Tax Residence Between Brazil and Portugal

The residence rules for Brazilian income tax are set out in SRF Normative Instruction 208/2002 (Instrução Normativa), which has been amended several times, most recently by IN RFB 2,312/2026.

• Permanent departure: the person becomes a non-resident on the date of departure, provided that they file the Notice of Definitive Departure (Comunicação de Saída Definitiva do País) (Art. 3(II) and Art. 2(V)).
• Departure without notice: anyone who leaves the country, temporarily or permanently, without filing the notice remains a resident during the first 12 consecutive months of absence (Art. 2(V)).
• Extended temporary absence: anyone who leaves temporarily becomes a non-resident as of the day after completing 12 consecutive months of absence (Art. 3(V)).
• Return: a Brazilian who returns to the country with the intention of staying permanently reacquires resident status on the date of arrival (Art. 2(IV)).

Once resident or non-resident status has been acquired, a person reverts to the previous status only when one of the situations provided for in the normative instruction itself occurs (Art. 4).

The move requires two separate acts before the Receita Federal. One does not replace the other (Art. 11-A, § 1, of IN SRF 208/2002).

1. Notice of Definitive Departure (CSDP)

• It is filed online, starting from the date of departure (permanent departure) or the date on which the person became a non-resident (temporary departure), and by the last day of February of the following year (Art. 11-A).
• Dependents registered in the CPF who leave on the same date must be included in the notice (Art. 11-A, § 2).
• According to the official service page, anyone who became a non-resident more than 6 years ago and did not file the notice must send the documents to the email address indicated by the Receita Federal.

2. Definitive Departure Tax Return (DSDP)

• It covers the part of the year during which the person was still a resident and is filed in the year following the departure, using the same program as the annual return (Receita Federal).
• The IN provides for filing by the last business day of April, but the deadline has been extended every year. In 2026, the DSDP for departures in 2025 could be filed until May 29, 2026 (Art. 9, § 17, added by IN RFB 2,312/2026).
• The tax assessed and any other unpaid debts must be paid in a single installment by the filing date (Art. 9(II)).
• The tax is calculated using the monthly progressive table multiplied by the number of months in which the person was a resident in the year of departure (Art. 9, § 3).

Effects

From departure onward, Brazilian-source income becomes subject to exclusive withholding at source or final taxation, and the taxpayer must inform paying sources, such as banks, tenants and the INSS, of the departure date (Art. 10, main section and § 1). A non-resident who keeps real estate, vehicles, equity interests, accounts or investments in Brazil remains required to hold a CPF registration (Art. 5).

Under Art. 16 of the IRS Code (Código do IRS), a person is resident in Portugal if, in the year to which the income relates, they:

• stayed in the country for more than 183 days, consecutive or not, in any 12-month period beginning or ending in that year; or
• having stayed for a shorter period, had at their disposal, on any day of that period, a home in conditions suggesting a current intention to keep and occupy it as their habitual residence.

Any day, whole or partial, that includes an overnight stay in Portugal counts as a day of presence (para. 2). Residence is determined for each member of the household (para. 5).

Part-year residence

As a rule, a person becomes resident from the first day of their stay in Portugal (para. 3) and ceases to be resident from the last day of their stay (para. 4). In the year of the move, there is therefore one period as a non-resident and another as a resident. As a resident, the person is taxed on their worldwide income, including income obtained in Brazil; as a non-resident, only on income obtained in Portugal (Art. 15 of the CIRS, including para. 3). Paragraphs 3, 14 and 16 of Art. 16 set out exceptions to this split, for example for those who were already resident in the previous year.

Notifying the Tax Authority of your address

Notifying the tax administration of one's domicile is mandatory, and a change of domicile has no effect until it is notified. Anyone whose residence status changes must notify it within 60 days (Art. 19(3) to (5) of the General Tax Law (Lei Geral Tributária)). Those who do not yet have a NIF must apply for one first; see our page on the NIF.

Holding a visa or a residence permit does not, by itself, make anyone a tax resident: what counts are the criteria of Art. 16. This point is relevant for those who hold a Golden Visa and spend little time in Portugal.

Because each country applies its own law, a person may be considered resident in both at the same time, for example during the 12 months in which they remain resident in Brazil for not having filed the notice of departure. In these cases, the Convention between Brazil and Portugal for the Avoidance of Double Taxation applies; it was promulgated by Decree 4,012/2001 (Decreto) and has been in force since October 5, 2001.

Tie-breaker criteria (Art. 4(2))

1. Permanent home: the person is resident only in the State in which they have a permanent home available to them.
2. Center of vital interests: if they have a permanent home in both, they are resident in the State with which their personal and economic relations are closer.
3. Habitual abode: if that center cannot be determined, or if they have no permanent home in either State, they are resident in the State in which they have a habitual abode.
4. Nationality: if they have a habitual abode in both States, or in neither, they are resident in the State of which they are a national.
5. Agreement between the authorities: if they hold both nationalities, or neither, the competent authorities settle the case by mutual agreement.

How double taxation is avoided

When income may be taxed in both countries, the State of residence deducts from its own tax the tax paid in the other State, up to the amount of tax that would correspond to that income (Art. 23(1)). If the taxpayer considers that the taxation is not in accordance with the Convention, they may resort to the mutual agreement procedure provided for in Art. 25.

