US Taxation for Brazilians: The Definitive Guide (2026)

If you’re Brazilian and you own (or are thinking about owning) investments, real estate, or a business in the United States, this guide is for you. We’re going to break down everything you need to know about US taxation for Brazilians, and what it takes to stay compliant with both the IRS and Brazil’s Receita Federal.

2026 brings some important updates. The One Big Beautiful Bill Act (OBBBA), signed into law in July 2025, made permanent most of the individual tax provisions from the Tax Cuts and Jobs Act (TCJA) that were set to expire at the end of 2025. The seven tax brackets and their rates remain in place. No sudden surprises.

But before we dive in, here’s something that catches a lot of Brazilians off guard: Brazil and the United States do not have a tax treaty. This changes everything. We’ll explain why.

1. Who Needs to File US Taxes?

This is where most confusion starts. Many Brazilians assume you only need to file US taxes if you have a green card or US citizenship. That’s wrong.

The US taxes people based on two categories:

US citizens and tax residents, taxed on worldwide income
Non-Resident Aliens (NRAs), taxed only on US-source income

The Substantial Presence Test

Even without an immigrant visa, you can become a US tax resident if you spend too much time in the country. Here’s the formula:

Count all days you were present in the US during the current year
Add 1/3 of the days from the prior year
Add 1/6 of the days from two years prior
If the total is 183 days or more, you’re considered a tax resident

Important: Immigration status and tax residency are two different things. You can be a tax resident without a green card. You can also have a work visa without being a tax resident. F, J, and M visa holders have special exemptions that exclude certain days from the count.

If you don’t want to be treated as a tax resident, there’s Form 8840 (Closer Connection Exception Statement). You’ll need to demonstrate that your stronger ties are to Brazil.

2. Types of US Taxable Income

As an NRA, the US only taxes your US-source income. Here are the most common types for Brazilian investors:

Rental Income

Bought a condo in Orlando for Airbnb rentals? That income is taxable. You have two options:

30% flat withholding on gross rental income, no deductions. This is the default.
Net income election (Form 1040-NR with a Section 871(d) election), which lets you deduct expenses like maintenance, insurance, and depreciation. You pay tax only on net profit at regular progressive rates.

In most cases, the net income election saves you a lot of money. We’re talking about the difference between paying $9,000 and $1,300 on the same property. That’s not a rounding error.

Capital Gains

Sold US stocks? Sold real estate? The gain may be taxable. For NRAs:

Capital gains on stocks and securities: generally exempt for NRAs (as long as the substantial presence test isn’t met)
Capital gains on real estate: taxable under FIRPTA (more on this below)

Dividends

US-source dividends paid to NRAs are taxed at a flat 30% withholding rate. Since there’s no tax treaty between Brazil and the US, there’s no reduction available. This is one of the areas where the lack of a treaty hurts the most.

Business Income

If you own a US LLC or corporation, taxation depends on the structure. A single-member LLC is a “disregarded entity,” meaning income flows through directly to the owner. A C-Corporation pays corporate tax at 21% federally in 2026.

3. US Income Tax Rates (2026)

With the OBBBA making TCJA rates permanent, the seven brackets for 2026 are:

10% up to $11,925
12% from $11,926 to $48,475
22% from $48,476 to $103,350
24% from $103,351 to $197,300
32% from $197,301 to $250,525
35% from $250,526 to $626,350
37% over $626,350

(Single filer amounts, inflation-adjusted for 2026.)

4. Key IRS Forms You Need to Know

Form 1040-NR, Nonresident Alien Income Tax Return

This is your annual US tax return as an NRA. Deadline: April 15 (or June 15 if you had no wages subject to withholding).

Form 1040, US Individual Income Tax Return

If you’re a US tax resident (green card or substantial presence test), you file the standard 1040 like any American.

Form W-8BEN, Certificate of Foreign Status

You give this to your broker, bank, or property manager to certify that you’re a nonresident alien. Without it, they may withhold 30% (or even 24%) from any payment.

Form 8833, Treaty-Based Return Position Disclosure

Used when claiming tax treaty benefits. For Brazil-US? Not applicable, since there’s no treaty. Worth knowing about if you have investments in countries that do have treaties with the US.

Form 8840, Closer Connection Exception

If you want to argue that your stronger ties are to Brazil (to avoid being treated as a tax resident), this is the form. You’ll need to show where your home, family, bank accounts, and social connections are.

