Investing in US stocks from Brazil changed shape in 2024. Brazil has no income tax treaty with the United States, so the US keeps 30% of every dividend, and since January 1, 2024 Law 14,754 has taxed income from investments abroad, including dividends, gains and currency gains, at a flat annual rate in the income tax return. Add the IOF on sending money out, which the government reset in 2025, and three quite different ways in: a broker abroad, BDRs on B3, and Brazilian funds that hold US funds. This guide explains how each is taxed, what you report and what happens at death, with a worked example on a $10,000 holding. Brazilian law and the CVM decide what you may buy and how it is taxed, so read this as background and confirm your own case with a Brazilian tax adviser. The invest-from-abroad hub covers the rules shared by every country.
What changed for Brazilians investing abroad in 2024?
Since January 1, 2024, Law 14,754 taxes income from financial investments abroad at 15% a year, in a separate section of the annual return.
Before the law, foreign gains went through the capital gains rules and foreign dividends through the monthly carnê-leão. Now most direct holdings sit in one regime:
- What is covered. Shares, ETFs, investment funds, bonds and similar financial assets held abroad, plus deposits that pay interest.
- What is taxed. Dividends and interest when received, gains when realized, and the currency gain on the investment, all measured in reais.
- How it is paid. The income goes in its own section of the annual adjustment return (DAA) at a flat rate with no deductions, and the tax is settled on the return's schedule rather than monthly.
- Losses. A loss offsets gains in the same year, and an unused loss carries forward to later years in the same regime.
- Currency exemptions. Exchange gains on non-interest-bearing deposits abroad are exempt, as are gains on foreign cash up to US$5,000 of sales a year.
Foreign tax is credited only where Brazil has a treaty or reciprocity with the paying country. The Receita Federal confirms reciprocity with the United States, so US withholding counts, but the credit cannot exceed the Brazilian tax on the same income, and any excess is lost. Income and gains are converted at the central bank's closing selling rate for the date of each event, while the US tax uses its buying rate for the day the tax was paid.
High earners have one more layer. From 2026 income, Law 15,270 adds a minimum tax for people whose total income exceeds R$600,000 a year, rising to 10% at R$1.2 million. Offshore income counts toward that base, and tax already paid under Law 14,754 reduces the minimum tax due.
Why does the US keep 30% of a Brazilian's dividends?
Because Brazil and the US have no income tax treaty, so dividends paid to Brazilian residents are withheld at the full statutory rate.
The IRS list of treaty partners does not include Brazil, so the statutory rule applies in full: 30% on US-source dividends, unless a tax treaty sets a lower rate. The snapshot from the IRS treaty table shows what that means in practice:
| Country | Tax treaty | Dividends (most investors) | Dividends (10%+ corporate owners) | Interest |
|---|---|---|---|---|
| Brazil | No | 30% | 30% | 30% |
The interest column looks worse than reality. US law exempts most interest that individual investors earn, such as interest on Treasury bills, notes and bonds, provided the payer has your Form W-8BEN. That form still matters with no treaty to claim, because it certifies that you are not a US person; without it, a broker may handle you as one. The W-8BEN guide walks through it, and US dividend withholding by country shows how far Brazil sits from treaty countries.
The two tax systems then collide. Brazil credits the US withholding only up to the 15% it charges on the same dividend, so the other 15 points are lost: there is no treaty rate to reclaim from the IRS, and Brazil allows no carryforward. Treasury bills work the other way round. Their interest usually escapes US withholding, so Brazil's 15% is the only tax; the guide to Treasury bills for non-US investors covers how to buy them.
Three ways to own US stocks from Brazil
Each route reaches the same companies, but the tax, the currency step and the estate position differ.
A broker abroad. CVM guidance, Parecer de Orientação 33 of 2005, lets a foreign intermediary serve Brazilian residents when the client seeks it out and there is no public offer in Brazil. Firms that market to the Brazilian public must register with the CVM or work through a Brazilian distributor, and the CVM issues stop orders against platforms that do not. Money leaves through a bank or FX broker authorized by the central bank: Law 14,286 lets residents buy currency freely and without a value limit, but only through authorized institutions. The guide to opening a US brokerage account as a nonresident covers the paperwork.
