Tax on rent from a Brazilian property owned from abroad

The rule

Question 208 of the Receita’s 2026 questions-and-answers (Perguntas e Respostas IRPF 2026) covers “aluguel de imóvel localizado no Brasil recebidos por não residente”. It says that one must first check whether there is a tax agreement between Brazil and the owner’s country of residence. If there is one, “o tratamento fiscal será aquele neles previsto”. If there is not, the income is “tributado exclusivamente na fonte à alíquota de 15%”. “Exclusively at source” means that the 15% is the whole Brazilian tax: nothing is added in a Brazilian annual return and no progressive table applies. The legal basis cited is Decreto-Lei 5.844/1943, art. 100, the income tax regulation (RIR/2018) and IN SRF 208/2002, arts. 42 and 44. Art. 42 of that instrument sets the 15% on income paid to non-residents that has no specific rate, and § 3 sets 25% when the income goes to a resident of a favoured-taxation country.

Who pays, and when

The Q&A states: “O imposto deve ser recolhido na data da ocorrência do fato gerador, sendo responsável pelo recolhimento o procurador do residente no exterior”. IN SRF 208, art. 44 says the same for tax withheld at source: it is paid on the date of the taxable event. In practice:

• you need an attorney resident in Brazil, appointed by a power of attorney (see power of attorney from abroad);
• the attorney pays the DARF, code 9478, in the attorney’s own CPF;
• the Q&A adds that the attorney later informs the Receita of the owner as beneficiary of the income in the annual withholding return (Dirf);
• the answer names the attorney, not the tenant, as the person responsible.

Because the tax falls on the day the rent is received, an attorney who collects the rent monthly pays monthly. If the rent is paid straight to your account abroad, Payotte found no text that tells you who then pays the tax: ask the Receita or an accountant before the first payment.

15% or 25%

The 25% rate applies to income received by a resident of a country or dependency with favoured taxation. Since 13 May 2025 the Receita describes these as places that do not tax income, that tax it below 17%, or whose law does not allow access to information on ownership. The list is in IN RFB 1.037/2010: the Cayman Islands, Panama, the Bahamas and the British Virgin Islands are on it, while Canada, the United Kingdom and the United States are not. The Channel Islands and the Isle of Man are. Older texts such as IN SRF 208, art. 43, still say “inferior a vinte por cento” (below 20%); the Q&A gives 17% for 2025 onwards.

What a treaty changes

Brazil has a treaty with Canada. Its art. VI, para. 1 says that income from immovable property “may be taxed in the Contracting State in which such property is situated”, and para. 3 extends this to income from “the direct use, letting, or use in any other form”. So Brazil keeps its right to tax the rent, and Payotte found no lower rate in the articles read. There is no income tax treaty with the United States. A convention with the United Kingdom has been signed but is not in force. The relief in your country is explained in tax treaties and property.

Becoming a resident changes the regime

A person who becomes resident for tax purposes (for example, a temporary-visa holder who stays 184 days in twelve months) is taxed on rent under the resident rules, with the monthly carnê-leão and the annual return: see landlord income tax and tax residency. Question 127 of the Q&A says that a non-resident with a temporary visa is taxed at source on income received in Brazil, and in the resident regime from the date the person becomes resident.

The consumption-tax reform

Under Lei Complementar 214/2025, art. 251, an individual who rents out property becomes a taxpayer of the new IBS and CBS only if, in the previous calendar year, the rental revenue exceeded R$ 240,000 and covered more than three distinct properties. The 2026 rates are a test: IBS at 0.1% and CBS at 0.9% on events from 1 January to 31 December 2026 (arts. 343 and 346), offset against other federal contributions (art. 348). An owner of one or two flats is outside the regime. This is separate from the income tax above.

Which professional to consult

An accountant (contador) can set up the monthly DARF routine and the annual declaration by the attorney. A lawyer registered with the OAB drafts the power of attorney, and a licensed estate agent (corretor de imóveis) or property manager collects the rent. See property lawyer.