Other Taxes in Brazil

Understand what additional taxes you may be subject to when living in Brazil...

There are a number of other taxes that exist within the Brazilian system, including inheritance tax, land tax and taxes on goods.

Inheritance Tax (Imposto Transmissão Causa Mortis e Doação - ITCMD)

The inheritance tax (ITCMD) is a state tax on transfers of goods on death-related inventories or donations. ITCMD is usually payable on real estate or lump sums of cash.

Each state may set a different rate; for example in the State of São Paulo the inheritance tax payable is collected at a four percent rate.

Urban Building and Land Tax (Imposto sobre Propriedade Predial e Territorial Urbana - IPTU)

The urban building and land tax (Imposto sobre Propriedade Predial e Territorial Urbana) is a property tax payable every month to the local authorities where the property is located. The IPTU of a property is determined by the market value of the property, its location and the type of property (building, house, apartment or land).

IPTU is an annual tax and can be paid all at once or in 10 monthly payments without interest. Most Brazilians and foreigners choose to pay IPTU through direct debit from their bank accounts but IPTU can also be paid by telephone, at any ATM bank machine and in person at many Brazilian banks.

A bill for the IPTU is sent annually in January. It arrives in a booklet form containing payment slips with information on how the bill has been calculated. These slips can be used when paying the bill at an ATM bank machine or to set up the initial direct debit arrangement with the bank.

Transfer Tax on Goods (Imposto sobre Transmissão “Inter Vivos” de Bens e Imóveis e de Direitos Reais sobre Imóveis - ITBI)

The inter vivos transfer tax is a municipal tax on transfers of real estate and rights to real estate.

The transfer between people of real estate or land is subject to the Imposto de Transmissão de Bens Inter Vivos. The amount of this tax varies from city to city in Brazil and is calculated based on the value of the goods in question. For example, the tax in the City of São Paulo is calculated on a graduated scale and can vary from between 0.5 percent and 2 percent.

  • For information from the Prefeitura of São Paulo on the current ITBI rates: Click here (in Portuguese)

A sale of an urban property in São Paulo must be declared online to the Prefeitura.

  • To declare the sale of a property in São Paulo: Click here

Disclaimer
Every effort has been made to offer information that is current, correct and clearly expressed. The information in this summary is intended to be no more than a general overview of the position and certain details have been deliberately omitted. The contents of this page should not be taken as an authoritative statement of Brazilian law and practice. Neither the author nor the publisher are responsible for the results of actions taken on the basis of information contained in this summary, nor for any errors or omissions. This text is not intended to render legal, accounting or tax advice. Readers are encouraged to seek professional advice concerning specific matters before making any decision.

Prepared by, Antonio Amendola, partner, Felsberg e Associados At: Av. Paulista 1294, 2nd floor, Cerqueira Cesar, 01310-915 e-mail