A software company in Lisbon hires a development studio in Recife and must pay its first invoice: EUR 25,000. The studio wants reais in its Brazilian account, and the finance team wants to know the full cost before releasing the money. What is the best way for a European company to pay in BRL?
There are three main routes for EUR to BRL payments: a SWIFT transfer in euros converted in Brazil, a provider that converts the euros and pays out locally in BRL, often to a Pix key, or a euro stablecoin such as EURC converted into BRL. The right one depends on volume, frequency, timing and who handles the FX operation and IOF on the Brazilian side.
How does a EUR to BRL payment work?
Every EUR to BRL payment has the same three parts: the payer sends euros, someone converts them into Brazilian reals, and the supplier receives reals in a Brazilian account. What changes from route to route is who converts the money, where the conversion happens and how long each leg takes.
In Brazil, turning foreign currency into reals is an FX operation regulated by the Central Bank of Brazil (BCB) under Law 14,286, of December 29, 2021, and only institutions authorized to operate in the FX market can carry it out. The same applies when the money arrives as a stablecoin, as the section on the Brazilian side explains.
What are the options for EUR to BRL payments?
1. SWIFT transfer in EUR
SEPA does not cover Brazil, so a bank transfer in euros travels over the SWIFT network, usually through one or more correspondent banks. The supplier's bank receives the euros, converts them into reals and credits the account. Intermediary banks may deduct fees along the way, and the receiving bank applies its own exchange rate.
2. Local BRL payout through a provider
The company pays euros to a payment provider, which pays the supplier in reals from local liquidity, often through Pix, the Central Bank's instant payment system. The conversion into reals is still an FX operation in Brazil, carried out by an authorized institution. This route suits companies that pay many suppliers or contractors in Brazil every month, as covered in how BRL payouts work.
3. EURC converted into BRL
EURC is a euro stablecoin issued by Circle. According to Circle's EURC page, it is redeemable 1:1 for euro, and Circle Internet Financial Europe SAS is authorized as an electronic money institution to issue it as an e-money token under MiCA, the EU's Markets in Crypto-Assets Regulation (Regulation (EU) 2023/1114, of May 31, 2023).
The company converts euros into EURC, transfers it on a blockchain, and a provider in Brazil converts it into reals for the supplier. For how EURC compares with dollar and real stablecoins, see the differences between USDT, USDC, EURC and BRZ.
Route | What adds cost | Typical timing | What the supplier needs | Documentation |
|---|---|---|---|---|
SWIFT transfer in EUR | Intermediary fees and the receiving bank's FX spread | One or more business days, subject to cut-off times | A Brazilian bank account that receives international transfers | Invoice; the receiving bank registers the FX operation |
Local BRL payout | The provider's FX spread and fees | Set by the provider; Pix credits in seconds once the payout is released | A Pix key or a Brazilian bank account | Invoice and the information the provider requests |
EURC into BRL | Network fees and the conversion spread at each end | The blockchain transfer runs 24/7; conversion depends on each provider | An account with a provider that converts EURC into reals | Purpose of the payment and details of the payer abroad |
What happens on the Brazilian side?
Whatever the route, the supplier ends up with reals through an FX operation in Brazil, which the market often calls the FX contract (contrato de câmbio). The bank or provider classifies the operation by its nature, such as payment for exported services, and that classification also defines the tax.
Brazil charges IOF on FX operations. Under art. 15-B of Decree 6,306, of December 14, 2007, inflows pay 0.38% as a rule, and FX operations that bring export revenue into Brazil pay zero. The zero rate also covers services listed in Sections I to V of the NBS, Brazil's nomenclature of services, so a software supplier's revenue may qualify.
For the EURC route, BCB Resolution 521, of November 10, 2025, made international payments with virtual assets and the purchase, sale or exchange of stablecoins FX market operations from February 2, 2026. The Brazilian provider must collect the purpose of the payment and details of the payer abroad.
