Buying well is only half the game. When selling a U.S. property at a profit, a Brazilian resident needs to understand how the capital gain is taxed back home.
The profit on selling a foreign property is taxed in Brazil as a capital gain, at progressive rates of 15% to 22.5%. It is calculated in the Receita Federal GCAP program and paid via DARF by the last business day of the month after the sale.
What a capital gain is
It is the difference between the sale value and the property's acquisition cost, both considered in reais using the Central Bank rate on the relevant dates. The tax applies to that profit.
The progressive rates
The capital gain has bracketed rates: it starts at 15% and rises (17.5%, 20%, and up to 22.5%) as the profit grows. The larger the gain, the higher the rate on the upper portion.
How to calculate and pay
The calculation is done in the Receita Federal GCAP program, and the tax is paid via DARF by the last business day of the month after the sale. The data is then imported into the annual return.
Possible exemptions
There are exemption and reduction rules in specific situations. Since applicability depends on your case, confirm with an accountant whether you qualify before selling.
The currency-variation question
There are specific rules on the portion of the gain tied to dollar variation, which can change the calculation. This point usually requires professional guidance.
Before selling, plan
Review the declared acquisition cost (see how to declare the property on your income tax) and the costs of owning the property, which help size the result.
Sources
Buldora analysis based on official Brazilian sources: Receita Federal do Brasil (capital gains, GCAP, DARF) and Banco Central do Brasil (exchange rate). Informational only; not legal, tax, or investment advice. Consult an accountant before selling.
This article is part of the complete guide How to Buy Property in Florida as a Brazilian.
