Foreign capital owned by Brazilian residents must be registered with the Central Bank of Brazil – Banco Central do Brasil – in a form known as the Declaração de Capitais Brasileiros no Exterior (DCBE).
Registration is via self-declaration for all overseas assets above the equivalent of USD 100K in value on 31 December 2019. Due to the coronavirus lockdown, the DCBE deadline has been extended from 5 April to 1 June. Assets include financial instruments, cash in foreign currencies, real estate, shares and property. The DCBE data is used to measure the degree of ‘internationalization’ of the Brazilian economy. For amounts above USD 100M, the DCBE must be filed on a quarterly basis (outside the scope of this article).
More information at the Banco Central website.
Disclaimer: We are providing guidance and personal opinions which should not be interpreted as formal legal or tax advice. We recommend that you consult your accountant or contact us if you would like to be referred to a suitable accountant, based on your needs.
The DCBE requirement often catches out many expatriates and foreign residents in Brazil. The DCBE is not to be confused with the asset declaration (declaração de bens e direitos) within the annual tax return – IRPF. It is a separate declaration – yes, more form-filling – so take a deep breath and organise yourself in advance.
Fines for non-declaration or providing false information range from R$2.500 to a limit of R$250.000.
Follow these steps below to complete the DCBE:
Step 1: Register here at the BCB
Step 2: Complete the following fields:
Step 3: Note the following categories:
Ações negociados na bolsa – Listed shares. Shares held directly or via a trading account or international fund platform. State the investment currency, market value, acquisition value, acquisition date, income value and issuing country.
Depósito no exterior – Overseas bank account. Current and deposit accounts held onshore and in OFCs (offshore financial centres). State the currency, value, interest received and country.
Empresas – Participação no capital – Companies – Share capital. This applies to operating and holding companies. State the amount of share capital and percentage held. State the currency, value of assets and equity, as well as the profit or dividends distributed by it in the year. The advantage of a holding company is that assets within do not have to be individually listed, hence simplifying the process.
Fundos de investimento – Investment funds. As per listed shares (above).
Imóvel – Property. Declare the book value of property.
Outros ativos – Other assets. Trusts and offshore portfolio bonds can be entered in this category.
As mentioned above, this article is for guidance only, and should be used in conjunction with professional advice. For specific queries on expat taxation or financial planning, please contact us here.
Read our Coronavirus article about decision-making in times of uncertainty.
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