Resolution 521 also limits each international payment or transfer with virtual assets made by a virtual asset service company to the equivalent of USD 100,000 when the counterparty is not an institution authorized to operate in the FX market. A EUR 25,000 payment is well below that limit.
IOF on this route is still an open question: as of October 6, 2026, the IOF decree had no specific rule for operations with virtual assets, so the tax treatment should be confirmed with a tax advisor before using it.
What do the three routes look like for a EUR 25,000 payment?
A Portuguese company pays EUR 25,000 to a software supplier in Brazil. The figures are illustrative: at a rate of BRL 6.20 per euro, the invoice is worth about BRL 155,000 before spreads and fees.
SWIFT: the company sends EUR 25,000 from its bank in Portugal. Intermediary banks may deduct fees, and the supplier's bank converts what arrives at its own rate.
Local BRL payout: the company pays EUR 25,000 to a provider, which pays about BRL 155,000, minus its spread and fees, to the supplier's Pix key.
EURC: the company converts EUR 25,000 into about 25,000 EURC, transfers it on a blockchain, and a provider in Brazil converts it into reals for the supplier.
Tax: on the SWIFT and payout routes, IOF is zero for export revenue from services and 0.38% otherwise, about BRL 589. On the EURC route, IOF has no specific rule yet.
Paying suppliers in Brazil from Europe every month? See how local BRL payouts work.
How does Transfero support European companies paying in Brazil?
Transfero runs cross-border payments on the Transfero Payments Network (TPN), a layer that connects banking rails, blockchain networks and liquidity providers through a single API. For companies abroad that pay suppliers, contractors or subsidiaries in Brazil, the same integration covers payouts in BRL, including through Pix. The network serves fintechs, global payroll platforms, marketplaces, payment service providers and international trade companies, and includes a trading desk.
Cross-border payments: move money globally in minutes, with predictable 24/7 payouts across multiple countries.
Collection and payment in BRL through Pix, so suppliers, contractors and subsidiaries receive reals in their own accounts.
More than 180 payout markets, with settlement in local currency on the recipient's side.
More than 9.8 million transactions processed in 2025.
Questions to ask before choosing how to pay suppliers in Brazil
How much do you pay in Brazil each month, and to how many recipients?
What is the full cost per payment, including the FX spread and intermediary fees?
How long until your supplier has the reals, and can you track each payment?
How will the payment be classified in Brazil, and which IOF rate applies?
Does your supplier receive through Pix, or only through a bank account that takes international transfers?
If you consider EURC, which providers convert it at each end, and what do they need from you and your supplier?
Talk to our team about your EUR to BRL payments: contact Transfero.
Frequently asked questions
Is there a tax on receiving euros in Brazil?
Yes. Brazil charges IOF on FX operations: 0.38% on most inflows and zero on export revenue, including services listed in Sections I to V of the NBS. The rate depends on how the operation is classified. For stablecoin conversions, the IOF decree has no specific rule yet. Rates checked on October 6, 2026.
How long does a EUR transfer to Brazil take?
It depends on the route. A SWIFT transfer can take one or more business days, depending on correspondent banks and cut-off times. A local payout reaches the supplier through Pix in seconds once the provider releases it, and a stablecoin transfer runs on the blockchain 24/7, with conversion times set by the providers at each end.
What is EURC and how is it different from USDC?
Both are stablecoins issued by Circle: EURC is referenced to the euro and USDC to the US dollar. Circle says EURC is redeemable 1:1 for euro, and in the European Economic Area it issues both as e-money tokens under MiCA. In Brazil, buying, selling or exchanging either one is an FX market operation under Resolution 521.
Can a Brazilian supplier receive the payment via Pix?
Yes, when a provider converts the euros and pays out in reals. Pix is the Central Bank of Brazil's instant payment system and works 24/7, so the supplier only needs a Pix key or a Brazilian account. With a SWIFT transfer, the money arrives at the supplier's bank instead, which converts it before crediting the account.