BDRs on B3. Brazilian Depositary Receipts are certificates issued in Brazil that represent shares held abroad. From September 1, 2020, CVM Resolution 3 let investors who are not classed as qualified buy Level 1 BDRs, depending on where the underlying shares trade, and allowed BDRs backed by foreign ETFs; B3 opened them to retail trading on October 22, 2020, and CVM Resolution 182 of 2023 now governs them. You trade in reais, in Brazilian hours, through a local broker, under the rules for Brazilian variable income: gains pay 15% (20% on day trades) through a monthly DARF, without the R$20,000 exemption, and dividends go through carnê-leão at the progressive monthly table with a credit for the US tax.
Brazilian ETFs that hold US funds. B3 also lists Brazilian funds that invest in US-listed ETFs. IVVB11 is an example: a Brazilian-domiciled fund listed in April 2014 that keeps at least 95% of its assets in IVV, tracks the S&P 500 in reais and reinvests dividends, with a 0.23% fee according to BlackRock. As a Brazilian ETF, its gains pay 15% when you sell, again with no R$20,000 exemption, and there is no IOF on your side. Inside the fund, US dividends generally still lose 30%, because the fund is itself a Brazilian investor.
| Broker abroad | BDR on B3 | Brazilian ETF holding a US fund | |
|---|---|---|---|
| Currency and hours | Dollars, US hours | Reais, B3 hours | Reais, B3 hours |
| IOF when you invest | 1.1% on the transfer | None on your side | None on your side |
| US withholding on dividends | 30% | 30%, before the depositary pays you | 30%, inside the fund |
| Brazilian tax on dividends | 15% a year, with US tax credited up to 15% | Monthly progressive table, with US tax credited | None while the fund reinvests |
| Brazilian tax on gains | 15% a year, including currency gains | 15% monthly (20% on day trades) | 15% when you sell |
| US estate tax | Applies above $60,000 of US assets | Unsettled; take advice | Unsettled; take advice |
How much IOF do you pay to send money abroad to invest?
Currently 1.1% when the transfer is made to invest abroad, and 3.5% for a transfer to your own account abroad without that purpose.
Until May 2025, a resident sending money to an account in their own name abroad paid 1.1% whatever the purpose. Decrees 12,467 and 12,499 of 2025 split that category: the general rate for transfers to a resident's own account rose to 3.5%, and the investment rate stayed at 1.1%. Congress voted to suspend the decrees, the Supreme Court restored them on July 16, 2025, and the case (ADC 96) still awaits a full-court ruling, so 2026 transfers pay the 2025 rates with some legal uncertainty attached. Card spending and purchases of foreign cash also pay 3.5%, and money coming back into Brazil pays 0.38%.
The bank or FX broker records the purpose of each transfer, so state it when you send money and keep the exchange contract. The other cost is the exchange spread. The table shows what reais buy at the mid-market rate and with typical markups:
| You send | At the mid-market rate | With a 0.5% markup | With a 2% markup |
|---|---|---|---|
| R$5,000 | $919.63 | $915.03 | $901.24 |
| R$25,000 | $4,598 | $4,575 | $4,506 |
| R$100,000 | $18,393 | $18,301 | $18,025 |
Most transfers start with a Pix payment to the FX provider, and the money transfer cost calculator helps compare quotes once fees and markups are known.
Rules for Brazilian residents at a glance
The table pulls together the rules for a Brazilian resident who holds US shares or US-domiciled ETFs.
| Rule | What applies |
|---|---|
| US withholding on dividends | 30%; no US income tax treaty |
| US withholding on interest | Most portfolio, Treasury and bank interest is exempt with a W-8BEN |
| US tax on gains | Generally none for nonresidents |
| US estate tax | On US assets above $60,000, at 18% to 40%, with a $13,000 credit; no estate tax treaty |
| Brazilian tax on direct holdings abroad | 15% a year on dividends, interest, gains and currency gains, with US tax credited up to that 15% |
| Brazilian tax on BDRs | Gains 15% monthly (20% on day trades); dividends through carnê-leão at up to 27.5% |
| IOF on transfers out | 1.1% to invest; 3.5% to an own account abroad without that purpose |
| Inheritance | State ITCMD, progressive, capped at 8%, which the 2026 rules extend to movable assets abroad |
| Reporting | Annual return (DAA); CBE declaration at US$1 million or more abroad on December 31 |
What do you report to the Receita and the central bank?
Everything goes in the annual return, and residents with large holdings abroad also file the central bank's CBE declaration.