Definitive departure does not end Brazilian taxation of Brazilian-source income. For a non-resident, the tax is withheld at source or paid on a final basis, without an annual adjustment return (Receita Federal).

• Rent from real estate in Brazil: tax withheld at source at a rate of 15% (Art. 763 of the Income Tax Regulations, Decree 9,580/2018). The Convention allows Brazil to tax this income (Art. 6). Portugal also taxes it, because a resident is taxed on worldwide income, and deducts the tax paid in Brazil (Art. 23).
• Sale of assets in Brazil: a non-resident's capital gain is calculated under the rules applicable to residents, but without the exemptions and reductions provided for them (Arts. 26 and 27 of IN SRF 208/2002). The progressive rates of Art. 153 of the RIR apply, by cross-reference from Art. 745. Under the Convention, the gain on the sale of real estate located in Brazil may be taxed in Brazil (Art. 13(1)), and the gain on the sale of other assets may be taxed in both countries (Art. 13(4)).
• Profits and dividends: since January 1, 2026, profits and dividends remitted abroad have been subject to a 10% withholding tax, with a transition rule for results determined up to 2025 (Art. 10, §§ 4 and 5, of Law 9,249/1995, as amended by Law 15,270/2025).
• Retirement benefits and pensions: these have their own rule, which changed after the STF ruled on Topic 1,174. See the page on INSS retirees in Portugal.
• Employment and services: income paid to non-residents remains subject, as a rule, to 25% withholding (Art. 36 of IN SRF 208/2002).

For those who keep real estate, companies or investments in Brazil, see also the page on assets in Brazil for those living in Portugal.

Non-Habitual Resident regime (NHR)

Law 82/2023 (Lei), the 2024 State Budget Law, revoked paragraphs 8 to 12 of Art. 16 of the CIRS, which governed the NHR. Art. 236 of that law kept the regime, until the end of the 10-year period, only for those already registered, for those who were resident on December 31, 2023, and for those who became resident by December 31, 2024 with one of the earlier ties provided for in the law, such as an employment contract, a lease or a visa (note to Art. 16 of the CIRS on the Portal das Finanças). Those moving now no longer have access to the NHR.

Tax incentive for scientific research and innovation (IFICI)

• Who is eligible: anyone who becomes a tax resident under Art. 16(1) and (2) of the CIRS, was not resident in Portugal in any of the previous five years and carries out one of the listed activities, such as higher education teaching and research, highly qualified professions in certain companies, positions in certified startups and others (Art. 58-A(1) of the Tax Benefits Statute (Estatuto dos Benefícios Fiscais)).
• The benefit: a special 20% rate on net income in Categories A (employment) and B (self-employment) earned in those activities, for 10 consecutive years (para. 2).
• Who is not eligible: anyone who benefits or has benefited from the NHR, or has opted for the regime under Art. 12-A of the CIRS (para. 10). The regime may be used only once (para. 12).
• Registration deadline: by January 15 of the year following the year in which the person became resident, with the entity responsible for each activity (Art. 2 of Ministerial Order 352/2024/1 (Portaria)). After that deadline, the regime takes effect only from the year of registration, for the remaining period (Art. 58-A(7)).

Since IFICI covers only Category A and B income, it does not apply to pensions, which are Category H income.

• Remaining resident in Brazil for 12 months: without the notice, Brazilian-source income continues to be taxed as that of any resident, and foreign-source income, including income earned in Portugal, is subject to Brazilian taxation during that period (Arts. 2(V), 10, § 2, and 11, § 1, of IN SRF 208/2002).
• Dual residence: if, during that same period, the person is already resident in Portugal under Art. 16 of the CIRS, both countries may consider them resident. The Convention's tie-breaker resolves the matter, but it usually requires proof of the home, the center of interests and the length of stay.
• Incorrect withholding: if paying sources are not informed of the departure, they may continue to withhold tax as if the recipient were a resident (Art. 10, § 1).
• Penalties: failure to file, or late filing of, the DSDP results in a penalty of 1% per month on the tax due, with a minimum of R$165.74 and a maximum of 20%, or a penalty of R$165.74 if no tax is due (Art. 13).
• In Portugal: a change of domicile not notified to the Tax Authority has no effect vis-à-vis the tax administration (Art. 19(4) of the LGT).

Where the departure was not notified on time, regularization depends on the actual date of the move and the evidence available. It is advisable to review the case before submitting any document.

Sene & Araújo has lawyers in São Paulo and Albufeira and assists with the legal side of a change of tax residence in both countries.

1. Review of the situation: date of the move, days of presence, home, family, income and assets in each country.
2. Legal analysis: determination of residence under each law, application of the Convention and verification of access to IFICI.
3. Dealings with the tax administrations: guidance on the notice of departure, requests and applications to the Receita Federal and to the Tax Authority, and notices to paying sources.
4. Litigation: challenges, complaints, administrative appeals, lawsuits and requests for a mutual agreement procedure where taxation is not in accordance with the law or with the Convention.

Tax returns (DSDP, IRPF and IRS) are filed by the client's accountant, with whom we coordinate on the legal issues. For those retiring in Portugal, see also the page on INSS retirees.