What the New Tax Agreement Between Poland and Brazil Means for You

If you are Polish and live in Brazil, own property here, receive income from Poland, or simply have financial interests in both countries, there is an important change you should know about. Brazil and Poland now have a tax treaty designed to prevent the same income from being taxed twice and to establish clearer rules about which country has the right to tax different types of income.

The agreement was signed in New York on 20 September 2022 and was approved by the Polish and Brazilian authorities. In Brazil, it was formally promulgated through Decree No. 12,865 of 2 March 2026. The agreement entered into force for Brazil on 5 November 2025.

This may sound like something only accountants and tax lawyers need to worry about. In reality, it can be relevant to many Polish citizens who have a connection with both countries.

Where are you a tax resident?

This is probably the most important question. Being a Polish citizen does not automatically mean that you are a tax resident of Poland. In the same way, living in Brazil does not by itself answer every tax question.

The treaty has specific rules for people who could potentially be considered residents of both countries. For example, it looks first at whether a person has a permanent home in one of the countries. If there is a permanent home in both Poland and Brazil, the treaty looks at where the person’s personal and economic ties are closer. If that still cannot be determined, other factors are considered, including where the person habitually lives and, in certain circumstances, their nationality.

This is particularly relevant for people who divide their time between Poland and Brazil, maintain a home in both countries, or continue to have income and business interests in Poland after moving to Brazil.

What happens if you own property in Brazil?

This is where the agreement becomes particularly interesting for Polish investors. If you are a Polish tax resident and own an apartment, house or other real estate in Brazil, the income generated by that property can be taxed in Brazil.

The treaty specifically states that income from immovable property may be taxed in the country where the property is located. This includes income from renting the property and income from its direct use.

For example, imagine that you live in Warsaw but own an apartment in Fortaleza or Cumbuco and rent it to tourists or on a long-term basis. The fact that you are a tax resident of Poland does not mean that Brazil simply ignores the rental income. Because the property is located in Brazil, Brazilian taxation can apply. At the same time, the treaty provides rules designed to prevent the same income from being taxed twice.

The same principle is important when selling a property. If you own property in Brazil and later sell it, Brazil may have the right to tax the gain from that sale because the property is located here. For a Polish buyer, this is something worth understanding before the purchase rather than only when the property is eventually sold.

Keeping proper documentation from the beginning is also important. Purchase contracts, proof of payment and documented costs associated with the property can become relevant when calculating the tax consequences of a future sale.

Does this mean that you will never pay tax twice?

Not necessarily. This is one of the points that is often misunderstood when people hear about a “double taxation treaty.”

The purpose of the agreement is not to make income tax disappear. It establishes rules for determining which country may tax particular types of income and provides mechanisms for eliminating or reducing double taxation. In other words, the treaty is about coordination between the two tax systems.

The exact result depends on the type of income, your tax residence and the circumstances in which the income was earned. A Polish resident receiving rental income from a Brazilian property should therefore not simply assume that paying tax in Brazil automatically means there is nothing else to report in Poland. The opposite assumption can also be risky.

Working or running a business between Poland and Brazil

The agreement also contains rules concerning employment income and business activities.

As a general principle, employment income is connected with the country of residence, but the country where the work is actually performed can also have taxation rights. There are specific exceptions, including rules concerning people who spend no more than 183 days in the other country during the relevant period and who meet additional conditions concerning their employer and the way their remuneration is borne.

This means that simply counting the number of days you spend in Brazil is not always enough to determine your tax position. Your employer, where the work is performed and who ultimately bears the cost of your remuneration can also matter.

The treaty also contains rules for companies. Generally, the business profits of an enterprise are taxable in its country of residence unless the company carries on business in the other country through what the treaty calls a “permanent establishment.” This can include, among other things, a management office, branch, office, factory or workshop.

There are also specific rules for construction and installation projects. Under the treaty, a construction site or construction or installation project can constitute a permanent establishment when it lasts for more than 12 months, subject to the treaty’s detailed rules.

For Polish companies entering the Brazilian market, and Brazilian companies expanding into Poland, this can be an important issue.

Dividends, interest and other income

The agreement also covers investment income such as dividends and interest. For dividends, the treaty provides limits on the tax that may be imposed in the country from which the dividends originate. In certain circumstances, the maximum rate is 10%, while in other cases it is 15%.

There are also specific rules for interest. The general treaty limit is 15%, with a 10% rate applying in a particular situation involving certain bank loans used to finance equipment, investment projects or public works.

These are treaty limits and should not be understood to mean that every Polish investor will automatically pay exactly 10% or 15%. The actual tax treatment depends on the circumstances and the domestic legislation involved.

Why is this relevant if you are buying property in Brazil?

For someone planning to buy property in Brazil, the treaty is another reason to look at the investment as more than simply a real estate transaction. The purchase itself is only one part of the picture.

You should also consider what happens if you rent the property, sell it later, become a tax resident of Brazil, continue to receive income in Poland, or operate a business connected with the investment. Your tax residence can also change over time.

A Polish citizen who moves permanently to Brazil may have a very different tax situation from a person who remains a Polish tax resident and simply owns an apartment in Brazil.

For someone buying an apartment in Fortaleza, a house in Cumbuco or another property in Ceará, it is worth considering from the beginning how the property will be used. Will it be your own holiday home? Will you rent it? Will it be a long-term investment? Do you plan to sell it in a few years? Will you remain a tax resident of Poland, or are you planning to move permanently to Brazil?

These questions can make a significant difference to the tax treatment.

Exchange of information

There is another important part of the agreement that is worth knowing about. Poland and Brazil have agreed on the exchange of information relevant to applying their tax laws.

The treaty contains confidentiality rules for this information, but it allows information to be exchanged between the competent authorities for tax purposes. For people who have income, companies or property in both countries, this makes accurate reporting even more important.

Having assets in another country is not in itself a problem. What matters is understanding your obligations and keeping the relevant documentation in order.

What does this mean for Polish citizens?

The simplest way to look at the new agreement is this: if your life or finances involve both Poland and Brazil, you should not look at either country’s tax system completely separately.

Your tax residence matters. The location of your property matters. The type of income matters. And the way you receive that income matters.

A Polish citizen living in Poland and renting out an apartment in Fortaleza is in a different situation from a Polish citizen who has moved permanently to Brazil and is considered a Brazilian tax resident. Likewise, someone receiving a Polish pension while living in Brazil has a different situation from someone running a company in both countries.

The Poland–Brazil tax treaty provides a framework for dealing with these situations and for avoiding double taxation, but it does not mean that every Polish citizen with a Brazilian property will have the same tax obligations.

For anyone planning to invest in Brazil, the best approach is to establish your tax residence and understand the treatment of the specific income or investment before making important financial decisions. For larger investments or more complex situations, professional tax advice in both countries may be appropriate.

Official source: Decree No. 12,865 of 2 March 2026, promulgating the Agreement between the Federative Republic of Brazil and the Republic of Poland for the elimination of double taxation with respect to taxes on income and the prevention of tax evasion and avoidance.

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