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Taxes

Brazil — Tax: Wealth Tax

Brazil has no federal net-wealth tax in force: the Constitution allows an Imposto sobre Grandes Fortunas but it has never been regulated by complementary law.

VerifiedGovernment / official sourceConstitution of Brazil, Article 153 VII; Senate and Chamber bills on the Imposto sobre Grandes FortunasLast reviewed: 2026-10-23

Why this matters

A relocating person may hear about a 'Brazilian wealth tax' in the news due to recurring legislative proposals, and should understand that no federal net wealth tax is in force today, so routine reporting on assets abroad is limited to income tax (IRPF) obligations rather than a wealth-based levy.

Key facts

  • Article 153, VII of the Constitution lets the Union create a tax on large fortunes, conditional on a complementary law.
  • That complementary law has never been approved, so the tax has not been applied.
  • Several bills have been proposed, including PLP 183/2019 and PLP 125/2021 in the Senate; earlier proposals were rejected, and PLP 162/1989 passed the Senate but failed in the Chamber.
  • Capital gains on the sale of assets are taxed at 15% to 22.5% under Law 13.259/2016.
  • Inheritance, gift and property taxes are set at state and municipal level.

Steps

  1. Confirm residency status for tax purposes — Wealth tax exposure in Brazil hinges primarily on whether the individual is a tax resident. Foreign nationals who become Brazilian tax residents are subject to IRPF on worldwide income and must report foreign assets and income, but are not subject to a federal wealth tax.
  2. Disclose foreign assets annually via DIRPF — Tax residents with foreign assets or income above the reporting thresholds (the threshold for mandatory disclosure of foreign holdings has changed over time) must declare them in the annual Declaração de Ajuste Anual. This is a disclosure obligation tied to income tax, not a wealth tax.
  3. Account for state-level ITCMD on inheritances/gifts — If receiving an inheritance or gift in Brazil, the state-level ITCMD will apply. Verify the specific state law, as rates and exemptions vary (São Paulo, for example, charges 4% above certain thresholds, but rules change).
  4. Monitor legislative developments — Wealth tax proposals have been debated repeatedly in Congress; an adviser should be consulted for any move to Brazil, as a new federal wealth tax could affect high-net-worth individuals if enacted.

Common mistakes

  • Assuming a federal wealth tax exists: check state inheritance and gift tax and municipal property tax instead.

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