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BeginnerBrazilian REITs · Lesson B1.3 · Module B1

Where does the monthly income come from?

Module B1: What a FII is

12 slides~5 minquiz at the end

In this lesson

  • The path from rent to you
  • What R$ 1,000 in shares pays
  • Tax: what is exempt and what is not
See the slides
Glass-fronted office towers in São Paulo

Brazilian REITs · Lesson 2

Rent that lands in your account

Follow the money — and do the math on what it pays.

Luiz Pantoja · Wikimedia Commons · CC BY 2.0

Follow the money

From the tenant to you

  1. Tenantpays rent
  2. Brazilian REIT (FII)collects and pays expenses
  3. Distributionthe profit becomes income
  4. Your brokerthe cash hits your account

In a paper FII, interest from securities replaces the rent.

The legal rule

The fund can't keep the profit

95%

of cash profit, at least, goes to unitholders

The law requires it every six months. In practice, most funds pay monthly.

Law 8,668/1993, art. 10.

The calendar

Four dates decide who gets paid

  1. 1 · AnnouncementThe amount is outthe fund says how much per share
  2. 2 · Record date (data com)Held the share? You get paidcounts if you bought by day's end
  3. 3 · Ex-dateBought today? Next timethe share often opens cheaper
  4. 4 · PaymentIt hits your accountstraight to your broker, no request

Do the math

What R$ 1,000 pays

R$ 1,000÷R$ 10per share=100shares
100 shares×R$ 0.10per share=R$ 10a month
R$ 10×12months=R$ 120a year

Illustrative values: real income changes every month.

It's not a salary

Income goes up and down

  1. 0.10Jan
  2. 0.10Feb
  3. 0.09Mar
  4. 0.11Apr
  5. 0.10May
  6. 0.07Jun
  7. 0.10Jul
  8. 0.10Aug
  9. 0.12Sep
  10. 0.09Oct
  11. 0.10Nov
  12. 0.12Dec
avg R$ 0.10

Vacancy, defaults and interest rates move income. Watch the 12-month average, not one month.

Income tax

Income is tax-free. Gains on selling aren't.

Monthly income

0% income tax

  • For individuals
  • Fund with 100+ unitholders, traded only on the exchange
  • You hold under 10% of the shares

Gain on selling

20% income tax

  • No R$ 20,000 monthly exemption like stocks
  • You pay it yourself, via tax slip (DARF), by next month's end

Rules in force as of 09/2026 (Law 11,033/2004, as amended by Law 14,754/2023).

Sold at a profit?

The tax math on a sale

100 × R$ 12sold−100 × R$ 10bought=R$ 200profit
R$ 200×20%=R$ 40tax (DARF)

FII sale losses can offset future FII gains. Broker fees go into the price.

Remember this

Three key ideas

  1. Rent becomes incomeThe fund pays out at least 95% of its cash profit.
  2. The record date rulesWhoever held the share at that day's end gets paid.
  3. Tax-free, not fixedIncome is tax-free and changes monthly. Selling at a profit pays 20%.

Quick quiz · 1 of 2

200 shares at R$ 0.09 each. How much do you get?

See answer

200 × R$ 0.09 = R$ 18.00, with no tax for individuals.

Quick quiz · 2 of 2

Bought on the ex-date. Do you get this month's income?

See answer

No. Whoever held the share at the end of the record date gets paid. From the ex-date on, this month's income is taken.

Lesson complete

Next lesson

B1.4Beginner · Lesson B1.4FII, direct rental or fixed income?Apartment, CDB or FII: each wins on one yardstick — and all of them swing.Continue
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Educational content, written for learners. Not investment advice.