Authored by the expert who managed and guided the team behind the Brazil Property Pack
Everything you need to know before buying real estate is included in our Brazil Property Pack
Yes, US citizens can legally buy residential property in Brazil in 2026, and the process is more straightforward than many Americans expect.
Brazil welcomes foreign property buyers in most urban areas, though rural land and border zones come with extra rules you need to know about.
This guide covers everything from legal requirements to taxes, mortgages, and IRS obligations for Americans buying homes in Brazil.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Brazil.
Can a US citizen legally buy residential property in Brazil right now?
Can I buy a home in Brazil as a US citizen in 2026?
As of early 2026, US citizens can legally purchase most types of residential property in Brazil, including apartments, condos, houses, and townhomes in cities across the country. The standard buying process for Americans involves obtaining a CPF (Brazilian tax ID), signing a purchase contract with the seller, paying the transfer tax (ITBI), having the deed notarized at a cartório, and then registering the property at the local Real Estate Registry to officially become the owner. This registration step is crucial because in Brazil, you are not legally recognized as the owner until the deed is recorded in the registry system.
By the way, we've written a blog article detailing all the foreigner rights regarding properties in Brazil.
Are there many Americans buying property and living in Brazil in 2026?
As of early 2026, Americans represent a small but steady portion of foreign property buyers in Brazil, likely in the low single-digit percentage range of all foreign residential purchases. The highest concentrations of American expats and property owners in Brazil are found in Rio de Janeiro neighborhoods like Ipanema, Leblon, Copacabana, and Botafogo, São Paulo areas such as Jardins, Itaim Bibi, Pinheiros, and Vila Madalena, beach destinations like Florianópolis (especially Jurerê Internacional and Lagoa da Conceição), and the Bahia coast including Salvador's Barra district and Trancoso. Americans are drawn to Brazil for three main reasons: the significantly lower cost of living compared to US cities, the tropical climate and beach lifestyle, and the opportunity to stretch retirement savings or remote work income much further. The American expat community in Brazil appears to be gradually growing, driven by the rise of remote work flexibility and increasing interest from retirees seeking affordable warm-weather destinations.
Do foreigners have the same buying rights as locals in Brazil?
When it comes to urban residential property in Brazil, foreigners including US citizens have essentially the same buying rights as Brazilian locals, with no special restrictions, extra taxes, or different purchase limits for city apartments and houses. However, foreign buyers face meaningful restrictions on rural agricultural land (which is capped and requires authorization) and properties located within 150 kilometers of Brazil's land borders, where national security rules can require special government approval.
We cover all these things in length in our pack about the property market in Brazil.
Can I buy property in Brazil without a residence permit?
Yes, you can buy residential property in Brazil without a residence permit, as Brazilian law does not require foreign buyers to be residents in order to purchase urban real estate. If you are buying from abroad, you will typically need to grant power of attorney to a representative in Brazil who can sign documents at the notary and registry offices on your behalf. It is important to know that buying property in Brazil does not grant you any visa or residency rights, as immigration pathways are completely separate from property ownership. The main practical challenge for non-resident buyers is coordinating the paperwork remotely, including getting your foreign documents apostilled and translated into Portuguese, and ensuring your CPF tax ID is set up correctly before the transaction.
Can US citizens own land in Brazil?
US citizens can own urban land outright in Brazil, including city lots, houses on their own plots, and condominium units, with full ownership rights registered in their name at the Real Estate Registry. Most residential purchases in Brazil are freehold (full ownership), meaning you own the property and the land it sits on permanently, though some developments may involve surface rights or other lease-like arrangements that are less common. The main geographic restrictions apply to rural agricultural land (where foreigners face caps on how much they can own) and properties within the 150-kilometer border strip along Brazil's land frontiers, where extra government authorization may be required.
Please note that we have a dedicated blog article about the land buying process in Brazil here.
What documents will I need to buy in Brazil?
