Don’t leave bank accounts behind in Brazil, unless you set them straight
I have been noticing a surge of tax audits regarding clients who lived in Brazil for a while and then went back home but kept financial investments in Brazil.
This is how it happens: let’s say and American executive, or an Italian entrepreneur, works in Brazil for 03 years. During this time, he will notice that Brazilian banks pay very attractive interests for even the most basic investment.
Naturally, he will get a taste for it. Everybody loves developing countries’ interest rates.
After leaving Brazil, the ideal procedure would be to
- file a tax statement declaring definitive tax leave;
- liquidate all investments;
- open a non-resident bank account;
- invest again, now through the non-resident bank account.
Most people will file the tax statement declaring leave and will do none of the rest.
It works for a while. The banks will turn a blind eye and maintain the accounts and investments.
However, this is technically wrong, because Central Bank regulations demand that non-resident invest only through especial non-resident accounts.
The Federal Revenue Service is getting wind of it and trying to force the expatriates to file tax statements in Brazil, due to the investments.
This tax audit is not unsolvable. Still, it will demand time and attention.
I suggest that everyone who is planning to leave Brazil makes an effort to create a non-resident bank account.
