Brazil's Offshore Law and U.S. Property: What Changed for Brazilian Investors

Since 2024, Brazil's Law 14,754/2023 taxes Brazilian residents at 15% a year on the profits of foreign companies they control, even if those profits are not distributed. For Brazilian families buying U.S. property, that removed the main tax advantage of an offshore company: deferral. Today, the choice between owning in your own name or through a structure depends less on Brazilian income tax and more on two other risks: U.S. estate tax and succession.

What the law changed

• End of deferral. Profits of controlled foreign entities that fall under the law are taxed annually at 15%, whether or not they are distributed.
• Transparent option. An individual can elect to treat the offshore company's assets and income as their own.
• Financial investments abroad. Income is taxed at 15% on the annual return, with no exempt band.
• Currency variation. Exchange-rate movement on foreign assets enters the gain under the law's rules.
• Trusts. The law set how foreign trust assets and distributions are treated.

The risks often left out

• U.S. estate tax. U.S. property held in a foreign individual's name is subject to U.S. estate tax, with only a US$60,000 exemption and rates up to 40%. See U.S. estate tax for foreign nationals.
• Maintenance cost. A foreign structure has annual costs for formation, accounting, registered agents and filings in both countries.
• Substance. Structures without real purpose or proper documentation are the first to be challenged.
• ITCMD. Complementary Law 227/2026 reformed Brazil's inheritance and gift tax, with rules for assets abroad expected to take effect from 2027.

Personal or structured ownership

• In your name: simple and cheap to maintain; rent is taxed in the U.S. and in Brazil, with credit for U.S. tax. The main risk is U.S. estate tax.
• Through a U.S. LLC: organizes management and liability, but a single-member LLC alone usually does not solve estate tax. See how to open a U.S. LLC.
• Through a foreign company: can take the property out of U.S. estate tax, but is now subject to Brazil's annual 15% tax and substance requirements.
• Through a trust: organizes succession; the tax effect depends on the design and the new law.

How we look at it

The structure is decided before buying, not after. Changing ownership later can trigger taxes and costs that could have been avoided. Simple before creative, and always the total cost: Brazilian tax, structure upkeep and U.S. succession risk together.

Frequently asked questions

Is an offshore company still worth it for U.S. property?

It depends on the size of the U.S. estate, the number of heirs and where they live. The deferral advantage shrank; estate tax protection remains the most common reason.

Does a U.S. LLC protect against estate tax?

Usually not on its own. Its treatment requires case-by-case analysis with U.S. counsel.

Infinity⁹ is an Exempt Reporting Adviser with the SEC, CRD# 330526. Infinity⁹ is not a law firm or a tax adviser. This content is educational and does not constitute legal, tax or investment advice, or an offer of securities. Rules reflect law in force in October 2026 and may change. Consult your own lawyers and accountants in Brazil and the U.S.

Sources

• Law 14,754/2023, Brazil
• KPMG, taxation of offshores under Law 14,754/2023 (Portuguese)
• Complementary Law 227/2026, Brazil
• IRS, Estate tax for nonresidents not citizens of the United States