You started asking me this ten years ago when I started my retire overseas Youtube videos, written reports, and courses. Until today, I’ve always said you need to talk to a CPA because I’m not qualified to answer it. I’m still not qualified to answer. But today I’ll show you how to save hundreds of dollars getting an answer.
One of you commented on one of my videos that your foreign country taxes would be $1000 per month. So, I decided to see if AI agreed with you. At least half of my 313 retire overseas reports come from questions like this.
The smartest people in the world watch my content and share problems they need to overcome every year. So, after reading your $1000 foreign tax comment, I decided to see if AI agreed with you.
A year ago, I secretly tried using AI to answer this question. It wasn’t ready for what I am about to show you. It didn’t make sense.
But I tried again today, and it’s starting to make some sense. I am not suggesting that you trust AI completely yet. Don’t do that. Here is what I am suggesting.
Develop a set of questions or prompts for AI. The answers will create a universe of potential tax liability in a specific foreign country based on your particular facts. Then you will have a rough estimate of what your tax might be, but don’t rely on it.
Instead, have a CPA verify each point. Bringing this universe of facts to a CPA could potentially save you hundreds, if not thousands, of dollars.
Okay, enough talk. Let me show you what I mean. Watch this video completely once and then follow along and insert your own set of facts.
Open a Word doc or a Google doc and start by populating your information. I’m going to use a fake American name, John. You can also use a fake name if you like, but use real information so you’ll get potentially real answers from AI.
I’m going to use Google AI because I did yesterday, and about 90% its answers seemed reasonable, if not perfect. And most of all because it’s free.
Okay, here’s the first prompt.
PROMPT 1:
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My name is John. I’m thinking of moving to Brazil. Here are some personal facts about me.
Question 1: I have lived in my condo for 32 years. If I sell it today, how much would I net after paying commissions, closing costs, state and federal taxes on the sale? |
Answer 1:
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You said: My name is John. I’m thinking of moving to Brazil. Here are some personal facts about me. Citizenship: US US State: Florida Marital Status: Divorced Monthly Social Security: $2200 401(k): 150,000 Born: June 15, 1962 Condo: $250k Condo Loan: $0 Condo Sale Commission: 5% Condo Sale Closing Costs: 1% Present Income: $3800 Month Question 1: I live in my condo and have for 32 years. If I sell it today, how much would I net after paying commissions, closing costs, state and federal taxes on the sale? You will net $235,000 from the sale of your condo. 1. Calculate Transaction Costs
2. Determine Tax Liabilities
✅ Final Result You will net exactly $235,000 after paying all commissions, closing costs, and taxes. |
PROMPT 2:
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Continuing with the same facts from question one, if I take the $235k condo proceeds and put them in the S&P 500, and assume it generates 5% capital appreciation of the shares in the S&P 500, and that I take out 4% per year to live on, about how much would that add per month to my income? Also, assume that I quit my job, move to Brazil, and get a retirement visa there. Also, assume I start taking 4% of my 401(k) per year. And I started taking my Social Security early because I’m not full retirement age yet. According to the Social Security web page, my Social Security check would be the amount in question 1. As an American, what would my state and federal income taxes be while I am living in Brazil? |
Answer 2:
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Investing your condo proceeds into the S&P 500 will add $783.33 per month to your income, your 401(k) will add $500.00 per month, and your US state and federal income taxes will be $0. 💵 Monthly Income Additions
Your total monthly income in Brazil (combining your $2,200 Social Security check, S&P 500, and 401(k)) will be $3,483.33. 🇺🇸 US Income Tax Liabilities 1. State Income Tax: $0 As long as you maintain your legal US domicile in Florida, you will owe $0 in state income tax. Florida does not levy a personal state income tax or tax retirement withdrawals. 2. Federal Income Tax: $0 Even though the US taxes its citizens on worldwide income regardless of where they live, your specific retirement structure puts your taxable income well below the filing thresholds:
If you want to map out the logistics of your move, let me know if you would like to explore the minimum income requirements for the Brazilian retirement visa or how local Brazilian taxes might apply to your US income once you arrive. |
PROMPT 3:
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You’re so smart. You know exactly what I’m thinking. When I move to Brazil and get my retirement visa, what are the income requirements? If I only pull out what I need each month and keep my money in U.S. banks, but I only pull out what I need each month to live in Brazil, what will my taxes be in Brazil on this income that I pull out? Let’s say that I’m able to live on 2,500 a month. What will my taxes be In Brazil? |
The answer to this prompt will blow your mind.
