Will Individuals Have to Pay New Taxes When Renting or Selling Property in Brazil?

João Paulo Goulart Clementino
Jul 16
1 min read

Attention property owners! Brazil’s new tax reform changes how individuals are taxed when renting or selling real estate. Depending on the frequency and amount, you may now have to pay IBS and CBS, two new federal taxes.

When will you need to pay IBS/CBS?

You’ll be considered a regular taxpayer if:

1. Property rental:

· You earned over R$ 240,000.00 from rentals last year and

· Rented out more than 3 properties.

2. Property sale:

· You sold more than 3 properties last year and

· The properties were acquired less than 5 years ago.

3. Self-built properties:

· You sold more than 1 property you built yourself within the last 5 years.

4. Current year situation:

· Rental income over R$ 288,000.00 this year (even with 1 property).

· Sale of more than 3 properties, regardless of how long you’ve owned them.

What about short-term rentals?

If you rent out properties for less than 90 days, even just one, you may be classified as providing a hospitality service and be taxed accordingly.