I live abroad and receive rent in Brazil. What do I need to do?

I live abroad and receive rent in Brazil: what do I need to do?

A Brazilian who lives abroad and receives rent in Brazil has to sort out three things: who manages the property here, how the tax is paid and what to do if the tenant falls behind. Leaving any of them without an owner is what turns a steady income into a debt with the Brazilian Federal Revenue Service or into a tenant who has not paid for months. Rocha Advogados, based in Goiânia, Brazil, assists Brazilians abroad who rent out property in any Brazilian state.

Who can rent out and manage the property for me?

A real estate agency, a relative or a trusted person, holding a power of attorney. Because a lease in Brazil does not require a public deed, a private power of attorney granting powers to lease, sign the contract, collect the rent and issue receipts is generally enough (Civil Code, art. 654). A public power of attorney, made at the consulate or at a notary's office, is only mandatory for acts that require a public deed, such as selling the property (Civil Code, art. 657).

The owner can also sign the lease from abroad with an electronic signature, which is legally valid in Brazil (Law 14,063/2020). Many Brazilian agencies already work this way with owners who live overseas.

How much tax do I pay on rent while living abroad?

It depends on your status with the Brazilian Federal Revenue Service, not on your nationality.

1. If you filed the definitive exit from Brazil (Normative Instruction SRF 208/2002), you are a non-resident. The rent has 15% income tax withheld at source (Decree 9,580/2018, art. 763), and you no longer file the annual return in Brazil. Property tax (IPTU), condominium fees paid by the owner and the agency's fee may be deducted before the calculation, with receipts (Decree 9,580/2018, art. 42). On a rent of R$ 3,000 with no deductions, the withholding is R$ 450 a month.
2. If you did not file the definitive exit, you are still a resident for Brazilian tax purposes. Rent received from individuals goes into the monthly carnê-leão, at progressive rates, and into the annual return, together with the income you earn abroad.

People who left Brazil and never regularized their exit often end up in the worst of both worlds: they stopped filing as residents and nobody withheld the non-resident tax. The regularization can be done from abroad.

Who withholds the 15% tax?

Whoever pays the rent to the non-resident withholds the tax and pays it through a federal tax slip (DARF). In practice, when there is an agency or an attorney-in-fact, they withhold and pay the tax before passing on the money. That is why the agency and the attorney-in-fact must be told in writing that the owner lives outside Brazil: whoever collects the rent for the owner and does not disclose this may end up liable for the tax that was not withheld.

Will I also pay tax in the country where I live?

It may happen. The country where you live may tax the same rent. When there is a treaty to avoid double taxation, it sets out how the tax paid in Brazil is credited. Portugal, Canada and Japan, for example, have such treaties with Brazil. The United States does not, so the credit depends on US law and should be checked with a US accountant.

What should the lease include?

1. A single guarantee. The Tenancy Law allows a cash deposit, a guarantor, rent guarantee insurance or the assignment of investment fund shares, but only one of them per lease (Law 8,245/1991, art. 37, sole paragraph). A cash deposit is capped at 3 months of rent (art. 38, § 2).
2. Annual adjustment, with the index written into the lease (Law 10,192/2001, art. 2, § 1).
3. Property tax and condominium fees defined. Property tax is the owner's, unless a clause transfers it to the tenant (Law 8,245/1991, art. 22, VIII). Ordinary condominium expenses are the tenant's (art. 23, XII) and extraordinary ones are the owner's (art. 22, X).
4. A Brazilian bank account in your name to receive the rent, so the trail of the money and the tax stays clear.
5. A move-in inspection with photos, kept with the lease, because it proves the condition of the property when the tenant leaves.

The tenant stopped paying. What can I do from abroad?

You do not need to travel. The remedy is an eviction lawsuit for non-payment (Law 8,245/1991, art. 9, III), which can be combined with the collection of overdue rent. The judge may grant an injunction for the tenant to leave within 15 days when the lease has no guarantee, upon a deposit of 3 months of rent (art. 59, § 1, IX). The tenant can avoid eviction by paying everything within 15 days of being served (art. 62, II).

For the lawsuit, the law firm's power of attorney signed digitally is enough (Code of Civil Procedure, art. 105), with no consulate and no sworn translation. Overdue rent becomes time-barred after 3 years (Civil Code, art. 206, § 3, I), so waiting for the tenant to "sort it out" has a deadline.

How do I send the rent money abroad?

The amount received in Brazil is sent abroad through a bank or institution authorized by the Central Bank of Brazil, under Law 14,286/2021, and the transfer pays the foreign exchange IOF tax. The bank may ask for proof of the tax withheld. Non-residents usually keep a Brazilian account of their own for this purpose.

Step by step for renting out property in Brazil while living abroad

1. Confirm with the Federal Revenue Service whether you are a resident or a non-resident, and file the definitive exit if that is your case.
2. Choose who manages the property and sign the private power of attorney or the agreement with the agency.
3. Tell the agency or the attorney-in-fact in writing that you live abroad.
4. Sign a lease with a single guarantee, annual adjustment and a photo inspection.
5. Check every month the rent received, the tax withheld and the DARF paid.
6. At the first significant delay, notify the tenant and, if there is no payment, file the eviction lawsuit.

In the cases Rocha Advogados handles, the most common problem is not the tenant but the tax: years of rent received with no withholding and no return, which turn into a tax assessment with fines and interest in the owner's name. The timeline and the cost of the work in your case are put in writing before anything starts.

Frequently asked questions

I live abroad and rent out my apartment in Brazil. Do I need to file a Brazilian tax return?

It depends. If you filed the definitive exit, you do not file the annual return, and the 15% tax is withheld at source. If you did not, you are still a resident and report the rent in the carnê-leão and in the annual return.

Can I receive the rent directly in my account abroad?

The tenant pays in Brazil, and the amount is sent abroad through an authorized bank (Law 14,286/2021), after the tax is withheld when you are a non-resident.

Do I need to go to the consulate to sign the power of attorney for the agency?

Generally, no. A private power of attorney is enough to lease and manage the property. The consulate or a notary's office is only required for acts that need a public deed, such as a sale (Civil Code, art. 657).

If the tenant does not pay, how long do I have to collect?

Overdue rent becomes time-barred after 3 years (Civil Code, art. 206, § 3, I). The eviction and the collection can be handled from abroad with the law firm's digital power of attorney.

Can the service be in English?

Yes. Rocha Advogados works in Portuguese and English.

This content is for information only and does not replace advice on your specific case. No outcome is guaranteed, in line with Brazilian Bar Provision 205/2021.

Rocha Advogados, a law firm in Goiânia, Brazil, serving Brazilians living abroad. Av. D, 419, 4th floor, Setor Marista. Lawyers in charge: Rafael Bispo da Rocha, OAB/GO 33.675, and Ivenise Uchôa de Almeida Rocha, OAB/GO 59.087. Online service for Brazilians in any country and in-person service in Goiânia.