What is IOF?

The Tax on Financial Operations (IOF) is a Brazilian federal tax that applies to various financial transactions. Created in 1966, the IOF’s main objective is to raise funds for the federal government and, in some cases, control the economy.

Main Features:

• Instrument of economic policy

• Mandatory federal tax

• Automatic charge (already deducted)

• Different rates depending on the type of transaction

• Direct collection for the Union

Why does IOF exist?

The government uses IOF as:

• Source of supplementary revenue

• Monetary control tool

• Instrument to discourage certain financial transactions

• Means of balancing the trade balance

IOF on Trips: Where It Gets You

When you travel abroad, IOF appears in practically all your financial transactions. Let’s understand where and how:

1. Card Purchases Abroad

How it works:

• Every purchase made with a credit or debit card outside Brazil

• IOF of 6.38% on the transaction amount

• Automatic charge on the card statement

Example:

• Dinner in Paris: €50

• Exchange rate: R$ 5.50

• Amount in reais: R$ 275

• IOF (6.38%): R$ 17.55

• Total charged: R$ 292.55

2. Foreign Currency Purchase

How it works:

• IOF of 1.1% on the purchase amount

• Applied at the time of the transaction

• Valid for cash and prepaid cards

Example:

• Purchase: US$ 1,000

• Exchange rate: R$ 5.00

• Amount: R$ 5,000

• IOF (1.1%): R$ 55

• Total: R$ 5,055

3. Withdrawals Abroad

How it works:

• IOF of 6.38% on the amount withdrawn

• Applied in addition to bank fees

• One of the most expensive transactions

Example:

• Withdrawal: US$ 200

• Exchange rate: R$ 5.00

• Amount: R$ 1,000

• IOF (6.38%): R$ 63.80

• Bank fee: R$ 20

• Total costs: R$ 83.80

4. International Transfers

How it works:

• IOF of 1.1% on the amount transferred

• Applied to remittances abroad

• Does not include additional bank fees

Strategies to Minimize IOF

1. Buy Currency in Brazil

Advantages:

• IOF of only 1.1% vs 6.38%

• Greater control of your budget

• Negotiation of better rates

Tips:

• Compare exchange houses

• Buy in advance

• Negotiate for larger amounts

• Avoid airports (more expensive rates)

2. Use Prepaid Cards

How it works:

• Load the card in Brazil (IOF 1.1%)

• Use it like a debit card abroad

• Total control over spending

Best options:

• Multi-currency cards

• Digital banks

• Specialized fintechs

3. Cards with Lower IOF

Some banks offer:

• Reduced IOF for premium customers

• International accounts

• Loyalty programs

4. Combine Strategies

Smart plan:

• 70% in cash (bought in Brazil)

• 30% by card (for emergencies)

• Prepaid card for online purchases

5. Avoid Withdrawals Abroad

Why avoid them:

• IOF of 6.38%

• High bank fees

• Unfavorable exchange rates

Alternatives:

• Bring enough cash

• Use cards for large purchases

• Plan ahead

The belo Revolution: Travel Without IOF

belo is an innovative Argentine financial app that is coming to Brazil to revolutionize the way Brazilians spend in Argentina.

The promise: Pay for your purchases in Argentina without paying IOF.

How Does belo Work?

QR Code technology:

• App on your cell phone

• Payments via QR Code

• Direct connection with Argentine businesses

• No physical card needed

Simple process:

1. Download the app Belo on your cell phone

2. Load your account in Brazil (in reais)

3. Arrive in Argentina and open the app

4. Scan the QR Code at the business

5. Confirm the payment – no IOF!

The Benefits of Belo

Zero IOF

• No IOF charge on your purchases

• Immediate savings of 6.38% on each transaction

• More money to enjoy your trip

Advanced Technology

• Intuitive and easy-to-use interface

• Fast payments via QR Code

• Complete spending history

Fair Exchange Rate

• Commercial dollar exchange rate

• No abusive spreads

• Full transparency in conversions

Total Security

• Advanced encryption technology

• Personal data protection

• 24/7 support

Wide Acceptance

• Growing network of businesses

• Restaurants, stores, hotels

• Coverage in major Argentine cities

Conclusion

Traveling is investing in experiences, memories, and personal growth. Every real saved in taxes is one more real to create unforgettable moments.

With belo’s arrival in Brazil, we are about to witness a revolution in the way Brazilians travel to Argentina. Get ready to discover a new world of possibilities, where the only limit to your adventures will be your imagination, no longer IOF.

Have a great trip and happy savings!