Understanding the Definitive Exit Declaration: What Foreigners Leaving Brazil Need to Know

If you're a foreigner living in Brazil and planning to leave the country permanently, it’s crucial to understand the Definitive Exit Declaration (DSDP). This process is vital to officially end your tax residency in Brazil and ensure that you won’t have any tax issues with the Brazilian Federal Revenue Service (Receita Federal).

In this article, we’ll explain why the DSDP is necessary, who is required to submit it, and the deadlines you need to be aware of. We'll also explore the advantages and disadvantages of submitting this declaration.

WHY DO YOU NEED TO FILE THE DEFINITIVE EXIT DECLARATION (DSDP)?

When you leave Brazil, the Definitive Exit Declaration (DSDP) informs the Brazilian tax authorities that you are no longer a tax resident in Brazil. This is an important step because:

• It officially ends your tax residency status in Brazil.

• It allows you to avoid being taxed on your income earned abroad.

• It ensures that you can transfer funds to Brazil without risk of double taxation.

Without this declaration, Brazil will continue to consider you a tax resident, and you could face unnecessary tax obligations on your foreign income.

WHO NEEDS TO FILE THE DEFINITIVE EXIT DECLARATION?

Any foreigner who has been a tax resident in Brazil, even if you don't have any assets or income to declare, must file this declaration.

This includes:

• Foreigners who have lived in Brazil for more than 183 days within a 12-month period (consecutive or not).

• Anyone who received a Brazilian tax ID (CPF) and has been considered a tax resident in Brazil.

Even if you don’t have any income or property in Brazil, if you have been a resident, you must go through this process.

DEADLINES YOU NEED TO KNOW

The process involves two important steps:

1. Communication of Exit: This is a preliminary notification that should be filed by the end of February of the year following your departure. It informs the Receita Federal that you are leaving Brazil.

2. Definitive Exit Declaration (DSDP): This detailed declaration must be filed by the end of May of the year following your exit. It provides a comprehensive overview of your income and assets in Brazil until the date of your departure.

   
   

Important: You must submit both documents. The Communication of Exit is a simple notification, while the Definitive Exit Declaration is a more detailed tax form that officially ends your Brazilian tax residency.

DIFFERENCE BETWEEN COMMUNICATION OF EXIT AND DEFINITIVE EXIT DECLARATION

Many people confuse the Communication of Exit and the Definitive Exit Declaration. Here’s a breakdown of their key differences:

DOCUMENT	DEADLINE	PURPOSE	REQUIRED?
Communication of Exit	By the end of February	Notify the Receita Federal of your exit	✅ Yes
Definitive Exit Declaration (DSDP)	By the end of May	Officially end your tax residency status	✅ Yes

The Communication of Exit is a simple notification, while the Definitive Exit Declaration is a detailed tax filing.

DO YOU HAVE TO FILE THIS DECLARATION EVERY YEAR?

No, the Definitive Exit Declaration is only required once. After submitting it, you won’t need to file an annual tax return for Brazil unless you return to the country and become a tax resident again.

If you come back to Brazil and stay for more than 183 days within a 12-month period, you will be considered a tax resident again and will need to file your annual tax return.

DO YOU HAVE TO PAY BRAZILIAN TAXES AFTER THE DSDP?

• No, once you have filed the DSDP and officially become a non-resident, you will not have to pay taxes in Brazil on your foreign income.

• However, if you still have Brazilian income (for example, rental income or investment income), you will need to report and pay taxes on those sources of income as a non-resident.

  
  

CAN YOU SEND MONEY TO BRAZIL AFTER FILING THE DSDP?

Yes, after filing the Definitive Exit Declaration, you can send money to Brazil, buy assets, or make investments in the country without any risk of double taxation or legal complications.

WHAT HAPPENS IF YOU DON’T FILE THE DSDP?

If you don’t file the Definitive Exit Declaration, the Receita Federal will continue to consider you a tax resident in Brazil. This means:

• You could be taxed on foreign income.

• You might face penalties and fines for not fulfilling your tax obligations.

• You will not be able to transfer funds to Brazil freely without risking issues with the tax authorities.

SUMMARY: WHY FILING THE DSDP IS IMPORTANT

If you’re leaving Brazil for another country, don’t overlook the Definitive Exit Declaration. This declaration is necessary to:

• Officially end your tax residency in Brazil.

• Avoid double taxation on your foreign income.

• Ensure that you can transfer money and make investments in Brazil without complications.

  
  

📞 Need help with your DSDP? Send a mail to our tax lawyer: iurevieira@pontesvieira.com.br