Brazilian REIT FII Tax Free Income Calculator

FII dividends exempt from income tax

Brazilian Law 11.033/2004 (art. 3, III) makes the monthly dividends paid by FIIs (Fundos de Investimento Imobiliário) exempt from income tax for individuals. Three conditions have to hold at the same time, though: the fund's shares trade on B3 (an organized stock exchange), the fund has at least 50 shareholders, and you, as the investor receiving the money, hold less than 10% of the total shares (and aren't entitled to more than 10% of the fund's income). The exemption covers only the recurring dividend; capital gains when you sell the shares still get taxed at 20%. The formula is net dividend = shares × dividend per share, with no IR withheld, against the 15%–22.5% you'd pay on fixed income.

Take 200 shares × R$ 0.85, which nets you R$ 170/month. Put the same gross amount in a CDB and IR would shave off roughly 17.5% in the 6–24 month window, leaving you around R$ 140. One caveat: the exemption is under review in the 2025–2026 tax reform, with proposals talking about 5%–15% rates. Check where the rule stands now before you build long-term plans around it.

Practical applications

Plan monthly passive income to stand in for rent, model FIRE (Financial Independence, Retire Early) cashflow, or compare an FII against a CDB or Tesouro on a net-net basis. It also lets you work out how many shares you'd need to cover a given monthly expense, for instance R$ 5.000/month ÷ R$ 0.85/share ≈ 5.882 shares of a typical FII.

FAQ

Do I still report exempt FII dividends on the annual return? Yes. They go under "Rendimentos Isentos e Não Tributáveis", code 26 (or 99, depending on that year's IRPF form). Exempt isn't the same as undeclared.

What if I hold more than 10% of a small FII? You lose the exemption on the whole position, and the dividends start getting taxed at 20%. In practice this mostly hits micro-cap FIIs that have few shares outstanding.

Are Fiagro and FI-Infra exempt too? Fiagro-Imobiliário plays by the same exemption rules as FIIs. FI-Infra (Law 12.431) is also exempt for individuals when it invests in infrastructure debentures, though the mechanics aren't identical.

Is the exemption permanent? There's no legal guarantee that it is. Several reform drafts have already floated taxing it; the political cost is high, but not zero. Spreading your money across stocks, ETFs and fixed income keeps you from leaning on a single rule.