Brazil: Regulation of the temporary visa for “digital nomads”

published on 7 April 2022 | Reading time approx. 2 minutes

The COVID 19 pandemic has changed the way many people work. In particular, remote working, also referred to as “anywhere office”, has become a common pattern in most companies and consequently offers greater flexibility and facilitation for workers who, for example, choose to work in other cities or, in especially, other countries than the place of their employment, without this decision affecting their position or job.

In this context, the National Immigration Council of the Ministry of Justice and Public Security (MJSP) published Resolution No. 45 on 24 January 2022 to promote the activities of the so-called “digital nomads” in Brazil and, consequently, to allow the stay of foreigners employed in companies outside the national territory who wish to live in Brazil through a temporary visa.

For the purposes of this regulation, a “digital nomad” is considered an immigrant who is able to carry out his or her work activity in Brazil for a foreign employer remotely and with the use of information and communication technologies.

Not covered by this regulation is the immigrant who performs work activities for an employer in Brazil or whose residence permit to perform work activities in Brazil is regulated by another regulation.

The temporary visa for the digital nomad provides for an initial period of stay of one year, with the possibility of extension for the same period. The applicant must prove that they have an employment relationship with a company outside the Brazilian territory, have a minimum monthly income of US$1,500 or have a bank balance of at least US$18,000.

Please note that the above-mentioned activities may also be carried out by the immigrant as a tourist, subject to the regulations applicable for the duration of the stay and the requirement of a tourist visa, depending on the nationality.

It is important to note in this context that that the foreigner with residence or habitual abode in Brazil of more than 183 days, must also subject his global income to Brazilian taxation, as the global income principle prevails in Brazil.

If you are interested in a temporary visa as a digital nomad in Brazil, it is essential to verify whether you can make use of a bilateral agreement with your country of origin to avoid double taxation or whether other regulations apply. For instance, there is no double taxation treaty between Brazil and Germany in place and Tax consultation in advance is highly recommended to reduce the risk of double taxation. Furthermore, appropriate agreements/contractual adjustments should be made with the employer in the country of origin, which enable the work activity from Brazil.

Our international and interdisciplinary experts at Rödl & Partner will be pleased to assist you with this endeavor, in particular with the application for the temporary visa as well as with the optimization of the undertaking from a German and Brazilian perspective in terms of Tax and Labor Law.