New Special Regime for Asset Update and Regularization
Originally published in the 28th day of November 2025
On November 21, 2025, Law No. 15,265 was enacted, establishing, among other measures, a new program for updating declared assets and rights, as well as regularizing undeclared ones, known as the Special Regime for Asset Update and Regularization (Regime Especial de Atualização e Regularização Patrimonial – REARP).
Special Regime for Asset Update and Regularization (REARP)
The update mechanism is similar to the ABEX mechanism established under Law No. 14,754/2023, which allowed taxation of the difference between cost and market value of assets and rights held abroad at a favorable rate of 8%. The update proposed by Law No. 15,265/2025, in turn, covers real estate, as well as land, water, and air vehicles, located in Brazil or abroad, provided that they were acquired and declared by December 31, 2024.
The option to update may be exercised by: (i) individuals resident in Brazil, who will be subject to individual income tax (IRPF) at a rate of 4% on the difference between the market value and the acquisition cost of the asset or right; and (ii) companies, which will be subject to corporate income tax (IRPJ) and social contribution on net profit (CSLL) at rates of 4.8% and 3.2%, respectively, on the difference between the market value and the acquisition cost of the assets and rights they hold — in this case, the amounts resulting from the update may not be treated, for tax purposes, as a depreciation expense of the legal entity.
Real estate subject to the update may not be sold within the 5 years following the exercise of the option, under penalty of nullifying the effects of the regime; for movable property, this period is 2 years. In both cases, however, transfer due to death (causa mortis) or resulting from division of assets in the dissolution of a marriage or stable union is permitted without prejudice to the application of REARP.
Regularization of Assets and Rights
On the other hand, the new regularization mechanism proposed by the law is similar to the RERCT, offering taxpayers the possibility of regularizing assets and rights held in Brazil and abroad, lawfully obtained, that were not declared — or were incorrectly declared — in the Individual Income Tax Return (DIRPF).
The effects of regularization apply to: (i) individuals and companies resident or domiciled in Brazil as of December 31, 2024; (ii) non-residents at the time the law was published (November 21, 2025), provided that they were resident or domiciled in Brazil as of December 31, 2024; and (iii) estates whose succession was opened as of December 31, 2024.
The amount of assets subject to regularization will be treated as an increase in net worth acquired on December 31, 2024, subjecting the individual or company opting for REARP to the payment of individual income tax, as capital gains, at a rate of 15%, plus a 100% penalty on the assessed tax amount. To formalize enrollment in REARP, individuals must complete a specific declaration to be made available by the Brazilian Tax Authority (RFB) in due course and must amend their Annual Tax Return (Declaração de Ajuste Anual) for the 2024 calendar year. For companies, the exercise of the option must be reported in the ECF (Corporate Tax Bookkeeping) for the calendar year in which enrollment occurs.
Lorusso & Partners continues to monitor the developments related to the new law and remains available to assist taxpayers who wish to update or regularize their assets and rights through REARP, offering integrated and customized tax, wealth, and succession planning solutions.
