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Investment Research

Brazil Property Taxes: Complete Guide for Foreign Investors

Updated June 2026 • 8 min read

Key Numbers

Budget 5-8% above the property price for purchase taxes and fees. Then expect 0.5-1.5% annually for IPTU. On sale, 15% capital gains tax applies to profit.

All Property Taxes at a Glance

TaxWhenRatePaid By
ITBI
Imposto sobre Transmissão de Bens Imóveis
On purchase2-3%Buyer
IPTU
Imposto sobre a Propriedade Predial e Territorial Urbana
Annual0.5-1.5%Property owner
Capital Gains
Ganho de Capital
On sale15%Seller
Rental Income Tax
Imposto de Renda sobre Aluguéis
Monthly/Annual15-27.5%Property owner
Registration Fee
Emolumentos de Cartório
On purchase1-2%Buyer

ITBI — Property Transfer Tax

Paid once at purchase. Rate varies by municipality: Florianópolis charges 3%, Balneário Camboriú 2%, Itapema 2%. Based on the higher of purchase price or municipal assessment value.

IPTU — Annual Property Tax

Similar to property tax/council tax in other countries. Based on municipal assessment (Valor Venal), which is typically below market value. In Florianópolis, rates range from 0.5% (residential) to 1.5% (commercial). Paid annually, often with a discount for early payment.

Capital Gains Tax

15% flat rate on profit (sale price minus purchase price and documented improvements). Exemption: If the property is your only Brazilian residential property and valued under R$ 440K, gains may be exempt. Non-residents must appoint a Brazilian representative to handle tax obligations.

Rental Income Tax

Progressive rates: 15% on income up to R$ 2,667/month, rising to 27.5% above R$ 5,333/month. Property management fees and condo fees are deductible. Non-residents pay through a Brazilian representative.

Double Taxation Treaties

Brazil has tax treaties with 30+ countries to avoid double taxation on rental income and capital gains. Check if your country has a treaty with Brazil — it could significantly reduce your tax burden.

Real Example: R$ 650K Property in Florianópolis

Purchase priceR$ 650,000
ITBI (3%)R$ 19,500
Registration (~1.5%)R$ 9,750
Legal fees (~1.5%)R$ 9,750
Total additional costsR$ 39,000 (6.0%)
Annual IPTU (est.)R$ 2,600-3,900/yr

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Disclaimer: Tax rates and regulations may change. This guide is for informational purposes only. Consult a qualified Brazilian accountant (contador) for your specific situation. Plan B Brazil · CRECI-SC 59616.