How to Invest in US Stocks from Brazil

To invest in US stocks from Brazil, you have two routes: buy BDRs (Brazilian Depositary Receipts) on the B3 exchange, or open an account with a foreign brokerage and purchase shares directly. Both carry distinct tax implications — especially after Law 14.754/2023 changed how Brazil taxes investment income abroad. This guide covers both paths: tax rules, declaration steps, and the most common mistakes.

TL;DR

• Two routes: BDRs give you exposure to US stocks on B3 in reais without a foreign account; a foreign brokerage gives direct ownership of the underlying shares.
• Tax rules changed in 2024: Law 14.754/2023 set a flat 15% annual rate on foreign investment income — dividends, capital gains, currency variation. Progressive monthly rates and exemptions were eliminated.
• BDR tax treatment is uncertain: sources disagree on whether BDRs follow Law 14.754's 15% flat rate or traditional variable-income rules (15% normal, 20% day trade, no R$20,000 exemption). Consult a tax professional.

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What Are BDRs and How Do They Work?

A BDR — Brazilian Depositary Receipt — is a certificate traded on the B3 exchange that represents shares of a foreign company. When you buy a BDR, a depositary institution holds the underlying shares in a custodian account abroad, and you receive a Brazilian-listed instrument priced in reais. The B3 defines them as "certificates representing shares of foreign companies, traded in Brazil" (B3). You can find BDRs for major US companies such as Apple (AAPL34), Google (GOGL35), and the S&P 500 index ETF (BIVB39).

BDRs are regulated under CVM Instructions 332 and 480 and the B3's own issuer regulations (B3). They have existed in Brazil since 1996, originally under CVM Instruction 255 (Dicionário Financeiro). Programs must back shares of companies from countries whose regulators cooperate with CVM or are IOSCO signatories (B3).

BDR Types and Trading Codes

BDR programs fall into four categories, each with different investor access, disclosure requirements, and market rules (B3):

Ticker codes follow a standard suffix pattern (Dicionário Financeiro):

• Unsponsored: ends in 34 or 35 (e.g., AAPL34, GOGL35)
• Sponsored Level I: ends in YY
• Sponsored Level II: ends in 32
• Sponsored Level III: ends in 33
• ETF BDRs: ends in 39 (e.g., BIVB39)

In August 2020, Brazil's securities regulator (CVM) issued Resolution 3, which relaxed several rules (Tauil & Chequer). BDRs can now be backed by ETF shares, debt securities, and shares of foreign companies with revenue in Brazil. Non-qualified investors can trade Level I BDRs when the underlying shares are listed on regulated foreign exchanges.

Before that change, BDRs were restricted to qualified investors — individuals holding more than R$1 million in financial applications (SmarttBot). The number of BDR investors jumped from 2,900 to 128,900 after the rule took effect (SmarttBot).

You can learn more about opening a Brazilian brokerage account before choosing this route.

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Buying Stocks Through a Foreign Brokerage Account

A foreign brokerage gives you direct ownership of US-listed shares — not a certificate backed by them. The process typically involves three steps:

1. Account opening. Submit your CPF, proof of residence, and identification documents to the brokerage. Most foreign brokerages serving Brazilians operate remotely.
2. Currency conversion. Convert reais to US dollars and remit the funds to the brokerage. You must register the foreign-exchange transaction with Brazil's Central Bank (BCB).
3. Trading. Once funds arrive, you can buy stocks, ETFs, REITs, bonds, and options on US exchanges (NYSE, Nasdaq).

This route gives you access to the full universe of US-listed securities — thousands of stocks, ETFs, and derivatives — compared to the limited set of BDRs on B3. You must handle foreign investment declaration in your Brazilian income tax and manage currency risk on your own.

No official list of foreign brokerages approved for Brazilian residents exists. Verify that any brokerage you use is authorized by its home regulator (e.g., SEC/FINRA in the US).

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What Taxes Apply to US Stock Investments from Brazil?

Brazil's income tax treatment of foreign investments changed on January 1, 2024, when Law 14.754/2023 took effect. Income from financial applications abroad — dividends, capital gains, and currency variation — is now taxed at a flat 15% annually and reported in the annual income tax return (DAA). The old progressive monthly rates and capital gains exemption were eliminated (Lei 14.754/2023).

