Guide · Foreign buyers

Brazil tax treaties and property: Canada, UK, US

Canada has an income tax treaty with Brazil in force; the UK one is signed but not in force; the US has none. What that means for rent, sales and tax credits.

Checked on against the official sources at the bottom of the page.

In short

Canada has an income tax convention with Brazil, in force since 23 December 1985. The United Kingdom signed a convention with Brazil on 29 November 2022, but the UK government lists it as not in force and it is absent from the Receita Federal’s list of agreements, updated on 28 August 2026. The United States has no income tax treaty with Brazil. For a home in Brazil this means: Brazil keeps its right to tax rent and sale gains in all three cases, and relief from double taxation comes mainly from your own country’s credit system.

What the Receita’s list says

The Receita Federal’s page “Acordos para evitar a dupla tributação e prevenir a evasão fiscal”, updated on 28/08/2026, lists Canada with Decreto 92.318/1986 and Portaria MF 199/1986. The United Kingdom and the United States do not appear on it. The Receita’s questions-and-answers (Perguntas e Respostas IRPF 2026) follow one principle: the treaty comes first. For rent (question 208): “se há acordo […] o tratamento fiscal será aquele neles previsto”, and 15% only when there is none. For a sale (question 655) the treaty result applies “se essa hipótese estiver expressa no acordo”.

Canada

Payotte read the Canada-Brazil Income Tax Convention Act, 1984 on the Justice Laws site of Canada. The convention was signed at Brasília on 4 June 1984; the Act’s footnote gives the entry into force as 23 December 1985. Three articles matter for property:

  • Art. VI, para. 1 and 3: income from immovable property “may be taxed in the Contracting State in which such property is situated”, including income from “the direct use, letting, or use in any other form”. Brazil may tax the rent of a Brazilian flat.
  • Art. XIII, para. 2: gains from the alienation of such property “may be taxed in both Contracting States”. The treaty does not cap the Brazilian tax on a sale.
  • Art. XXII, para. 2: Canada gives a deduction “equal to the income tax paid in Brazil”, but not more than the part of the Canadian tax appropriate to the income that may be taxed in Brazil.

Payotte found no lower rate for property income in the articles read, so the 15% on rent and the bands on a sale described in non-resident rental income tax and non-resident capital gains tax remain the working assumption. The Receita’s own PDF of the treaty is a scan without text and was not read.

United Kingdom

GOV.UK’s page for the 2022 UK-Brazil Double Taxation Convention says “Signed in Brazil on 29 November 2022” and “This Convention has not yet entered into force”. It says entry into force follows completion of the procedures of both countries, and that an announcement will be made. The page is dated 29 November 2022; the page “Brazil: tax treaties” shows only an aircrew agreement and shipping and air transport agreements as in force. Payotte found no entry-into-force notice, and the United Kingdom does not appear on the Receita’s list of 28 August 2026. It therefore says exactly this: signed, but not found in force on the Brazilian side on 15 October 2026. The GOV.UK page is itself dated 2022, so check GOV.UK for a later announcement. Without a treaty, the Brazilian rules apply with no convention rate.

United States

The IRS “Table 3. List of Tax Treaties”, updated through 26 September 2025, does not include Brazil, and the Receita list does not include the United States. There is no treaty to apply.

What your own country does

These are general descriptions on official pages; Payotte does not know your tax situation.

CountryWhat the official page says
CanadaA person who was resident in Canada at some time in the year and reported income from sources outside Canada can claim a credit; for each country the usual cap is the lower of the foreign tax paid and the Canadian tax on net income from that country. Federal form T2209, provincial form T2036 outside Quebec (CRA).
United Kingdom”You can usually claim Foreign Tax Credit Relief when you report your overseas income in your tax return.” Without an agreement you usually still get relief, unless the foreign tax does not match UK Income Tax or Capital Gains Tax (GOV.UK). A UK resident pays Capital Gains Tax when disposing of overseas property.
United StatesThe IRS says that a citizen or resident alien is “subject to tax on worldwide income from all sources”, and that you can generally take foreign income tax as a credit (Form 1116) or an itemised deduction.

Whether the Brazilian tax on a sale or on rent can be credited in full depends on your home rules and on the amounts. The calculators of Payotte do not compute that credit.

If you live in Brazil

For a Brazilian tax resident with income from the United States or the United Kingdom, question 142 says the tax paid there is offsettable in Brazil within the limits of IN SRF 208, because those countries’ laws grant reciprocity; no proof of reciprocity is required for Germany, the United Kingdom and the United States (question 136). For countries with a treaty, the treaty rules. See tax residency.

Inheritance and gifts

The agreements above deal with income tax. The ITCMD inheritance and gift tax is a state tax, and Payotte did not read any treaty applying to it: see inheriting Brazilian property from abroad.

Which professional to consult

A cross-border tax adviser in your home country (a chartered accountant, a CPA or an enrolled agent, depending on the country) for the credit; a Brazilian accountant (contador) for the Brazilian tax. A lawyer registered with the OAB can read a treaty article against a specific deed.

Frequently asked questions

Does the Canada treaty reduce the 15% on rent?

Payotte found no lower rate in the articles read. Art. VI lets Brazil tax the rent, and the Receita publishes 15% for cases without a treaty only.

Is the UK-Brazil treaty in force?

GOV.UK says it is not, and Brazil’s list does not show it. Check GOV.UK for an announcement.

I am American. Is Brazilian tax creditable?

The IRS describes a credit or deduction for foreign income taxes, subject to its conditions. Ask a US tax professional.

Does a treaty cancel the buyer’s withholding in Brazil?

Not on the texts read: the withholding is a collection method set by Lei 10.833/2003, art. 26. Only the rate depends on the treaty.

Where do I get proof of the Brazilian tax paid?

The DARF receipt kept from the sale or from the attorney’s monthly payments.

More guides on foreign buyers

Sources

All guides · Payotte Brazil