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of <h1>Gains from selling immovable and business assets may be taxed in both states under Brazil's Double Tax Avoidance Agreement.</h1> Gains from the sale of immovable property by a resident of one Contracting State, located in the other Contracting State, may be taxed in the latter. Gains from selling movable property as part of business assets in a permanent establishment in the other Contracting State may also be taxed there. However, gains from ships or aircraft in international traffic are taxable only in the state where the enterprise's effective management is located. Gains from other property types may be taxed in both Contracting States under the Double Tax Avoidance Agreement between Brazil and the other Contracting State.
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