5. ITIN vs SSN vs EIN: Which Do You Need?

SSN (Social Security Number): the US equivalent of Brazil’s CPF. Only available if you have US work authorization. Most Brazilian investors don’t have one and don’t need one.
ITIN (Individual Taxpayer Identification Number): your tax filing number when you don’t have an SSN. Format: 9XX-XX-XXXX. You get it via Form W-7, submitted with your first tax return.
EIN (Employer Identification Number): the US equivalent of Brazil’s CNPJ. Required if you open an LLC, corporation, or have employees. Obtained via Form SS-4.

Rule of thumb: Investing in real estate as an individual? You need an ITIN. Opening a business? You need an EIN (and possibly an ITIN as well).

6. The Brazil-US Tax Treaty: It Doesn’t Exist

This is one of the most important, and least understood, facts about US taxation for Brazilians. Brazil and the United States have no bilateral tax treaty to prevent double taxation.

What does this mean in practice?

Dividends: 30% US withholding, with no treaty reduction. Brazil will also tax the same income.
No tiebreaker rules for tax residency. If both countries consider you a resident, you could be taxed twice on the same income.
Limited offset: Brazil allows a foreign tax credit (compensating US tax paid), but it’s capped at what would be owed in Brazil on the same income.
Tax planning is essential. Without a treaty, the right investment structure makes a massive difference.

Many Brazilians assume a treaty exists (like Brazil has with Japan, Italy, and Canada). This wrong assumption can cost thousands of dollars in overpaid taxes, or worse, penalties for incorrect filings.

7. CBE: Brazilian Declaration of Assets Abroad

If you’re a Brazilian tax resident with assets outside Brazil, you must report them to the Central Bank of Brazil (Banco Central) through the CBE declaration.

Who must file?

Annual declaration: anyone holding foreign assets totaling US$1,000,000 or more as of December 31
Quarterly declaration: anyone holding foreign assets above US$100,000,000

What counts?

Everything: real estate, bank accounts, financial investments, equity stakes, receivables, cryptocurrencies held on foreign exchanges.

Deadline

The annual declaration is typically due between February 15 and April 5 of the year following the reference date.

Penalty for non-compliance: up to R$250,000, plus 1% per month on the undeclared amount. Don’t overlook this.

8. Brazilian Tax Returns: Reporting US Income in Brazil

Living in Brazil while earning income in the US means filing in both countries. Here’s what you need to know:

Carnê-Leão (Monthly Tax)

Foreign-source income (rental income, for example) must be reported monthly via Carnê-Leão, with tax due by the last business day of the following month. Rates follow Brazil’s progressive table (up to 27.5%).

DIRPF (Annual Return)

In your annual return, you must report:

Foreign assets (real estate, accounts, investments) in the Assets and Rights section
Foreign-source income, along with taxes paid in the US
The foreign tax credit, which lets you offset US taxes paid, but only up to the amount that would be owed in Brazil on the same income

Currency Conversion

Dollar-to-real conversion must use the Banco Central’s buy rate on the date of receipt. Getting this wrong is one of the most common filing mistakes we see.

9. FIRPTA: Selling US Real Estate as a Foreign Person

FIRPTA (Foreign Investment in Real Property Tax Act) makes sure the IRS collects tax when a foreign person sells US real estate.

How it works:

The buyer (or closing company) must withhold 15% of the sale price and send it to the IRS
This withholding is an advance payment, not the final tax
You then file Form 1040-NR, calculate your actual capital gain, and claim a refund if you overpaid

Exceptions and Reductions

If the property sells for $300,000 or less and the buyer intends to use it as a residence, withholding drops to 10%
Under certain conditions, properties selling for $300,000 or less may qualify for a full exemption from withholding
You can apply for a Withholding Certificate (Form 8288-B) to reduce withholding before closing

Pro tip: Even with 15% withheld, your actual tax may be much lower. At Celeraxiom, we see Brazilians leave tens of thousands of dollars on the table because they don’t file for a refund. Don’t make this mistake.

10. Tax Planning: LLCs, Corporations, and Common Structures

The legal structure you choose for your US investments makes all the difference in your final tax bill.

LLC (Limited Liability Company)

Single-Member LLC: disregarded for tax purposes. Income is taxed directly to the owner, and for NRAs that means filing a 1040-NR.
Multi-Member LLC: treated as a partnership. Each member reports their share, and NRA members face withholding and filing obligations.
LLC electing C-Corp status: the LLC pays 21% corporate tax. Dividends to the Brazilian owner face an additional 30% withholding.

