When I started earning in USD as a Brazilian remote worker, I thought the hard part was done once the client paid. But the real challenge was understanding what happened after the payment arrived, how it moved, how it was converted, and where IOF fit into the process.
IOF isn’t loud. It shows up quietly, woven into conversions and card charges, and because it’s expected, it’s easy to treat it as a fixed cost. But if you earn in USD and receive international payments from Brazil, the way IOF is applied can make a real difference to how much of your income you actually keep over time.
This article is about making IOF clearer and more manageable, understanding when it applies, what triggers higher costs, and how to structure your payments so you’re not losing more than you need to.
IOF (Imposto sobre Operações Financeiras) is a Brazilian tax applied to specific financial transactions. When it comes to international payments, IOF is usually triggered during:
The key thing to understand is this: IOF isn’t charged because you earned money abroad. It’s charged because of how that money enters or moves inside Brazil.
These are the most common scenarios for people receiving money from abroad:
That’s why two people receiving the same USD amount can end up with very different final values.
If you receive international payments regularly, IOF accumulates.
Monthly payments. Automatic conversions. Cards linked to Brazilian accounts.
Individually, they seem harmless. Over a year, they’re not.
This is especially painful if:
When your money lands directly in a Brazilian bank account, conversion often happens immediately, triggering IOF without you having a choice.
Subscriptions, ads, software, or travel charged in foreign currency can trigger the highest IOF rate (4.38%) when paid with Brazilian cards.
Some platforms classify payments as card transactions, others as remittances. This changes how and when IOF is applied.
You may not eliminate IOF completely, but you can reduce how often and how much you pay.
Receiving and keeping USD or EUR gives you control. IOF only applies when conversion happens.
Instead of converting everything at once, convert strategically, and only what you need for local expenses.
Use foreign currency to pay international expenses directly and convert to BRL only for Brazilian costs.
Understanding when conversion happens is one of the biggest money-saving moves you can make.
For many people, the most efficient setup looks like this:
This gives you control instead of letting IOF and exchange rates decide for you.
This is where Grey becomes especially useful for Brazilians earning internationally.
With Grey, you can:
Instead of forcing conversions or relying on Brazilian cards for foreign spending, Grey gives you a cleaner, more intentional payment flow.
If you answered “yes” to any of these, there’s room to optimise.
Can I completely avoid IOF in Brazil?
No. But you can reduce how often and how much you pay by controlling conversion and spending.
Is IOF charged when I receive money in USD?
Usually no. IOF is triggered when you convert or spend, not when you receive.
Why is card IOF so high?
International card transactions are taxed more heavily than simple currency exchange.
Does holding foreign currency help?
Yes. It delays conversion and gives you flexibility.
IOF doesn’t have to be a silent tax that eats your income little by little. Once you understand how it works, you can make choices that keep more money in your pocket without breaking any rules.
If you earn internationally, the goal is to stop paying more than you need to.
Open a free Grey account, receive and manage your foreign currency in one place, withdraw BRL to your Brazilian bank when it suits you, and use a virtual USD card for global expenses with less friction.
Your work is global. Your money should move that way too.
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