How to Transfer Money From Brazil to USA

Transferring money from Brazil to the United States is a common financial necessity for individuals and businesses. Understanding the methods, required documentation, associated costs, and regulatory frameworks ensures a smooth and compliant transfer process. This guide provides an overview of key considerations for sending money from Brazil to the USA.

Selecting a Money Transfer Method

Choosing a method for transferring money from Brazil to the United States involves considering factors like speed, cost, convenience, and transfer limits. Several legitimate avenues exist, each with distinct operational models.

Traditional banks, such as Itaú, Bradesco, or Banco do Brasil, offer international wire transfers. These transfers involve correspondent banks in the US to complete the transaction. While secure, bank wire transfers can have longer processing times, potentially a few business days. Their fee structures may include fixed charges and markups on exchange rates.

Online money transfer services provide alternative solutions, characterized by digital convenience and competitive pricing. Platforms like Wise (formerly TransferWise), Remitly, and Xoom (a PayPal service) allow users to initiate transfers online or via mobile apps. These services offer various payout options in the US, including direct bank deposits, and often have faster transfer speeds compared to traditional banks.

Specialized foreign exchange brokers also cater to international transfers, particularly for larger sums. These brokers may offer more favorable exchange rates and personalized service, which can be beneficial for high-value transactions.

Essential Information and Documentation

Initiating a money transfer from Brazil to the USA requires specific information and documentation from both the sender and recipient. This preparatory step ensures compliance and security, helping prevent delays.

For the sender in Brazil, identification documents are fundamental, such as a valid RG (Registro Geral), CPF (Cadastro de Pessoas Físicas), or passport. Proof of address, like recent utility bills or bank statements, is also required. Proof of the origin of funds is necessary for Brazilian Central Bank (BACEN) compliance. This can include payslips, tax returns, property sale agreements, or inheritance documents, demonstrating the legal source. Brazilian bank account details, including the account number, agency number, and the SWIFT/BIC code, are also necessary.

The recipient in the USA must provide their full legal name and physical address. Their bank account details are essential, including the US bank’s name, account number, and routing number (ABA or ACH routing number). The SWIFT/BIC code of the US receiving bank is required for international wire transfers. If the transfer involves cash pickup, recipient identification might also be necessary, depending on the service provider.

Steps for Sending Funds

Once all necessary information and documentation are gathered, the process of sending funds from Brazil to the USA can begin. These steps are generally consistent across different service types.

First, initiate the transfer through the chosen method, such as a bank branch, online platform, or mobile application. Input the pre-gathered details for both yourself and the recipient, specifying the transfer amount and selecting the desired currency. Ensure all information is accurate.

Before finalizing, review all transfer details, including any associated fees and the applied exchange rate. Confirming these elements ensures transparency regarding the total cost and the amount the recipient will receive.

Fund the transfer using various means such as PIX, TED, DOC, debit card, or a direct bank transfer from your Brazilian account. After funding, a tracking number or transaction ID is provided, allowing you to monitor the transfer’s progress. The recipient in the USA may need to confirm receipt or visit a location for cash pickup, depending on the chosen delivery method.

Understanding Transfer Costs and Exchange Rates

Transferring money from Brazil to the USA involves various costs that can impact the final amount received by the recipient. Understanding these financial considerations is important for making informed decisions about the transfer method. These costs include fees charged by the service provider, exchange rate margins, and government taxes.

Service providers commonly levy transfer fees, which can be either flat fees or a percentage of the transfer amount. These fees vary significantly among providers and can depend on the transfer amount. Beyond explicit fees, the exchange rate applied to the transfer plays a substantial role in the total cost. Providers often apply a markup, or spread, to the mid-market exchange rate. This margin means the recipient receives less foreign currency for the Brazilian Reais sent.

Brazil imposes the Imposto sobre Operações Financeiras (IOF), a mandatory tax on financial operations, including foreign exchange transactions. As of May 2025, the IOF rate for sending funds abroad, whether to one’s own account or to third parties, is unified at 3.5%. This tax is applied to the amount being converted.

Additionally, the receiving US bank may charge a fee for incoming international wire transfers, which ranges from $15 to $25 for personal accounts. To determine the actual amount the recipient will receive, calculate the total cost by accounting for all fees, the exchange rate spread, and the IOF tax.

Navigating Regulatory Requirements

International money transfers from Brazil to the USA are subject to regulatory requirements from both Brazilian and US authorities. Adhering to these regulations ensures compliance, prevents legal issues, and avoids delays. These rules are primarily designed to combat money laundering and ensure financial transparency.

The Brazilian Central Bank (BACEN) oversees international transfers from Brazil. BACEN regulations require financial institutions to maintain records for several years, including documentation identifying the parties and confirming the purpose of the transfer. Transfers exceeding R$ 10,000 for individuals must be reported to the bank, and legitimate proof of funds origin is necessary to comply with anti-money laundering (AML) regulations.

In the United States, several agencies, including the Internal Revenue Service (IRS) and the Financial Crimes Enforcement Network (FinCEN), have reporting requirements. Large gifts from foreign persons (exceeding $100,000 in a tax year) may require the recipient to report them to the IRS on Form 3520. Financial institutions in the US are required to file FinCEN Form 104 for cash transactions exceeding $10,000.

US persons who have a financial interest in or signature authority over foreign financial accounts with an aggregate value exceeding $10,000 at any time during the calendar year must report these accounts to FinCEN by filing FinCEN Form 114, also known as the Report of Foreign Bank and Financial Accounts (FBAR). Both Brazilian and US institutions enforce Know Your Customer (KYC) and AML principles, which necessitate the collection of detailed documentation from senders and recipients.