Due to the in-depth nature of the system, it is important that you consult an expert tax advisor when considering purchasing property in Brazil. Here you can obtain a brief guideline to the Brazil property tax system.
Tax is charged on worldwide income for residents of Brazil at 15%, although some foreign tax relief and credits can be allowed under specific tax treaties.
Mortgage interest is not deducted when calculating taxable rental income.
The following are exempt from capital gains tax:
Non-residents are normally subject to a flat rate of 15% on gains from property in Brazil.
Note: Various tax treaties could affect the tax rates described above.
The circulation of merchandise is subject to tax, as are transportation and communication services (ICMS). This is similar to value added taxes in other countries and is set at a rate of 18%, with more specific rates for some goods (for example, 25% on luxury goods).
Brazil has no inheritance or wealth taxes. However, some states may impose a death transfer and a donation/gift tax. For example, the state of Sao Paulo adopted an inheritance and gift tax from 1 January 2001.
Privately owned offices called Cartórios provide notary services as well as registers of real estate deeds. These cartórios charge from a few cents for simple certified copies to thousands of Realis (R$) for property deeds.
Included in the fees charged for real estate transfers are transfer taxes which vary from 4-5% of the declared value. Cartórios are also responsible for the registration of births, marriages and deaths.
Get the latest property and investment opportunities direct to your inbox for FREE (you can unsubscribe anytime)
Has Brazilian Property Bubble ended after a Decade of Growth?
Brazilian Real Estate Markets Stable in 2015
Brazil Real Estate Key Market for Investment
Lifestyle Choices of Brazil’s Wealthiest Property Buyers
Brazil's Real Estate Continues to Attract Foreign Investment
The Most Attractive Market for Property Investors
All property news from Brazil
Subscribe to our RSS Feed
Fill out a requirements form and our experts will help you find a great selection of properties for sale in Brazil.
Help me find property in Brazil
Considering a property purchase in Brazil or need to transfer currency to/from Brazil?
Save Thousands in Currency Transfers
When considering a buying property in Brazil, you are well advised to get expert mortgage advice from a mortgage broker.
Get a mortgage quote in Brazil
Owners Direct is one of the UK's leading direct from owner rental websites and the first choice for holiday home owners who want a cost effective and easy way to fully book their properties.
Find out more
If you own or are about to purchase property in Brazil, you get an insurance quote using our online insurance quote form.
Get Insurance in Brazil
Do you have your British assets covered by a will?
Do you have your movable foreign assets covered by a will?
Have you made plans to protect your family in the event of your death?
Get more information on Wills
Everything you need to know about transferring your UK Pension is in our downloadable guide.
Get more information on Pensions
Minas Gerais Property
Rio de Janeiro Property
Rio Grande do Norte Property
Santa Catarina Property
Sao Paulo Property
Subscribe to our newsletter and keep up to date with the latest and best investment opportunities around the world!