Capital Gains Tax in Brazil for Non-Residents: Rates, Withholding and Who Pays
Short answer. When a non-resident sells a Brazilian asset — real estate, shares, a stake in a local company — the gain (not the sale price) is taxed in Brazil on a progressive scale from 15% to 22.5%, or a flat 25% if the seller sits in a low-tax jurisdiction. The tax is withheld at source, and the duty to withhold falls on the Brazilian buyer or the seller’s local representative — not the seller abroad.
The core rule
Brazil taxes the capital gain on the disposal of assets located in Brazil wherever the seller lives. For a non-resident, the tax reaches direct and indirect interests in Brazilian assets or shares, and it applies to the gain — sale value minus acquisition cost — not the gross proceeds. [Source: RIR/2018 — Decreto 9.580/2018; Receita Federal]
The rates
Since 2017, capital gains follow a progressive scale (Lei 13.259/2016):
| Gain | Rate |
|---|---|
| Up to R$5 million | 15% |
| R$5m – R$10 million | 17.5% |
| R$10m – R$30 million | 20% |
| Above R$30 million | 22.5% |
A single flat rate of 25% applies instead where the seller is resident in a low-tax jurisdiction (a “tax haven” as defined by Receita Federal). [Source: Lei 13.259/2016 — Planalto; IN RFB 1.037/2010]
Who withholds and pays
This is the part foreign sellers most often get wrong. The tax is withheld at source, and the legal responsibility to withhold and remit sits with:
- the Brazilian acquirer (the buyer), or
- the seller’s legal representative in Brazil (a non-resident selling Brazilian assets must have one).
Payment uses DARF code 0473. Because the buyer or representative is on the hook, capital-gains tax should be settled at closing, not left for the seller to sort out later from abroad. [Source: Receita Federal — ganho de capital de não residentes]
The resident exemptions do NOT apply
Brazilian residents enjoy several capital-gains reliefs — the small-value exemption, the sole-property exemption, and the 180-day residential-reinvestment rollover. None of these are available to non-residents. A foreign seller of Brazilian property is taxed on the gain from the first real, with no primary-home or reinvestment shelter. [Source: RIR/2018 — Decreto 9.580/2018]
Foreign-exchange and cost-basis traps
Two points routinely inflate the taxable gain:
- Currency. The gain is computed in reais. If the asset was acquired with foreign currency registered as foreign investment, specific rules govern how the cost basis and gain are measured — get this checked, because a naive BRL calculation can overstate the gain.
- Registration. For assets bought with registered foreign capital, the Central Bank foreign-investment registration is what lets you repatriate the proceeds cleanly — and it interacts with how the gain is proven.
How it fits the wider picture
Capital-gains tax on a sale is separate from the income tax a foreigner owes on Brazilian income and from withholding on cross-border payments. Where a double-tax treaty applies it may allocate taxing rights on the gain — but the United States has no in-force treaty with Brazil, so US sellers cannot rely on one. And if you rented the property out before selling, rental income paid to non-residents has its own 15% withholding regime — make sure those DARFs are in order first.
Practical takeaway
For a non-resident selling a Brazilian asset:
- Compute the gain in reais, applying the correct cost basis — not a rough currency conversion.
- Expect 15%–22.5% (or 25% from a tax haven), and settle it at closing via DARF 0473.
- Confirm who withholds — the Brazilian buyer or your local representative carries the obligation.
- Do not count on resident exemptions — they do not extend to non-residents.
Line up your Brazilian representative and the tax calculation before you sign, not after the money leaves.
FAQ
Do non-residents pay capital gains tax in Brazil? Yes. A non-resident’s gain on selling Brazilian assets or shares is taxed in Brazil at progressive rates of 15% to 22.5%, or 25% if the seller is in a low-tax jurisdiction.
What are the capital gains tax rates for non-residents in Brazil? 15% on gains up to R$5m, 17.5% from R$5m–10m, 20% from R$10m–30m, and 22.5% above R$30m (Lei 13.259/2016). A flat 25% applies to sellers in tax havens.
Who withholds the capital gains tax when a foreigner sells? The Brazilian buyer, or the non-resident seller’s legal representative in Brazil, must withhold and remit the tax using DARF code 0473.
Can a foreigner use Brazil’s home-sale or reinvestment exemption? No. The small-value, sole-property and residential-reinvestment exemptions apply only to Brazilian residents, not to non-residents.
Is the tax on the sale price or the gain? On the gain — sale value minus acquisition cost, computed in reais — not on the gross sale proceeds.
Sources
Official sources reviewed for this brief: the progressive capital-gains rates (Lei 13.259/2016 — Planalto), the income-tax regulation (Decreto 9.580/2018 — RIR/2018), the low-tax-jurisdiction list (IN RFB 1.037/2010), and Receita Federal guidance on capital gains of non-residents.