Closing Costs and Taxes When Buying Property in Brazil

When buying a property in Brazil, understanding the closing costs is crucial. These are the additional fees and taxes buyers need to pay on top of the property’s purchase price. Let’s break down the primary and secondary costs associated with a real estate closing in Brazil.

Reviewed by Luciano Oliveira, Esq., LL.M. · October 2026

Some clients ask us if the closing costs may be negotiated. These costs are customarily borne by the buyer. The buyer normally pays the deed and registration expenses unless the contract says otherwise. It may be easier to negotiate the purchase price, but agree who pays each expense before signing.

Official taxes and cartório fees follow legal rules and fee tables. They are different from privately agreed fees for lawyers, brokers, or inspections. Ask about lawful exemptions or reductions; do not assume the office can simply give you a discount.

1. Build a budget from actual quotes

ITBI is set by your municipality; the notary deed and registration follow your state’s official fee tables. Do not use another city’s rate as a substitute for your own. Get an itemized estimate for the property you plan to buy.

An estimate is not a tax bill. Confirm the applicable tax rate, the value used to calculate it, the cartório charges, and any costs left out. Keep enough money available for fees that become due before or after signing.

2. Primary closing costs

Let’s start with the main one:

ITBI: the property transfer tax

The ITBI, which means Tax on Transfer of Real Estate, is a municipal tax charged on property transfers. Its rate varies depending on the city where the property is located. Here are some standard rates as reference. Special rules and reductions may apply; confirm the rate for your transaction before paying:

• São Paulo: 3% Official rate and conditions.
• Rio de Janeiro: 3% Official rate and conditions.
• Belo Horizonte: 3% Official rate and conditions.
• Salvador: 3% Official rate and conditions.
• Curitiba: 2.7% (reduced rates can apply to qualifying housing purchases). Official rate and conditions.
• Fortaleza: 4% standard rate; 2% for qualifying payment before the purchase document is signed, subject to the city’s conditions and deadlines. Official rate and conditions.

The name may differ

Note that the ITBI has a slightly different name in some places. In Salvador, for instance, it is called ITIV instead of ITBI. Same concept, though; check the local rules rather than relying on the name.

When to Pay the ITBI

Confirm the payment deadline and required proof with your lawyer and the offices handling the purchase. In some places like Rio de Janeiro, cartorios will want you to have the ITBI paid several days upfront so the city’s system will show the tax as paid in their records. The legal point when tax becomes due and the practical steps required for signing or registration are not always described the same way. Resolve any dispute before the appointment.

How to Pay the ITBI

A cartorio or realtor may help request the official ITBI payment guide from the municipality. It may be a “boleto,” a payment slip with a barcode, or another official payment document. Never pay any closing costs without double checking you are paying the right party. There are scammers who may try to get you to pay bogus fees after learning that you are involved in a real estate transaction in Brazil. Verify the guide and payment details through the official city service and a trusted contact.

Escritura: the public deed fee

The “escritura” is the public deed that formalizes the property’s sale. It’s prepared by a notary public, known as “Cartório de Notas.” The cost varies based on the property’s value and the applicable state fee table. The total can include the office’s fee and other legally required charges. Ask for an itemized quote, not a nationwide percentage estimate.

Usually, the higher the property value, the smaller the percentage will be. But the charge is determined under the state’s rules and value brackets, not a percentage you negotiate with the office. A financing document may serve in place of a separate public deed in cases allowed by law; confirm which documents and fees your purchase requires.

Buyers will usually receive a single amount to be paid along with the payment instructions. Ask for the breakdown and a receipt. In practice, payment details may name the cartorio’s responsible officer. That alone does not establish that a payment request is genuine. Confirm the account or PIX details independently with the office before transferring money.

Registro do Imóvel: the ownership registration fee

Once the public deed is ready, the property needs to be registered at the local Real Estate Registry Office (“Cartório de Registro de Imóveis”). The registration cost also fluctuates based on the property’s value and the applicable state fee table. Signing the deed alone does not transfer ownership. Arrange for registration and obtain the updated property record.

Most of the details discussed about the “Escritura” will apply to the Registro do Imóvel as well.

Note that some realtors will ask you to pay both amounts at the same time while others will ask for these two amounts to be paid as needed (first the Escritura and the Registro do Imóvel after signing).

Other charges included in the quote

In some Brazilian states, there are additional charges supporting courts or other public funds. It’s vital to inquire about any state-specific fees before finalizing a property purchase. Check whether they are already included in the quote so you do not count them twice.

