Countries › Brazil › Guide › 6. Taxes › Capital gains tax for non residents selling Brazilian assets: progressive rates, 25 percent for favored jurisdictions, and buyer withholding

Capital gains tax for non residents selling Brazilian assets: progressive rates, 25 percent for favored jurisdictions, and buyer withholding

Argentina. For full detail on Argentina, go to The Argentine Thread.

Last verified: 2026-10-27 · Status: Stable

A non resident's capital gain on Brazilian assets, such as quotas or shares in a Brazilian company, is taxed under the same rules as for residents. For residents the gain is taxed at progressive rates of 15 percent up to R$5,000,000, 17.5 percent up to R$10,000,000, 20 percent up to R$30,000,000 and 22.5 percent above; a seller in a favored tax jurisdiction pays 25 percent. The buyer in Brazil, or the buyer's attorney in Brazil if the buyer is abroad, must withhold and pay the tax, so the tax travels with the deal documents.

USD figures use the Banco Central do Brasil PTAX selling rate of R$5.5007 per US dollar for 26 October 2026, the latest rate published when this page was verified. Conversions are for orientation only; the rate on the day of each FX contract will differ.

Key facts

Capital gains rate on the first R$5,000,000 of gain (rules for residents, applied to non residents)	15 %Law 8,981/1995 art. 21 item I; Law 9,249/1995 art. 18, as of 2026-10-27 · in force
Top capital gains rate, gain above R$30,000,000	22.5 %Law 8,981/1995 art. 21 item IV, as of 2026-10-27 · in force
Capital gains withholding for sellers in favored tax jurisdictions	25 %Law 10,833/2003 art. 47, as of 2026-10-27 · in force
Party that withholds tax on a non resident's gain	Buyer, or buyer's attorney in Brazil partyLaw 10,833/2003 art. 26, as of 2026-10-27 · in force

The rule

1. Same rules as residents: capital gains earned by a person resident or domiciled abroad are computed and taxed under the rules that apply to residents of Brazil.Law 9,249 of 26 December 1995, Art. 18, 1995-12-26 official text · verified 2026-10-27

2. Progressive rates on gains: 15 percent on the part of the gain up to R$5,000,000; 17.5 percent from R$5,000,000 to R$10,000,000; 20 percent from R$10,000,000 to R$30,000,000; 22.5 percent above R$30,000,000.
Cost to do it: 15 to 22.5 percent of the gain
Example: Gain of R$20,000,000: tax R$3,625,000 / Gain of US$3,635,900.89: tax US$659,007.04Law 8,981/1995 art. 21, as worded by Law 13,259 of 16 March 2016 art. 1, Art. 21 items I to IV, 2016-03-16 official text · verified 2026-10-27

3. Anti splitting: when the same asset is sold in parts, from the second sale the gain is added to earlier gains on that asset to find the rate, with tax already paid deducted, if the later sale occurs by the end of the calendar year following the first. Shares or quotas of the same company count as one asset.Law 8,981/1995 art. 21 §§ 3 and 4, as worded by Law 13,259/2016, Art. 21 §§ 3 and 4, 2016-03-16 official text · verified 2026-10-27

4. Favored tax jurisdictions: a capital gain is subject to 25 percent withholding income tax when the beneficiary is resident or domiciled in a country or dependency with favored taxation as defined in art. 24 of Law 9,430/1996.
Cost to do it: 25 percent of the gain
Example: Gain of R$20,000,000: tax R$5,000,000 / Gain of US$3,635,900.89: tax US$908,975.22Law 10,833 of 29 December 2003, Art. 47, 2003-12-29 official text · verified 2026-10-27

5. Who withholds: the buyer resident in Brazil, or the buyer's attorney in Brazil when the buyer is resident abroad, is responsible for withholding and paying the income tax on the gain of a non resident seller of assets located in Brazil.Law 10,833/2003, Art. 26, 2003-12-29 official text · verified 2026-10-27

6. Other income of favored jurisdiction residents: income from any operation paid to a beneficiary resident in a country that does not tax income, or taxes it below the threshold of art. 24 of Law 9,430/1996, bears 25 percent withholding.Law 9,779 of 19 January 1999, Art. 8, 1999-01-19 official text · verified 2026-10-27

Part of gain	Rate	Tax on a full bracket
Up to R$5,000,000	15%	R$750,000
R$5,000,000 to R$10,000,000	17.5%	R$875,000
R$10,000,000 to R$30,000,000	20%	R$4,000,000
Above R$30,000,000	22.5%	22.5% of the excess

Progressive capital gains brackets (Law 8,981/1995 art. 21 as worded by Law 13,259/2016)

Worked example

A foreign investor sells its quotas in a Brazilian Ltda. to a Brazilian buyer with a gain of R$20,000,000 (US$3,635,900.89). Under the rules for residents, tax is R$750,000 + R$875,000 + R$2,000,000 = R$3,625,000 (US$659,007.04), an effective 18.1 percent, which the buyer withholds from the price.
If the seller is in a favored tax jurisdiction, the tax is 25 percent: R$5,000,000 (US$908,975.22).
If the buyer is also foreign, its attorney in Brazil must withhold and pay the tax.

Step by step

1. Compute the gain in reais: sale price less acquisition cost, documented.
2. Check whether the seller is in a favored jurisdiction, and whether a tax treaty applies (see the treaties page).
3. Apply the brackets, aggregating earlier partial sales of the same company within the window.
4. Put the withholding mechanics in the purchase agreement: who withholds, on what amount, and when.
5. Follow the FX page for updating the foreign capital records and remitting the net price.

Common traps

The buyer, or its attorney in Brazil, is liable for the tax; buyers will hold back the tax from the price.
Selling a stake in tranches does not reset the brackets if the sales fall within the aggregation window.
Holding through a favored jurisdiction entity raises the rate to 25 percent.
Rules for a foreign corporate seller follow art. 18 of Law 9,249/1995; confirm the treatment with a Federal Revenue ruling (solução de consulta) on large deals.
Where Argentina or another treaty partner is involved, the treaty may allocate taxing rights differently; check it before closing.

Sources

Related: Brazil country profile · live dashboard · central bank and release calendar · our posts on X · where Argentina is involved, see The Argentine Thread guide

← Global minimum tax in Brazil: the CSLL surcharge (Adicional da CSLL) for groups with EUR 750 million of revenueITCMD in Brazil: the state inheritance and gift tax, the 8 percent ceiling, mandatory progressive rates and the 2026 national rules →