Tax Planning Before Immigrating to the USA: 2026 Guide

The decision to immigrate to the United States involves much more than choosing the right visa or preparing the petition. One of the most overlooked-and potentially most costly-aspects is the financial and tax planning that should take place before the move. Brazilians who do not prepare adequately may face a significant tax burden, fines for failing to meet reporting obligations, and even complications in the immigration process. Understanding how tax residency works in the US, the obligations to declare foreign assets, and the implications for capital gains is essential to protect your assets during the transition.

Tax Residency in the US

In the United States, tax liability does not depend solely on citizenship: it is determined by tax residency status. The IRS uses two main criteria to classify an individual as a tax resident: the Green Card Test and the Substantial Presence Test. In the first, any green card holder is automatically considered a tax resident from the date of entry into the US with the card. In the second, a formula is applied that counts days of physical presence: all days in the current year, one third of the days in the previous year, and one sixth of the days from two years prior. If the total reaches 183 days, the individual is considered a tax resident.

For new immigrants, there is also the First-Year Choice option, which allows you to elect tax residency from a specific date in the first year, provided the person is present in the US for at least 31 consecutive days and 75% of the remaining days in the period. The practical implication is direct: from the moment you become a tax resident, you must declare and pay taxes on your worldwide income-including income, investments, and capital gains originating outside the United States.

Capital Gains and Sale of Assets

One of the most common mistakes among Brazilians who immigrate is failing to plan the sale of assets before becoming US tax residents. Real estate, stocks, investment funds, and other assets sold after the change in tax status are subject to US capital gains tax. In 2026, federal rates for long-term capital gains (assets held for more than one year) are 0%, 15%, or 20%, depending on the income bracket. For single filers, the 0% rate applies up to $49,450 of taxable income; the 15% rate applies between $49,451 and $545,500; and above that, the rate is 20%. Married couples filing jointly have a 0% threshold up to $98,900 and 15% up to $611,350.

Additionally, taxpayers with high income may be subject to a 3.8% surtax on net investment income (Net Investment Income Tax). Short-term gains-assets held for one year or less-are taxed as ordinary income, with rates ranging from 10% to 37% in 2026. The most effective strategy is to evaluate all assets and, when possible, make significant sales while still a Brazilian tax resident, where capital gains taxation may be more favorable depending on the type of asset and the gain bracket.

FBAR and FATCA: Foreign Accounts

Upon becoming a US tax resident, the immigrant is required to report financial accounts held outside the country. The FBAR (Foreign Bank Account Report), regulated by FinCEN, requires the annual declaration of all foreign accounts when the aggregate value exceeds $10,000 at any time during the year. This limit applies to the sum of all accounts-bank, investment, retirement, and even accounts where the individual only has signature authority. The filing deadline is April 15, with an automatic extension to October 15.

FATCA (Foreign Account Tax Compliance Act) imposes an additional obligation via Form 8938, attached to the income tax return. For US residents filing individually, the reporting threshold is $50,000 at the end of the tax year (or $75,000 at any time during the year). For married couples filing jointly, the limits double to $100,000 and $150,000, respectively. Penalties for noncompliance with FBAR can reach $10,000 per unintentional violation and significantly higher amounts for willful omissions. Brazilians who maintain bank accounts, stock investments, or private pension plans in Brazil need to understand these obligations before moving.

Brazil and US: No Tax Treaty

A critical factor that many Brazilians are unaware of is that Brazil and the United States do not have a comprehensive treaty to avoid double taxation on income. This means that, in certain situations, the same income may be taxed in both countries. The US offers mechanisms such as the Foreign Tax Credit, which allows you to offset taxes paid to Brazil against the amount owed to the IRS, but the process requires careful planning and precise documentation.

In practice, the absence of a treaty makes pre-immigration planning even more important: rental income from properties in Brazil, dividends from Brazilian companies, and capital gains on Brazilian assets can generate tax obligations in both countries simultaneously. The credit mechanism mitigates part of the problem but does not eliminate the complexity-especially when the calculation bases and rates differ between the Brazilian and American tax systems.

Florida’s Tax Advantage

The choice of state of residence in the US has a direct impact on the total tax burden. Florida is one of nine US states that do not levy a state income tax-a constitutional protection that would require approval from 60% of voters to change. For immigrants, this means that salaries, investment income, retirement distributions, and capital gains are taxed only at the federal level. In comparison, states like California and New York apply state rates that can reach 13.3% and 10.9%, respectively.

Florida also does not levy inheritance, gift, or estate taxes. The main tax costs in the state are the sales tax of 6% (plus local surcharges, typically totaling 7% to 7.5%) and property tax, with an effective average of 0.89% and a homestead exemption available for primary residences. For Brazilians planning to immigrate, establishing domicile in Florida can represent substantial tax savings compared to other popular destinations like Massachusetts or New Jersey.

Visas and Tax Implications

The type of visa chosen directly influences when US tax obligations begin. Green card holders-obtained through categories such as EB-1, EB-2 NIW, EB-3, or EB-5-become tax residents immediately upon entering the US with the immigrant visa. Holders of non-immigrant visas such as O-1, L-1, and E-2 may become tax residents under the Substantial Presence Test depending on the length of stay in the country.

Regardless of the category, the ideal planning includes: inventorying all assets in Brazil and abroad; evaluating which sales or restructurings should be carried out before the change in tax status; organizing financial documentation for compliance with FBAR and FATCA; consulting an accountant specialized in international taxation with experience in immigrant cases; and establishing an appropriate banking structure in the US before arrival. These steps, when taken in advance, prevent tax surprises and protect assets during the transition to life in the United States.

Victoria Harper

Editor-in-Chief

Meet the author

Leading journalism and editorial content at Visto n’ Visa, Victoria helps make immigration topics clear, trustworthy, and easy to understand. Her focus is on delivering useful, human, and relevant content for people exploring new paths abroad.