Important note on LLCs and Brazil: Law 12.973/2014 (articles 76-92) establishes that profits of controlled foreign entities are taxable in Brazil annually, even if they’re not distributed. If you’re Brazilian and own a single-member LLC in the US, that LLC is by definition a controlled entity (you have 100% ownership). In practice, this means Brazil can tax the LLC’s profits in the year they’re earned, regardless of whether you actually moved the money to Brazil. A lot of people miss this and get a nasty surprise at tax time.

C-Corporation

Federal corporate tax rate of 21% on profits. When dividends are distributed, there’s an additional 30% withholding on the amount paid to NRA shareholders. Without planning, the effective rate gets heavy fast.

S-Corporation

Not available to NRAs. Only US citizens and resident aliens can be S-Corp shareholders.

Real Estate Holding: Individual vs LLC

Holding property in your personal name is simpler, but an LLC can provide liability protection and flexibility. From a tax perspective, a single-member LLC is “transparent,” so the tax result is essentially the same.

However, there’s a big issue lurking here: estate tax. Foreign non-residents get an exemption of only US$60,000 on US assets at death, and the rate can hit 40%. A $500,000 property in your name could mean an estate tax bill of over $170,000 for your heirs. Structuring ownership through a foreign entity or trust can help, but it needs to be done correctly from the start. We always tell clients to deal with this before it becomes a problem, not after.

11. The 7 Most Common Mistakes Brazilians Make

Assuming a Brazil-US tax treaty exists. It doesn’t. Plan based on reality.
Not reporting US rental income. The IRS exchanges information internationally. It’s not a matter of “if” they find out, it’s “when.”
Ignoring the CBE declaration. The penalties are severe and the Central Bank has access to foreign exchange data.
Not getting an ITIN in time. Without one, you can’t file taxes. That triggers penalties and interest.
Failing to claim a FIRPTA refund. If the 15% withholding exceeded your actual tax, you’re owed money. Don’t leave it behind.
Wrong currency conversion rates. Using the incorrect exchange rate on Brazilian returns is a classic mistake.
Choosing the wrong business structure. Setting up a C-Corp when an LLC would be more efficient (or vice versa) can cost tens of thousands over the years.

12. Frequently Asked Questions

Does a Brazilian with US property need to file taxes in Brazil?

Yes. If you’re a Brazilian tax resident, all foreign assets must be declared in your DIRPF under Assets and Rights. US rental income must also be reported and taxed in Brazil through monthly Carnê-Leão payments.

How much tax do I pay when selling US property as a Brazilian?

At closing, 15% of the sale price is withheld under FIRPTA. Your actual tax is calculated on the capital gain (sale price minus acquisition cost and improvements) at the progressive rates on Form 1040-NR. If the withholding exceeds your actual tax, you can claim a refund.

Do I need an ITIN to buy property in the US?

Not to buy. But you’ll need an ITIN to file taxes on that property’s income (rental or sale). Best to apply early.

What happens if I don’t file my US tax return?

Penalties, interest, and potentially immigration consequences. The IRS can impose failure-to-file penalties of 5% per month on unpaid tax (up to 25%), plus interest. In severe cases, there may be criminal consequences. Tax problems can also come up in future visa applications.

Does a US LLC need to file taxes in Brazil?

The LLC itself doesn’t, but your ownership stake must be declared in your DIRPF as an Asset and Right (foreign equity participation). Income received from the LLC must be taxed in Brazil. Here’s the part that surprises people: under Law 12.973/2014 (articles 76-92), if you control the LLC (which is automatic for a single-member LLC), the entity’s profits are taxable in Brazil annually, even if they’re not distributed. Leaving the money in the US account doesn’t shield it from Brazilian tax.

13. How Celeraxiom Can Help

US taxation for Brazilians is a field where generalists stumble. You’re dealing with two complex tax systems (IRS + Receita Federal), no tax treaty, different rules for residents and non-residents, and forms that change based on your status.

At Celeraxiom, this is what we do every day. We’re a tax and accounting firm based in Florida, specializing in serving Brazilians and other international investors in the US. Our team understands both the IRS and Receita Federal sides, and knows exactly where the two systems interact (and where they collide).

If you need help with:

US tax returns (1040-NR, 1040)
ITIN or EIN applications
Entity structuring (LLC, Corp, holding companies)
FIRPTA consulting and real estate sales
CBE and DIRPF guidance

Get in touch. Our initial consultation is about understanding your situation. No commitment, no jargon.

Disclaimer: This article is for informational purposes only and does not constitute tax, legal, or accounting advice. Each situation is unique and should be reviewed by a qualified professional. Information reflects legislation in effect as of February 2026.