To pay for US property while living in Brazil, you send an international transfer through a bank or foreign exchange broker authorized by Brazil's Central Bank, straight to the escrow account of the title company or attorney handling the closing. You don't pay the seller or the real estate agent. Since June 2025, the IOF (Brazil's tax on foreign exchange) on the transfer is 1.1% when the transaction is classified as an investment and 3.5% on other transfers. Before every wire, confirm the bank instructions by phone, at a number you already had: fake-email wire fraud is the costliest scam in the industry.
How the money moves in a purchase
- Initial deposit (earnest money): after the contract is signed, you send the deposit to the escrow account of the title company or attorney. The deadline is short and set in the contract.
- Financing, if any: the US lender sends the loan straight to the title company at closing, always subject to lender approval. See how financing works if you live abroad.
- Balance at closing: a few days before, the title company sends the "closing disclosure" or "settlement statement" with the exact amount to wire. You send the rest.
- After the purchase: property tax, insurance, condo or HOA fees and maintenance. For those recurring bills, a US bank account helps (see below).
A US account is not required to buy: the transfer can go from Brazil straight to escrow. It just makes life easier afterward.
IOF and exchange: what it costs to send the money
The IOF on foreign exchange changed in 2025. After two decrees in May, Decree No. 12,499/2025 took effect on June 12, 2025 with these rates for money leaving Brazil (text of the decree):
| Type of transfer | IOF |
|---|---|
| Transfer to your own account abroad | 3.5% |
| Transfer for investment purposes | 1.1% |
| Other non-exempt transfers abroad | 3.5% |
Brazil's Congress overturned the decree, but Justice Alexandre de Moraes of the Supreme Federal Court (STF) reinstated its effects on July 16, 2025, except for the "risco sacado" (supplier finance) portion, which doesn't affect transfers to buy property (Demarest, Jul 2025).
Which rate applies to you? It depends on how the bank or broker classifies the transaction in the exchange contract. Ask in writing, before you lock in the exchange rate, what classification and what IOF rate they'll use for "purchase of real estate abroad." The difference is large:
| Example: a $445,000 property | Amount |
|---|---|
| PTAX selling rate on 10/06/2026 | R$ 4.9698 (Banco Central do Brasil) |
| Amount in reais, before costs | ≈ R$ 2.21 million |
| IOF at 1.1% | ≈ R$ 24.3 thousand |
| IOF at 3.5% | ≈ R$ 77.4 thousand |
Also add the spread, the difference between the rate the institution charges and the PTAX, plus sending and receiving fees. Ask two or three institutions for the final "VET" quote (total effective cost) and compare the final dollar amount that reaches escrow.
The exchange rate moves fast. The PTAX selling rate went from R$ 5.2238 on October 2, 2026 to R$ 4.9859 on October 5, one business day later, a drop of about 4.6% (Banco Central do Brasil, PTAX). On a $445,000 purchase, that's a difference of more than R$ 100 thousand. Rui doesn't give foreign exchange advice: talk to your bank about the timing and the way to buy the dollars.
Documents on the Brazilian side: the institution will ask for your CPF, the purchase contract (English is fine, sometimes with a translation) and the escrow instructions. It may also ask for proof of the source of funds. Always send from your own account, in your own name: the buyer on the contract and the person sending the money should be the same person (or couple), to avoid problems with the bank, the title company and your tax return. Afterward, report the property in Brazil, as our Portuguese guide on reporting it on the Brazilian tax return explains.
Fake-email wire fraud
Here's how it works: the criminal hacks or imitates the email of the agent, the attorney or the title company and sends "new bank instructions" shortly before closing. The money goes to the scammer's account and usually disappears within hours.
In 2025, the FBI received 12,368 real estate fraud complaints, with $275.1 million in losses, up 58.5% from 2024 (NAR, citing the 2025 FBI IC3 report).
Checklist before every wire:
- [ ] I received the title company's instructions and called them at a number I already had, from the official website or the contract, never from the email with the instructions.
- [ ] I confirmed by phone the bank name, the account name, the account number and the routing/SWIFT code.
- [ ] I'm suspicious of any change in instructions, especially an urgent one. Reputable title companies almost never switch accounts mid-transaction.
- [ ] I confirmed the title company or attorney exists: an active company on Sunbiz (Florida's official business registry) and an attorney in good standing with The Florida Bar.
- [ ] I sent a small test amount first, when the timeline allowed, and asked for confirmation of receipt by phone.
- [ ] After sending, I called again to confirm the money arrived.
If something goes wrong: immediately call your bank and ask for a recall of the transfer, alert the title company and file a complaint with the FBI's IC3. The first hours make a difference.
Rui will never ask you to send money to his account or change bank instructions by email or WhatsApp. If you get a message like that, even if it seems to come from him, call first.
A US bank account as a nonresident
For the day-to-day expenses of the property, a US account makes things easier: rent goes in, and property tax, insurance and condo or HOA fees go out.
- Usual documents: passport, a second ID, proof of address in Brazil and sometimes an ITIN. Many banks require you to open the account in person. Requirements vary from bank to bank.
- Form W-8BEN: the form where you certify to the bank that you're a foreign person, for tax withholding purposes (IRS).
- FDIC insurance: deposits at an insured bank are protected up to $250,000 per depositor, per bank, per ownership category (FDIC).
- Report it in Brazil: the account goes on your Brazilian income tax return and counts toward the Central Bank's CBE (Brazilian capital abroad) reporting threshold.
FAQ
Can I send the money straight to the seller?
You shouldn't. The standard in Florida is to deposit into the escrow account of the closing title company or attorney, which only releases the money to the seller once all the conditions of the purchase are met.
What is the IOF to buy property in the US in 2026?
Under Decree No. 12,499/2025, it's 1.1% when the transfer is classified as an investment and 3.5% on other transfers abroad. Confirm in writing with your institution which classification it will use.
Do I need a US bank account to buy?
No. The transfer can go from Brazil straight to escrow. A US account is useful afterward, to receive rent and pay the property's expenses.
How do I know the bank instructions are real?
Call the title company at a number you already knew and confirm every detail. Never use the phone number that came in the same email as the instructions, and be suspicious of any last-minute change.
How much money do I need on top of the price?
2% to 5% in closing costs, plus reserves for the first year's expenses. See the full math in how much a house in Florida costs and estimate the payment in the mortgage calculator.
Talk to Rui
Straight answers in English or Portuguese. No pressure.