Check the official cartório fee references for São Paulo, Rio de Janeiro, or Santa Catarina. Ask the office to identify the table items used in its quote.

Which property value is used?

Foreign citizens are naturally curious about which amount will be used for the calculation. ITBI and cartório fees do not necessarily use the same calculation rules. For ITBI, the law refers to the property’s market value. Ask how the city arrived at its figure and what you can do if it is too high.

A city’s assessed value can be higher than the agreed purchase price. That does not mean every higher assessment is automatically correct—or that the price you declare must always be accepted. The law changed in 2026, adding rules on technical valuation, disclosure of criteria, and the right to challenge an assessment. Your lawyer should check the current rules, relevant court decisions, and the deadline for questioning the bill.

Also worth mentioning is the practice by some unscrupulous sellers to have part of the property price paid “under the table” to avoid taxes. Don’t do it since this is a crime and not a “Brazilian custom”.

Sellers or brokers sometimes suggest putting a price on the deed lower than what you actually pay, to shrink the ITBI. Record the true agreed price. A deliberately false declaration can lead to tax penalties and criminal consequences. A lawful challenge to an excessive valuation is different from hiding part of the price.

3. Coastal property: check for laudêmio and annual charges

A beachfront location alone does not mean these charges apply. Check whether the property is recorded with the federal property authority, SPU, and under which arrangement.

Laudêmio is generally 5% of the updated federal land value, excluding buildings and improvements, for transfers covered by the rule. It is the seller’s responsibility to the Union; a contract may place the cost on the buyer, so check before agreeing.

You’ll also need the SPU’s transfer clearance (CAT) where applicable. Annual charges depend on the arrangement: foro for aforamento, or an occupation charge for ocupação. Ask for the actual SPU records and bills rather than adding 5% of the full purchase price to every coastal purchase.

4. Documents and attending the closing

Document legalization and translation

Foreign buyers may encounter costs related to the apostille-legalization and sworn translation of necessary documents. Confirm which documents need these steps before paying. Costs can vary with the issuing country, number of pages, language, and urgency; get quotes instead of relying on a fixed dollar amount per document.

Many cartorios will ask – in addition to the above – that the authenticated and translated foreign documents be recorded with a special type of registry called Registro de Títulos e Documentos (aka RTD). This can add costs depending on the documents and number of pages. Confirm whether registration is required for the intended use.

Costs of attending the closing

If you’re a foreign buyer, you may need to travel to Brazil to finalize the property purchase. This means bearing travel and accommodation costs. While these are not strictly “closing costs,” they should be accounted for in your budget.

You may be able to sign through an accepted power of attorney or remotely through e-Notariado. Confirm eligibility and the notary’s requirements before booking travel. Budget for any certificate, power-of-attorney, translation, or representation costs.

5. Other expenses to check before agreeing the price

There are some categories that may or may not be categorized as closing costs. The main ones are as follows. Ask who pays each item and when it is due:

Property and seller certificates (certidões negativas)

Various certificates help check the property and seller for debts, lawsuits, and other problems. Each of these documents often comes with associated fees. Because this cost is customarily borne by the seller and not the buyer prior to the closing, it may not appear in the buyer’s closing estimate. Confirm the agreement. A certificate does not prove that every risk has been checked.

Real Estate Brokerage Fees

If a real estate agent or broker was involved in facilitating the sale, there might be commission or service fees. In Brazil, commissions of 5% to 6% of the property’s sale price are common in our experience, but this is not a universal legal rate. Check the actual agreement.

Published references differ by state. São Paulo’s CRECI reference table lists 6%–8% for urban-property sales. Rio Grande do Sul’s Sindimóveis guide lists 6%. In Rio de Janeiro, CRECI guidance stresses recording the agreed commission and payment timing in the sale authorization. These are professional references, not an extra government tax or a single nationwide rate. Confirm the fee and who owes it in the contract.

Because this cost is customarily borne by the seller and not the buyer, this is not customarily considered a “closing cost” per se at least from the Buyer’s perspective.

A separate buyer’s broker or an express contract clause can change what you owe. Do not assume every brokerage fee is included in the advertised price.

Property Valuation or Appraisal Fees

Before the sale, buyers or lenders might require a property appraisal to determine its market value. This appraisal comes at a cost. Many ordinary cash purchases proceed without a formal independent appraisal. It is more common for the seller’s realtor to provide an “educated guess” based on their experience and comparison to other properties in the area.

