2026 Income Tax Return: Foreign bank account balances must be reported

Taxpayers must pay close attention when reporting funds in accounts outside Brazil

Having an account outside Brazil requires careful attention, especially during income tax filing season. It is essential to remember that the Internal Revenue Service has access to citizens’ financial information, including the amounts taxpayers hold in foreign currencies. That is why it is important to file your tax return in accordance with the tax authorities’ requirements.

Here are the key points:

Who needs to file a return

Any Brazilian citizen or foreigner who is a tax resident in Brazil and has a checking account outside the country, whether it earns interest or not, must report it to the Federal Revenue Service. Below are some of the most common situations in which reporting foreign accounts is required:

Therefore, if you find yourself in any of these situations, it is important to declare your foreign bank account so you don’t run the risk of being audited by the Revenue Service.

Changes to income tax rules for foreign accounts

In 2025 (base year 2024), pursuant to Law No. 14,754/2023, changes were made to the taxation of income earned abroad. Starting that year, income from financial investments outside the country became subject to taxation on the Annual Adjustment Return. Profits and dividends from foreign companies also began to be taxed in the Annual Adjustment Return, even if they were not distributed to their shareholders. It is worth noting that exchange rate fluctuations on interest-bearing accounts abroad became subject to taxation, in accordance with Law No. 14,754/2023.

• A 15% tax rate applies to income from financial investments held abroad.
• This tax must be paid directly on the income tax return, and the amount will be reflected in the final amount due or to be refunded.

What happens if you miss the deadline or fail to file

The Federal Revenue Service imposes fines and interest on taxpayers who fail to file or submit their annual tax return by the deadline. If this happens, it is recommended that you file an amended return as soon as possible.

Read more: Imposto de Renda 2026: pontos de atenção sobre bens e investimentos no exterior

Specialists in Income Tax

When declaring assets held abroad, taxpayers can count on the support of DPC Private, a team dedicated to ensuring that individuals comply with Brazil’s tax requirements.

This support is essential to ensure that regulations are followed correctly and to avoid paying undue taxes or being subject to double taxation.

Get assistance with preparing and filing your income tax return and other tax obligations: dpc@dpc.com.br.