What Brazilian tax residents should know about IOF, Banco Central and Receita Federal reporting, and taxes in both countries before wiring money for a San Diego home, plus what changes if you already live in the US.
Send the money through a bank or broker that the Banco Central do Brasil authorizes to operate in the foreign exchange market. Brazilian law sets no overall cap on the amount, but the bank must identify you and can ask for documents that show where the money came from. As of October 2026, IOF is 3.5% on most outbound transfers and 1.10% only when money is sent abroad to hold there with an investment purpose. No official source says whether a home purchase qualifies for the lower rate, so confirm in writing with your bank how the transfer will be classified.
Once you own the home, it goes in your IRPF under Bens e Direitos, with the declared value in reais. It also goes in the Banco Central's DCBE if your assets abroad total US$1,000,000 or more on December 31 (as of October 2026). Rent is taxed monthly in Brazil through the carnê-leão, and a sale is taxed as a capital gain starting at 15%. If you already live in the US, your lender needs the money documented and in a US account before closing, and your Brazilian accounts may need to be reported in the US. The rules cross two countries, so work with a Brazilian accountant (contador) and a US CPA before you send money.
This page is for buyers who are tax residents of Brazil. If you have filed a Saída Definitiva and are no longer a Brazilian tax resident, different rules apply, so ask your contador which ones fit you. If you already live in the US on a visa or a green card, also read Already living in the US? below. Planning the move itself? See our guide to moving to San Diego from Brazil.
Under Brazil's foreign exchange law (Lei 14.286/2021, art. 3), foreign exchange can be done only through institutions the Banco Central do Brasil has authorized to operate in the FX market. The exceptions are narrow, such as an occasional cash exchange of up to US$500 between two individuals in Brazil (art. 19). Transfers tied to assets that residents of Brazil hold abroad, such as a US home, must go through one of these institutions too.
Is there a limit on the amount? Not an overall one. Lei 14.286/2021, art. 2 says foreign exchange operations can be carried out freely, with no limit on the amount, as long as they follow the law and the rules of the Conselho Monetário Nacional and the Banco Central (as of October 2026). The institution must identify you and make sure the operation is lawful (art. 4), and it can ask for documents that show where the money came from (Resolução BCB 277/2022, art. 7). Some channels do have caps: an international payment or transfer service (eFX) is limited to US$10,000 for a one-way transfer or a transfer to your own account abroad, and splitting a larger amount into smaller eFX transfers is not allowed (Res. BCB 277, art. 49). A larger down payment goes through a regular exchange contract with an authorized bank or broker.
Before you start, ask your bank or FX broker two things in writing: how the exchange contract will be classified, and what IOF rate it will charge. The law makes you, the client, responsible for classifying the purpose of the contract, and the bank must help you do it (Lei 14.286/2021, art. 4). The next section explains why that classification matters.
The FBI warns that email scams target everyone in a real estate deal, including buyers, title companies and agents. A common trick is a fake request to change the payment method or send the money to a different bank account.
More on signing and closing from outside the US: Buying a San Diego home from abroad.
As of October 2026, Decreto 6.306/2007, art. 15-B, in the wording given by Decreto 12.499/2025, sets these IOF rates for money a Brazilian resident sends out of Brazil:
| Type of outbound transfer | IOF rate |
|---|---|
| Money you send abroad to hold there in your own name, with an investment purpose (art. 15-B, XXI-A) | 1.10% |
| Money you send abroad to hold there in your own name without that investment purpose, or for a spouse, partner or relative (art. 15-B, XXI) | 3.5% |
| Other outbound transfers that are not exempt and not covered by a specific item (art. 15-B, XXIV) | 3.5% |
Which rate applies to a home purchase is not settled. No official source we found defines what counts as an "investment purpose" under this rule, so nobody can promise you 1.10% for buying a house. In practice, the classification of your exchange contract, which you make with your bank's guidance, decides the rate. Get the bank's answer in writing before you wire.
Read literally, the 1.10% rate covers only money you send to hold in your own name. A transfer to hold money for a spouse, partner or relative likely pays 3.5%, even when it is for an investment.
