Brazil
Top Income Tax
27.5%
Marginal rate
Corporate Tax
34%
Standard rate
VAT / Sales Tax
17%
Standard rate
Capital Gains
15%
Standard rate
Overview
Brazil has Latin America's largest economy with a complex but reforming tax system. The Simples Nacional regime simplifies compliance for small businesses. Sao Paulo is a major business hub, while Florianopolis and remote beach towns attract digital nomads.
Income Tax Brackets
| Income Range (BRL) | Tax Rate |
|---|---|
| 0 - 24,511 | 0% |
| 24,511 - 33,919 | 7.5% |
| 33,919 - 45,012 | 15% |
| 45,012 - 55,976 | 22.5% |
| 55,976+ | 27.5% |
BRL annual amounts. Relatively low top rate by global standards.
Corporate Tax
Standard Rate
34%
15% IRPJ + 10% surcharge on profit over 240k BRL/year + 9% CSLL = ~34% effective.
VAT / Sales Tax
Standard Rate
17%
Reduced Rates
7%, 12%
ICMS (state VAT) 7-25%. IPI (federal). PIS/COFINS. Being reformed into dual VAT.
Capital Gains Tax
Standard Rate
15%
15% up to 5M BRL, 17.5% 5-10M, 20% 10-30M, 22.5% above 30M. Monthly threshold of 20k BRL exempt for stock sales.
Social Security Contributions
Employee
14%
Employer
28.8%
Self-Employed
20%
INSS contributions. 7.5-14% progressive for employees. Employer: ~28.8% total.
Special Tax Regimes
Simples Nacional
Simplified tax regime for micro and small enterprises. Single payment covering multiple taxes at 4-33% depending on revenue bracket.
Eligibility: Annual revenue up to BRL 4.8M.
Digital Nomad Visa
Digital Nomad Visa available. Must earn at least USD 1,500/month from foreign sources. Valid 1 year, renewable.
Pros & Cons
Pros
- Low income tax top rate (27.5%)
- Simples Nacional for small businesses
- Digital nomad visa
- Large consumer market
- Low entry income requirement
Cons
- Very complex tax system
- 34% effective corporate tax
- High employer contributions
- Bureaucratic challenges
- Currency volatility
Living Indicators
Cost of Living Index
Very affordable
Quality of Life Index
Average
Best For
Data Sources
Tax rate data for Brazil is compiled from the following authoritative sources:
- OECD Tax Database
- Tax Foundation International Tax Competitiveness Index
- World Bank Business Enabling Environment
- Brazil government tax authority publications
- PwC Worldwide Tax Summaries
Last verified: 2024-01
Disclaimer: This content is for informational purposes only and does not constitute tax advice. Tax laws change frequently. Always consult a qualified tax professional before making decisions about your tax residency or obligations.