A no-IOF credit card looks like the holy grail of international spending for Brazilians. It isn't. Once you isolate the FX spread, the "zero IOF" offers from Nubank Ultravioleta, BTG Cashback IOF Zero and Sicredi become expensive marketing. We ran the numbers line by line — who wins, who loses, and in which scenario.
13 min read
The May 2026 hype
May 2026 went down as the month "zero IOF" became standard banking ad copy in Brazil. Four weeks, serial launches:
- Nubank Ultravioleta announced 1% cashback on all international purchases, framed as "IOF neutralization".
- BTG Pactual launched BTG Cashback IOF Zero, with a genuine waiver for Single-tier and above.
- Sicredi offered promotional zero IOF through December 2026 for co-op members.
- Banco Inter expanded partial cashback on international purchases.
- Itaú updated its Click card with FX benefits.
Consumer reaction was predictable: mass card-switching, viral "I now spend abroad with zero IOF" videos, LinkedIn spreadsheets celebrating savings.
Almost all wrong.
IOF, as of May 2026, is 3.5% on international purchases. No longer 6.38%. That number is the tax ceiling — not your total cost. The real cost of a card is IOF + FX spread + day-rate difference. Eliminating the IOF while keeping a 5% spread is more expensive than paying 3.5% IOF with a 1% spread.
This article runs the numbers. No affiliates, no sponsorship, no fluff.
1. What changed in IOF in 2025-2026
The IOF rate on international credit card purchases dropped from 6.38% to 3.5% in the reduction cycle started in 2024 and frozen in 2026. In parallel, IOF on cash exchange and international remittances also dropped, aligning fiscal cost across channels.
This backdrop is what created room for "no-IOF" marketing. When IOF was 6.38%, waiving the tax meant very relevant savings. Today, at 3.5%, the impact is smaller — and can be swallowed by an elevated FX spread.
2. Why "no IOF" doesn't mean "cheap FX"
The final cost of an international purchase via card is composed of three elements:
- Base rate (USD/BRL on statement closing or posting date, depending on issuer)
- FX spread (the bank's/card's margin on top of the rate)
- IOF (3.5% on the converted amount)
When a bank advertises "zero IOF", it eliminates item 3. Item 2 — where most of the money sits — stays untouched and is often larger precisely on products that zero the IOF, because the bank needs to recover margin.
That's the trick. And that's why the effective rate per USD 100 is the only number that matters.
About the author
Curadoria Voyspark
2 years in the Voyspark editorial team
Time editorial da Voyspark — escritores, repórteres, fotógrafos e fixers em Lisboa, Tóquio, Nova York, Cidade do México e Marrakech. Coletivo. Sem voz corporativa. Cada peça com checagem cruzada por um editor regional e um chef ou curador local.
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