:
Healthcare and Insurance
Brazil offers a universal healthcare system accessible to all residents. However, most US expats opt for private healthcare to ensure timely access to higher-quality services and English-speaking professionals. Securing international health insurance before relocating is advised.
Cultural Integration
Portuguese is the official language, and English is not widely spoken. Learning basic Portuguese can help you integrate and significantly enrich your expat experience.
Safety and Security
While Brazil boasts many safe regions, it’s essential to remain aware of your surroundings, especially in urban areas. Researching areas with lower crime rates will contribute to a more secure living environment. Make sure you spend some time exploring before committing to any area.
Brazilian Visas
Brazil offers various types of visas depending on the purpose of the stay, such as tourist, work, student, and family reunification visas. US-passport holders can apply online for an E-Visa to stay in Brazil for up to 90 days for tourism or business activities. Long-term visas include the temporary work visa, and the permanent visa for investors and retirees.
Retirement Visa
A Brazilian Retirement Visa is available if you are at least 60 years old and can demonstrate a minimum monthly income of $2,000 from a pension or other retirement sources. You’ll need to show an additional $1,000 for each of your dependents, and you’ll need to transfer this income to a Brazilian bank account.
Digital Nomad Visa
Brazil offers a Digital Nomad Visa, allowing remote workers to work in the country for a year, with the possibility of renewal. It’s available for over 18s with a minimum monthly income of $1,500, or a bank balance of $18,000 (2025). You’ll need evidence of remote or self-employment, and health insurance for the duration of your stay.
Filing Your Brazilian Taxes
As a resident of Brazil, you’re required to file an annual income tax return with the Federal Revenue Service (Receita Federal). The Brazilian tax year covers the period from 1 January to 31 December and your return is generally due by April 30th of the following year.
You’re considered to be a tax resident if you have stayed in Brazil for more than 183 days within a year or hold a permanent visa. Tax residents pay taxes on their worldwide income, whereas non-residents are only taxed on income sourced within Brazil.
Income Tax Rates for Brazil
Like the US, Brazil has a progressive income tax system with higher income tax rates applied as taxable income goes up. The tax rates range from 0% to 27.5% (2024), ensuring that those with greater incomes contribute a larger percentage. Deductions are available to reduce taxable income, including medical expenses, health insurance, and costs for dependents.
If you are a non-resident taxpayer, you are taxed only on Brazilian-earned income at a flat rate of 25%, with no deductions allowed.
These figures are subject to change, and it’s always recommended to speak to a local tax professional for the latest information and guidance.
US-Brazil Tax Agreements
The US-Brazil tax agreements, including rules for US-Brazil Expat Taxes, help make life easier for individuals and businesses working between the two countries. They aim to prevent double taxation, promote cross-border trade and investment, and clarify tax responsibilities on both sides.
US-Brazil Tax Treaty
There is no income tax treaty between the US and Brazil (as at 2025). The bad news is this means that the income you earn may be subject to taxation in both countries. The good news is that there are a variety of tax benefits through the IRS that you can apply as a US expat to reduce or even eliminate double taxation.
US-Brazil Totalization Agreement
While there’s no income tax treaty, the US and Brazil have a Totalization Agreement, which aims to:
- Ensure that workers and their employers don’t pay social security taxes to both countries on the same earnings.
- Protect benefit eligibility by combining periods of coverage under both countries’ social security systems to help you qualify for benefits.
Read more: Social Security for Americans Living Abroad
US Tax Benefits for Expats in Brazil
Navigating the complexities of Brazil-US Expat Taxes can be challenging, but understanding the tax benefits available to you in Brazil can help reduce your financial burden and ensure compliance with both countries’ regulations.
Foreign Tax Credit
The Foreign Tax Credit (FTC), filed with Form 1116, is a tax relief provision that helps US taxpayers avoid double taxation on income earned abroad. Since the US taxes its citizens and residents on worldwide income, the FTC allows you to offset your US tax liability by claiming a credit for income taxes paid to a foreign country. This credit can be used to reduce or even eliminate US taxes owed on the same income, making it especially beneficial if you live in a country with higher tax rates.
Unlike the Foreign Earned Income Exclusion (FEIE), which excludes foreign income from taxation up to a certain limit, the FTC provides a dollar-for-dollar reduction of US tax liability. The FEIE can be applied to all foreign income, not just earned wages; this includes self-employment income, rental income, interest and dividends.
