Brazil's papel FIIs (KNCR11 / MXRF11): 13.5–13.8% nominal, monthly — deduct 20% first, then compare with the 13.75% Selic
Composite-board score: 6.0 · Where it is strong: Net cash flow, Evidence strength · methodology
Brazil's numbers are the largest on this site, and the most in need of three buckets of cold water. Papel (paper) FIIs hold CDI/IPCA-linked real-estate receivables (CRIs) and pay monthly: KNCR11 (Kinea's CDI-linked CRI book) distributed R$14.53 per quota TTM = 13.84%; MXRF11 (among the largest by retail holders) paid R$1.19 over 12 months = 13.5%. The first bucket is tax: resident individuals are exempt under conditions; non-residents are not — distributions are withheld at 20% IRRF, giving about 11.1% / 10.8% in hand (in reais, before FX). The second is the rate itself: with the Selic at 13.75%, KNCR11's gross is roughly CDI-flat — the bulk of that 13.84% is the risk-free rate, with only a thin credit spread of real estate on top; reading it as 'property outperformance' is an order-of-magnitude error. The third is composition: a material part of CDI/IPCA-linked cash is monetary indexation of principal (economically, your own capital coming back with inflation), and MXRF11's August 2026 month printed a cash result of R$0.092 per quota against a R$0.10 distribution, the gap covered from an accumulated monetary-correction reserve (R$22.19M) — about 8% of that month's payout was reserves, not current income. Access has friction too: non-residents invest under CMN Resolution 4,373 (a local custodian/representative, a CPF tax ID, a Brazilian broker non-resident account). Verdict: do, on conditions, sized as an emerging-market currency position with a property wrapper — the real fell about 8% in a single day around the October 2026 election, and that sentence must be read before any yield.
In short: four lines first
Listed quotas, KNCR11 at about R$102 and MXRF11 at about R$8.80 (a 4,373 non-resident account required)
13.5–13.84%（Brazil papel FIIs (KNCR11/MXRF11) gross yields and non-resident in-hand (disclosure basis)）
Fairly hands-off (listed route; account and tax arrangements are heavier)
A falling Selic mechanically cuts the distribution: CDI-linked papel funds have no payout stickiness — however much the central bank cuts is however much the distribution falls (cuts are paused at 13.75% as of November 2026; the path is open). Anyone buying at 13.84% is buying a floating rate.
The numbers that matter
Why we think it makes money
Its yield cause is the most transparent on the site: CDI linkage means distributions approximate the policy rate plus a thin spread — this site prints the Selic on the same metric card, so readers can see at a glance which part is rates and which part is real estate.
The monthly reports' 'cash result versus distribution' disclosure is the Brazilian system's self-cleaning mechanism: the month MXRF11 topped up from reserves is recorded in its own report — this site cites it to teach readers to split a fund's distributions using the fund's own documents.
It is the site's tax-comparison pole: the same distribution is 0% for a resident and 20% for a non-resident — in Brazil, the word 'exempt' must always be followed by the question 'for whom?'. That lesson alone is worth the entry.
How to actually get in
- Listed route: first set up CMN 4,373 non-resident arrangements (a Brazilian broker non-resident account, a local custodian/representative and a CPF tax ID), then buy KNCR11 / MXRF11 quotas on B3. Distributions are monthly with 20% withheld at source; capital gains on exchange-traded quotas are exempt for 4,373 investors not resident in low-tax jurisdictions.
What it costs, what it earns
Entry amount: Listed quotas, KNCR11 at about R$102 and MXRF11 at about R$8.80 (a 4,373 non-resident account required)
How much work for you: Fairly hands-off (listed route; account and tax arrangements are heavier)
- Real exposure (first place): single-day political/fiscal moves of about 8% occur — size it as a currency position, not as "high-yield income".
- The 4,373 account's setup and maintenance friction (custody, representation, filings) is a fixed cost that takes a proportionally large bite out of small positions.