To purchase property in Brazil as a US citizen, you will need your passport, proof of marital status (marriage certificate or divorce decree if applicable, apostilled and translated into Portuguese), and most importantly a CPF (Brazilian tax ID number). Yes, a CPF is required in practice for virtually all property transactions in Brazil, and you can obtain one through Brazilian consulates abroad or online through the Receita Federal portal. A local bank account is not strictly mandatory, but having one makes paying the ITBI transfer tax, notary fees, and ongoing utility bills much easier. You will also typically need to provide proof of funds showing the source of your purchase money, and while a local address is not legally required, most buyers use their lawyer's address for correspondence during the transaction.
We have a whole section dedicated to all the documents you need in our Brazil property pack.
Can a foreign-owned company buy property in Brazil?
Yes, a foreign-owned company can buy residential property in Brazil, either through a Brazilian company (with a CNPJ tax ID) that has foreign shareholders, or through a foreign company authorized to operate in Brazil. Americans do sometimes use corporate structures similar to LLCs (typically a "Limitada" or LTDA in Brazil) to hold property, usually for estate planning or liability protection rather than immediate tax savings. Owning property through a company in Brazil does not automatically lower your taxes, and in many cases it increases complexity through additional accounting requirements, annual filings, and corporate compliance costs. The main drawback of company ownership for residential property is the ongoing administrative burden and expense, which often outweighs any benefits for a simple personal residence or vacation home.
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What taxes and fees will I pay in Brazil in 2026?
What are buyer taxes in Brazil in 2026?
As of early 2026, the main buyer tax when purchasing property in Brazil is the ITBI (Imposto de Transmissão de Bens Imóveis), which typically ranges from 2% to 4% of the purchase price depending on the city, so on a 500,000 BRL apartment (roughly 100,000 USD or 92,000 EUR), you would pay between 10,000 and 20,000 BRL (2,000 to 4,000 USD or 1,850 to 3,700 EUR) in transfer tax. The ITBI is the only major buyer-side tax, and it is set and collected by the municipal government where the property is located, which is why rates vary between cities like São Paulo, Rio de Janeiro, and Florianópolis. There is no difference in ITBI rates for foreigners versus Brazilian locals, and the tax applies equally whether you are buying a primary residence or an investment property.
If you want to go into more details, we also have a page detailing all the property taxes and fees in Brazil.
What are other closing costs in Brazil in 2026?
As of early 2026, buyers in Brazil should budget approximately 0.8% to 2% of the purchase price for non-tax closing costs, so on a 500,000 BRL property (roughly 100,000 USD or 92,000 EUR), expect to pay around 4,000 to 10,000 BRL (800 to 2,000 USD or 740 to 1,850 EUR) in fees beyond the ITBI tax. The main closing cost categories are notary fees (for drafting and authenticating the deed) and registry fees (for recording your ownership at the Real Estate Registry), both of which follow state-level fee tables that charge based on property value, with higher-priced properties often paying a lower percentage. Legal fees for hiring a lawyer to conduct due diligence are optional but strongly recommended, and real estate agent commissions are typically paid by the seller in Brazil. The closing cost item that most surprises foreign buyers is the registry fee, because many people assume that signing the deed completes the purchase, when in reality the registry step is what makes you the legal owner and comes with its own separate cost.
Are there hidden fees foreigners miss in Brazil right now?
Foreign buyers in Brazil commonly overlook around 5,000 to 15,000 BRL (1,000 to 3,000 USD or 925 to 2,775 EUR) in fees and costs that are not always obvious at first glance. The top three hidden fees that catch foreigners off guard are: document translation and apostille costs (typically 1,000 to 3,000 BRL or 200 to 600 USD), power of attorney fees if you are buying remotely (around 500 to 1,500 BRL or 100 to 300 USD), and property inspection or survey costs that sellers do not always provide (1,500 to 5,000 BRL or 300 to 1,000 USD). After purchase, foreign owners often underestimate ongoing annual costs like IPTU (municipal property tax, which varies widely by city and property value but can run 2,000 to 10,000 BRL or 400 to 2,000 USD per year), condominium fees for apartments (often 500 to 2,000 BRL or 100 to 400 USD monthly), and the cost of maintaining a local bank account or paying someone to manage bills while you are abroad.