But first, 10 Years ago, after I created hundreds of videos about retiring overseas, you started asking me questions about how I did things when I retired overseas. I answered by writing reports. I still write new reports when new problems arise.
After hundreds of reports, one of you said to me, “Dan, there are so many reports, I don’t know which ones to read and in what order.”
So I created a course that describes the seven stages of retiring overseas, from sitting on your couch at home all the way through to remaining happy in your second year living overseas.
To learn about the 7 stages of retiring overseas, and all of the reports that will inform your decision at each stage, come to VagabondBuddha.com and click the button that says “Membership Details.”
Your timing is perfect. Our lifetime membership is 50% off until June 18th at midnight, Pacific time. Okay, let’s see how detailed the AI answer is for foreign taxes.
ANSWER 3:
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🛂 Brazil Retirement Visa Requirements To qualify for the Brazil Retirement Visa (VITEM XIV), you must prove a stable, regular foreign income. [1, 2]
🇧🇷 How Brazil Taxes Your Income You mentioned keeping your money in US bank accounts and only pulling out what you need to live on ($2,500/month). It is vital to understand that Brazil taxes residents based on worldwide income, not just what is brought into the country. [1, 2, 3] Once you establish tax residency in Brazil (which happens either immediately upon arriving on a permanent visa or after 183 days on a temporary visa), your total global retirement income of $3,483.33 is technically subject to Brazilian tax rules, whether you leave it in the US or transfer it. [1, 2, 3, 4, 5] Fortunately, thanks to a major tax reform under Law 15,270/2025, your tax bill will be remarkably low. [1] 1. The R$5,000 Monthly Exemption Cushion [1] Beginning January 2026, Brazil introduced a sweeping tax update that fully exempts individual monthly income up to R$5,000 from withholding taxes, regardless of progressive rates. [1, 2] 2. Calculating Tax on a $2,500/Month Living Budget If we map your taxes strictly against the $2,500 you plan to live on (assuming a baseline exchange rate of roughly 5.0 to 5.4 Reais per Dollar):
Note: If Brazil assesses your full global income ($3,483.33 / approx. R$18,000), your monthly tax liability will scale up to roughly R$2,200 to R$2,500 (approx. $400 to $470 USD). [1] 3. Foreign Transaction Tax (IOF) [1] Every time you pull money out of your US bank account using an ATM in Brazil or transfer funds via an exchange platform, Brazil levies a Tax on Financial Operations (IOF). [1]
💡 Financial Tip for John To minimize transaction fees, do not rely on US debit cards at Brazilian ATMs for your monthly living expenses. Instead, use your retirement visa to open a local Brazilian bank account, use an online transfer service to move $2,500 at a time for the 0.38% tax rate, and use a local Brazilian debit card for daily life. [1, 2, 3] Would you like to look into the document checklist (like apostilling your Florida records) needed to officially file for the visa at a Brazilian consulate? |
With this universe of information, and additional questions your CPA will ask, you will save them substantial time in verifying your tax liability.
To get these model prompts for free, come to VagabondBuddha.com and click the travel menus link. Scroll down, copy each prompt into your Word or Google Document, and then adjust the data to fit your life.
Then paste your edited prompts into Google AI mode. And while you are over there, click the Membership details button to find all the resources we have to help you get a soft landing in your overseas retirement, or just watch the video on screen now.