Basis: this site uses full-cost net returns only — income minus vacancy, management, maintenance, taxes and insurance, then financing interest, with entry costs in the denominator. See the methodology。
Identity & tax
Status (residency / citizenship)
This asset does not count toward the channel This asset leads to no status
Threshold: 城市房产 ≥R$100 万（北部/东北部 ≥R$70 万），自有外资汇入
持有 FII 份额不给任何身份。巴西的房产居留是 CNIg 规范决议 36/2018（经 RN 46/2021、RN 49/2024 修订）：以境外汇入的自有资金购买城市房产 ≥R$100 万（北部/东北部 R$70 万）、资金经央行授权机构入境登记，得 4 年居留许可、其后可续/转。企业通道另有 RN 13/2017：投巴西公司 R$50 万（永居）或创新/初创 R$15 万。RN 36 已列入本站身份枢纽待评分队列。
Source: CNIg RN 36/2018；RN 13/2017
Tax (investor level)
FII 分派：居民个人在条件内免税（基金须交易所挂牌、≥50 名持有人、个人持 ≤10%）；非居民没有免税——分派预扣 20% IRRF。经交易所出售份额的资本利得对 CMN 4,373 制度下、非低税辖区的非居民投资者免税（低税辖区居民各类所得 25%）。
- 税改状态（本站已核）：MP 1.303/2025（拟对居民 FII 所得征 5%、统一 17.5%）已于 2025-10-08 被众议院移出议程而失效——2026 年 FII 税制不变；仍在印「5%/17.5% 即将实施」的材料是旧的。
- Law 15.270/2025（2025-11-26 颁布）自 2026 年 1 月对非居民股息设 10% 预扣，但交易所挂牌、≥100 名持有人的 FII/Fiagro 分派据律所对颁布文本的解读在排除清单内——FII 维持其专门税制（非居民 20%）；此点以官方公报文本为最终准。
Double-tax treaties: 巴西与新加坡无税收协定适用于此项的减免——到手数按 20% 全额推导。
Source: EY 税务简报；PwC/Mayer Brown 对 Law 15.270/2025 的解读；Lei 8.668/1993
This section is general information only — not immigration or tax advice. Program rules change frequently; before acting, rely on the official texts and a licensed adviser.
Risks: what could go wrong
What we have not verified yet
The following key figures have not yet been verified; the reason is noted for each item.
- The 11.1%/10.8% in-hand figures are this site's derivations at 20% withholding (gross × 0.80): home-country tax and FX are excluded; the custodian's withholding governs in fact.
- MXRF11's reserve top-up detail comes via media reporting of the fund's monthly report: follow the fund's relatorio gerencial original when citing.
FAQ
- 13.8% less 20% still leaves 11% — is that not still the site's highest?
- Nominally yes; in shape, it is a different animal: that 11% is floating-rate income in reais whose bulk is Brazil's own risk-free rate (Selic 13.75%) — in risk language it approximates 'Brazilian government-bond yield minus withholding minus FX volatility plus a thin credit spread'. Before ranking it against 6% in SGD or HKD, align currency and rate regime. This site gives it the top cash-flow score (8) and the bottom stability score (3): that pairing is the shape, priced.
- Monthly payments — are they not steadier than semi-annual ones?
- Frequency is not stability. A papel fund's monthly distribution floats with CDI and shrinks month by month in a cutting cycle; Link's semi-annual distribution is set by rents and a 100% payout policy. Stability is judged by the distribution's source (contracted rent, a floating rate, or a reserve top-up), not by calendar density — and the month MXRF11 drew on reserves is exactly where the monthly system showed its seams first.
- Residents pay 0% and I pay 20% — can I route around it with a Brazilian company or a local account?
- No, and this site offers no such route: the resident exemption's conditions (holder status, a ≤10% holding, a fund with ≥50 quota holders and so on) are substantive tests, and nominee or shell arrangements are tax-avoidance risk under Brazilian law. Resolution 4,373 is the proper non-resident channel, and 20% is that channel's posted price — this site's treatment is to count it into the in-hand figure, in the open.
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