How to Send Money from Abroad to Buy Property in Rio

Once you decide to buy a studio in Rio, the next practical question is: how does the money get here? Unlike a regular transfer, sending money to buy property follows a formal process that exists to protect the buyer and make sure the property can be registered without problems.

The official exchange market: the only safe route

Any transfer to buy property must go through the official exchange market, via a bank or broker authorized by the Central Bank. This creates an exchange contract, which records where the money came from, the amount converted and the rate applied. Brazil updated its exchange rules with a new framework (Law 14,286/2021), in force since 2023, but the principle is the same: the transaction must be formal and in the buyer's name.

What to consider before sending

• IOF: 0.38% as a general rule for incoming funds; check the rate on the day, since it can change by decree
• Exchange rate: small variations matter on large amounts; some institutions let you lock the rate for a short period
• Source of funds: the bank may ask for documents showing where the money comes from (salary, sale of another asset, inheritance)
• Same name from start to finish: the sender, the person on the exchange contract and the buyer on the deed should be the same; this is essential if you plan to apply for residency by investment
• Timing: the transfer is not instant; leave plenty of margin before the deed signing or installment dates

What it costs in practice

On R$ 300,000, the 0.38% IOF comes to about R$ 1,140. The difference in exchange rates between institutions often weighs more than the tax itself, so compare quotes before closing.

Exchange broker or traditional bank?

Banks and specialized brokers issue the same kind of exchange contract, but they differ in rate, speed and service for large amounts. For a property purchase, usually a large amount with a set date, compare quotes and confirm that the transaction is in your name, stating "purchase of property" as its purpose.

There is no safe "informal" way

People often ask about shortcuts: third-party accounts, split transfers or informal intermediaries to save money. None of them is advisable. Besides the legal risk, money that does not go through the official exchange market is not documented, which can block the property registration, rule out a residency application and complicate the resale, when you need to prove how much you invested.

This article provides general information and does not replace individual currency exchange or tax advice. Always confirm current conditions and rates with your bank or broker before sending any money.

Frequently asked questions