This guide is for people who are tax residents of Brazil and own, or plan to buy, property in the US. On the Brazilian income tax return (IRPF), the property goes on the Bens e Direitos (Assets and Rights) schedule at its acquisition cost in reais, converted at the Central Bank dollar rate on the date of each payment, not at market value. Rent you receive goes through the carnê-leão (Brazil's monthly tax on income received from abroad) every month, and tax paid in the US can be credited. In the US, the rent is reported on Form 1040-NR. If everything you hold outside Brazil adds up to US$ 1 million or more, you also file the Central Bank's CBE report. The rules below are the Receita Federal's (Brazil's federal revenue service) for the 2026 return (calendar year 2025). Always confirm with an accountant.
1. On the Brazilian return: the Bens e Direitos schedule
According to the Receita Federal's "Perguntas e Respostas IRPF 2026" (question 479), property bought abroad is reported like this (Receita Federal, Apr 2026):
- Group 01 – Bens Imóveis (real estate), with the property-type code: 11 for an apartment, 12 for a house, 13 for land (Folha de Pernambuco). Enter the country where it is located (United States).
- Description (Discriminação): address, purchase date, the dollar amount shown on the deed, and how much of the money came from income originally in reais and how much from income originally in dollars.
- Position on Dec 31 (Situação em 31/12): the amount in reais, converted at the Central Bank's selling dollar rate on the acquisition date.
- Don't update the amount to market value or to the year's exchange rate. It only changes when you pay something that is part of the cost, such as a documented renovation or mortgage payments.
Financed the purchase? The cost is built up from what you actually pay: the down payment and, each year, the installments and interest paid, each converted on the date of payment (this is the logic the Receita applies to property bought in installments, in question 622 of the manual). The amount the bank has yet to receive doesn't count as cost.
Keep everything for at least five years: closing disclosure, deed, wire receipts and foreign exchange contracts. They're how you prove the cost when you sell.
2. Rent: carnê-leão and credit for US tax
For the Receita, income from foreign sources received by a Brazilian resident, whether or not it's transferred to Brazil, is taxed through the carnê-leão in the month it's received and goes into the annual return (question 130 of the same manual). It's the same rule as rent received from an individual in Brazil, using the monthly progressive table.
What about Law 14.754/2023? Since January 1, 2024, this law created a 15% annual rate for financial investments abroad and for profits of controlled companies abroad (Lei 14.754/2023). A property in your own name isn't a financial investment: the rent stays in the carnê-leão. If the property is held by a company abroad, the treatment may be different. That's one reason to decide the structure with your accountant (see our guide on estate tax and LLCs).
Tax paid in the US: Brazil has no treaty with the US to avoid double taxation, but the Receita recognizes reciprocity. Income tax paid in the US can be credited in the carnê-leão and on the annual return, up to the Brazilian tax on that income, and you don't have to prove reciprocity (questions 136 and 142 of the manual).
Selling: since 2024, the gain on selling assets abroad that aren't financial investments, such as real estate, is subject to Brazil's final capital gains tax under art. 21 of Law 8.981/1995, at rates from 15% to 22.5% (question 639). For purchases made before 2024, different rules applied depending on whether the money was originally in reais or dollars. Run these numbers with your accountant before you sell. The US side of a sale is covered in our guide to FIRPTA.
3. In the US: rent on Form 1040-NR
On the US side, the default for a nonresident alien is 30% of gross rent, with no expenses deducted, withheld by whoever pays the rent (the tenant or the property manager) (IRS).
The alternative is the election to be taxed on net income (section 871(d) of the Internal Revenue Code):
- You attach a statement to Form 1040-NR in the first year and give Form W-8ECI to the property manager so it stops withholding the 30%.
- You can then deduct expenses such as property tax, insurance, condo fees, management, interest and depreciation, and pay at graduated rates on the profit.
- The election applies to later years until it's revoked.
- Deadlines matter: if you don't file within 16 months of the original due date, you lose the right to the deductions (IRS). If you have no US wages, Form 1040-NR is normally due June 15 (IRS).
You'll need an ITIN to file. Florida has no state income tax, but short-term rentals have their own taxes, explained in our Portuguese guide to Airbnb in Florida.
4. Brazil's Central Bank: the CBE report
The Brazilian Capital Abroad report (CBE) is separate from the income tax return. You must file it if, on December 31, your assets and holdings outside Brazil, added together, were worth US$ 1 million or more, real estate included (Resolução BCB nº 279/2022). The filing window runs from February 15 to April 5 of the following year. For the 2025 base date, the deadline ended in April 2026 (Migalhas). Above US$ 100 million, the report becomes quarterly.
Summary: what to report and where
| What | Where | When |
|---|---|---|
| Property (cost in reais) | IRPF, Bens e Direitos, Group 01 | Annual return |
| Rent received | Carnê-leão + annual return | Every month you receive it |
| Tax paid in the US | Credit in the carnê-leão and annual return | Month it's paid in the US |
| Rent in the US | Form 1040-NR (+ 871(d) election, if it makes sense) | Generally by June 15 |
| Assets abroad ≥ US$ 1 million | CBE, Central Bank of Brazil | Feb 15 to Apr 5 |
This is not tax advice. The rules changed in 2024 and are still being adjusted. Hire an accountant in Brazil and a tax preparer in the US who talk to each other. Rui can refer you to professionals who work with Brazilian clients. If you're a tax resident of another country, check its rules with a local adviser.
FAQ
Do I have to report a property I bought in the US on my Brazilian tax return?
Yes, if you're a tax resident of Brazil and required to file. The property goes on the Bens e Direitos schedule, Group 01, at acquisition cost in reais, converted at the Central Bank's selling dollar rate on the date of each payment.
Should I update the property's value for the exchange rate or the market?
No. The reported amount is the acquisition cost in reais and only changes with new payments that are part of the cost. Dollar fluctuations only show up in the capital gain, when you sell.
Is rent from a US property taxed in Brazil?
Yes. For a Brazilian resident, rent received from abroad goes into the carnê-leão for the month it's received, and income tax paid in the US can be credited up to the Brazilian tax, by reciprocity (Receita Federal, questions 130 and 142).
Did Law 14.754 change how my US property is taxed?
For property in your own name, the rent stays in the carnê-leão. The law changed the taxation of financial investments and controlled companies abroad. If the property is held by a company abroad, ask your accountant.
When do I have to file the CBE report with Brazil's Central Bank?
When your assets and holdings abroad, on December 31, add up to US$ 1 million or more. Real estate counts. The filing window runs from February 15 to April 5. Questions about buying? Read the FAQ or see buying Florida real estate as a foreign national.
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