Rio de Janeiro implements tax refund for international tourists
06-01-25
Rio de Janeiro has become the first state in Brazil to establish a “tax free” system that allows international tourists to obtain tax refunds for purchases made during their stay.
The tax refund program is designed for in-person purchases made with credit cards issued abroad. It is important to note that this benefit does not apply to the provision of services or the consumption of food and beverages in bars, restaurants or hotels. Commercial establishments wishing to offer this service must be duly accredited.
According to estimates by the Rio de Janeiro Research and Analysis Institute, the implementation of “tax free” could double international tourist spending in the state, increasing current revenues from US$ 212 million to US$ 411 million. This increase would represent an economic impact of approximately R$2.1 billion on the local economy.
Rio de Janeiro's Secretary of State for Tourism, Gustavo Tutuca, called the measure a “historic moment” that reinforces the state's pioneering spirit. According to Tutuca, the enactment of the Tax Free Law raises Rio to a new level of tourist attraction, positioning it at the forefront of the national scene by introducing successful practices worldwide.
To benefit from the tax refund, tourists must make face-to-face purchases at accredited establishments and pay with a foreign-issued credit card. The program is scheduled to come into effect during 2025, once a company is awarded, through a bidding process, the management of the refund system.
Up to November 2024, Rio de Janeiro received 1,352,012 international tourists, representing an increase of 27% over the previous year. The main countries of origin of these visitors are Argentina, Chile, the United States and France, which contributed 64,957 tourists.
The implementation of “tax free” in Rio de Janeiro follows the trend of other countries in the region, such as Uruguay and Argentina, which already offer similar tax reimbursement systems to foreign tourists. These policies have proven to be effective in stimulating consumption and strengthening local tourism.
It is important that tourists interested in taking advantage of this benefit verify that the establishments where they make their purchases are accredited to offer tax reimbursement. In addition, they should bear in mind that the “tax free” will not apply to all types of purchases, excluding certain services and products, such as those consumed in the hospitality sector.
The adoption of the “tax free” system in Rio de Janeiro represents a significant step forward in the state's strategy to attract more international tourists and increase their spending during their stay. By aligning itself with successful international practices, Rio de Janeiro seeks to consolidate itself as a top tourist destination, offering not only its traditional natural and cultural attractions, but also economic benefits that encourage consumption and visitor permanence.
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