Police said he was being held in connection with crimes including corruption and money laundering.
Leonardo Gryner, a former director of the national Olympics committee, was also taken into custody.
The IOC's revamped ethics commission has been investigating Nuzman, who is also president of his country's Olympic committee, ever since his house was among several raided by the Brazilian authorities last month.
Nuzman sits in the back of a police vehicle. Among the hidden assets were 16 kilos of gold in a Swiss bank, he said.
Bretas said in an arrest order that Nuzman's wealth grew by 416 percent between 2006 and 2016 and that he had assets overseas that were only declared after the vote-buying investigation began.
At that time authorities confiscated Nuzman's Brazilian and Russian passports preventing him from traveling to Lima, Peru for the International Olympic Committee session to name two host cities Paris 2024 and LA 2028.
Nuzman and Leonardo Gryner, another Rio Olympics official taken into custody, have been swept up in allegations that $2 million was funneled to former International Olympic Committee member Lamine Diack in exchange for securing votes that helped Rio outpace Madrid for the 2016 Games. This operation with the participation of representatives from the French police and justice, including the famous judge anti-corruption Renaud Van Ruymbeke.
The findings came after a new phase of the "Unfair Play" investigation, arranged by Brazilian and French authorities, which reportedly uncovered an worldwide corruption scheme created to buy votes.
Rio beat Chicago, Madrid and Tokyo to win the 2016 Games. On Thursday, prosecutors said they have since uncovered emails showing the younger Diack asked for more money and received it.
The Rio Games were generally credited with being a sporting and organisational success, but allegations of massive corruption during the preparations and in the naming of the host city have tarnished their legacy.
In a statement, the International Olympic Committee said it was fully cooperating with the investigation and conducting its own probe.
"The IOC Ethics Commission's activities started immediately after the allegations were made, and the investigation is ongoing".
The IOC will not comment further on this matter until a recommendation is issued by the IOC Ethics Commission.