Americans can buy property in Brazil—and do so with full legal authority, direct transfer in US dollars, and access to the Brazilian banking system. The word FATCA appears frequently when discussing this topic and often generates confusion. This guide explains exactly what it means in practice: it is not an obstacle to purchase, it is a declaratory obligation on the American side.
Florianópolis specifically attracts a growing profile of American citizens—especially Brazilians with dual citizenship or Americans married to Brazilians—who seek a base in Southern Brazil for reasons ranging from cost of living to coastal lifestyle. The purchase process is viable and well-established. What requires attention is bilateral tax planning.
Can Americans Buy Property in Brazil? What the Law Says
Yes. Law 13.445/2017 guarantees foreigners the same civil rights as Brazilian citizens, including the acquisition of real estate. There is no legal restriction for American citizens to buy properties in Brazil—no area cap, no geographic restriction for urban properties, and no requirement for prior residency.
No special residency agreement
Unlike Argentines (Decree 6.736/2009) and Portuguese citizens (Equality Statute), American citizens have no bilateral residency facilitation agreement with Brazil. The path to residency in Brazil is the same as for any foreigner: residency visa via the Federal Police, which later converts to CRNM (National Migration Registry Card).
Migration status and access to financing
Migration status determines financing conditions, not the right to purchase:
With permanent CRNM in Brazil:
– Access to all banks: Itaú, Santander, Caixa Econômica Federal, Banco do Brasil, Bradesco
– LTV: up to 80%
– Term: up to 35 years
– Conditions equivalent to those of any permanently resident foreigner
Without permanent residency:
– Cash purchase: no additional bureaucracy
– Fintechs and Direct Credit Societies (SCDs): LTV 50–60%
– Direct financing with developer: common in new launches
Real estate investment visa (RN 36/2018):
– Urban property valued at R$ 1 million or more → right to temporary residency visa for 4 years
– Alternative path for those seeking residency without conventional migration process
For details on the financing process, see the guide on real estate financing for foreigners in Brazil.
FATCA: What It Is, What It Isn’t, and What You Need to Know
FATCA (Foreign Account Tax Compliance Act) is the most misunderstood American law when it comes to foreign real estate. Let’s be direct:
FATCA does not prevent Americans from buying property in Brazil.
FATCA does not prohibit Americans from having accounts in Brazilian banks.
FATCA does not prevent international wire transfers from USD to BRL.
What FATCA actually does
FATCA, enacted in 2010, requires foreign financial institutions to report to the IRS accounts held by American citizens. Brazil and the US signed an IGA (Intergovernmental Agreement) in 2014, ratified by Decree 8.506/2015: Brazilian banks automatically report to the IRS account balances and transactions of Americans.
This means:
- The Brazilian bank reports to the IRS that you hold an account and annual balances
- You are not blocked, refused, or penalized for holding that account
- Account opening proceeds normally, with an additional W-9 form
What the American buyer must report to the IRS
Purchasing property in Brazil creates reporting obligations on the American side. These are independent of the purchase itself and must be fulfilled with the IRS:
Form 8938 (FATCA reporting):
– Obligation: report the property to the IRS if valued at or above USD 50,000 (single filers; USD 100,000 for married filing jointly)
– Form 8938 accompanies the annual income tax return (Form 1040)
– It is not a tax—it is a declaration of foreign asset ownership
FBAR (FinCEN 114):
– Report Brazilian bank account to FinCEN if balance exceeds USD 10,000 at any point in the year
– Deadline: April 15 (extendable until October)
Form 3520:
– Relevant only if the property is acquired via foreign trust—a less common scenario
The recommendation is to hire an American CPA with foreign real estate experience before closing the purchase. Penalties for non-disclosure are high—not for owning the property, but for omitting it.
Documentation Specific for Americans: What You Need to Gather
For the CPF (Tax ID)
- Valid American passport
- Proof of address (Brazil or USA)
- Federal Revenue Department form (can be completed online or at an agency)
For the deed
- Valid passport
- Active CPF
- Birth certificate (apostilled)
- Marriage certificate, if applicable (apostilled + certified translation)
- Income verification (for financing): pay stubs + tax returns (W-2 or 1040), apostilled and translated
Hague Apostille for American documents
The United States is a signatory to the Hague Convention. The apostille is issued by the Secretary of State of the state where the document was issued—each state has its own process.
Examples:
– Birth certificate from New York: apostille from the New York Secretary of State
– University diploma from California: apostille from the California Secretary of State
Certified translation: English-language documents require certified translation to Portuguese. In Santa Catarina, translators certified by JUCESC perform this service. Verify availability and lead time before scheduling the deed closing. The complete documentation guide is at documents for foreigners buying property in Brazil.
How to Transfer Money from the USA to Brazil
Transferring funds from the USA to Brazil is the most straightforward operation among all nationalities covered in this cluster.
The standard process
- Wire transfer (USD): from the American bank to the corresponding Brazilian bank
- Currency exchange contract: the Brazilian bank converts USD to BRL and issues the formal contract, mandatory for property purchase
- IOF currency fee: 0.38% on the converted amount
- Central Bank registration: foreign capital inflow is registered automatically by the bank
Alternatives for smaller amounts
- Wise (formerly TransferWise): tighter currency spread, suitable for transfers up to ~USD 50k
- Remessa Online: Brazilian platform for international transfers regulated by the Central Bank
- OFX, XE Money Transfer: options used by American expatriates
Documentation of fund source
Retain complete transfer history—American bank statement, wire transfer receipt, Brazilian currency exchange contract. This documentation is needed at two future points: IRS reporting (Form 8938) and potential property sale with repatriation of funds.