Getting surprised by hidden fees is one of the pitfalls people face when buying real estate in Brazil.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Brazil versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
Can I get a mortgage as a US citizen in Brazil in 2026?
Do banks lend to US citizens in Brazil in 2026?
As of early 2026, Brazilian banks do offer mortgages, but US citizens face more hurdles than local borrowers because most lenders prefer applicants with Brazilian residency, local income, and an established credit history in Brazil. US citizens are not treated better or worse than other foreign nationals when applying for mortgages in Brazil, as the key factors are residency status and income documentation rather than passport country. The main reason some Brazilian banks are hesitant to lend to American borrowers specifically is FATCA compliance, which creates extra paperwork and reporting obligations that make US clients more administratively burdensome. For non-resident US citizens without local income, the approval rate for Brazilian mortgages is relatively low, and many end up purchasing with cash or financing through US-based lenders instead.
There is a full document dedicated to mortgage for foreigners in our pack covering the property buying process in Brazil.
What down payment do American people need in Brazil in 2026?
As of early 2026, US citizens should plan for a minimum down payment of at least 40% when seeking a mortgage in Brazil, so on a 500,000 BRL property (roughly 100,000 USD or 92,000 EUR), you would need at least 200,000 BRL (40,000 USD or 37,000 EUR) upfront. The typical down payment range for foreign buyers in Brazil runs from 40% to 60%, compared to 20% to 40% for resident Brazilians with established local credit. A larger down payment does improve your chances of mortgage approval and can help you secure slightly better interest rates, since Brazilian banks view higher equity as lower risk, especially when lending to non-residents without local income history.
You can also read our latest update about mortgage and interest rates in Brazil.
What interest rates do US citizens get in Brazil in 2026?
As of early 2026, US citizens can expect mortgage interest rates in Brazil to fall in the high single digits to low double digits annually, typically between 9% and 12% depending on the loan product and borrower profile. Interest rates for foreign buyers are generally similar to rates offered to local residents, since Brazilian mortgage pricing is driven primarily by domestic economic conditions and the central bank's benchmark rate rather than borrower nationality. Both fixed-rate and variable-rate mortgages are available in Brazil, with variable rates often tied to the TR (Taxa Referencial) or IPCA inflation index, and typical loan terms ranging from 10 to 30 years. The single factor with the biggest impact on the interest rate you will be offered is whether you have Brazilian residency and local income, since banks reserve their best rates for borrowers they consider lowest risk.
Can I use US income to qualify in Brazil right now?
Some Brazilian banks will accept US-sourced income for mortgage qualification, but expect significant friction and a more conservative approval outcome than if you had local Brazilian income. Banks in Brazil typically require extensive documentation of US income, including two to three years of tax returns, recent pay stubs or profit-and-loss statements for self-employed applicants, bank statements showing consistent deposits, and sometimes a letter from your employer or accountant. If your standard US documentation is insufficient, some banks may accept alternative verification methods such as proof of substantial liquid assets in Brazilian accounts, a larger down payment to offset income uncertainty, or a co-signer with Brazilian residency and income.
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How do US taxes interact with owning property in Brazil?
Do I have to declare the property to the IRS from Brazil?
Simply owning a property in Brazil does not trigger a standalone IRS reporting form the way foreign bank accounts do, but any income you earn from that property (such as rental income) and any capital gains when you sell must be reported on your US tax return. If you rent out your Brazilian property, you will report that rental income on Schedule E of your Form 1040, and if you sell at a profit, you report the capital gain on Schedule D. The key distinction is that passive ownership alone does not require special foreign asset forms, but the moment you generate income or realize a gain, your US tax obligations kick in.
Will I pay tax twice in the US and Brazil in 2026?
