Expats often belong to two tax systems at once.
United States
U.S. citizens and green-card holders are taxed on worldwide income, regardless of where they live.
Even when residing in Brazil, Americans may still need to comply with:
IRS income tax
FATCA reporting
FBAR filings
reporting of foreign corporations, partnerships or trusts
Since Brazil and the U.S. do not have a tax treaty, the risk of dual taxation is significant, requiring structured planning.
European Union – Brazil maintains double-taxation treaties with many EU countries.
These treaties protect income such as:
- real estate rentals
- royalties
- interest and dividends
- business profits
- pensions
Still, they do not override Brazil’s domestic concept of tax residency, which means careful coordination is essential.