Brazil is South America's largest economy and home to one of the world's most dynamic banking and fintech ecosystems. For a country long associated with bureaucracy and financial complexity, Brazil has in recent years undergone a genuine banking revolution — the Pix instant payment system is genuinely world-leading, and Nubank has become the world's largest independent digital bank. Yet for expats, navigating the initial bureaucratic hurdles of Brazilian banking, understanding the tax implications, and managing cross-border finances remains a specialist undertaking.
This guide is for general information only and does not constitute financial, legal, or tax advice. Brazilian financial and tax regulations are complex and change frequently; always consult a qualified Brazilian contador (accountant) or tax lawyer before making financial decisions.
The CPF: Brazil's Tax Identification Requirement
The CPF (Cadastro de Pessoas Físicas) is Brazil's individual taxpayer identification number — the equivalent of the UK's National Insurance number but also the gateway to virtually every financial activity in Brazil. The CPF is:
- Required to open any Brazilian bank account
- Mandatory for credit card applications, loan applications, and investment accounts
- Needed to purchase or register a vehicle, sign a lease, buy property, and access mobile phone contracts
- Used on receipts at many supermarkets and petrol stations for loyalty and tax compliance purposes
Obtaining a CPF as a foreigner:
- Brazilian consulates abroad process CPF applications for foreign nationals
- In Brazil, CPF can be obtained at Federal Revenue offices (Receita Federal), Banco do Brasil branches, or Caixa Econômica Federal branches
- You need a valid passport and, if in Brazil on a visa, a copy of your visa
- Processing is typically fast (same day or within a few days) compared to equivalent procedures in other countries
- Non-residents can also obtain a CPF — it is not exclusive to tax residents
The CPF is a 11-digit number and appears on all Brazilian tax filings, financial documents, and contracts.
The Brazilian Banking Landscape
Nubank (Nu)
Nubank deserves to be discussed first because it has transformed Brazilian retail banking. Founded in São Paulo in 2013, Nubank is now the world's largest independent digital bank by number of customers (approximately 100 million users across Brazil, Mexico, and Colombia as of 2025). Listed on the New York Stock Exchange, Nubank offers:
- A free digital current account (Conta do Nubank)
- A widely used credit card with no annual fee
- High-yield savings linked to the CDI (Certificado de Depósito Interbancário) rate
- Investment products including funds and direct Treasury (Tesouro Direto) bonds
- Insurance products
For expats with a CPF and a Brazilian address, Nubank account opening is entirely digital. It is an excellent option for day-to-day transactional banking and is accepted everywhere Mastercard is accepted.
Itaú Unibanco
Itaú Unibanco is the largest private bank in Latin America by market capitalisation. It offers a full range of retail, business, and private banking products and has a physical branch network across Brazil and internationally. Itaú's Personnalité brand serves affluent clients, and its investment and wealth management arm covers a comprehensive product range.
Bradesco
Banco Bradesco is one of Brazil's oldest and largest private banks. It has a particularly wide ATM network (including terminals at Bradesco-branded ATMs at Carrefour supermarkets, Pão de Açúcar, and other retail chains) and is one of the more accessible banks for new foreign residents, with staff trained in foreigner documentation at major branches.
Banco do Brasil (BB)
Banco do Brasil is Brazil's largest bank by total assets and is federally owned. It is the primary bank for government salary payments, rural credit, and social programmes. BB has a wide international presence via correspondent banking relationships and is useful for SWIFT transfers. It processes CPF applications alongside Caixa Econômica Federal.
Caixa Econômica Federal (CEF)
Caixa is Brazil's housing bank — the largest provider of housing credit (mortgage finance) in Brazil — and also manages government social benefit payments (Bolsa Família, FGTS). For expats purchasing property in Brazil, Caixa's mortgage products may be relevant, though they are primarily geared towards Brazilian nationals and residents.
Pix: Brazil's Instant Payment Revolution
Pix is Brazil's real-time payment system, launched by the Banco Central do Brasil (BCB) in November 2020. It is operated directly by the central bank and available 24/7, 365 days per year. Pix has been one of the most successful digital payment infrastructure launches in global banking history:
- Approximately 140 million users as of 2025
- Over 4 billion monthly transactions
- Free for individuals; regulated fee caps for businesses
- Transfers complete in under 10 seconds
How Pix works:
- Users register a Pix key linked to their account: this can be a CPF, phone number, email address, or randomly generated key (chave aleatória)
- Payments are made by entering the recipient's Pix key or scanning a QR code
- Any Brazilian bank, digital bank, or licensed payments institution must participate in Pix (it is mandatory for institutions above a certain size)
For expats, Pix replaces the need for cash in the vast majority of daily transactions. Landlords, tradespeople, restaurants, markets, and even street vendors often prefer Pix over cash. Setting up your Pix key through your Brazilian bank account is one of the first things to do after account opening.
