Portugal is known as one of the top destinations for Read more →
How to Pay Registration & Taxes When Buying Real Estate in Brazil
Costs charged by the registration office will cover government fees and taxes, as well the fees charged by the registration office itself (which is a mixed entity – private but operating based on a mandate by the government).
Total costs usually range from 3.5% to 5% of the total property value. Realtors may provide an estimate of the cost, but usually, only the registration office will provide an exact figure. The registration office won’t bother calculating the exact amounts until the seller and buyer confirm that they will proceed with the registration. Most registration offices will provide you with a ballpark number for the costs.
On the day of the closing, they may ask you for more money if what you paid wasn’t enough, or refund you in case you paid more.
Main component of such cost is the ITBI – Imposto sobre Transmissão de Bens Imóveis (meaning Tax on Real Estate Transaction). Such tax is usually charged at 3% of the real estate value.
Timeline: registration taxes and fees should be paid at least a few days (one week being safer) before the date for the closing.
Heads-up: some registration offices will ask you for the required fees and taxes in a lump sum. If that’s the case, on the closing date, they should provide you with a breakdown of how the money you paid was allocated to the taxes, fees, expenses, etc.
Other registration offices will send you individual invoices for each component of the taxes and registration fees. In any scenario, make sure you always pay directly to the registration office or taxation entities (never to the seller or to the realtor).
Buying a Property in Brazil?
We Can Help You
[email protected]
(214) 432-8100
+55-21-2018-1225
#1 Contact us to get a free quote, or
#2 Schedule a Consultation now.
Watch our “Paying Real Estate Closing Taxes and Fees” video
A couple of minutes of watching this video can save you from wasting hundreds of thousands of dollars. Watch it now!
And, don’t forget to access our complete Buying Real Estate Properties in Brazil YouTube playlist.
Become a Pro in Brazil Real Estate!
To learn all about purchasing real estate in Brazil, check our How to Buy Properties in Brazil guide.
Learn about the advantages of buying real estate in Brazil in our Why Buying Real Estate in Brazil guide. Find opportunities and decide where to buy using our Know Where to Buy Real Estate in Brazil guide.
Buying a Property in Brazil?
We Can Help You
[email protected]
(214) 432-8100
+55-21-2018-1225
#1 Contact us to get a free quote, or
#2 Schedule a Consultation now.
LEGAL WARNING
This content is intended for general information purposes only and does not constitute legal advice. For legal issues or decisions of any kind, the reader should retain and consult legal counsel. You should not act or rely on the information on this website without first seeking the advice of an attorney. The determination of whether you need legal services and your choice of a lawyer are very important matters that should not be based on websites or advertisements.