LCI (Real Estate Credit Bill)
The LCI (Letra de Crédito Imobiliário) is issued by banks to raise funds for real estate financing. In exchange, it offers individual investors full exemption from income tax — which, in practice, improves net returns compared to CDBs and taxable…
Explanation
The LCI (Letra de Crédito Imobiliário) is issued by banks to raise funds for real estate financing. In exchange, it offers individual investors full exemption from income tax — which, in practice, improves net returns compared to CDBs and taxable fixed-income funds subject to a regressive tax schedule.
LCIs have a minimum term of 90 days (for those tied to the CDI rate) or 12 months (for longer-term issues). They are covered by the FGC deposit insurance fund up to R$250,000 per taxpayer ID per financial conglomerate — unlike the CRI, which carries no such coverage.