Until 2025, Brazil was one of the only countries in the world that did not tax profits and dividends. That changed with the enactment of Federal Law No. 15,270/25, which introduced monthly taxation on profits and dividends exceeding R$50,000. 

According to Article 6 of the law, any “amount exceeding R$50,000.00 (fifty thousand reais) in a given month is subject to withholding income tax for individuals at a rate of 10% (ten percent) on the total amount paid, credited, used, or delivered.” 

Income distributed by exchange-listed real estate investment funds (FIIs) with at least 100 investors remains outside the minimum taxation framework, even for individuals earning more than R$600,000 per year. 

In practice, this makes FIIs more attractive compared with other income-generating structures. While corporate dividends, rental income received through legal entities, or traditional wealth structures are now subject to a higher tax burden, income from FIIs continues to be distributed net to individuals, explains Marcelo Rainho, co-founder of inVista Real Estate. 

“This has definitely helped. Families with large real estate portfolios have certainly begun to consider contributing these assets into real estate funds because of the new taxation. It’s worth remembering that these families were already taxed at close to 15%, around 14.53%. With this additional 10%, the burden rises to 24%, nearly 25% per year. At that point, it becomes a very significant amount,” he says. 

According to Rainho, in this context it makes complete sense to keep assets within a vehicle that still benefits from tax exemption, even though the issue is frequently debated among government ministries. He also notes that this environment could be beneficial for the real estate fund market. 

“Investors are increasingly looking at the real estate fund market, especially as long as the tax exemption remains in place. This has always been — and continues to be — a very strong driver. […] As long as the tax exemption exists, this trend is likely to accelerate. There are two clear forces at play: the growth of the industry in size and, at the same time, the increase in the number of investors,” he concludes.