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Labor Laws in Brazil

  • Annual Leave: 30 days
  • Maternity Leave: 120 days
  • Public Holidays: 10
  • Workweek:44 hours per week.
  • Overtime: Maximum 2 hours per day.

Income Tax in Brazil

Under Brazilian law, the source is defined according to the place where the payer is located, regardless of where the services are provided.

Therefore, income paid by a Brazilian entity is considered the local source, while income paid abroad is considered the foreign source.

The income tax rates for individuals in Brazil in 2024 are as follows:

  • Up to BRL 22,848: 0%
  • BRL 22,849 - BRL 33,920: 7.5%
  • BRL 33,921 - BRL 45,012: 15%
  • BRL 45,013 - BRL 55,976: 22.5%
  • Over BRL 55,976: 27.5%

Value Added Tax (VAT) in Brazil

The VAT rate in Brazil is estimated to be around 27.5% on the value of products and services, aiming to maintain the country's current high tax burden.

This rate is part of a dual VAT system that will replace the five main existing consumption taxes, including PIS, Cofins, IPI, ICMS, and ISS, with CBS and IBS, administered by the federal government and shared between states and municipalities, respectively.

The transition period for the new tax system is set between 2026 and 2032, with the gradual extinction of the main existing taxes.

Social Security in Brazil

All employees, self-employed individuals, and employers in Brazil are required to make contributions to the social security system. There is no cap on the employer's contribution.

Social security payable by self-employed individuals may be 5%, 11%, or 20% of the ceiling contribution salary, depending on specific conditions of the individual and the services rendered.

  • For income up to 1,412 Brazilian reals (US$284), the contribution rate is 7.5%.
  • For income between 1,412 reals and 2,667 reals (US$536), the rate is 9%.
  • For income between 2,667 reals and 4,000 reals (US$804), the rate is 12%.
  • For income between 4,000 reals and 7,786 reals (US$1,566), the rate is 14%.

Work Visas Brazil

Here is work visa information for Brazil, download our guide for an extensive breakdown.

VITEM V Visa

This is the most common work visa in Brazil, suitable for employees with a job offer in the country. Applicants typically need two years of relevant professional experience and a minimum of nine years of education, a university degree with one year of professional experience, or a postgraduate degree in a relevant field. It allows temporary residency and can be converted to a permanent visa after four years of continuous stay.

VITEM II Visa

This visa is designed for business trips and is valid for up to 10 years. It permits stays of up to 90 days per year but does not allow the holder to receive payment from Brazilian sources.

Permanent Work Visa

This visa grants permanent working rights and is generally more challenging and costly to obtain. It is often issued to high-level executives, researchers, and investors who meet specific criteria. Workers can upgrade from a temporary to a permanent visa after meeting certain conditions and durations.

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