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Taxes

Brazil — Tax: Capital Gains

Capital gains on the sale of assets by individuals in Brazil, including real estate, are taxed at progressive rates set by Law 13.259/2016: 15% on gains up to R$5 million, 17.5% on the part between R$5 million and R$10 million, 20% on the part between R$10 million and R$30 million, and 22.5% on the part above R$30 million. Each rate applies to the portion of the gain within its band, not to the whole gain. The Receita Federal says these rates also apply to gains on assets acquired in foreign currency. When part of the same asset is sold in later transactions, the gain is added to earlier ones and tax already paid is deducted, if the sale is within the next calendar year. Exemptions and the rules for non-residents are not covered here.

VerifiedGovernment / official sourceReceita Federal — alíquotas de ganhos de capital; Lei 13.259/2016Last reviewed: 2026-10-23

Key facts

  • Capital gains rates: 15% up to R$5 million; 17.5% for R$5–10 million; 20% for R$10–30 million; 22.5% above R$30 million (Law 13.259/2016).
  • Each rate applies to the part of the gain within its band, not to the whole gain.
  • The progressive rates also apply to gains on assets acquired in foreign currency.
  • For partial sales of the same asset, the gain is added to earlier ones and tax already paid is deducted, if the sale is within the next calendar year.
  • Exemptions and rules for non-residents are not covered here.

Steps

  1. Step 1: Determine Taxable vs. Exempt Gains — Capital gains on real estate are taxable in Brazil, but the tax treatment depends on individual circumstances. To determine whether a gain is taxable, consider factors such as the length of time the property was held, the type of property sold, and any applicable exemptions.
  2. Step 2: Calculate Taxable Gain — To calculate the taxable gain, subtract the original purchase price from the sale price, and then apply the applicable tax rate.
  3. Step 3: File Tax Return — Taxpayers must file a tax return (Declaração de Imposto de Renda) to report capital gains on real estate. The tax return must be filed within the applicable deadline, which varies depending on the taxpayer's status.

Costs

  • Capital gains tax, up to R$5 million: 15%
  • Capital gains tax, above R$30 million: 22.5% on the part above

Common mistakes

  • Applying the top rate to the whole gain — each rate applies only to the part of the gain in its band.

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