Guide
How much IOF do I pay?
IOF is one of the biggest hidden costs of moving money internationally from Brazil. Whether you are spending abroad, sending money overseas, investing, or converting currencies, it quietly raises the true cost. Here is how much you pay, and why it matters.
What is IOF?
IOF (Imposto sobre Operações Financeiras) is a federal Brazilian tax applied to certain financial transactions. It is governed mainly by Decreto 6.306/2007 and has been updated several times, including by Decreto 12.499/2025. It applies to operations such as:
- Foreign-exchange transactions.
- International card purchases.
- International remittances.
- Certain investments.
- Loans and credit operations.
- Insurance products.
Why IOF matters
Many people focus only on the exchange rate when moving money internationally. But the total cost is usually:
Exchange rate + FX spread + fees + IOF
Because IOF is often embedded in the final quote, many people underestimate its impact. For larger transfers, the difference can be substantial.
Exchange rate + FX spread + fees + IOF
Because IOF is often embedded in the final quote, many people underestimate its impact. For larger transfers, the difference can be substantial.
Current IOF rates that matter for USD
The rates below are the most relevant for individuals and businesses dealing with dollars. Always confirm the current rate before a transaction, since the rules can change.
How much does IOF actually cost?
Example 1: an international card purchase. You spend US$1,000. IOF at 3.5% is US$35. And that is before:
Example 2: sending money abroad. You send US$10,000. IOF at 3.5% is US$350. Additional costs may include:
- The FX spread.
- The card network markup.
- Bank fees.
Example 2: sending money abroad. You send US$10,000. IOF at 3.5% is US$350. Additional costs may include:
- Wire fees.
- Correspondent bank fees.
- FX spread.
Where IOF hides
Many people never see IOF clearly itemized. Instead it is usually:
- Included in the foreign-exchange quote.
- Embedded in card statements.
- Combined with transfer costs.
- Presented alongside exchange-rate adjustments.
IOF vs FX spread
These are not the same thing.
IOF is a government tax. The rate is set by regulation, and every provider must follow the same IOF rules.
FX spread is a private fee charged by the provider, the difference between the market exchange rate and the rate offered to you (see FX spread explained and how exchange rates work). Different providers charge very different spreads, and in many transactions the spread can be just as expensive as the IOF itself.
IOF is a government tax. The rate is set by regulation, and every provider must follow the same IOF rules.
FX spread is a private fee charged by the provider, the difference between the market exchange rate and the rate offered to you (see FX spread explained and how exchange rates work). Different providers charge very different spreads, and in many transactions the spread can be just as expensive as the IOF itself.
Why people look for alternatives
For many Brazilians earning, holding or spending dollars, the stack of IOF, FX spreads, wire fees and correspondent-bank fees creates real friction. That has driven interest in payment and settlement methods that cut intermediary costs and simplify moving money across borders.
How Ruvo works
Ruvo combines several payment rails, including ACH, RTP, domestic US wires, Pix and stablecoin settlement networks. Instead of relying entirely on traditional correspondent-bank transfers, it routes funds through the most efficient infrastructure available. Receiving dollars is free. Converting reais into digital dollars costs 0.5%. Converting digital dollars into reais costs 0.3% for businesses and 0.5% for individuals.
What about IOF and stablecoins?
Under current Brazilian regulations, transactions involving stablecoins are not treated the same way as many traditional foreign-exchange (câmbio) operations. As a result, the IOF rates commonly applied to international remittances and câmbio generally do not apply to the stablecoin transfer itself. Tax and regulatory treatment can evolve over time, though, so you should always confirm the current rules for your specific transaction.
IOF is not income tax
This is one of the most common misunderstandings.
IOF is a tax on a financial transaction.
Income tax (IRPF for individuals, or corporate taxes) is a tax on earnings, profits or income.
Depending on the situation, you can owe:
IOF is a tax on a financial transaction.
Income tax (IRPF for individuals, or corporate taxes) is a tax on earnings, profits or income.
Depending on the situation, you can owe:
- IOF.
- Income tax.
- Both.
- Neither.
How to reduce the impact of IOF
IOF cannot be avoided where it legally applies, but you can lower your overall cost by:
- Minimizing unnecessary currency conversions.
- Avoiding expensive international card usage when you can.
- Reducing foreign-exchange spreads.
- Using domestic rails such as ACH and Pix whenever possible.
- Choosing providers with transparent pricing.
Bottom line
IOF is one of the most important costs to understand when dealing with dollars from Brazil. The tax itself is set by regulation, but the total cost of an international transaction also depends on spreads, fees and the payment rails involved. Understanding those costs, and choosing the right infrastructure, can save hundreds or even thousands of dollars over time. This is general information, not tax advice, so confirm your specific situation with an accountant.
Current IOF rates for USD operations
| Operation | Typical IOF rate |
|---|---|
| International card purchases (credit, debit, prepaid) | 3.5% |
| International remittances to third parties | 3.5% |
| Certain investment remittances | 1.1% |
| Currency conversion received from abroad | About 0.38% |
| Domestic Pix transfer | 0% |
| Domestic bank transfer | 0% |
Imposto sobre Operações Financeiras, a federal tax on certain financial transactions.
No. IOF is charged on certain financial transactions. Income tax is charged on income and profits. They are completely separate.
Currently 3.5% of the transaction amount (Decreto 12.499/2025), in addition to any exchange-rate spread or fees. A Ruvo card is 0% IOF on dollar spend.
Many traditional international remittances are subject to a 3.5% IOF rate, depending on the type of transaction.
No. Pix transfers do not have IOF.
Yes. IOF rates are set by the federal government and may change over time.
Not always. Depending on the provider, foreign-exchange spreads and bank fees can equal or exceed the IOF itself.
