Investing in Brazil as a Foreigner 2026: Two Rules Everyone Still Gets Wrong
BRAZIL · EXPAT GUIDE
Key Facts
- —The framework changed Resolution 4.373 was revoked with effect from January 2025 and replaced by a joint central bank and CVM rule.
- —What that removed The portfolio registration and the compulsory custodian are both gone for individual investors.
- —The new tax Dividends paid to non-residents carry 10% withholding from January 2026, with narrow exemptions.
- —What is still untaxed Federal government bonds pay a foreign holder with zero withholding at source.
- —Moving money Bringing investment funds in and taking them out both carry no currency tax.
- —The catch Two official Brazilian sources still publish the abolished framework as current guidance.
Two things changed for foreign investors in Brazil and almost nothing online reflects either. One of them is a new tax.
If you read one thing before investing in Brazil as a foreigner, make it this. The rulebook everyone cites was abolished.
Resolution 4.373 governed foreign portfolio investment for a decade. It was revoked in full with effect from 1 January 2025.
What replaced it is a joint rule issued by the central bank and the securities regulator in December 2024. The market still calls the old name, which is why the error spreads.
Who Is Still Publishing the Old Rules
This is not an obscure point of law. Two official sources are still wrong on their own websites.
The federal investor portal, last edited in 2022, tells readers that access is regulated by Resolution 4.373. It adds that non-residents must appoint both a representative and a custodian.
The exchange’s own manual for individual non-resident investors says the same thing. It instructs readers to register in a system that no longer exists.
If your broker or adviser quotes either page, they are describing 2024. Ask them for the 2026 position in writing.
What the New Rule Actually Does
The portfolio registration requirement is abolished. Existing registrations stay queryable but need no updating.
The compulsory prior appointment of a custodian is gone. That aligns the market with international practice.
A local representative is now waivable for individuals in three cases. The simplest is investing in securities using your own funds.
A third case allows investment from outside a Brazilian account. It is capped at two million reais a month per intermediary, about US$387,000.
The list of eligible representatives widened beyond banks to include clearing houses. Assets may now sit in prepaid payment or registration accounts at brokers.
One more change matters if your life changes. If you become a Brazilian resident, you no longer have to redeem or close your positions.
The Tax That Started in January
Until the end of 2025, dividends paid out of Brazil were untaxed at source. That was one of the country’s most quoted attractions.
A law sanctioned in December 2025 ended it. From January 2026 dividends paid to non-resident beneficiaries carry a flat 10% withholding.
There is no threshold and no investor-status test. Foreign governments, sovereign wealth funds and certain pension administrators are the narrow exceptions.
Brazilian residents were caught too, though only above fifty thousand reais a month from the same company. That is about US$9,700.
The exchange’s manual still prints the word exempt against dividends. That single line is the most repeated obsolete figure in the English-language guides.
What Is Still Tax-Free
Federal government bonds pay a non-resident with zero withholding. The law does not distinguish the channel, so the retail platform qualifies.
Shares and exchange-traded funds bought on the exchange are exempt for non-residents. So are on-exchange futures and options.
Infrastructure debentures and several private equity fund structures are also exempt. Interest on own capital, a Brazilian hybrid payment, is taxed at 15%.
Private fixed income and equity fund redemptions carry 15%. Swaps and off-exchange derivatives carry 10%.
Two carve-outs apply to the bond exemption. Gains on selling government paper on an exchange are not covered, and bonds bought under a repurchase agreement are excluded.
Investors domiciled in low-tax jurisdictions lose the exemptions entirely. They are taxed like a Brazilian, on a scale from 22.5% down to 15% by holding period.
Moving Money In and Out
This is where old guides do the most damage. Brazil once charged a financial operations tax of up to six percent on investment inflows.
Those rates were revoked years ago and the consolidated decree says so explicitly. Bringing funds in to invest carries zero, and taking them back out carries zero.
Remitting dividends and interest on own capital also carries zero of that tax. The new 10% income withholding is separate and does apply.
Outflows for other purposes are a different matter. Buying foreign currency in cash and sending money abroad for someone’s use both carry 3.5%.
A resident sending money abroad to invest pays 1.10%. Cross-border card spending and foreign cash withdrawals carry 3.5%.
One caution. Congress suspended the 2025 decrees that set these rates and the matter went to the Supreme Court, so this is live litigation.
What the Money Actually Pays
The policy rate stood at 14.00% on 15 September 2026, after four quarter-point cuts from 15.00% at the start of the year.
The interbank benchmark most private fixed income is quoted against sat at 13.90% over twelve months. Inflation over the same period was 4.22%.
That leaves a real rate near 9.4% before tax. It is among the highest offered by any large economy.
For a foreigner holding government bonds the gross and net figures are the same, because the withholding is zero. On private fixed income at 15%, a 14.00% gross return becomes 11.90%.
The Practical Steps
You still need a Brazilian tax number. The exchange manual is explicit that a non-resident must enter the national tax system through one.
An operational code from the securities regulator is still required. An individual linked to a fictitious collective account is exempt from registration, periodic reporting and the annual fee.
Record retention rose from five years to ten, counted from redemption. That is a housekeeping point with real consequences at audit.
One further change from October 2025 worth knowing. A proposed flat 18% tax on financial investments lapsed when Congress let the measure expire.
So the older scale survives. Certain property-backed and agricultural paper remains income-tax exempt for 2026.
More: Expat guides, every day from The Rio Times.
Frequently Asked Questions
Do I still need a custodian to invest in Brazil?
No. The joint central bank and securities regulator rule that took effect in January 2025 removed the compulsory prior appointment of a custodian and abolished portfolio registration.
Are Brazilian dividends still tax-free for foreigners?
No. From January 2026 a flat 10% withholding applies to dividends paid to non-resident beneficiaries, with narrow exemptions for foreign governments and sovereign funds.
What is taxed at zero?
Federal government bonds held by a non-resident, shares and exchange-traded funds bought on the exchange, on-exchange futures and options, and certain infrastructure debentures and private equity structures.
Is there a tax on bringing money in?
Not for investment. Inflows to the financial and capital markets and the return of those funds both carry zero currency tax. The old rates of up to six percent were revoked years ago.
What does fixed income pay?
The policy rate was 14.00% in September 2026 against inflation of 4.22%, a real rate near 9.4%. Government bonds pay a foreign holder with no withholding.
Sources: Resolucao Conjunta BCB/CVM no 13 of 3 December 2024, Lei no 15.270/2025, Decreto no 6.306/2007 as consolidated, Lei no 11.312/2006, the B3 manual for non-resident individual investors, Banco Central time series 432 and 4392, and the Camara dos Deputados.
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