5 Brazil Property Taxes Explained!

It is prudent to understand your potential tax liability before you invest in property. We have put together an overview of taxes you are likely to face when investing in Brazil property. We always recommend that when buying property abroad to consult a taxation specialist. Our taxation service will introduce you to a wide range of advisers that will help you to structure your tax affairs efficiently.

Transfer Taxes

Once the notary verifies a property purchase deal, you will be required to pay a transfer tax (ITIV) at 2% of the property market value attributed by the City Hall.

Municipal – Local Tax

Local Property Tax (IPTU) is paid once a year and its value is based on the property market value which is evaluated accordingly to laws established by the municipality concerned. Therefore, the rate of taxes can differ from one municipality to another. It varies from 0.6% to 2%.

Corporate Income Tax

Corporate Income Tax is payable if property is purchased through a company and is calculated at 15% on the company profits.

Capital Gains Tax

Capital Gains Tax is payable on any increase in value since acquisition of the investment property at 15%.

Tax on Rental Income

Tax on rental income is charged at 15%.

Mortgage interest is not deducted when calculating taxable rental income.

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