Every year, between the months of March and April, all foreign citizens residing in the country must declare income tax. The so-called IR is a federal tax that is levied on income, investments and assets that must be paid, whether they are salaried employees or self-employed professionals, as is the case with real estate brokers.

How much does the realtor pay Income Tax?

Today a realtor can pay 27.5% tax on a commission. If he is collecting his fees properly, the professional must also add another 20% referring to the INSS, a necessary contribution to have access to retirement and other social services. You can opt for the www.taxfyle.com/blog/independent-contractor-taxes there.

Table of income tax numbers

This high tax burden may lead some brokers to declare only part of their income or simply to evade income tax. But be careful! This practice can have serious consequences, since it increases the risk of the broker falling into the so-called fine mesh and having his assets threatened. Withholding or declaring yourself exempt is not a solution for those who want to pay less tax. It is worth remembering that there are situations that bind the taxpayer to their real income.

For example: 

When buying a property, the person receives the documents related to that asset that must be used in his next declaration. Among these documents is the RPA (Receipt of Payment to Self-Employed) which contains the CPFs of the professionals involved in this intermediation. When entering in his statement the commission paid to the broker as ‘payments made’, this taxpayer ties his data to those of the realtor. In this way, the IRS manages to cross-check information.

Inform customers’ CPF

Realtors need to inform the IRS of their clients’ CPF number. Other professional categories, such as lawyers, psychologists and doctors, who, like brokers, use the professional to prove income, were already obliged to send their clients data to the IRS. The transfer of data from the professional to the declaration can be done through a computer program.

The realtor’s tax return

Working as a freelancer requires as much or more fiscal discipline than those professionals whose regime is the CLT. It is usually the broker who takes care of your documents, which takes time, organization and planning. It is natural for many brokers to be able to make their own statement. Professionals should not forget to inform the values ​​according to those contained in their RPAs issued throughout the year.

What taxes are charged to receive money from abroad?

When receiving money from abroad you must first choose a company to carry out the transaction a traditional bank, a fintech, an online service and so on.

It is worth mentioning that for international transactions (both sending and receiving), there may be an impact of the federal tax IOF tax on Financial Operations. In this case the rule is as follows:

To receive money from abroad, the IOF rates are: 

• 0.38% over the amount received in most cases
• 6% for short-term loans (up to 180 days)
• 0% for long-term loans (from 181 days)

Finally, in addition to the IOF cost, the receipt may have to pay Income Tax depending on the nature and amount of the receipt.