Whats more, if the amount you paid in foreign tax exceeds the US tax you owe on the same income, the unused portion of the FTC can be carried back one year or forward for up to ten years. This flexibility makes it a valuable tool for expats, but it also requires careful tax planning to maximize its benefits. As there is no valid tax treaty between the US and Brazil though, you will only be able to claim Brazilian income taxes on foreign sourced income.
Foreign Earned Income Exclusion
The Foreign Earned Income Exclusion (FEIE), filed with Form 2555, applies to specific types of income earned while living and working abroad, allowing you to exclude up to $126,500 from US taxation.
To qualify, the income must be earned through active work, and you have to meet either the Physical Presence Test (330 days in a foreign country within a 12-month period) or the Bona Fide Residence Test (establishing permanent residence in another country). Unlike the Foreign Tax Credit (FTC), which provides a dollar-for-dollar credit for taxes paid abroad, the FEIE simply removes a portion of your income from US tax calculations altogether. The FEIE can only be applied to earned income, such as wages and salaries.
Foreign Housing Exclusion
If you qualify for the FEIE, you may also qualify for the Foreign Housing Exclusion. This benefit allows you to exclude certain housing expenses from your taxable income, like rent, utilities, insurance and even some home repairs. This can significantly lower your US tax bill, especially if you live in a city with high living costs.
Child Tax Credit
The Child Tax Credit (CTC) is a valuable tax benefit if you are a parent, as it helps reduce your US tax bill for each qualifying child under age 17. For eligible taxpayers living abroad, the credit is worth up to $2,000 per child, of which you could receive up to $1,700 in refundable credit, even if you don’t owe any US taxes!
To claim, your child needs to have a valid Social Security number and meet residency and dependency requirements. If you claim the Foreign Earned Income Exclusion (FEIE), you won’t qualify for the refundable portion. To claim the credit, you’ll need to file Form 8812 along with Form 1040.
Read more: 15 Things You Should Know About the Child Tax Credit
With MyExpatTaxes, all you need to do is fill out our questionnaire and our expat tax software will automatically ensure that you take advantage of all available benefits and get the greatest tax reduction for your individual circumstances.
Self Employment in Brazil
Understanding the tax implications of being a self-employed US expat in Brazil is essential for ensuring compliance with both US and Brazilian tax laws, avoiding penalties, and optimizing your tax liability.
If you earn more than $400 in the year in self-employment, you need to file a US tax return. If you’re self-employed, you’ll need to contribute to the Brazilian social security system (INSS) to access healthcare and other social security benefits. The standard contribution rate is 20% of your declared earnings. However, if you opt for the simplified tax system, you may contribute at a reduced rate of 11% of the legal monthly minimum wage, though this option limits your benefits. Additionally, small business owners may qualify for a 5% contribution rate (source: ssa.gov).
Because of the US-Brazil Totalization Agreement, you can to combine periods of coverage from both countries to qualify for benefits, without having to pay the US self-employment tax (15.3%) while you live in Brazil.
Tips for Managing US Taxes in Brazil
Our Brazil US Expat Tax Guide contains a lot of info, and filing your US taxes while living in Brazil can feel overwhelming. To make the process easier, here are our top recommendations:
- Maintain accurate financial records: Even with professional help, you’ll need to provide essential documents.
- Choose tax software designed for US expats: Standard tax platforms can overlook crucial forms like Form 2555, Form 1116, and the FBAR.
- Stay updated on tax law changes: New regulations and procedures may affect your tax obligations.
If you have any questions about filing your US taxes from Brazil, our expat tax professionals are here to help. Once you’re ready to begin filing, you’ll have access to our Support Specialist Chat as well as a wealth of information in our Help Center.
Simplify Your US Expat Taxes with MyExpatTaxes
MyExpatTaxes was built by expats, for expats—because we understand the challenges of filing taxes from abroad. Our platform is designed to make the process fast, easy, and stress-free.
- Clear, Upfront Pricing: No hidden fees or unexpected costs. We explain our pricing upfront, so you know exactly what to expect.
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Written by Nathalie Goldstein, EA
Nathalie Goldstein, EA is a leading expert on US taxes for Americans living abroad and CEO and Co-Founder of MyExpatTaxes. She contributes to Forbes and has been featured in Forbes, CNBC and Yahoo Finance discussing US expat tax.
February 26, 2025 | Country Guides |