The DAA's section for Law 14,754 income lists each investment, the income it produced and the foreign tax credited, and the assets themselves appear among goods and rights. Brokers abroad do not send you a Brazilian informe de rendimentos, so you build the figures from their statements, converting each item at the central bank's rate for its date. BDR and Brazilian ETF trades are simpler, because your Brazilian broker issues the statements you need, but the monthly DARF on gains is still yours to pay.
The Banco Central do Brasil requires the annual CBE declaration from residents with assets abroad worth US$1 million or more on December 31. It is filed between February 15 and April 5, and late, incorrect or missing filings can be fined. The guide to reporting US investments at home explains how tax authorities exchange account information across borders.
Worked example: $10,000 in a US-listed ETF
This example follows a holding at a broker abroad through a year of dividends and a later sale.
Worked example: A Brazilian resident's $10,000 US ETF with a 1.3% yield
Assumptions: the money is sent abroad to invest, the ETF pays $130 in dividends over the year, and the exchange rates in the last line are hypothetical.
- IOF on the transfer: 1.1% of the reais converted, about $110 on $10,000
- US withholding with no treaty: $130 × 30% = $39, so $91 arrives
- Brazilian tax under Law 14,754: $130 × 15% = $19.50
- Credit for the US tax, capped at the Brazilian tax: $19.50, so Brazil collects $0
- US tax left uncredited: $39 − $19.50 = $19.50, a permanent cost
- Later sale: bought at R$5.50 per dollar (R$55,000) and sold for $12,000 at R$5.00 (R$60,000), a R$5,000 gain taxed at 15% = R$750
The last line shows why currency matters to the tax. The dollar gain was 20%, but the real strengthened, so the taxable gain in reais was about 9%. Had the real weakened to R$6.00 instead, the same sale would have produced R$72,000 and R$2,550 of tax, part of it on the currency move alone.
An Irish-domiciled accumulating ETF on the same index changes three numbers: US tax inside the fund is generally 15% instead of 30%, there are no yearly dividends to declare because the fund reinvests them, and the fund is outside US estate tax. The gain is still taxed at 15% in reais when you sell. The comparison of US and Irish-domiciled ETFs sets out the other trade-offs, such as fees, spreads and trading hours.
What happens to US shares when a Brazilian investor dies?
Two taxes can apply: US estate tax on US assets above $60,000, and the ITCMD charged by the Brazilian state where the deceased lived.
On the US side, Brazil has no estate tax treaty, so the US can tax the estate once it holds more than $60,000 of US-situated assets, with a credit of $13,000, which offsets the tax on the first $60,000 of US assets. Shares of US companies count as US property wherever they are held, and so do US-listed ETFs. On $250,000 of US shares, the tentative tax from the IRS rate table is $70,800, and the credit brings it to $57,800, payable with Form 706-NA within nine months unless extended.
On the Brazilian side, Complementary Law 227 of January 2026 assigns the ITCMD on movable assets, wherever they are located, to the state of the deceased's domicile, and requires progressive rates. The Senate's ceiling is 8%. Each state still has to adapt its own law, so whether yours already taxes foreign assets, and at what rate, is a question for a local lawyer. With no treaty between the two systems, the same shares can be taxed by both.
Irish-domiciled funds sit outside the US estate tax altogether. For BDRs and Brazilian funds the US shares are held by a depositary or by the fund rather than by you, and we found no IRS guidance on whether the US looks through those structures, so get advice before counting on them. The guide to US estate tax for nonresidents explains the filing process.
What are the main risks for Brazilian investors?
Currency swings, tax leakage and frequent rule changes, on top of the ordinary risk that US shares fall.
For reference, the live rate is 1 USD = 5.4370 BRL (Nov 2, 2026). The real can move sharply against the dollar, and because Brazil taxes gains in reais, a weaker real raises the tax as well as the value. The currency converter shows the latest rates, the guide to currency risk on US assets explains the effect on returns, and holding US dollars abroad covers idle cash.
- Tax leakage. Every route pays 30% US tax on dividends, and Brazil's credit only cancels its own tax on top, so you keep about 70% of the headline yield.
- Rule changes. The IOF decrees await a final court ruling, the minimum tax starts with 2026 income, and each state is rewriting its ITCMD law.
- Unauthorized platforms. Apps that market to Brazilians without CVM registration may leave you without recourse if something goes wrong.
- Estate exposure. US estate tax and ITCMD can both fall on the same shares, and a US custodian can freeze the account until the US side is settled.
- Market falls. US shares can drop for long periods; the SPY page shows how the S&P 500 fund has moved, and what an ETF is explains how index funds work.