The costs of a standard property purchase in Brazil may
include the following:
Stamp duty or purchase tax (ITIV /ITBI) at 2% of the purchase
price.
Government purchase tax (Laudemio) of between 2%
and 5% of the purchase price.
Capital gains tax: Brazilian non-
residents are subject to capital gains tax or withholding tax on
profits
made from the sale of property in Brazil. Withholding tax
is levied at 15%, except when double taxation
treaties provide
for tax relief. However, when profits are remitted to a tax haven
(Brazil regards any
country or territory with income tax rates
below 20% as a tax haven), withholding tax is levied at 25%.
Any income arising from property rental is taxed at the same
rates as income tax, which currently range
from 15% to 27.5%.
All properties are subject to an annual urban municipality tax (Imposto sobre a Propriedade Predial e
Territorial Urbano/IPTU). Rates vary between municipalities and are based on the
assessed value of the
property. |
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Brazilian taxation is complex and subject to change. You are
therefore
recommended to take expert and up-to-date advice
on taxation issues affecting
the purchase and ownership of
property in Brazil.
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