A seller’s agent’s estimate is not the same as an independent valuation or a technical inspection.

For an appraisal or market-value assessment, you can contact Camila Saunier International Realty, a realty business that works with Oliveira Lawyers. Ask about coverage, the fee, who prepares the report, and whether it meets your lender’s or other intended recipient’s requirements. An appraisal is separate from a building inspection and legal review.

Attorney Fees

While hiring a lawyer is not generally mandatory for an ordinary purchase, most foreign citizen buyers will opt to hire an attorney to help with buying property in Brazil. These legal services are an added cost. Retain your own licensed Brazilian lawyer before committing. Confirm the work, fee, expenses, and payment dates in writing.

Banking Fees

If the transaction involves international wire transfers or currency conversion, banks usually charge fees for these services.

Ask for the total in reais you will receive after the exchange-rate margin, transfer fees, and applicable tax. A low advertised fee alone does not show the total cost.

Tax on Financial Transactions (IOF)

If a foreign buyer brings funds into Brazil for a real estate transaction, there might be a levy known as IOF (“Imposto sobre Operações Financeiras” meaning Tax on Financial Transactions). It’s a tax applied to various financial transactions, including foreign exchange.

The rate depends on the type of operation and the rules in force when it is processed. Have the authorized provider confirm the classification and IOF in writing. Do not apply an assumed universal rate to every incoming or outgoing transfer.

Legal source: Decree 6,306/2007, articles 11–15-B, as amended, governs IOF on foreign exchange. Use the current applicable provisions, including any relevant court rulings, rather than an old rate quoted online.

Property Inspection Fees

It’s often recommended for buyers to have the property inspected before purchasing. This can help identify defects or issues that might emerge later on; it cannot guarantee that none remain. Inspection services have associated fees.

Insurance

Some lenders may require buyers to have insurance covering the property. This could be for fire, theft, or other potential damages. And, even if not required, insurance is highly recommended.

Condominium Fees

If the property is in a condominium, there might be outstanding condominium fees or special assessments that need to be settled at the time of sale.

Have your lawyer check the debts, planned works, and who must pay them. A buyer can face claims for outstanding condominium charges, even if the contract says the seller should pay.

Utility Transfer Fees

When utilities (water, electricity, gas) are transferred from the seller’s name to the buyer, some companies might charge a fee for this service.

6. Do not assume U.S.-style title insurance or escrow is included

In our experience, most ordinary real estate purchases in Brazil use neither title insurance nor escrow. Escrow arrangements exist, but must be specifically arranged. A cartório’s involvement does not mean your money is being held safely until all conditions are met.

Title insurance

Title insurance is a concept familiar to many U.S. buyers: a policy covering specified ownership risks, subject to exclusions. It is not a routine part of an ordinary Brazilian property purchase. If a policy is offered, check the insurer, coverage, exclusions, and claim conditions with your lawyer.

Property and seller checks are important, but they are not insurance and do not guarantee reimbursement if a problem later appears.

Escrow accounts

The country heavily depends on the cartório system, a network of notary offices, to prepare and record property transactions. Do not assume the notary holds the purchase money or protects the payment. In most ordinary purchases, money is paid directly to the seller.

Escrow accounts serve as a neutral third-party holder of funds, releasing them only when both parties have fulfilled their contractual obligations. If escrow is proposed, check who holds the money, how it is protected, the release conditions, fees, and what happens if there is a dispute. Agree the payment safeguards before sending money.

7. Budget for ownership and a future sale

Closing costs are one-time. Other expenses come later:

• IPTU — the annual municipal property tax. Budget it as a holding cost. Ask for the current bill and the local calculation; there is no single nationwide percentage. Condominium fees, insurance, and utilities are separate.
• When you sell — capital-gains tax and the cost of sending proceeds abroad need a separate review. Your tax residence, purchase records, gain, and transfer route matter. Do not assume a fixed IOF rate or a blanket Central Bank registration requirement for every individual purchase. Keep the deed, tax receipts, and exchange records. See our real estate sale support page.

Buying as a couple? Your marriage’s property rules can affect ownership as well as the names on the deed. See buying property in Brazil as a couple.

Video: closing costs in Brazil

Sources and legal basis

Official and professional references checked on October 16, 2026. The appraisal provider is identified separately as a commercial option. Local rates are examples, not a complete national schedule. Obtain current figures for your own transaction.