Brazilians living in Italy who maintain bank accounts in Brazil may be affected by a new European rule that will begin to be applied on January 11, 2027.
The change does not prohibit having an account in Brazil nor does it mandate its automatic closure. The obligation falls on banks from countries outside the European Union that provide certain banking services to clients residing in the bloc.
Pela Directive (EU) 2024/1619Under the CRD VI regulation, these institutions will generally have to operate through an authorized branch to continue offering essential banking services in Italy. Italy incorporated this rule into national legislation at the end of 2025.
What can happen in practice?
The rule primarily covers three activities: receiving deposits, granting loans and financing, and issuing financial guarantees.
The Supreme Court reaffirmed: citizenship is born with the person.
- New legal front opened
- Processes can still be filed.
- Individual assessment before any decision.
For a Brazilian living in Italy who maintains a bank account in Brazil, the most important thing is keeping the deposits going.
This does not mean that the account will be closed in January 2027. Each institution will have to assess how it will continue to serve. customers residing in the European Union.
A Brazilian bank may maintain the relationship within the exceptions provided for by law, restrict the contracting of new products, request an update of address and tax residence, or eventually decide that it is not worthwhile to continue serving clients established in the EU.
Older accounts have a transition rule.
Contracts entered into before July 11, 2026, are subject to a transitional regime.
From January 2027, banks outside the EU will be able to continue carrying out the activities necessary to administer these contracts, but without renewing them or replacing them with new contracts under this protection.
In Italy, open-ended contracts should, in principle, be terminated or transferred to an authorized intermediary by January 10, 2028. However, the legislation preserves the possibility of continuation when the initiative comes exclusively from the client.
This exception, known as reverse solicitationThis also appears in the European directive. It occurs when the customer spontaneously seeks out a bank outside the EU to request the service.
Does having a bank account in Brazil mean you have to declare it in Italy?
Not necessarily. This is a tax issue separate from the new banking rule.
A Inland Revenue It informs that individuals who are tax residents in Italy are subject to monitoring of financial assets held abroad. For deposits and bank accounts, however, there is no monitoring obligation when the maximum combined value during the year does not exceed €15.000 (approximately R$91.000), except when VAT is due.
IVAFE (Italian wealth tax levied on financial assets held abroad by tax residents in Italy) For current accounts and savings accounts held abroad, the fee is generally €34,20 per year, proportional to the period and the account holder's share. It is not payable when the combined average balance of accounts held at the same bank does not exceed €5.000.
Therefore, a Brazilian bank account that is open but has practically no money in it does not need to be declared simply because it remains active.
And what about those who haven't left Brazil permanently?
Not having filed a Permanent Departure Notice with the Brazilian Federal Revenue Service does not prevent a person from being considered a tax resident in Italy.
Italian law generally considers a resident to be someone who, for the majority of the tax period, is resident or domiciled in the country, is physically present in Italy, or falls under the presumption linked to registration in the resident population.
The Constitutional Court's decision changed the landscape. The new citizenship law will now be reviewed by the European Union's courts of justice.
Therefore, a Brazilian who actually lives in Italy You may be subject to Italian rules regarding offshore accounts and assets even if you have not formally left Brazil for tax purposes.
In the Brazilian system, anyone who leaves the country without notifying their departure continues to be treated as a resident for the first 12 consecutive months of absence. From the 13th month onwards, they become a non-resident for tax purposes, according to the rules of the Federal Revenue Service.
What do Brazilians need to do now?
Those who live in Italy and maintain an account in Brazil do not need to close it preventively.
The most important thing is to keep your address details updated with the bank, monitor any communications from the institution, and check if the account needs to be reported to the Italian tax authorities based on your balance and tax status.
The new rule does not make Brazilian accounts illegal. The impact will depend mainly on how each non-EU bank decides to serve its customers residing in Italy from 2027 onwards.
