Brazil Cut Income Tax and Taxed Dividends: What Expats Owe
Expats: Brazil Key Facts —What changed. From January 2026 Brazil zeroes the income tax on monthly earnings up to R$5,000 (US$968). —The other half. It also taxes dividends for the first time since 1996, at 10%. —The catch: For residents the 10% is an advance, credited back. For non-residents it is final. —What makes you […] The post Brazil Cut Income Tax and Taxed Dividends: What Expats Owe…
Brazil has made significant changes to its tax system in 2026, cutting income tax on monthly earnings up to R$5,000 (US$968) and introducing a 10% tax on dividends for the first time since 1996. Non-residents face a flat 25% tax on employment income and 15% on most other categories. Residents face two ongoing obligations: declaring and paying income not taxed at source through the Carnê-Leão system, and filing an annual DIRPF return covering 2025 income.
Non-residents only pay taxes on Brazil-source income, generally at a flat rate. The new system also includes a minimum tax above R$600,000 (US$116,000) per year, effective from 2027.
Written by urgent.news from The Rio Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
