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BeginnerBrazilian REITs · Lesson B4.6 · Module B4

Is FII income tax-free? Almost always

Module B4: Your first share

11 slides~5 minquiz at the end

In this lesson

  • The four conditions for the exemption
  • The 20% math on a profitable sale
  • Why the R$ 20k allowance doesn't apply
See the slides
Calculator and red pens on a desk

Brazilian REITs · Lesson B4.6

Income is tax-free. Profit on a sale isn't.

Two doors, two tax rules — and one very common mistake.

The two doors

What the FII pays and what you make selling

Monthly income

0% tax

  • Lands in your account in full
  • Reported as exempt on your tax return

Profit on a sale

20% tax

  • You calculate it and pay via DARF
  • FII losses offset future FII gains

The exemption locks

Four conditions for tax-free income

  • Individualcompanies don't get the exemption
  • Exchange onlyshares traded only on an exchange or organized OTC market
  • 100+ shareholdersat least, in the fund
  • Under 10%of the shares and income, held by you

Law 11,033/2004, art. 3, III and § 1 (Law 14,754/2023). There's also a cap for related persons: lesson I5.1.

Do the math

A year with income and one sale

R$ 3,000of income×0%=R$ 0tax
R$ 5,000sold−R$ 4,600cost of the shares=R$ 400profit
R$ 400×20%=R$ 80via DARF

Cost is the average price of your shares, including purchase fees. Illustrative figures.

The common mistake

The R$ 20k exemption doesn't apply to FIIs

Stocks

R$ 20k

  • Sold up to that in a month: profit exempt

FIIs

Doesn't exist

  • Any profitable sale pays 20%, even on R$ 1,000

Law 11,033/2004, art. 3, I: the R$ 20k monthly limit is for stocks and gold.

Sold at a profit

The tax calendar

  1. In the month of the saleWork out the profitsale minus cost, minus past FII losses
  2. By the last business day of the next monthPay the DARFcode 6015
  3. On the annual returnReport everythingexempt income, sales and shares held

Rule in force in 09/2026

The exemption nearly ended — and survived

10/08/2025

Provisional Measure 1,303 lapsed without becoming law

It would have taxed FII income from 2026. Since it lapsed, the previous rule stands.

Remember this

Three ideas from this lesson

  1. Tax-free incomeFor individuals, when the legal conditions are met.
  2. Profit on a sale: 20%You work it out and pay the DARF by the end of the next month.
  3. No R$ 20k allowanceThat exemption is for stocks and gold, not FIIs.

Quick test · 1 of 2

Sold R$ 8,000 of shares this month, with R$ 1,000 profit. Any tax?

See answer

R$ 200. FIIs have no R$ 20k exemption: every profit on a sale pays 20%, via DARF.

Quick test · 2 of 2

Which of these is NOT a condition for tax-free income?

See answer

Holding time doesn't matter. The conditions are: individual investor, exchange-only shares, 100+ shareholders and under 10% of the shares held by you.

Lesson complete

Next lesson

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Image credits
  • Tara Winstead · Pexels · Pexels License — Pexels
  • Breather (Unsplash) · Wikimedia Commons · CC0 — Wikimedia Commons

Educational content, written for learners. Not investment advice.