Brazilian REITs (FIIs): The Best Way for US Investors to Profit from Real Estate in Brazil

 


If you are a US investor looking for high dividend opportunities abroad, Brazil offers a unique product: FIIs (Fundos de Investimento Imobiliário), often called Brazilian REITs. Just like American REITs, FIIs are investment vehicles that pool money to buy real estate. The main difference? Brazilian REITs pay monthly dividends that can reach 8–12% annually, tax-free for individual investors in Brazil.

In this guide, you’ll discover how FIIs work, why they are attractive for foreigners, and how to invest in them from the USA.

What Are FIIs (Brazilian REITs)?

FIIs were created in 1993 and are regulated by the Brazilian Securities Commission (CVM). They trade on the B3 (Brazilian Stock Exchange), just like regular stocks.

Types of Brazilian REITs:

  • Brick-and-mortar FIIs → own office buildings, malls, hospitals, warehouses.

  • Paper FIIs → invest in real estate debt, such as CRIs (Receivables Certificates).

  • Hybrid FIIs → combine real estate assets and debt.

Why Are Brazilian REITs Attractive for US Investors?

  1. High dividends – Unlike many US REITs, Brazilian FIIs often distribute 8–12% per year in dividends.

  2. Tax advantages – In Brazil, dividends are tax-free for residents. For US investors, taxation depends on your broker and IRS rules, but yields remain high.

  3. Diversification – Access to Brazil’s real estate market, one of the strongest in Latin America.

  4. Liquidity – FIIs trade daily on B3, with over 2 million Brazilian retail investors participating.

Risks You Should Consider

  • Currency risk – Dividend payments are in Brazilian Real (BRL), which can fluctuate against the US Dollar.

  • Market risk – Just like REITs in the US, FIIs are exposed to real estate cycles.

  • Regulation – Brazil’s tax policy could change in the future.

How Can a US Investor Buy FIIs?

You can’t buy FIIs directly on Robinhood or TD Ameritrade. But there are 3 main ways for foreigners to invest in Brazilian REITs:

  1. International brokerage accounts in Brazil – XP Investimentos, BTG Pactual, and other brokers accept foreign investors.

  2. ETFs that track Brazilian FIIs – for example, BCFF11 ETF equivalents.

  3. Brazil-focused mutual funds available in global platforms.

Example of Popular FIIs in Brazil (August 2025)

  • KNRI11 → diversified commercial real estate.

  • HGLG11 → industrial and logistics warehouses.

  • MXRF11 → one of the most popular paper FIIs, high dividend yield.

These funds consistently appear among the most traded in Brazil, attracting both local and foreign investors.

Conclusion

For US investors, Brazilian REITs (FIIs) represent one of the most attractive ways to gain exposure to Brazil’s real estate market while enjoying high dividend yields. Although risks like currency volatility exist, the potential rewards — especially compared to US REITs — make FIIs an excellent option for portfolio diversification.

If you are looking for Brazil high yield opportunities, FIIs should be on your radar.

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