As of early 2026, there is a real risk of double taxation for US citizens owning property in Brazil, because you may owe taxes to both countries on rental income and capital gains from your Brazilian property. There is no comprehensive income tax treaty between the United States and Brazil, which means you cannot rely on treaty provisions to eliminate double taxation, and instead must use other mechanisms like the Foreign Tax Credit. The Foreign Tax Credit allows you to offset taxes you paid to Brazil against your US tax liability on the same income, dollar for dollar up to certain limits, which in practice reduces or eliminates double taxation for most property owners. Brazilian property taxes (IPTU) paid annually are generally not deductible on US federal returns under current SALT (State and Local Tax) limitations, so you should budget for this as a true additional cost.
Do I need FATCA reporting when buying in Brazil?
FATCA reporting is triggered by foreign financial accounts, not by owning real estate directly, so simply buying a property in Brazil does not create a FATCA obligation on its own. However, FATCA reporting kicks in when you open a Brazilian bank account (which most buyers do for paying taxes and bills), hold funds in escrow-type arrangements, or maintain investment accounts related to the purchase, and the threshold is 50,000 USD in foreign financial assets for US residents (higher for those living abroad). FATCA reporting (Form 8938) is separate from FBAR requirements (FinCEN Form 114), and you may need to file both if your foreign account balances exceed their respective thresholds, with FBAR triggered at 10,000 USD aggregate balance at any point during the year. Given the complexity of US tax obligations for foreign property owners, consulting a US CPA before buying in Brazil is strongly recommended, and you should specifically ask about rental income reporting, capital gains calculations with currency fluctuations, Foreign Tax Credit optimization, and FATCA/FBAR filing requirements.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Brazil. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Brazil, we always rely on the strongest methodology we can … and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why It's Authoritative | How We Used It |
|---|---|---|
| Brazil Presidency (Planalto) - Law 5,709/1971 | Official federal law governing foreigners buying rural property in Brazil. | We used it to distinguish urban residential purchases (generally allowed) from rural land (regulated and capped). We also explained why some Brazilian companies are treated as foreign-controlled. |
| Brazil Presidency (Planalto) - Law 6,634/1979 | Federal law defining the 150km border strip rules for national security. | We used it to flag that properties near land borders can require extra approvals. We explained why location matters as much as buyer nationality. |
| Receita Federal - CPF Registration | Official government portal for obtaining a Brazilian tax ID abroad. | We used it to confirm that a CPF is required for property purchases. We showed how foreigners can obtain one while living outside Brazil. |
| Prefeitura de São Paulo - ITBI Guidance | Municipal tax authority explaining how transfer tax is calculated. | We used it as a concrete example of ITBI rates in a major city. We justified using a range for transfer tax across different Brazilian municipalities. |
| Rio de Janeiro - Carioca Digital ITBI Portal | Official service portal for property transfer tax in Rio de Janeiro. | We used it to confirm ITBI administration varies by city. We showed how different municipalities handle the same tax differently. |
| Banco Central do Brasil - Interest Rates Dashboard | Brazil's central bank publishing official credit interest rate statistics. | We used it to anchor mortgage rate expectations in early 2026 to official data. We avoided relying on promotional bank advertisements. |
| IRS - Tax Treaty Tables | Official US tax authority list of income tax treaties with foreign countries. | We used it to confirm there is no comprehensive US-Brazil income tax treaty. We explained that Americans must rely on tax credits rather than treaty exemptions. |
| US Treasury - Brazil FATCA Agreement | Official intergovernmental agreement text on tax information sharing. | We used it to explain why Brazilian banks request extra forms from US citizens. We connected banking friction to compliance requirements rather than ownership restrictions. |
| Receita Federal - Capital Gains Tax Rates | Official Brazilian tax authority explanation of capital gains brackets. | We used it to state Brazil's 15% to 22.5% capital gains tax structure. We framed resale tax expectations for individual property sellers. |
| IBGE - 2022 Census Immigration Data | Brazil's official statistics agency reporting on foreign resident populations. | We used it to estimate the relative size of the American expat community. We triangulated with property market data to assess buyer nationality patterns. |
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