For a comparison of exchanges, total costs by channel, current IOF, and remittance checklist, see How to Transfer Money from Abroad to Buy Property in Brazil.
Tax Implications for the American Buyer: Both Sides
Taxation of the American buyer operates in both countries simultaneously, with no automatic offset—because Brazil and the USA have no double taxation treaty in effect.
In Brazil
ITBIITBIVer tudo →: 2% on the assessed value in Florianópolis. Paid before the deed. Universal—the same for any buyer.
IPTUIPTUVer tudo →: annual municipal property tax. The American owner pays exactly like a Brazilian owner.
Rental income: 15% withholding tax for non-residents, retained at source by the property manager or tenant.
Capital gain on sale: 15% to 22.5% withholding tax on the gain, retained by the notary. The rate varies based on gain size.
In the USA
Rental income: reported to the IRS on Schedule E of Form 1040. Taxed as ordinary income.
Capital gain on sale: reported to the IRS. The rate depends on holding period (long-term: 0%, 15%, or 20% based on income bracket).
No double taxation treaty: taxes paid in Brazil can be credited on the American return via Foreign Tax Credit (Form 1116), but the mechanism has limitations and requires case-by-case analysis by a CPA.
The absence of a Brazil-USA double taxation treaty is an important variable in investment return analysis, especially for those planning to rent the property. Consult an American CPA with foreign real estate experience before closing a deal.
Why Americans Choose Florianópolis
Florianópolis does not appear in mainstream American travel guides—and perhaps that is precisely what attracts those who discover it. The city offers quality Atlantic beaches, functional urban infrastructure, and a luxury real estate market at prices that, when converted to dollars, are far below comparable properties in the USA.
Currency as a structural advantage ⚠️
With the US dollar strong relative to the Brazilian real, the square meter in Florianópolis represents a competitive investment for the American buyer. Luxury properties in Jurerê Internacional, priced around R$ 25,136/m², correspond to significantly lower values than comparable properties in Florida, California, or the Northeastern US coast.
The American buyer profile in FLN
American buyers in Florianópolis tend to fall into a few profiles:
- Brazilian-American (dual citizenship) seeking to return or maintain ties
- American married to a Brazilian, seeking a family base
- American digital nomad who discovered FLN as a quality-of-life destination
- Investor diversifying wealth geographically
For a complete view of the foreign buyer market, see the guide on foreigners buying property in Florianópolis.
Neighborhoods with strongest interest
- Jurerê Internacional: the luxury market par excellence. See more at /bairros/jurere-internacional/
- Campeche: rapid growth, airport proximity, stronger permanent residency profile. See at /bairros/campeche/
Frequently Asked Questions
Does FATCA prevent Americans from buying property in Brazil?
No. FATCA (Foreign Account Tax Compliance Act) does not prevent Americans from buying property abroad, holding accounts in Brazilian banks, or making international wire transfers. What FATCA does is require foreign financial institutions—including Brazilian banks—to report to the IRS accounts held by US citizens. The purchase itself encounters no obstacle. What exists is a reporting obligation on the American side.
What is Form 8938 and when do I need to file it?
Form 8938 is the IRS form for reporting foreign financial assets, including real estate. The obligation exists if the property value equals or exceeds USD 50,000 (single filers) or USD 100,000 (married filing jointly). It accompanies the annual income tax return (Form 1040). It is not a tax—it is a declaration of asset ownership. Penalties for non-disclosure are high: starting at USD 10,000 per unreported form.
Can Americans finance property in Brazil?
Yes, with permanent CRNM in Brazil. Without permanent residency, options are cash purchase, financing via fintechs/SCDs (LTV 50–60%), or direct developer financing. For those investing R$ 1 million or more in urban property, the real estate investment visa (RN 36/2018) offers an alternative path to establish residency and later access full bank financing.
How does wire transfer of dollars from the USA work to pay for property in Brazil?
Via wire transfer from the American bank to the Brazilian bank. The Brazilian bank converts USD to BRL at the commercial rate and issues a currency exchange contract—a mandatory document at closing. IOF is 0.38%. The transaction is automatically registered with the Central Bank. Keep all receipts: they are needed for IRS reporting (Form 8938) and potential repatriation of proceeds on future sale.
Do Americans pay tax in the USA on rental income from property in Brazil?
Yes. Rental income from Brazilian property must be reported to the IRS as foreign income (Schedule E of Form 1040). Taxes paid in Brazil (15% withholding for non-residents) can be credited on the American return via Foreign Tax Credit (Form 1116), but the mechanism has limitations and requires case-by-case analysis. Brazil and the USA have no double taxation treaty in effect.
Do I pay tax in both countries when I sell the property?
Potentially yes. In Brazil, capital gain is taxed at 15% to 22.5% (withholding tax), retained by the notary at closing. In the USA, capital gain on sale of foreign property is also reported to the IRS. Foreign Tax Credit can offset part of the American tax by the amount already paid in Brazil, but the mechanism depends on each taxpayer’s specific situation. Prior tax planning with an American CPA is essential.
Can Americans buy tidal flat land in Florianópolis?
Yes, with the same restrictions applying to any buyer—domestic or foreign. Tidal flat properties have specific legal characteristics: laudêmio (5% fee on assessed value paid to the Union at transfer), annual occupancy tax, and foreshore rights rules. See the complete guide at tidal flat land and laudêmio in Florianópolis.
Regente Imóveis and American Buyers
Regente Imóveis has operated in Florianópolis since 1998. For the American buyer, the process begins with an assessment of migration status and property use intent—residence, seasonal rental, or wealth diversification—and includes guidance on when and how to hire an American CPA before closing any transaction.
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