Key provisions (Lei 14.754/2023):

• Income includes dividends, capital gains from secondary market trades, and currency exchange variation
• Losses can be offset against gains in the same period or carried forward
• Tax paid abroad can be deducted if there is an international treaty or reciprocity
• Currency variation on non-interest-bearing current accounts abroad is exempt
• Sales of foreign currency in cash are exempt up to US$5,000 per year

BDRs occupy an ambiguous position in Brazil's tax framework. Some sources apply the traditional variable-income rules: 15% on normal gains, 20% on day trade, with no R$20,000 monthly exemption (SmarttBot; Dicionário Financeiro). Other sources describe the 15% flat annual rate under Law 14.754/2023, which would apply if BDRs qualify as "financial applications abroad" (Inter Blog; Avenue). No official ruling from the Receita Federal (Brazil's tax authority) has been found to settle the question. Consult a tax professional before operating.

US dividends on stocks held in a foreign brokerage are subject to 30% withholding tax at source. Brazil does not have an income tax treaty with the US, but the two countries recognize reciprocity of tax treatment, which lets you deduct the US tax from your Brazilian income tax obligation (Nomad; PwC).

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Which Route Should You Choose to Invest in US Stocks from Brazil?

The right route depends on portfolio size, asset range, and administrative tolerance. BDRs simplify access to large-cap US stocks and ETFs without leaving Brazil. A foreign brokerage opens the full US market — small-caps, REITs, options — but requires handling remittances, declarations, and currency conversion yourself. See building an international portfolio for regulatory and cost dimensions.

Sources: B3; Dicionário Financeiro; Inter Blog

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How to Declare US Stocks in Your Brazilian Tax Return

Foreign stock investments must be declared in the IRPF. The 2026 filing (covering tax year 2025) is due between March 23 and May 29, 2026 (Avenue). Late filing carries a penalty of R$165.74 to 20% of the tax due, whichever is greater (Avenue).

Steps:

1. Assets and Rights form (Bens e Direitos): Select Group 03 — Equity Interests, Code 01 — Stocks (including listed). Set the country to 249 — United States (Inter Blog).
2. Valuation: Enter the acquisition cost in reais using the purchase-date exchange rate (historical cost), not the year-end rate (Avenue).
3. Income: Declare dividends in the Income Subject to Exclusive/Definitive Taxation form (Nomad).
4. Gains and currency variation: Calculated annually. Report in the DAA under Law 14.754/2023.

Exemption thresholds (only apply if you are not already required to file): bank accounts below R$140 and stocks below R$1,000 per asset category (Nomad).

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Common Errors and Fixes

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Frequently Asked Questions

What is a BDR? A BDR (Brazilian Depositary Receipt) is a certificate traded on the B3 exchange representing shares of a foreign company like Apple or Microsoft. BDRs let you invest internationally without a foreign account, trade in reais, and fall under CVM regulation (B3).

How do I invest in US stocks from Brazil without opening an account abroad? Buy BDRs through your Brazilian brokerage. Search for tickers ending in 34, 35, YY, 32, 33, or 39. Major US companies like Apple, Microsoft, and the S&P 500 ETF are available on B3 (B3).

What tax do I pay on BDR gains? BDR taxation is ambiguous. Traditional rules: 15% on regular gains, 20% on day trades, no R$20,000 exemption (SmarttBot). Alternatively, Law 14.754's 15% flat rate may apply if BDRs qualify as "financial applications abroad" (Inter Blog). No official guidance exists — consult a tax advisor.

What changed with Law 14.754/2023? Reformed foreign investment taxation to a flat 15% annual rate replacing progressive monthly rates (Lei 14.754/2023). Eliminated the R$35,000 monthly exemption for most assets; requires annual DAA declaration. Losses can now be carried forward.

Is there a withholding tax on US dividends? Yes. US imposes 30% withholding on dividends to foreign investors (Nomad). Brazil has no tax treaty with the US but recognizes reciprocity of tax treatment (PwC). You can deduct US tax from Brazilian obligation.

Is there IOF when sending money abroad to invest? Banco Central do Brasil imposes IOF on FX for investment remittances (~0.38% under Decree 6,306/2007). Applies when converting reais for foreign assets. Official rates are set by BCB; consult your remitting institution for current rates.

Should I choose BDRs or a foreign brokerage? Depends on goals. BDRs: simpler, local platform, reais pricing, B3 custody. Foreign brokerage: full US market (small-caps, REITs, options), but requires international accounts, FX conversion, and extra declarations (B3).

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Sources

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