Brazil’s Tesouro Direto Explained: Can Foreigners Invest in Government Bonds?
Key Facts
—Tesouro IPCA+ bonds currently yield 7–8% real above Brazil’s IPCA inflation index — TIPS yield ~2.3% real
—The minimum investment is approximately R$30 (~USD 5) — there is no practical capital barrier to entry
—Foreigners need a CPF + Brazilian bank account + registered brokerage account to access Tesouro Direto directly
—Non-resident investors pay a flat 15% withholding tax on interest income and realized gains
—B3-listed ETFs IMAB11 (IPCA+) and IRFM11 (Prefixado) offer Tesouro Direto exposure once you have a Brazilian brokerage account
For investors wondering whether tesouro direto foreigners can actually access — the answer is yes, with a defined setup process — but the more important question is whether 7–8% real yields above inflation from a federal government bond platform justify that setup effort compared to the 2–2.5% real yields available on US TIPS.
What Is Tesouro Direto?
Tesouro Direto (“Direct Treasury”) is Brazil’s online retail platform for purchasing federal government bonds, launched in January 2002 by the Tesouro Nacional in partnership with B3. It was designed to give retail investors direct ownership of federal debt — cutting out the high-fee bank funds that previously dominated the fixed-income retail market. You own a specific bond, not a share in a pooled fund. The minimum investment is approximately R$30 (one-hundredth of a bond’s face value). Custody is held at B3 under your name. Over 25 million Brazilians are registered investors.
The Three Bond Types
| Bond | Yield (Mid-2026) | Duration Risk | Best For |
|---|---|---|---|
| Tesouro Selic (LFT) | ~14.75% floating | Minimal | Cash management; rate uncertainty |
| Tesouro IPCA+ (NTN-B) | IPCA + 7.0–8.0% real | High (long maturities) | Long-term real wealth, inflation protection |
| Tesouro Prefixado (LTN) | ~14.0–15.5% nominal fixed | Very high | Betting on rate cuts; fixed income investors |
The Tesouro Selic is effectively Brazil’s equivalent of a high-yield savings account, with virtually no mark-to-market risk because the return floats daily with the SELIC rate. The Tesouro IPCA+ locks in a real yield above inflation — currently 7–8% — making it the instrument most interesting to international investors comparing yields. The Tesouro Prefixado is a fixed nominal rate bet; attractive if you believe rates will fall significantly, but exposed to large capital losses if sold before maturity during a rising-rate environment.
Live Market IntelligenceBrazil — Live Market Board
Rio Times · Live Market Intelligence
Brazil — Live Market Board
-0.02%
185,147.15
-0.02%
64,866.61
-0.87%
11,315.26
-1.14%
3,049,121
-0.29%
2,544.56
+0.40%
59,978.22
-0.31%
| Instrument | Last | Change | YoY | Prev. | High | Low | Volume |
|---|---|---|---|---|---|---|---|
| IBOV | 185,147.15 | -0.02% | +21.85% | 185,188.13 | 168,310 | 167,142 | — |
| USD/BRL | 5.16 | +0.01% | -5.13% | 5.16 | 5.18 | 5.14 | — |
| SELIC | 14.00% | — | — | — | — | — | |
| PETR4 | 41.64 | -0.05% | +35.19% | 41.66 | 41.97 | 41.15 | 41,499,400 |
| VALE3 | 72.97 | +0.83% | +30.75% | 72.37 | 73.54 | 72.66 | 17,658,000 |
| ITUB4 | 38.60 | -1.03% | +4.57% | 39.00 | 39.34 | 38.39 | 29,487,800 |
| BBDC4 | 16.85 | +0.36% | +3.50% | 16.79 | 16.90 | 16.67 | 19,416,900 |
| BBAS3 | 19.37 | +0.47% | +0.73% | 19.28 | 19.44 | 19.16 | 11,069,200 |
| B3SA3 | 14.26 | -0.21% | +12.73% | 14.29 | 14.47 | 14.11 | 33,037,800 |
| ABEV3 | 14.89 | -0.80% | +21.91% | 15.01 | 15.07 | 14.81 | 16,453,100 |
| WEGE3 | 47.59 | +0.49% | +29.99% | 47.36 | 48.08 | 47.36 | 3,364,600 |
| PRIO3 | 59.14 | -0.19% | +50.67% | 59.25 | 59.81 | 58.74 | 3,325,600 |
| SUZB3 | 41.33 | +2.35% | -23.55% | 40.38 | 41.48 | 40.35 | 3,914,900 |
| RENT3 | 34.68 | -0.09% | +0.84% | 34.71 | 34.96 | 34.35 | 7,979,100 |
| AZZA3 | 15.89 | -2.63% | -53.76% | 16.32 | 16.42 | 15.82 | 1,330,300 |
| CSNA3 | 4.30 | +0.47% | -42.65% | 4.28 | 4.41 | 4.26 | 10,076,100 |
| GGBR4 | 24.69 | +2.19% | +51.38% | 24.16 | 24.85 | 24.18 | 7,047,600 |
| ENEV3 | 24.21 | -1.38% | +70.49% | 24.55 | 24.64 | 23.99 | 9,297,000 |
How Real Yields Compare Globally
| Instrument | Country | Real Yield (Mid-2026) | Accessibility |
|---|---|---|---|
| TIPS (10-year) | United States | ~2.3% | Unrestricted |
| Index-Linked Gilt (10-year) | United Kingdom | ~1.5% | Unrestricted |
| Tesouro IPCA+ (2035) | Brazil | ~7.5% | CPF + bank + broker required |
| Tesouro IPCA+ (2055) | Brazil | ~8.0% | CPF + bank + broker required |
The gap is approximately 5–6 percentage points in real yield terms. This is not a temporary anomaly — Brazil has maintained some of the world’s highest real interest rates for most of the past two decades. The important caveat: these yields are in BRL. A foreign investor earns inflation-protected returns in reais — and if the real depreciates against your home currency, that depreciation can offset much or all of the real yield advantage.
