Our topic today is comparing taxation, retirement, and social rights for long-term immigrants in Brazil and Portugal. For long-term immigrants, navigating taxes in a new country can be challenging. Let's start with Brazil.
Brazil's tax system for residents is based on worldwide income. If you earn money from any source, whether in Brazil or internationally, Brazil wants a share.
Worldwide income? So even if my income is from a business based outside of Brazil, I still need to declare it to Brazilian tax authorities?
Yes, once you're a tax resident in Brazil—generally after 183 days in a year—you're subject to their tax laws. Income tax rates are progressive; the more you earn, the higher the tax rate.
What about retirement? If I'm retired and receiving a pension from abroad, will that be taxed in Brazil?
Possibly, depending on tax treaties. Brazil also has its own social security system, INSS. Contributing while working in Brazil builds up retirement rights.
And what about social rights? Does Brazil have a good healthcare system?
Brazil has a public healthcare system, SUS, but the quality and wait times can vary. Many expats opt for private health insurance.
Okay, let's move on to Portugal. Hopefully, the tax system there is simpler.
Portugal, like many European countries, also taxes residents on worldwide income. The income tax, IRS, is progressive.
Does Portugal offer any tax advantages for retirees?
Yes, the Non-Habitual Resident (NHR) regime can offer significant tax benefits for the first ten years of residency, particularly on foreign pensions.
That sounds beneficial. What about healthcare in Portugal?
Portugal has a national health service, SNS. Like Brazil, it can have wait times, and many expats also use private health insurance.
So, to summarize: both countries tax worldwide income, but Portugal's NHR regime is attractive for retirees. Both have public healthcare systems, but private insurance is often preferred for faster access.
Exactly. The best tax system depends on individual circumstances and preferences.
Thank you, Leo. This was very helpful.