If you live abroad and receive rent from a property in Brazil, the rate is a flat 15%, withheld at source (IRRF) on the net rent, after the deductions the law allows. The 25% is the exception: it applies only if you are tax-resident in a jurisdiction on Receita Federal's official low-tax list. This guide covers when each rate applies, what you can and cannot deduct, when the tax is due, and a full worked example.
For the end-to-end picture (procurador, DARF, filings), start with our guide to Brazilian rental income tax for non-residents.
What rate do non-residents pay on Brazilian rental income?
A flat 15%, as a rule. Rent from a property located in Brazil paid to a non-resident individual is taxed exclusively at source at 15% (RIR/2018, art. 763; Decreto-Lei 5.844/1943, art. 100; Lei 9.249/1995, art. 28).
Being taxed exclusively at source means the withholding is definitive: the non-resident reports none of this rent in a Brazilian annual return (IN SRF 208/2002, arts. 35 and 42). Where Brazil has a double-taxation treaty with your country of residence, the treaty prevails over the domestic rule (CTN, art. 98) — worth confirming case by case.
When does the rate rise to 25%?
Only when the landlord is tax-resident in a low-tax jurisdiction — a "tax haven" in the everyday sense. In that case the IRRF on the rent is 25% instead of 15% (Lei 9.779/1999, art. 8º; RIR/2018, art. 744, § 1º). The official list is in art. 1 of IN RFB 1.037/2010 (jurisdictions that do not tax income, or tax it below 20%).
For the countries where most of the diaspora actually lives, the answer is 15%:
| 15% (not on the list) | 25% (on the list) |
|---|---|
| United States, United Kingdom, Canada, Australia, Portugal, Ireland, and most of the EU | Cayman Islands, British Virgin Islands, Bahamas, Bermuda, Panama, Hong Kong, Monaco |
The list changes over time, so check before assuming the higher rate: the United Arab Emirates, for example, left the list in May 2025 (IN RFB 2.265/2025), so a resident there now pays 15%. When in doubt, look up your jurisdiction in the current text of IN RFB 1.037/2010.
Is there a monthly exemption bracket for non-residents?
No. The 15% (or 25%) applies from the first real of net rent, after the allowed deductions (RIR/2018, art. 763; IN SRF 208/2002, art. 35). This is a key difference from residents, who pay on a progressive table with an exempt band. For non-residents there is no gentler starting bracket: even a modest rent generates 15% on the whole base.
Which expenses can you deduct before the 15%?
Condominium fees and IPTU can be deducted from the base, as long as the landlord paid them and can prove it. The list of deductions is exhaustive (closed): only what the rule names expressly counts (Lei 7.739/1989, art. 14; RIR/2018, art. 42; IN RFB 1.500/2014, art. 31).
| Deductible (exhaustive list) | Not deductible |
|---|---|
| Taxes and fees on the property: IPTU, garbage collection, public-lighting fees | Renovations and improvements |
| Condominium fees paid by the landlord | Property insurance |
| Collection and management costs (the property manager's fee) | Broker's commission at signing |
| Rent paid to the head landlord, when subletting | Depreciation and eviction legal fees |
Two conditions apply to everything in the left column: the expense must have been paid by the landlord (what the tenant pays directly does not count) and there must be a receipt. Without both, the deduction will not survive an audit.
Worked example: how much tax on R$ 5,000 of rent?
R$ 630 of IRRF, in the most common scenario. The math:
Gross rent received in the month: R$ 5,000
Proven deductions paid by the landlord (condominium and part of the IPTU): R$ 800
Tax base: R$ 5,000 − R$ 800 = R$ 4,200
IRRF due: R$ 4,200 × 15% = R$ 630
If the landlord were resident in a listed low-tax jurisdiction, the same numbers would give R$ 4,200 × 25% = R$ 1,050.
When is the tax due and how do you pay it (DARF 9478)?
The IRRF is due on the same day the rent is received (Lei 11.196/2005, art. 70, I, "a", item 1). The taxable event is receipt, on a cash basis. When the rent flows through a procurador or a property manager, the date that counts is the day the tenant paid, not the day the funds reached you abroad.
Payment is made with a DARF under revenue code 9478, issued on Sicalc, with no login or certificate, under the CPF of the non-resident's procurador. The procurador is the directly liable withholding agent (RIR/2018, arts. 781, I, and 782), and the DARF in their CPF does not become income for them. The full payment flow is in the non-resident rental tax guide.
Does paying the DARF close it out? EFD-Reinf and DCTFWeb
No — the withholding must also be reported. The IRRF goes into EFD-Reinf (event R-4010, monthly, by the 15th of the following month) and DCTFWeb (a debt confession that links the amount to the DARF you paid, by the last business day of the following month). Late filing triggers a fine even when the tax itself was paid on time. The deadlines and penalties are in our full guide to EFD-Reinf and DCTFWeb.
Frequently asked questions
Do non-residents file an annual Brazilian return for this rent?
No. The 15% IRRF is exclusive at source and definitive; non-residents do not report this rent in the Brazilian annual return (IN SRF 208/2002, arts. 35 and 42). If a double-taxation treaty applies, the treaty prevails.
I live in the US, UK or Canada — do I pay 15% or 25%?
15%. None of those countries is on Receita Federal's low-tax list (IN RFB 1.037/2010). Places like the Cayman Islands, British Virgin Islands, Bahamas, Panama and Hong Kong are on it (25%). Always check the current text for your jurisdiction, since the list changes.
Can I deduct renovations, insurance or the broker's fee?
No. The list of deductions is exhaustive and does not include renovations, improvements, insurance, the signing broker's commission, depreciation or eviction legal fees (RIR/2018, art. 42; IN RFB 1.500/2014, art. 31).
The DARF is in the procurador's CPF — does it affect their income tax?
No. The procurador acts as a withholding agent, not the taxpayer: the DARF 9478 in their CPF does not become their income and has no effect on their own income tax return (RIR/2018, arts. 781, I, and 782).
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