How to Know if Dutch Citizens Living in Brazil Are Tax Residents: What the Brazil–Netherlands Tax Treaty and International Rules Say

Brasil e Holanda

Many Dutch citizens decide to live in Brazil for work, family, lifestyle, or remote employment. When that happens, one question appears immediately: “Do I become a tax resident in Brazil?”

This is a common concern among expats who already deal with taxes in two countries and want to avoid double taxation. The good news is: there are clear rules. The challenge is understanding which rule applies first, and which rule has more legal force.

In this article, I explain in simple, practical English how Dutch citizens can identify whether they are tax residents in Brazil, based on:

• the Brazil–Netherlands Tax Treaty,

• international tax rules created by global organizations,

• and the real meaning of the “183-day rule,” which is often misunderstood.

1. Not all rules have the same legal power

To understand tax residency in Brazil, it's essential to know that different rules have different levels of authority. You can imagine it as a ladder:

1. Brazilian Constitution

2. Complementary laws (stronger than regular laws)

3. Ordinary laws

4. Administrative rules (like instructions issued by the tax authority)

The higher the step on the ladder, the more powerful the rule. This matters because:

👉 An administrative rule from the Brazilian tax authority cannot override a tax treaty.

👉 A tax treaty has the same force as an ordinary law.

👉 And an ordinary law is stronger than administrative instructions.

This is crucial for understanding why Dutch expats often do not become tax residents in Brazil simply by spending time here.

2. The Brazil–Netherlands Tax Treaty (1991) has priority

Brazil and the Netherlands signed a Tax Treaty, incorporated into Brazilian law by Decree 355/1991. A tax treaty is a formal agreement between two countries that prevents double taxation and explains how residency is determined. Brazil’s Supreme Court has ruled that:

👉 Tax treaties have the same status as ordinary laws.

This means:

• A tax treaty has more force than administrative rules issued by the Brazilian tax authority.

• If a treaty and a domestic rule conflict, we have a lot probability that the treaty to prevail.

This is confirmed by Article 98 of the Brazilian Tax Code, which states that international treaties override domestic tax rules. For Dutch citizens in Brazil, this is the key point: Tax residency is determined according to the treaty, not local administrative rules.

3. The “183-Day Rule” is NOT in any law — it is only an administrative guideline

Many expats believe that spending more than 183 days in Brazil automatically makes them tax residents. But this is not what Brazilian law says. Here is the truth:

• The 183-day rule does not appear in any Brazilian law.

• It exists only in an administrative document published by the tax authority (call instrução normativa in Porrtugues).

• It is not legally strong enough to override a tax treaty.

In other words:

👉 The 183-day rule is not the main rule for Dutch citizens living in Brazil.

👉 It applies only when no tax treaty exists.

Since there is a tax treaty between Brazil and the Netherlands, the treaty’s rules are used first, and the 183-day rule becomes secondary.

4. How the Treaty actually decides tax residency

The Brazil–Netherlands Tax Treaty uses internationally recognized criteria, based on global tax standards. These criteria are sometimes called tie-breaker rules, used when a person could be a resident of both countries. The steps are:

1. Permanent home

   • Where do you have a permanent place to live?

2. Center of vital interests

   • Where are your strongest personal and economic connections?

   • Family, work, business, investments, etc.

3. Habitual residence

   • Where do you normally spend most of your time?

4. Nationality

   • If still unclear, nationality helps determine the tie-breaker.

5. Mutual agreement between authorities

   • If both countries still disagree, the tax authorities negotiate.

These rules are used before any day-counting rule. In many cases, Dutch citizens maintain their strongest connections with the Netherlands, meaning: 👉 They remain Dutch tax residents, even while living in Brazil for long periods.

5. Does spending time in Brazil matter at all?

Yes — but not the way many people believe. Time spent in Brazil can be a factor in the habitual residence test, but it is not the starting point. For Dutch citizens:

• Spending 183 days in Brazil does not automatically create tax residency.

• The treaty rules must always be analyzed first.

• The “day count” is only used when no treaty exists.

This is why Dutch expats should not rely solely on the number of days spent in Brazil.

6. When does a Dutch citizen actually become a Brazilian tax resident?

Only when their center of life moves to Brazil, such as:

• having a permanent home in Brazil,

• moving family or employment to Brazil,

• shifting economic activity to Brazil.

  
  

If the strongest links remain in the Netherlands, the treaty normally assigns residency there — no matter how many days were spent in Brazil.

7. Easy summary for expats

You can think of it this way:

• A Tax Treaty is like an international contract with the force of law.

• The 183-day rule is like a guideline created internally by the tax authority.

When they conflict:

👉 The treaty wins.

👉 The guideline does not.

Because the treaty is stronger, Dutch citizens are not automatically tax residents in Brazil just by spending more than 183 days here.

About the Author

I am Clivanir Cassiano, a tax lawyer in Brazil focused on international taxation and expat tax planning. I assist individuals and families from various countries who live in Brazil or divide their lives between multiple jurisdictions.

I work with clear language, practical explanations, and strategic tax analysis that protects my clients from double taxation and unnecessary risks. Online consultations available worldwide.

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📌 This article is for informational purposes only and does not replace personalized legal advice.Each case must be analyzed individually based on the person’s country of residence and type of income.

📞 Contact: taxforexpats@gmail.com

💼 LinkedIn: advogadaclivanircassiano

Reproduction or distribution of this article, in whole or in part, is permitted only with proper credit to the author.This material must mention Clivanir Cassiano de Oliveira, OAB nº 34.395B, as the original author.