Reel coming soonThe tax exemption requirements, one by oneshort video · 9:16IntermediateBrazilian REITs · Lesson I5.1 · Module I5
The tax exemption requirements, one by one
Module I5: Income tax for unitholders
In this lesson
- The fund's conditions
- The shareholder's and family's conditions
- What happens when one fails
Brazilian REITs · Lesson I5.1
“REIT income is tax-free.” Under which conditions?
Three locks must be open at the same time.
Three locks
The door to tax-free income
- Exchange onlyshares traded exclusively on an exchange or organized OTC market
- 100+ shareholdersin the fund
- You under 10%and your family under 30%
- Tax-freefor individuals
Law 11,033/2004, art. 3, as amended by Law 14,754/2023. Rule in force in Sept. 2026.
Two halves of the rule
One part is the fund's, the other is yours
The fund
- Shares only on an exchange or organized OTC market
- At least 100 shareholders
You
- Under 10% of the shares and of the income
- Related people, combined, under 30%
Related people: as defined in Law 9,779/1999, art. 2 (includes relatives up to the 2nd degree).
One share makes the difference
A fund with 1,000,000 shares
99,999 shares
0% tax
- 9.9999% of the fund: exempt
100,000 shares
20% withheld
- 10% of the fund: loses the exemption
- R$ 80,000 of income → R$ 16,000 of tax a month
Deadlines in the law
When the fund gets some slack
- New fund180 daysfrom the first paid-in capital to reach 100 shareholders
- Dropped below 10030 daysto get back to the minimum and keep the exemption
- Back in timeExemption keptincome stays tax-free
Law 11,033/2004, art. 3, §§ 2 and 4.
The misconception: “tax-free, period”
The rule has been on the table
- Aug 2023MP 1,184proposed 500 shareholders; expired
- Dec 2023Law 14,754minimum from 50 to 100 and the 30% family cap
- Jun 2025MP 1,303taxed the income; expired on Oct 8, 2025
- Nov 2025Law 15,270minimum tax on high earners leaves exempt REIT income out
Remember this
Three ideas from this lesson
- The fund's conditionExchange or organized OTC only, with 100 or more shareholders.
- Your conditionUnder 10% of the shares; related family under 30%.
- Fail, pay 20%Income starts having tax withheld at source.
Quick quiz · 1 of 2
A listed REIT dropped to 95 shareholders. What about the exemption?
See answer
30 days. The law gives the fund that window to regain 100 shareholders without losing the exemption.
Quick quiz · 2 of 2
You hold 8% of the shares. Your father and two siblings, 8% each. So?
See answer
8% × 4 = 32%. Related people holding 30% or more combined fall outside the exemption.
Lesson complete
Next lesson
I5.2Intermediate · Lesson I5.2Sold REIT shares: 20%, DARF and lossesFrom average price to a paid DARF, with losses in the right vault.Continue1 / 10
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Image credits
- Wilfredor · Wikimedia Commons · CC BY-SA 4.0 — Wikimedia Commons
- Pixabay · Pexels · Pexels License — Pexels
Educational content, written for learners. Not investment advice.