Money brought back into Brazil, such as rent or sale proceeds, pays 0.38% IOF under art. 15-B, XXV (as of October 2026).
Decreto 12.499 also revoked the earlier schedule (art. 15-C) that would have cut IOF on foreign exchange to zero in 2028 and 2029.
In a preliminary ruling on July 16, 2025 (ADC 96, ADIs 7827 and 7839), Brazil's Supreme Court (STF) Justice Alexandre de Moraes reinstated the IOF increase decree (Decreto 12.499/2025), except for "risco sacado" operations. On July 18, 2025, he clarified that the higher rates cannot be charged for the period the decree was suspended by Congress. As of the court docket's latest entry (August 26, 2026, checked October 14, 2026), the full court has not yet reviewed the ruling.
IOF rates are set by decree, and this case is still open, so the rates above could change. Confirm the rate with your bank on the day you send the money.
The home goes in the Bens e Direitos (assets) section of your Brazilian income tax return. Receita Federal's Perguntas e Respostas IRPF 2026 says:
These instructions come from the 2026 edition of Receita's Q&A, which covers calendar year 2025. The 2027 edition, for the return on 2026 income, had not been published as of October 2026. Ask your contador whether anything changed.
The DCBE (Declaração de Capitais Brasileiros no Exterior) is a separate filing from your IRPF. It goes to the Banco Central, not to Receita Federal.
What we confirmed: the US$1,000,000 test adds up all your assets abroad, and a home counts at its full value no matter how much you still owe on the mortgage. Supporting documents must be kept for 10 years.
Penalties apply (Res. BCB 279, art. 16). Res. BCB 131/2021, art. 66 sets each fine as a percentage of the amount you had to declare:
What we could not confirm from an official source: whether the DCBE values real estate at purchase cost or market value. Ask your contador.
Rent a Brazilian resident earns from a property abroad is subject to monthly carnê-leão tax in the month it is received, whether or not the money is brought to Brazil. It also goes in the annual return, where the carnê-leão you already paid counts as an advance payment.
Brazil has no income tax treaty with the United States, but Receita Federal recognizes reciprocity, so US income tax paid can be credited against Brazilian tax. For the US, no proof of reciprocity is needed.
By default, rent a nonresident alien earns from a US home that is not effectively connected with a US trade or business is taxed at a flat 30% of the gross amount, and no treaty rate is available to Brazilian residents. An owner can elect under IRC 871(d) to be taxed on net rental income at graduated rates instead, which means filing Form 1040-NR each year. The election covers all of your US real property held for income and stays in effect for later years, and undoing it generally needs IRS approval. California also taxes nonresidents on rent from California property. A US CPA should handle this part. More detail: Selling a US home as a foreign owner.
Taxes are only part of the plan. San Diego also has its own rules on short-term rentals and tenant protections, so read the rules for renting out your San Diego home before you buy to rent.
A gain on selling a home abroad stays under the regular capital gains rules of Lei 8.981/1995, art. 21. It is not part of the 15% annual regime for foreign financial investments. The rates for individuals are:
| Part of the capital gain | Rate |
|---|---|
| Up to R$5 million | 15% |
| R$5 million to R$10 million | 17.5% |
| R$10 million to R$30 million | 20% |
| Above R$30 million | 22.5% |
The tax is due by the last business day of the month after the gain.
We could not confirm from an official source how the cost basis is figured (in reais or in dollars), how a change in the exchange rate between purchase and sale is taxed, whether Brazil's own home-sale exemptions apply to a home abroad, or whether US tax paid on the sale can be credited against Brazil's capital gains tax. Your contador should run the numbers before you list the home.
On the US side, when a foreign person sells US real estate, the buyer generally must withhold 15% of the amount realized (roughly the gross sale price, not the profit) under FIRPTA. That withholding is a credit toward the seller's US tax, not the final tax, and California generally requires its own withholding when California real estate is sold, unless an exemption applies. See how a later US sale is withheld (FIRPTA), and for the costs and steps of the sale itself, selling a house in San Diego.
