🌍 Global Income and Tax Responsibilities: What Brazilian Green Card Holders in the U.S. Need to Know

If you are a Brazilian citizen living in the United States as a green card holder, it's important to understand that your tax obligations have changed. Many new U.S. residents are unaware that they must report their global income to the IRS — and failing to do so can lead to costly penalties or even legal issues.

🧾 U.S. Tax Law: Reporting Worldwide Income

As a green card holder (lawful permanent resident), you are considered a U.S. tax resident. This means you're required to report and potentially pay taxes on all income, no matter where it's earned — even if it’s from Brazil.

This includes:

• Salary or self-employment income earned in Brazil

• Rental income from Brazilian properties

• Dividends and investment income

• Profit distributions from Brazilian companies

  
  

Profit Distributions in Brazil vs. the U.S.

In Brazil, profit distributions (lucros distribuídos) from a Brazilian company to its shareholders are generally tax-exempt for the individual receiving them. This is a common strategy for business owners in Brazil to reduce tax burdens.

However, from the IRS's point of view, these profit distributions are not tax-exempt. As a U.S. green card holder, you are required to report these distributions as taxable income.

✅ Example: João, a green card holder living in Florida, receives R$100,000 in profit distributions from his Brazilian business. Even though this income is tax-free in Brazil, João must still report it on his U.S. tax return — and may owe U.S. taxes on it.

⚠️ Common Mistake: Thinking Brazilian Rules Apply

Many Brazilian expatriates assume that if income is non-taxable in Brazil, it’s automatically non-taxable in the U.S. This misunderstanding can trigger IRS audits, penalties, and interest charges for underreporting income.

To stay compliant and protect your residency status, it's critical to:

• File FBARs (Foreign Bank Account Reports)

• Consider Foreign Tax Credits or Treaty Benefits (where applicable)

• Maintain proper documentation of all foreign income

  
  

👨‍💼 Need Help? Talk to a Bilingual Accounting Expert

Navigating international tax law can be overwhelming — especially when dealing with the complexities of Brazilian profit distributions, foreign assets, and U.S. tax law.

At [Your Firm Name], we specialize in assisting Brazilian green card holders with global tax compliance. Our bilingual team understands the nuances of both Brazilian and American tax systems — and we’re here to help you file accurately and confidently.

👉 Book your FREE consultation today and avoid expensive mistakes.📅 Let’s make your international finances simple and stress-free.