Firstly, REARP allows individuals resident in Brazil to update the value of real estate and motorized movable assets—such as vehicles, vessels, and aircraft—acquired up to December 31, 2024, provided they originate from lawful sources and have already been reported in the income tax return. The difference between the updated value and the acquisition cost is treated as a capital increase, subject to a final 4% income tax. For legal entities, the regime allows for the revaluation of real estate and fixed assets, with the levy of Corporate Income Tax (IRPJ) and Social Contribution on Net Profit (CSLL), totaling 8%, with no right to depreciation on the updated value.
Conversely, the law requires compliance with a lock-up period for the disposal of the updated assets—five (5) years for real estate and two (2) years for movable assets—except in cases of transfer causa mortis (inheritance or legacy) and partition resulting from the dissolution of a marital or stable union. Failure to comply will result in the disallowance of the REARP benefits, with the tax previously paid being offset against the tax due upon the calculation of capital gains.
In the case of the regularization of undeclared assets and rights, the program allows for the inclusion of assets of lawful origin existing as of December 31, 2024, upon payment of 30% on the declared value—comprising 15% tax and a 15% penalty. Adherence to the program grants the taxpayer tax compliance status and extinguishes liability for tax violations related to the regularized assets. The scope of assets includes holdings in Brazil and abroad, such as deposits, financial investments, equity interests, real estate, vehicles, and even cryptoassets.
Normative Instruction RFB No. 2,301/2025, published in December, regulated the operation of REARP and established the deadlines for adherence. Interested parties must submit the Declaration of Option for the Special Asset Regularization Regime (DERP) by February 19, 2026, through the Federal Revenue Service’s e-CAC system. Payment of the tax and penalty—or the first installment, in the case of installment plans—must be made by February 27, 2026. The tax amount is final, with no accrual of interest or late-payment penalties, provided that the program’s conditions are met.
Adherence to REARP implies an irrevocable acknowledgment of the debts and full acceptance of the conditions set forth by law. In return, the taxpayer benefits from the remission of tax liabilities, reduction of penalties and charges, and full tax regularization of the declared assets. The regularized assets must be reported in income tax returns (for individuals) or recorded in accounting books (for legal entities) as of the 2025 calendar year, ensuring transparency and compliance before the Federal Revenue Service. In summary, REARP represents a relevant opportunity for wealth planning and tax regularization, particularly in scenarios involving the appreciation of real estate and vehicles, or where there is a need to correct past omissions with legal certainty. However, each case should be analyzed individually, considering the nature of the assets, the liquidity horizon, and any potential succession-related impacts. Adherence to the regime may generate significant benefits, provided it is aligned with a well-structured asset strategy and supported by specialized advisory.