IOF: Tax on Foreign Exchange Transactions
The IOF (Imposto sobre Operações Financeiras) is a federal tax levied on various financial transactions in Brazil, including foreign exchange (FX) operations. For expats and international transfers, the relevant IOF rates (which have been adjusted multiple times and are subject to change) are:
- FX transactions for remittances abroad: IOF at varying rates depending on the purpose and destination — typically 0.38% for most international transfers, but check current rates with your bank
- Credit card purchases in foreign currency: historically a higher IOF rate was applied; rates were reduced to encourage card use
- Financial investments: IOF applies on short-term (under 30 days) redemptions from funds on a sliding scale
IOF is withheld by the financial institution at the time of the transaction and does not require separate filing by individuals. However, it is a cost that must be factored into the total cost of cross-border transfers.
IOF rates are set by presidential decree and can change at short notice. Always obtain a current rate from your bank or from the Receita Federal website before making a large transfer.
The 2024 Offshore Income Reform and Its Impact
In late 2023 and 2024, Brazil enacted significant changes to the taxation of offshore income and assets held by Brazilian tax residents — changes with direct relevance to expats and internationally mobile individuals:
The reform in summary:
- Prior to the reform, certain offshore structures (particularly holding companies and investment funds in low-tax jurisdictions) allowed Brazilian residents to defer Brazilian tax on offshore income
- The reforms (Lei 14.754/2023) introduced annual mark-to-market taxation on certain offshore structures at a rate of 15%, with a transitional lower rate in the first year
- Controlled Foreign Corporation (CFC) rules were tightened, reducing the effectiveness of offshore structures previously used to defer Brazilian taxation
- A one-time regularisation window was offered for taxpayers who wished to disclose previously undisclosed offshore assets at a reduced rate
Implications for expats:
- UK nationals and other foreign nationals who become Brazilian tax residents (generally through 183+ days in Brazil in a calendar year, or by obtaining permanent residency status) are subject to Brazilian taxation on worldwide income
- Offshore accounts, UK investments, ISAs, and pension funds may become subject to Brazilian disclosure and taxation obligations upon establishing Brazilian tax residency
- The Receita Federal enforces CRS reporting — overseas accounts of Brazilian tax residents are reported to Brazil automatically
The 2024 reform is complex, and its interaction with double taxation treaties (including the Brazil-UK DTA if in force) requires specialist analysis for individual circumstances.
Declaring and Maintaining Overseas Accounts
Brazilian tax residents must declare all overseas assets on their annual Brazilian income tax return (Declaração de Imposto de Renda Pessoa Física — DIRPF). This includes:
- Bank accounts abroad
- Investment portfolios
- Property
- Holdings in foreign companies
- Pension funds (depending on treatment under the DTA)
The declaration must include the type of asset, its location, and its value as of 31 December of the tax year. Failure to declare can result in fines of 10–150% of the undeclared amount depending on the circumstances.
Practical Tips for Brazilian Banking
- Get your CPF first — without it, nothing else in the financial system is accessible
- Open a Nubank account digitally — it is the fastest and most accessible option for a foreigner with a CPF and Brazilian address; pair it with a traditional bank if needed for salary credits or Caixa mortgage access
- Register your Pix key immediately — essential for daily life
- Convert IOF costs when comparing transfer options — Wise and Revolut can significantly undercut bank FX rates, but verify whether IOF applies to your specific transaction type
- Brazilian banking apps are generally excellent — Itaú, Bradesco, and Nubank all have well-designed apps with comprehensive functionality; prioritise app-based banking
How Global Investments can help
Global Investments supports internationally mobile HNW clients navigating multi-jurisdictional financial structures, including those with interests in Brazil and Latin America. Our advisory network includes specialists familiar with UK-Brazil cross-border financial structuring and the implications of the 2024 offshore income reform for British residents and expats.
If you are managing significant international assets that intersect with Brazilian tax obligations, or considering Brazil as an investment market, contact our team for a confidential discussion.
This guide is for general information only and does not constitute financial advice or a personal recommendation. Banking regulations, tax rules, and product availability change — always verify current rules and seek advice from a qualified independent financial adviser or regulated banking specialist before making any decisions. The value of investments can fall as well as rise and you may get back less than you invest.