2026 Income Tax: Key Considerations Regarding Overseas Assets and Investments

Every income tax season, the reporting of foreign assets and investments requires the attention of taxpayers who fall into this category.

A key starting point is that receiving income such as dividends, interest, or gains from foreign financial investments is already a mandatory requirement for filing a tax return this year. Assets and rights held outside Brazil must be reported, such as real estate, account balances, or equity interests.

Another important aspect is that the Federal Revenue Service continues to improve its enforcement mechanisms, and those required to file must exercise extra caution to avoid omissions and inconsistencies.

Since last year, data from foreign bank accounts can be automatically imported into the pre-filled tax return, demonstrating that the tax authorities have established partnerships with international institutions to cross-check information. In other words, omitting financial data on assets outside the country is not a good idea.

Offshore Law Impacts

With regard to foreign investments, the statement must comply with the requirements of Law No. 14,754/2023, which established the taxation of offshore accounts and income from financial investments abroad.

Among other cases where filing is mandatory, an individual resident in Brazil must file an income tax return if:

• they have chosen to report the assets, rights, and obligations held by a directly or indirectly controlled entity abroad as if they were held directly by the individual;
• were holders, as of December 31, of trusts and other contracts governed by foreign law with similar characteristics;
• received income from capital invested abroad in the form of financial investments and profits and dividends from controlled entities.

Anyone who received income from financial investments or profits and dividends from abroad during the 2025 calendar year, regardless of the amount invested, must file their 2026 income tax return by May 29.

Also see: Offshore companies: balance sheets, individual income tax returns, and choice of tax regime require attention

Taxation of income from foreign investments

Also as a result of Law No. 14,754/2023, income from foreign investments is now definitively taxed in the annual adjustment return at a rate of 15%.

This recent change eliminated the use of the Carnê-Leão (Monthly income tax payments) or GCAP throughout the previous calendar year for such income, concentrating the tax obligation in the annual tax return.

This measure, however, requires individuals to maintain a certain level of organization to correctly record income earned abroad, as well as any losses and taxes already paid overseas. Therefore, good record-keeping or specialized support in this area is recommended.

In the tax return, assets representing foreign investments must include information on the income and taxes paid, whether in Brazil or abroad.

Important information when filing

To report investments outside Brazil, taxpayers must use the “Bens e direitos (Assets and Rights)” form. On this form, they must indicate the type of asset and specify the country where the investment is based. Each investment must be entered individually, including details on the amount invested, the financial institution, and any income received.

Regarding financial investments, income must be reported on the form for the corresponding asset.

Taxpayers must also specify how much tax they paid abroad, in cases where there is an international treaty to avoid double taxation or reciprocal treatment; the system will automatically calculate the additional amount they must pay in Brazil, if applicable.

For example, if 10% has already been paid abroad, the taxpayer will pay an additional 5% in Brazil (reaching the determined rate of 15%). If tax was paid at a rate equal to or greater than 15% abroad, the balance will appear as zero here. There will be no charge in Brazil, but there will also be no refund due to any rates higher than 15% paid abroad.

Income Tax Specialists

When reporting foreign assets, taxpayers can count on the support of the DPC Private team, comprised of specialists in ensuring tax compliance for individuals in Brazil.

This assistance is essential to ensure compliance with Federal Revenue Service regulations and avoid undue tax payments or double taxation.

Count on this support for preparing and filing your income tax return:  dpc@dpc.com.br.