BRAZIL Law and Practice Contributed by: Daniel Zugman and Frederico Bastos, BVZ Advogados | Bastos, Bari, Vilela e Zugman
Brazilian tax residents are subject to income tax on a worldwide basis, whereas non-residents are gener - ally taxed only on Brazilian-source income, subject to applicable domestic law and any relevant tax treaties. Tax domicile generally refers to the place where the taxpayer is registered for the purposes of complying with Brazilian tax obligations. In practice, the Brazil - ian tax authorities have increasingly adopted a sub - stance-over-form approach when assessing whether an individual qualifies as a Brazilian tax resident or non-resident. Beyond the formal statutory criteria, the tax authorities may examine the individual’s factual circumstances, including personal, economic and professional ties with Brazil, particularly in situations involving cross-border mobility or the formal termina - tion of Brazilian tax residency. Brazilian citizenship is determined by the constitu - tional rules on nationality, whether acquired by birth (jus soli or, in certain circumstances, jus sanguinis) or through naturalisation. Citizenship, in itself, is not a connecting factor for Brazilian income tax purposes. 7.2 Expeditious Citizenship Brazil does not offer citizenship by investment. Bra - zilian citizenship may be acquired by birth or through naturalisation under the Federal Constitution and immigration legislation. Brazilian citizens by birth generally include individuals born in Brazil (jus soli) and, in certain circumstanc - es, individuals born abroad to a Brazilian parent (jus sanguinis). Ordinary naturalisation generally requires permanent residence in Brazil for at least four years, Portuguese-language proficiency, the absence of a criminal conviction and integration into Brazilian soci - ety. The residence requirement is reduced to one year for nationals of Portuguese-speaking countries, indi - viduals married to or in a stable union with a Brazil - ian citizen, and parents of a Brazilian child. It may be reduced to two years for individuals who have ren - dered, or are capable of rendering, relevant services to Brazil or who possess distinguished professional, scientific or artistic qualifications. Brazilian law also provides for extraordinary naturalisation for foreign nationals who have resided continuously in Brazil for more than fifteen years without a criminal conviction.
Although qualifying investments may provide a basis for obtaining residence, they do not confer citizen - ship or shorten the statutory naturalisation period. Foreign nationals may obtain residence by investing in a Brazilian company or acquiring urban real estate, provided the applicable investment thresholds and immigration requirements are met. 8. Planning for Minors, Adults with Disabilities and Elders 8.1 Special Planning Mechanisms Brazilian law does not provide bespoke estate-plan - ning vehicles designed exclusively for the financial protection of minors or persons with disabilities, such as special-needs trusts. Instead, their protection is achieved through the combined application of fam - ily, succession and legal-capacity rules, together with traditional estate-planning structures. For minors, parental authority is generally exercised by the parents, who represent or assist the child and administer the child’s assets in the child’s best interests. If parental authority cannot be exercised, a guardianship ( tutela ) may be established, under which a court-appointed guardian manages the minor’s affairs and property under judicial supervision. With respect to persons with disabilities, the Brazilian Stat - ute of Persons with Disabilities provides that disability alone does not affect legal capacity. Only in excep - tional circumstances, where an individual is unable to validly express his or her will in relation to financial or business matters, may a court impose a curatorship ( curatela ). Curatorship must be proportionate to the individual’s needs and is generally limited to patrimo - nial and business matters, while preserving personal rights such as marriage, family life, voting and other fundamental civil rights. In both situations, Brazilian law imposes significant restrictions on the management and disposal of assets. As a general rule, the disposal, encumbrance or transfer of certain assets – particularly real estate – and other transactions exceeding ordinary admin - istration require prior judicial authorisation. Likewise, acts performed by a court-appointed curator beyond
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