By Summary
A Brazilian who is a tax non-resident and sells property in Brazil pays income tax of 15% to 22.5% on the gain, or 25% if living in a low-tax jurisdiction, and does not get the single-home exemption up to R$ 440,000, according to the Federal Revenue Service. The tax is withheld by the buyer on the date of sale (Law 10.833/2003, art. 26). Once the tax is paid and the deed registered, the money can be sent abroad through an authorised bank, paying foreign exchange IOF. Rocha Advogados, based in Goiânia, handles the sale remotely in any state.
Am I a resident or a non-resident for the Federal Revenue Service?
It depends on your tax status, not only on where you live. Someone who leaves Brazil permanently and files the Notice of Definitive Departure becomes a non-resident on the departure date. Someone who leaves without filing it remains a resident for the first 12 months abroad and becomes a non-resident the following day (Normative Instruction SRF 208/2002). This status changes the tax on the sale.
What changes in the tax for a non-resident?
A resident can use the single-home exemption up to R$ 440,000 (Law 9.250/1995, art. 23), the exemption for buying another home within 180 days and the reduction factors of Law 11.196/2005. For a non-resident, the Federal Revenue Service considers that these exemptions and reductions do not apply. That is why the gain should be calculated before the price is agreed.
Calculator: how much tax will I pay on the sale?
Who pays the tax on the sale?
When the seller is a non-resident, the buyer, or the buyer's attorney-in-fact, withholds the tax and pays it on the date of sale (Law 10.833/2003, art. 26). In practice, the tax comes out of the price before the money reaches the seller. A mistake in this calculation becomes a problem for both sides.
How does the money leave Brazil?
The money is sent through a bank or broker authorised by the Central Bank, under Law 14.286/2021, upon presentation of the deed of sale and proof of tax payment. The transfer pays foreign exchange IOF. The bank may ask for documents on the sale and the source of funds before releasing it.
What documents do I need to sell?
- ID and regular CPF of the seller and spouse, if any.
- Updated marriage certificate, or birth certificate if single.
- Updated property registration and IPTU tax bill.
- Purchase deed or contract, with the price paid, to calculate the gain.
- Receipts for improvements, if you want to deduct them from the gain.
- Proof of the Notice of Definitive Departure, if already filed.
Frequently asked questions
Can I sell the property by power of attorney without going to Brazil?
Yes. A power of attorney signed at the Brazilian consulate or before a local notary with an Apostille allows your attorney-in-fact to sign the deed, receive the price and give discharge. The deed can also be signed on e-Notariado with a free digital certificate.
The property is an inheritance and probate has not been done. Can I sell it?
Not directly. Probate must be done first, or in some cases the sale is authorised within the probate itself. Rocha Advogados assesses the fastest route for your case.
Do I need to report the sale in the country where I live?
In many countries, yes. Taxation in your country of residence depends on local law and any tax treaty with Brazil, and should be reviewed with a local accountant. The firm handles the Brazilian side and provides the documents of the sale and the tax paid in Brazil.
How long does a remote sale take?
With documents in order and a buyer in place, the deed can be signed within a few weeks. Most delays come from regularising the property's documents or the seller's CPF.
Do I need a CPF to sell the property?
Yes. The seller needs a regular CPF (Brazilian taxpayer number) for the deed and the tax. Brazilians abroad can regularise their CPF online, on the Federal Revenue website, or at the consulate.
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.