Declaring Brazilian property in the income tax return

Who has to file (return for 2026, income year 2025)

The Receita Federal’s 2026 Q&A, question 1, says a Brazil-resident individual must file if in 2025 they:

• received taxable income above R$ 35,584;
• received exempt, non-taxable or exclusively-taxed income above R$ 200,000;
• had a capital gain subject to tax in any month, for example on selling a property;
• on 31 December held assets and rights, including bare land, of total value above R$ 800,000;
• became a resident in any month and still was on 31 December;
• opted for the exemption on the sale of a residential property when the proceeds are reinvested in a residential property in Brazil within 180 days of the contract (Lei 11.196/2005, article 39);
• and other cases for rural activity, stock exchange and foreign investments.

A person who is a dependent in another’s return that lists their income and assets is excused. A spouse who files only because of the assets test, and whose common assets are declared by the other spouse, is excused if their own private assets do not exceed R$ 800,000. The Q&A also contains a sentence quoting an older limit of R$ 300,000 for that spouse rule; Payotte relied on the R$ 800,000 limit in question 1. Payotte read only the 2026 Q&A, so the limits for the 2027 return (income year 2026) must be checked on the Receita Federal’s site when that filing period opens.

If you are a resident and are required to file but file late, the fine is 1 percent a month of the tax due, with a minimum of R$ 165.74 and a maximum of 20 percent of the tax; if no tax is due, the fine is R$ 165.74 (question 24).

What to enter and at what value

Question 7: a filer must list, in the assets section, the assets and rights “in Brazil or abroad” that made up their estate on 31 December of the previous year and of the current year, and those acquired and sold during the year. The same applies to debts and ônus reais (liens such as a mortgage) above R$ 5,000, including those created or extinguished during the year.

The value is the acquisition cost. The Receita says that for assets bought after 1995, “no update is applied” to the cost. So an apartment bought for R$ 400,000 and worth far more today appears at the cost, not the market value. Expenses that can be added to the cost of real estate, when documented and declared in the year they were incurred, include construction, extension and renovation with municipal-approved projects, small works such as painting and plumbing, the ITBI paid on purchase, brokerage paid on purchase, interest and charges paid to acquire it, and deed and registration costs paid by the buyer (question 671). See renovation permits and closing costs.

One-off update option closed. Lei 14.973/2024 allowed residents to update the declared value of real estate to market value, paying a final 4 percent on the difference, but only through a declaration filed by 16 December 2024 (question 648). That window has closed.

Special cases

• Inherited property. The heir lists the asset at the value of transmission of their share, which becomes the cost for a later sale, with the date of death as the acquisition date. The estate files its own final return (questions 609, 110). See inheritance and inventário.
• Gift. The recipient enters the value stated in the deed (question 614). A donor who gives property above its declared value may have a capital gain (question 613).
• Rent received. Rent from individuals is paid monthly through the carnê-leão and then also declared in the return, where the tax paid counts as an advance; rent paid by a company has tax withheld; see landlord income tax. Expenses paid to an estate agent are reported in the “payments made” section under the code for property administrators (question 207).
• Sale. A gain on sale is taxed separately, paid by the last business day of the following month, and is not part of the annual calculation (Lei 8.981, article 21); the return must still show the sale. See capital gains tax on property.
• Co-ownership and marriage. A couple’s common assets can be declared by one spouse (question 1, note b).

If you are not a resident

Question 175: a non-resident, “even if in any of the cases requiring a resident to file, cannot present” the DAA in Brazil. Question 58: a non-resident who owns assets subject to public registration in Brazil, including real estate, must have a CPF; see CPF for foreigners. The tax on a non-resident’s rent is withheld at source at 15 percent unless a treaty applies (question 208), or 25 percent for an owner in a jurisdiction on the Receita’s low-tax list, and a non-resident’s gain on selling the property is taxed at progressive rates without the resident’s exemptions (question 655); see non-resident capital gains tax. Tax residency has its own rules; see tax residency in Brazil for property owners.

Your home country may ask you to report foreign property or income in its own return. Payotte did not read the Canadian, British or US rules for this guide; check them with that country’s tax authority and see Brazil’s tax treaties.

Which professional to consult

An accountant registered with the regional accounting council prepares the return. A lawyer registered with the OAB can address the residence question and treaties; see the property lawyer page.