How Brazilians Declare U.S. Property on Their Tax Return

A Brazilian resident who owns property in the U.S. declares it on the Brazilian income tax return at acquisition cost in reais, not at market value. Rent is taxed in Brazil monthly through the carnê-leão, with credit for U.S. tax, and a sale triggers capital gains tax. Above US$1 million in assets abroad, there is also an annual report to Brazil's Central Bank. The costliest mistakes are usually in currency conversion and undeclared rent.

1. The assets schedule

• Where: the real estate group, with the property type code and the country.
• Value: acquisition cost in reais, including price, taxes and closing costs, converted under Receita Federal rules that depend on the source of the funds. Keep every wire and payment receipt.
• No market updates: the value changes only with documented improvements.
• Pre-construction: payments made in the year are added to cost until delivery.
• Mortgage: the U.S. loan goes in the debts schedule.

2. Rent

• In Brazil: rent from abroad is taxed monthly through the carnê-leão, on the progressive table up to 27.5%.
• In the U.S.: rent is also taxed there; without the right elections, withholding can be 30% of gross rent.
• Credit: U.S. tax can offset Brazilian tax within legal limits, based on reciprocity. There is no Brazil-U.S. income tax treaty.

3. The sale

• Brazil: capital gains at 15% to 22.5%, depending on the size of the gain.
• Currency: how the gain is computed depends on the source of the funds; a sale with no dollar gain can produce a taxable gain in reais, or the reverse.
• U.S.: when a foreign person sells, the buyer generally withholds 15% of the gross price (FIRPTA); any excess can be recovered on the U.S. return.

4. The Central Bank

Residents with US$1 million or more in assets abroad on December 31 file the annual Brazilian Capital Abroad (CBE) report with the Central Bank. Above US$100 million, the report is quarterly.

How we look at it

Investing abroad is not hiding money; it is reporting it properly. Organize the paperwork on the day you buy: every wire, every payment, every contract. See also Brazil's offshore law and U.S. property.

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 an accountant in Brazil and one in the U.S. before filing.

Sources

• Receita Federal, IRPF 2026 questions and answers (Portuguese)
• Law 13,259/2016 (capital gains rates), Brazil
• Central Bank of Brazil, Brazilian Capital Abroad (CBE)
• IRS, FIRPTA withholding