If you sell a home in Brazil to pay for the US one, the gain on that sale is taxed in Brazil under the same capital gains rules (Lei 8.981/1995, art. 21). Brazil's exemption for reinvesting home-sale proceeds within 180 days applies only when the money buys a residential property located in Brazil (Lei 11.196/2005, art. 39), so a San Diego home does not qualify for it. Other exemptions may fit your sale, so have your contador run the numbers before you sign, and use a CRECI-registered corretor in Brazil for the sale itself. Karina is licensed in California and works only with US property.
If you live in the US on a visa or a green card and want to use money from Brazil, three more things matter.
For a conventional loan sold to Fannie Mae, the lender must document every source of the down payment, closing costs and reserves. Money that comes from assets outside the US must be shown as exchanged into US dollars and held in a US or state-regulated financial institution, and the lender must verify those dollar funds before closing. Documents from Brazil must be in English or come with a complete and accurate translation (Fannie Mae Selling Guide B3-4.2-05, as of October 2026). Other loan programs and individual lenders have their own rules, so ask your lender what it needs before you wire, and keep the exchange contract and the Brazilian statements that show where the money came from. Your visa also affects your loan options, so see which loans fit your residency status.
Green card holders are US residents for tax purposes, and visa holders can be too under the IRS substantial presence test, which generally looks for at least 31 days in the US in the current year and 183 days over three years, counted with a weighted formula. US residents may have to report foreign accounts and assets on two separate forms (IRS, as of September 19, 2026):
Ask a US CPA which forms apply to you. Moving to the US does not by itself settle whether you are still a Brazilian tax resident, so ask your contador too. If you are, the Brazilian rules on this page still apply.
If parents or other relatives in Brazil send you money for the purchase, the Form 3520 rules in the next section may apply to you.
If you are a US person for tax purposes (a US CPA can tell you whether you are) and you receive gifts from a nonresident alien (plus related foreign persons) that total more than $100,000 in a tax year, you must report them on Part IV of IRS Form 3520.
A nonresident donor who is not a US citizen, such as a parent living in Brazil, is subject to US gift tax on gifts of real and tangible property located in the US, and the donor generally pays it. For example, parents who buy a San Diego home in their own names and later deed it to their child are making a gift of US real property. A Form 709-NA is required when, among other triggers, present-interest gifts to someone other than a spouse total more than $19,000 in 2026. A nonresident donor gets no lifetime gift exemption unless a treaty provides one, and the US has no gift tax treaty with Brazil. So if a gift of US real property is worth more than the $19,000 annual exclusion, the donor can owe US gift tax at graduated rates up to 40%, and if the donor does not pay, the recipient may have to.
Whether a cash wire from parents in Brazil is subject to US gift tax was not confirmed from an official source. It depends on facts a US tax professional should review. On the Brazilian side, ask your contador or a Brazilian lawyer whether the state gift tax (ITCMD) applies. How the help is given (cash before closing, or a deed after) can change the result, so get advice before anyone signs or wires.
US estate tax can reach an owner of US real estate who is neither a US citizen nor domiciled in the US (for example, someone whose home is in Brazil), and the limits are far lower than for US citizens and residents.
For estate tax, "nonresident" means not domiciled in the US at death, which is a different test from income tax residency. Ways to plan around this were outside our research. A US estate attorney is the right person to ask.
Some buyers from Brazil consider holding a US home through a company, usually a US LLC. There is no single right answer, and it is a decision to make with a US attorney, a US CPA and your contador before you sign the purchase contract. Facts to weigh, as of October 2026:
These rules change, and the two countries' rules affect each other. A sensible team for a buyer living in Brazil:
Karina handles the home search across San Diego County's cities and areas and the transaction itself, in English or Portuguese, and works alongside your advisors on timing so funds arrive before closing. Contracts and escrow documents are in English. She does not give tax or legal advice. Talk it through in Portuguese before you send money.
As of October 2026, IOF on outbound foreign exchange is 1.10% for money a Brazilian resident sends abroad to hold there with an investment purpose and 3.5% for most other transfers. No official source defines whether buying a home counts as an investment purpose, so in practice the classification of your exchange contract, which you make with your bank's guidance, decides the rate. Ask the bank to confirm it in writing before you wire.