How Foreigners Can Invest: The Three-Step Process
Step 1: Get a CPF. Brazil’s tax ID is the non-negotiable first step. Obtain it at a Brazilian consulate in your home country (bring passport + proof of address), or at any Banco do Brasil or Correios branch if you’re visiting Brazil. The CPF is free and permanent.
Step 2: Open a Brazilian bank account. For non-residents in 2026, the most accessible routes are Nubank (full digital process via app, accepts non-residents with CPF) or Wise Brazil (BRL account for non-residents). Traditional banks like Itaú and Bradesco also offer non-resident accounts but require more documentation.
Step 3: Open a brokerage account. XP Investimentos, Rico, NuInvest (Nubank’s investment arm), and BTG Pactual Digital all accept non-residents with a CPF and local bank account. Account opening is done online in 1–3 business days. Navigate to the Tesouro Direto section, select the bond type and maturity, enter your investment amount (minimum ~R$30), and settle the next business day.
Realistic timeline from zero: 4–12 weeks, with the CPF application being the longest step.
Key Facts
—IMAB11 (B3-listed ETF). Tracks the IMA-B index of Tesouro IPCA+ bonds across multiple maturities. Requires a B3 brokerage account but no individual bond selection. Available on B3 with ~0.20% annual management fee.
—IRFM11 (B3-listed ETF). Tracks the IRF-M index of Tesouro Prefixado bonds. Diversified exposure to the fixed-rate segment. Same access requirements as IMAB11.
—iShares J.P. Morgan EM Local Govt Bond UCITS ETF (SEML). For European investors — a blended EM local bond ETF with ~5–10% Brazil weighting. Accessible via DEGIRO, Saxo, or most EU brokers. Not a Brazil pure-play but zero setup friction.
— Tesouro Direto official site — current bond prices, yields, and purchase links updated every 30 minutes during trading hours.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Interest rates, tax regulations, and exchange rates change frequently. Consult a qualified financial adviser and tax professional before investing.
Frequently Asked Questions
What is the current Tesouro Selic yield?
Approximately 14.75% per year as of mid-2026, tracking the SELIC overnight rate set by Brazil’s Monetary Policy Committee (COPOM). Because it is floating, the yield changes when COPOM adjusts the SELIC. Check the official Tesouro Direto website for real-time rates.
Is Tesouro Direto safe?
Tesouro Direto bonds are federal government obligations — the same sovereign credit risk as any Brazilian government bond. Brazil has never defaulted on domestic BRL-denominated obligations. Custody is held at B3 (not at your broker), so broker failure does not put your bonds at risk. The main risks for foreign investors are currency depreciation and Brazilian sovereign credit risk.
How is Tesouro Direto taxed for foreigners?
Non-resident investors pay a flat 15% withholding tax on interest income and gains, deducted at source. An additional IOF tax applies to investments redeemed within the first 30 days (declining from 96% on Day 1 to zero on Day 30). No US-Brazil tax treaty exists; US investors can generally claim the Brazilian withholding as a foreign tax credit against US liability.
Related Reading
→ Brazil’s top B3 stocks: a sector-by-sector guide
→ How to invest in Brazil’s stock market (B3) as a foreigner
→ Investing in Brazil 2026: the complete guide
→ Brazil’s SELIC Rate: What Foreign Investors Need to Know
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error
In depth
Read More from The Rio Times