How to Pay Registration & Taxes When Buying Real Estate in Brazil
This page is a plain-English checklist of what you pay to close on a property in Brazil: what each item is, who collects it, how much it usually runs, and when it is due. Brazil sets most of these costs at the municipal and state level, so the exact figures vary from one city to the next, but the structure is the same everywhere. If you would rather not track any of this yourself, our companion page explains how we calculate, fund, and pay these costs for you.
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 about 4% to 6% 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 2% to 3%, depending on the municipality, of the real estate value.
What you are actually paying for
Your closing costs are not one bill. They are several separate amounts collected by different bodies, and they fall due at different points in the transaction. It helps to see the whole list before you start, because some items, especially the coastal-land laudemio, are large and easy to miss. Here is the full set:
- ITBI, the municipal transfer tax. Generally 2% to 3% of the property value. Paid by the buyer to the city, before the deed is registered.
- Notary deed, the escritura publica. Roughly 0.5% to 1% of the value, on each state’s official fee schedule. Paid when the deed is signed at the cartorio de notas.
- Property registration, the registro de imoveis. Roughly 0.5% to 1.3% of the value, again on a state schedule. This is the step that actually transfers ownership to you.
- Certidoes and due diligence documents. Small fees per document, but you need a set of them to sign safely.
- Sworn translation and interpreter. Required if you do not read or speak Portuguese, and for any foreign documents. Usually a few hundred to a couple of thousand reais.
- Currency exchange and IOF. The bank spread and the federal tax on converting your money into reais and bringing it into Brazil.
- Laudemio and foro. Only on properties built on federal marinha land, which is common along the coast. This can be the single largest line on the list.
- Legal fees. For the lawyer running the purchase and the diligence.
ITBI: the municipal transfer tax, in detail
The ITBI is the biggest tax in a purchase and it is paid by the buyer. Each municipality sets its own rate, so the number depends on where the property is, not on a national rule. As a guide to the larger markets:
- Sao Paulo: 3% (with a reduced 0.5% on the financed portion of a home bought under the federal housing system, up to a cap).
- Rio de Janeiro: 3%.
- Salvador: 3%.
- Belo Horizonte: around 3%.
- Curitiba: about 2.7%.
- Florianopolis: 2%.
As a rule of thumb, budget 2% to 3%. On what value is it charged? On the value of the transaction in normal market conditions. In 2022 Brazil’s Superior Court of Justice settled this point (Tema 1113): the city cannot simply impose its own reference value, and it cannot use the IPTU assessment as a floor. The price the parties declare is presumed to be the market value unless the city opens a formal administrative proceeding to challenge it. In practice you calculate the ITBI from the purchase price, generate a municipal payment slip (a guia, sometimes called DAM or DARM), and pay it before the deed is registered. Most cities want the ITBI paid before the deed is even signed. Off-plan units and assignments of purchase rights (cessao de direitos) can be taxed at different moments, so confirm the trigger for your specific deal.
The notary deed (escritura publica)
The deed is the formal contract of sale, drawn up and signed at a cartorio de notas. For most purchases the law requires a public deed when the price is above thirty times the highest minimum wage; below that, a private instrument can be used, and a bank-financed purchase uses the lender’s instrument, which carries the force of a deed. The notary fees, called emolumentos, are fixed by each state’s official table and rise in brackets as the property value goes up, generally landing somewhere around 0.5% to 1%. A municipal service tax (ISS) may be added on top.
Registering the deed (registro de imoveis)
This is the step foreign buyers most often underestimate. In Brazil you become the legal owner only when the deed is registered on the property’s record (the matricula) at the competent Real Estate Registry. Signing the deed and paying for it are not enough; until the registry records the transfer, you are not the owner. Registration fees are set by the state’s table and scale with the property value, generally about 0.5% to 1.3%. Before it registers anything, the registry re-checks the chain of title and the certidoes. Some states add a judicial fund surcharge to registry acts, which is already built into the published table. Expect a few business days to a couple of weeks between lodging the documents and the transfer being recorded.
Certidoes and due diligence
The usual list is an up-to-date certidao de matricula showing any liens or encumbrances (onus reais), the seller’s negative certificates (federal tax and labor, state, municipal, civil, and family or bankruptcy, plus protests), proof that the IPTU is paid, and, for an apartment, a written statement from the building that the condominium fees are clear (declaracao de quitacao condominial). Each certificate is inexpensive on its own, but the full set, and the time spent reading it, is a real part of your closing cost and your protection. We cover this in our real estate due diligence service.
Coastal property: laudemio and foro (marinha land)
This is the cost that surprises foreign buyers the most. Land within thirty-three meters of the historical 1831 high-tide line is federal property, known as terreno de marinha, and a large share of the most desirable coastal real estate sits on it, including much of Florianopolis and parts of Rio de Janeiro, Santos, Salvador, and Recife, along with countless beach towns. On every transfer of a marinha property the federal government charges a laudemio, commonly 5% (sometimes 2.5%) of the value assessed by the federal property authority (SPU), and the transfer cannot be registered without a transfer authorization certificate (the CAT) issued by the SPU.
Owners of marinha land also pay a small annual ground rent, the foro (about 0.6% a year), or, where the land is only held under an occupation right rather than a long lease, an annual occupation fee (taxa de ocupacao) of 2% to 5%. By law the seller obtains the CAT and the laudemio is the seller’s charge, but who actually pays is negotiable and in practice often shifts to the buyer, so settle it in writing. Always check whether a coastal property is on marinha land before you commit, because the laudemio alone can be larger than the ITBI.
Other costs to budget for
- Legal fees. For the lawyer handling the purchase, the contract, and the diligence.
- Broker commission. Usually paid by the seller (around 5% to 6%), but confirm in writing who pays it.
- Power of attorney. If you buy remotely, a POA prepared abroad, then apostilled and sworn-translated.
- Apostille and sworn translation. For your foreign documents, such as passport, marriage certificate, and POA.
- International wire and bank fees. Charged on the way in by the sending and receiving banks.
- Appraisal or survey. Optional, only if you commission one.
- Condominium transfer or move-in fee. Charged by some buildings.
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).
Numbers change, so confirm before you budget
The figures on this page are typical ranges. They shift with the municipality, with each state’s fee tables, and with federal rules that are updated from time to time, so use them as planning numbers rather than a quote. If you want the exact total for a specific property and would rather not manage any of it from abroad, see how we handle taxes and closing costs for you. We calculate the precise amounts, move your funds in, and pay each item to the right office on schedule.
Buying a Property in Brazil? We Can Help You
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(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
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And, don’t forget to access our complete Buying Real Estate Properties in Brazil YouTube playlist.
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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.