There is no overall cap. Brazil's foreign exchange law (Lei 14.286/2021, art. 2) lets foreign exchange operations be carried out with no limit on the amount, as long as they follow the law and the Banco Central's rules (as of October 2026). The transfer must go through an authorized institution, which must identify you and can ask for documents that show where the money came from. Some channels have caps: an international payment or transfer service (eFX) is limited to US$10,000 for a one-way transfer or a transfer to your own account abroad, so a larger down payment goes through a regular exchange contract with an authorized bank or broker.
Not yet. On July 16, 2025, STF Justice Alexandre de Moraes reinstated Decreto 12.499/2025 in a preliminary ruling, and as of the court docket's latest entry (August 26, 2026, checked October 14, 2026) the full court has not reviewed it. IOF rates are set by decree and can change, so check the rate on the day you send.
If you file an IRPF, yes. It goes in the Bens e Direitos section of the IRPF. The description shows the purchase price in dollars from the transfer documents and how much of the money came from income earned in reais or in foreign currency, and the value is converted to reais at the Banco Central's US dollar selling rate for the purchase date.
As of October 2026, you file the annual DCBE if your assets abroad total US$1,000,000 or more on December 31, and real estate abroad counts. The window is February 15 to April 5 of the following year. Co-owners each count the full value of a shared asset for the threshold but report only their own share.
Generally yes, if you are a Brazilian tax resident. Rent from a property abroad is subject to the monthly carnê-leão in the month you receive it, even if the money stays in the US. Any tax is due by the last business day of the following month, and the rent also goes in the annual return, where the carnê-leão paid counts as an advance payment. Since January 2026, a monthly reduction under Lei 15.270/2025 can lower or remove the tax on small amounts. Your contador should confirm how it applies to you.
US federal income tax can be credited in Brazil based on reciprocity, even though there is no US-Brazil tax treaty. California state tax and city taxes cannot be credited. The credit is capped at the extra Brazilian tax on that income. We did not confirm whether US tax on a sale, such as FIRPTA withholding, can be credited against Brazil's capital gains tax, so ask your contador about a sale.
There is no single right answer, so decide with a US attorney, a US CPA and your contador before you sign the purchase contract. In California, an LLC that is organized or doing business there pays an $800 annual tax every year, plus an LLC fee once its California income reaches $250,000, and moving a home you already own into an LLC can trigger a property tax reassessment. The US has no estate or gift tax treaty with Brazil. In Brazil, a US company you control whose income is mainly rent can have its profits taxed each December 31 under Lei 14.754/2023, and sources disagree on how Brazil classifies a US LLC.
Generally yes, if your lender can document it. For a conventional loan sold to Fannie Mae, the lender must document every source of the down payment and closing costs, and money from outside the US must be exchanged into US dollars and held in a US or state-regulated financial institution, verified before closing. Documents from Brazil need a complete and accurate English translation. Send the money through an authorized institution in Brazil, keep the exchange contract and statements, and ask your lender what it needs before you wire. Your visa affects which loans you can get, and lenders can add their own rules.
If you are a US resident for tax purposes, such as a green card holder or a visa holder who meets the substantial presence test, you may have to report them in two ways. The FBAR (FinCEN Form 114) is required when your foreign financial accounts total more than $10,000 at any time during the year, and it is filed with FinCEN, not the IRS, by April 15, with an automatic extension to October 15. Form 8938 goes with your tax return once foreign financial assets pass a higher threshold, such as more than $50,000 on the last day of the tax year or more than $75,000 at any time for an unmarried person living in the US. Ask a US CPA which forms apply to you.
If you are a US person for tax purposes and gifts from a nonresident alien and related foreign persons total more than $100,000 in a tax year, you must report them on Form 3520, generally by April 15, subject to any extension. The penalty for not reporting can reach 25% of the gift unless there is reasonable cause. Ask a US CPA how your situation applies.
Karina offers a free, no-pressure conversation about your timeline, the San Diego market and how the purchase works from abroad, in English or Portuguese. Call, text, or send a note.