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Brazil property taxes and fees

It is always recommended to take up-to-date advice of an expert on taxation issues affecting the purchase and ownership of property in Brazil.

Costs of a real estate transaction include the following:

  • Transfer Tax approx. 3% of transfer value.
  • Notary fee approx. 1.25 %. Example: per € 100,000 approx. € 1.250.
  • Deed registration in the land register (cadastre) approx. 0.75%
  • Sworn translator, need of guidance and administration fee approx. 1.75%. Translation for foreigners who do not master the Portuguese language.
  • Real estate agency fees (approx. 6%) are borne by the vendors.

Note: Property is subject to an annual municipal tax. Rates may vary per municipality and are based on the estimated value of the property.

Costs related to rental income and capital gains:

Income arising from property rental is taxed at the general income tax rate. This currently rates from 15% to 27,5%.

Brazilian non-residents are subject to withholding tax on profits made from the sale of property in Brazil. Tax on profits is rated at 15%, except when double taxation treaties provide for tax relief. When profits are remitted to a country or territory with income tax rates below 20%, withholding tax is levied at 25%.

RECOMMENDED:

  • Powerpoint presentation: Brazilian lawyer office about real estate transactions. Noronha Advogados
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