For a Brazilian developer, the first question about a US contract is usually "CLT or PJ?" For most direct US contracts the answer is PJ, which leads to the next surprise: as a programmer, you can't open a MEI. The registration most freelancers reach for first isn't available for software development.
This guide covers that setup, how Brasilia time lines up with US teams, where Brazil's English really stands, and what US companies look for when they hire from Brazil.
Key Takeaways
- Brasilia time is UTC-3 with no daylight saving since 2019: one to two hours ahead of New York, four to five ahead of California.
- Brazil scores 482 on EF's 2025 English index, just under the 488 global average, with Florianopolis (577) and Porto Alegre (570) far above Sao Paulo (518).
- Software development isn't a permitted MEI activity today. A bill to change that passed its first House committee in July 2026 but isn't law.
- Under Simples Nacional, a "Fator R" of 28% or more can move a dev company from Anexo V (starting at 15.5%) to Anexo III (starting at 6%).
The clock
Brazil's last daylight saving period ended in February 2019 and the practice was abolished that year (Wikipedia). Sao Paulo, Rio, Brasilia and most of the population sit on UTC-3 all year (per the IANA time zone database). Manaus and parts of the north are an hour behind that. There's been periodic talk of bringing daylight saving back, so check before each October.
| US season | New York | Chicago | San Francisco |
|---|---|---|---|
| Winter (first Sunday of Nov to second Sunday of Mar) | You are 2 hours ahead | You are 3 hours ahead | You are 5 hours ahead |
| Summer (second Sunday of Mar to first Sunday of Nov) | You are 1 hour ahead | You are 2 hours ahead | You are 4 hours ahead |
That's a fine overlap with the East Coast. With a Pacific team in January, your afternoon is their morning. Decide before the offer how you'll handle it: a later workday, or mornings live plus async afternoons, stated in writing.
English: the city matters more than the country
Brazil scored 482 in the 2025 EF English Proficiency Index, 75th in the world, up 16 points from the year before (EF EPI 2025, Brazil). The spread inside the country is wide. Florianopolis (577), Porto Alegre (570) and Curitiba (556) lead the cities. Sao Paulo, the biggest tech market, sits at 518. Distrito Federal (541), Rio Grande do Sul (539) and Santa Catarina (534) lead the states. EF's sample is self-selected, so read these as a direction, not a precise ranking.
The skill split is worth knowing too: reading 516, writing 442. Brazilian developers often read English docs well and struggle more when writing a clear PR description or Slack update. US remote teams run on writing. Our job posts ask for B2 or better, client-facing roles in practice need close to C1, and we check it live. If writing is your weak side, fix that before your speaking. The playbook is in how to improve your English for remote developer jobs.
PJ, MEI, and Simples Nacional
General information, not legal or tax advice. Brazilian tax rules are detailed and your accountant should make the final call.
MEI is out, for now. Programming and software development aren't among the occupations allowed for MEI (Agilize). A bill, PLP 25/26, to allow them was approved by the Chamber of Deputies' Industry, Commerce and Services committee on July 1, 2026. It still needs two more committees, a floor vote, and the Senate before it becomes law (Camara dos Deputados).
Simples Nacional and Fator R. A common route is a small company (an ME) under Simples Nacional. Software development falls under Anexo V, which starts at 15.5%. If your payroll, including your own pro-labore, is 28% or more of your revenue over the prior 12 months, the company is taxed under Anexo III instead, starting at 6% (Contabilidade.com). Pro-labore carries its own INSS and income tax, so your accountant will check whether paying yourself more actually saves money.
Export treatment. Services exported to a client abroad can escape ISS, PIS and COFINS, with IRPJ and CSLL still applying (Contabilizei). For PIS and COFINS, the Receita Federal ties the exemption to a service provided to someone abroad with an inflow of foreign currency into Brazil (Reforma Tributaria). For ISS, it matters where the service is carried out: when it happens in Brazil, ISS can apply (Contabilizei). If you build a system that a foreign company uses inside Brazil, ISS can still apply. Brazil's tax reform also replaces PIS and COFINS with CBS in 2027 and phases ISS out between 2029 and 2033 (Contabeis), so check the current rules with your accountant.
Not ready to run a company? An Employer of Record handles the Brazilian side and can put you on a local contract. The trade-offs are in how LATAM developers get paid by US companies.
What US teams look for in Brazilian candidates
Brazil has a huge domestic tech market, and a lot of excellent engineers have only worked in Portuguese. That's the single biggest filter we see. A developer who shipped at scale for a Brazilian fintech but has never run a meeting in English has to prove the English separately.
Beyond that, US managers want what they want everywhere: clear written updates, decisions you can explain, and a track record of finishing things. If you've done English-language open source or worked with foreign teammates, put it near the top of your resume. We're hiring for Java backend engineers, Flutter engineers, and more on the open roles page.
For community and practice, The Developer's Conference (TDC) runs editions across Brazil, with a Sao Paulo event on September 23-25, 2026 (TDC). Giving a talk in English at a meetup is a cheap way to find out how your English holds under pressure.
A Concrete Version
A composite, not a real person. Rafael is a senior Java developer in Florianopolis, CLT at a local bank for five years. His English reading is strong and his writing is shaky.
He spends a month writing every work note in English, including a design doc for a feature he already shipped. Then he applies to a US contract role. After the offer, his accountant opens an ME under Simples Nacional. Say he bills R$ 30,000 a month (a round number for the math, not a benchmark). To reach Fator R, payroll needs to be at least R$ 8,400 a month, so the accountant sets his pro-labore there, runs the INSS and income tax on it, and confirms that Anexo III beats Anexo V for his numbers. At R$ 360,000 a year he is past the first revenue bracket, so both annexes charge more than their starting rates of 6% and 15.5%.
The US client pays by international transfer, which gives him the currency inflow the export treatment needs. His invoices identify the foreign client, and his contract says what he delivers and where it's used. He also gives up CLT benefits like the 13th salary and FGTS, so he sets part of each month aside to replace them himself.
The Honest Counterpoint
PJ looks better on paper than it sometimes is. You lose CLT protections: 13th salary, paid vacation with the one-third bonus, FGTS, and severance. If a US contract ends with two weeks' notice, there's no cushion unless you built one. Some developers are better off with a strong CLT job at home, or with an Employer of Record contract that keeps local benefits.
And not every Brazilian city is Florianopolis. If your English is closer to the national average, the time spent on it before applying is worth more than any tax setup.
Frequently Asked Questions
Can a developer be MEI in Brazil?
Not today. Software development isn't a permitted MEI activity. PLP 25/26 would change that, but as of July 2026 it had only passed its first committee.
Do I pay ISS on services for a US client?
Often not, if the service is exported and its result happens abroad. If the client uses what you build inside Brazil, ISS can apply. Ask your accountant.
Is PJ always better than CLT for US work?
No. PJ contracts often pay more in hand, but you give up CLT benefits and protections. Do the full comparison before you choose.
The Bottom Line
From Brazil, the setup is a small company rather than a MEI, a Fator R conversation with your accountant, and export paperwork that holds up. The bigger lever is your written English. Get that strong, then apply on the Ruzora jobs page. For the resume side, read writing a developer resume for US tech companies.
Roberto Espinoza is CEO of Ruzora, which places senior LATAM engineers with US startups. Browse open roles.
