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Dual citizenship (Belgium + Brazil) How about taxes?

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Wout

Hi everyone,


I work in Belgium as a doctor of osteopathic medicine. This year I am going to get married to my fiancé, who is Brazilian. She has a job in Belgium as well. We both pay taxes here.


After our marriage here, I assume I can apply for Brazilian citizenship. In the longer term, it is our plan to buy real estate in Brazil so eventually money will have to move here. One of my future goals is to help gifted Brazilian students with student housing.


I assume I can open a bank account in Brazil. I don't know if this requires me to be a citizen. And if so, how long that will take.


Aside from my job, I am also an investor in crypto currencies. This is a relatively young investment asset, and tax laws are currently being developed worldwide. My country Belgium has the highest taxes on earth, and withdrawing crypto profit here comes down to a 65% tax. (50% income tax + 15% social taxes). Obviously this is a strategy of our banks to destroy their competitors in finance. Nobody can manage such taxes and this makes investment impossible.


In Brazil however, I read a recent article that says that Lula approved a 15% tax on crypto.

This seems more reasonable. But profits will move back and forth regularly, and I hope this will not be a 15% tax on every withdrawal. Because the same money will move in between the crypto exchange and the bank, as the crypto market is volatile. I wonder what is considered "profit" as all profit is to be reinvested when there is a new investment opportunity.


https://br.cointelegraph.com/news/feder … -will-work


The article says that these tax laws apply to Brazilians.

I can apply for Brazilian citizenship, for tax purposes I am currently a resident in Belgium.


If I withdraw crypto profits to my Brazilian account, will I be exposed to Brazilian taxation or not?

I can't imagine I would have to pay income tax for sending my Belgian savings (which have been taxed for 65% already) either.


Thanks

Canforbra

@Wout hi, I am just about to relocate to Brazil where my wife is located. To get citizenship in brazil if you move there on a family reunification visa you will have to spend one solid year in the country and take a difficult Portuguese exam.


I wish Brazil just gave citizenship after marriage but it is more difficult.


To open a bank account you need residency status in brazil. CRNM card.


Does Belgium have a tax treaty with Brazil?


Brazil seems, seems from the news to be having a lot of new initiatives taking place. I am not sure about the tax issue with them. However, others are more experienced then I, in that regard here.

abthree


01/23/24  After our marriage here, I assume I can apply for Brazilian citizenship. In the longer term, it is our plan to buy real estate in Brazil so eventually money will have to move here. One of my future goals is to help gifted Brazilian students with student housing.

I assume I can open a bank account in Brazil. I don't know if this requires me to be a citizen. And if so, how long that will take.

The article says that these tax laws apply to Brazilians.
I can apply for Brazilian citizenship, for tax purposes I am currently a resident in Belgium.

I can't imagine I would have to pay income tax for sending my Belgian savings (which have been taxed for 65% already) either.

-@Wout


Welcome, Wout!  Some of your questions I can respond to, others I can't.  Others who know more about those areas can fill in the answers that I can't.


You can only apply for Brazilian citizenship after living in Brazil for one continuous year as a legal resident (because you will be married to a Brazilian; the normal requirement is four years).  So until you're ready to live in Brazil, that's off the table.  Brazil permits dual citizenship; you'll probably want to confirm that Belgium does, as well before making your decision.


Your fiancée  should register your marriage at the Brazilian Embassy as soon as practical after the wedding.  You can go with her, but she must perform the registration herself as the Brazilian citizen.  The certification that the Embassy will issue to her in return will greatly facilitate registering your marriage in Brazil, and your eventual move here.


You do not become a tax resident of Brazil simply by marrying a Brazilian, so you're safe there.  If your fiancée has registered with the Receita Federal as a non-resident for tax purposes, her status should not change either based on your marriage.  If you stay in Brazil for 183 or more days in any year you may become subject to income tax.  If your visits to Brazil are on a visitor visa/visa waiver and you keep to the terms of your visa that won't happen, because you're only allowed 180 days in every 365.  If at some point you opt for a different visa that permits longer stays prior to moving here, you should discuss it with a Brazilian accountant before crossing that 183 day limit.


As a Brazilian citizen, your fiancée can open a Brazilian bank account anytime that she's here.  You cannot open a regular current account until you become at least a legal resident, however, although you may be able to open a savings account.


If Brazil and Belgium have a tax treaty, that will determine your income tax liability.  Even if they don't Brazil has a policy against double taxation, so if you have paid taxes on your Belgian savings that you're sending to Brazil to buy real estate and can demonstrate that, you should not have to worry about income tax.  There is a low tax on financial transactions, and of course, taxes on the real estate transactions themselves.


Congratulations, and all the best.

Wout


    @Wout hi, I am just about to relocate to Brazil where my wife is located. To get citizenship in brazil if you move there on a family reunification visa you will have to spend one solid year in the country and take a difficult Portuguese exam.I wish Brazil just gave citizenship after marriage but it is more difficult. To open a bank account you need residency status in brazil. CRNM card.Does Belgium have a tax treaty with Brazil?Brazil seems, seems from the news to be having a lot of new initiatives taking place. I am not sure about the tax issue with them. However, others are more experienced then I, in that regard here.        -@Canforbra


Thanks for replying. No problem for the language. I already speak fluent Portuguese as I have lived there for 2 years and my mother in law has interrogated me with "What are your intentions with my daughter?"


I'm looking forward to spend another year there. We can move in with my mother in law. And as she is already approaching the age of 80, we have to care for her. For now she is coming to my country, but she is only allowed to be here 6 months per year as a tourist. Which in my opinion is a violation of basic human rights. Children should be allowed to care for their parents. But that's off topic.


I'm not sure about the tax treaty but I hope to find out

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