Sending the money from a property sale in Brazil abroad

Selling is only half of the job. For an owner who lives abroad, the sale is complete when the money arrives in the account they actually use. In Brazil, international transfers go through the regulated foreign exchange market, and banks have to understand where the money came from. With the right documents, it is routine. Without them, it can take weeks.

Step 1: where the buyer pays

Most sales are paid in Brazilian reais to a Brazilian bank account. The cleanest option is an account in the seller’s own name. Payment to a relative’s or representative’s account creates a gap in the paper trail that the bank will ask about later — and possible tax questions too.

If you no longer have an account in Brazil, open one before the sale, or check whether your bank offers an account for non-residents. Some banks allow parts of this process online; others require a visit or a power of attorney.

Step 2: the exchange operation

To send the money abroad, the bank or exchange institution signs an exchange contract (contrato de câmbio) with you, converts reais into the foreign currency and transfers it. The institution will usually ask for:

• the sale deed and, ideally, the updated matrícula showing the registration;
• proof that the tax on the capital gain was paid, when there was a gain;
• your identification and CPF;
• information on the receiving account abroad.

The bank needs to justify the operation under exchange and anti-money laundering rules. A complete file speeds everything up.

Costs to consider

• the exchange spread (the difference between the rate you get and the market rate);
• bank fees on both sides;
• the tax on financial operations (IOF) that applies to exchange transactions — the rate depends on the type of operation;
• fees charged by the receiving bank abroad.

Compare at least two institutions. On large amounts, small differences in the rate add up.

If the property was bought with foreign money

Owners who brought money into Brazil to buy the property — especially foreigners — may have registered that investment with the Central Bank at the time. Having that record, and the documents of the original transfer, usually makes the return smoother. If you never registered it, it is not necessarily a problem, but tell the bank and your accountant from the start.

Timing

Plan the transfer as part of the sale, not after it:

1. Before signing, confirm with your bank which documents it will want.
2. Make sure the purchase agreement says the payment goes to your account.
3. Get the accountant’s calculation and pay the tax on time.
4. After the deed and registration, send the full file to the bank.

In your country

Large incoming transfers may be reported by your bank, and the gain may have to be declared where you live. Keep the Brazilian documents translated or easy to explain. Your local accountant will tell you what to file.

Common delays

• payment made to someone else’s account;
• missing proof of tax payment;
• CPF in irregular status;
• names spelled differently in the deed, the CPF record and the passport.

Next step

If you are planning a sale and want the steps — sale, tax and transfer — lined up from the start, describe your situation in the consultation form. The reply comes by e-mail.