Authored by the expert who managed and guided the team behind the Brazil Property Pack
Everything you need to know before buying real estate is included in our Brazil Property Pack
If you're a foreigner looking to buy property in Brazil, understanding the extra costs beyond the purchase price is essential to avoid surprises.
Brazil has a unique system where municipal transfer taxes and notary fees can vary significantly depending on the city and state where you buy.
We constantly update this blog post to reflect the latest rules and market conditions in Brazil.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Brazil.
Overall, how much extra should I budget on top of the purchase price in Brazil in 2026?
How much are total buyer closing costs in Brazil in 2026?
As of early 2026, total buyer closing costs in Brazil typically range from 5% to 7% of the purchase price, which means on a BRL 1,000,000 property (around USD 170,000 or EUR 155,000) you should expect to pay between BRL 50,000 and BRL 70,000 in additional fees.
If you keep expenses to the bare legal minimum in Brazil, the lowest possible closing costs sit around 4% of the purchase price, covering only the mandatory ITBI transfer tax and basic notary and registry fees.
For maximum planning in Brazil, especially if you need legal counsel, sworn translations, or buy in a higher-tax municipality, you should budget up to 8% to 10% of the purchase price to be safe.
The main factors that push your Brazil closing costs toward the low or high end include which municipality you buy in (since ITBI rates vary from 2% to 4%), the property value (because notary fees scale with price), and whether you need professional help like lawyers or translators.
What's the usual total % of fees and taxes over the purchase price in Brazil?
The usual total percentage of fees and taxes when buying property in Brazil falls between 5% and 7% of the purchase price for most standard residential transactions.
However, the realistic range in Brazil spans from as low as 4% for minimal transactions to as high as 10% when all optional services and higher municipal rates apply.
Within that total, government taxes (primarily the ITBI transfer tax) typically account for about 2% to 4%, while professional service fees like notary, registry, and legal costs make up the remaining 1% to 3%.
By the way, you will find much more detailed data in our property pack covering the real estate market in Brazil.
What costs are always mandatory when buying in Brazil in 2026?
As of early 2026, the mandatory costs when buying property in Brazil include the ITBI municipal transfer tax, the notary fee for preparing the public deed (escritura pública), and the registry fee to officially record your ownership at the property registry office.
Beyond these required costs, optional but highly recommended expenses in Brazil include hiring an independent property lawyer, ordering comprehensive due diligence certificates, and getting sworn translations if you are not fluent in Portuguese.
Don't lose money on your property in Brazil
100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
What taxes do I pay when buying a property in Brazil in 2026?
What is the property transfer tax rate in Brazil in 2026?
As of early 2026, the main property transfer tax in Brazil is the ITBI (Imposto sobre Transmissão de Bens Imóveis), which is set by each municipality and typically ranges from 2% to 4% of the property's assessed value.
Brazil does not charge extra transfer taxes specifically for foreigners, so you pay the same ITBI rate as Brazilian citizens when buying residential property.
Residential property purchases in Brazil do not involve a separate VAT charge for buyers; instead, the ITBI and cartório fees serve as your main purchase-related taxes.
Brazil does not have a stamp duty system like Commonwealth countries, so the ITBI transfer tax and notary fees together function as the equivalent of what other countries call stamp duty.
Are there tax exemptions or reduced rates for first-time buyers in Brazil?
Brazil does not have a nationwide first-time buyer tax exemption, though some municipalities offer ITBI reductions or exemptions for qualifying low-income housing programs.
If you buy property through a Brazilian company instead of as an individual, you face similar ITBI obligations but may have additional corporate tax reporting requirements and higher professional costs.
There is no automatic tax difference between buying a new-build versus a resale property in Brazil, though new-build contracts sometimes include extra fees like brokerage or administrative charges that can feel like hidden taxes.
To qualify for any available ITBI exemptions in Brazil, you typically need to apply through the specific municipality, provide documentation proving eligibility, and meet value thresholds or social housing criteria.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Brazil versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
Which professional fees will I pay as a buyer in Brazil in 2026?
How much does a notary or conveyancing lawyer cost in Brazil in 2026?
As of early 2026, combined notary and registry fees (cartório costs) in Brazil typically run between 1% and 2% of the purchase price, so on a BRL 1,000,000 property (around USD 170,000 or EUR 155,000) you might pay BRL 10,000 to BRL 20,000.
Notary and registry fees in Brazil are charged as a percentage that scales with property value, following regulated state fee tables rather than flat rates.
Translation and interpreter services for foreign buyers in Brazil typically cost a few hundred to a few thousand BRL as fixed fees, depending on the number of documents needing sworn translation and the interpreter's time at signing.
A tax advisor in Brazil is highly recommended for non-resident buyers and usually costs a few thousand BRL (roughly USD 500 to USD 1,500 or EUR 450 to EUR 1,400) for a straightforward purchase with future planning guidance.
We have a whole part dedicated to these topics in our our real estate pack about Brazil.
What's the typical real estate agent fee in Brazil in 2026?
As of early 2026, real estate agent commissions in Brazil typically range from 6% to 8% of the sale price for urban residential properties.
In most Brazilian transactions, the seller pays the agent commission, though in new-build sales from developers the brokerage fee is sometimes shifted to the buyer through the contract.
The realistic range for agent fees in Brazil runs from about 5% in competitive situations to 8% or slightly higher for luxury or complex transactions.
How much do legal checks cost (title, liens, permits) in Brazil?
Legal checks in Brazil, including title searches, liens verification, and certificate gathering, typically cost a few hundred to a few thousand BRL combined (roughly USD 100 to USD 600 or EUR 90 to EUR 550), plus lawyer time if you hire one for due diligence.
Property valuation fees in Brazil, usually required by banks for financing, generally run from a few hundred to low thousands of BRL (around USD 100 to USD 400 or EUR 90 to EUR 370) depending on the lender and property type.
The most critical legal check you should never skip in Brazil is verifying the property's registration status at the Cartório de Registro de Imóveis, because ownership effectively depends on proper registration and this reveals any liens or disputes.
Buying a property with hidden issues is something we mention in our list of risks and pitfalls people face when buying real estate in Brazil.
Get the full checklist for your due diligence in Brazil
Don't repeat the same mistakes others have made before you. Make sure everything is in order before signing your sales contract.
What hidden or surprise costs should I watch for in Brazil right now?
What are the most common unexpected fees buyers discover in Brazil?
The most common unexpected fees buyers discover in Brazil include SATI or "assessoria" administrative charges in new-build contracts, underestimated cartório small items like certified copies and document recognition, and condominium arrears that surface late in the process.
Yes, buyers in Brazil can inherit unpaid IPTU property taxes or condominium debts attached to the property, especially if the registration timing or documentation is sloppy.
While Hollywood-style scams are rare in Brazil, the most common fraud pattern involves pressure to send deposits via PIX to someone who is not the legitimate seller, so always insist on completing transactions through the proper cartório and registry system.
Fees that sellers or agents in Brazil often fail to disclose upfront include the SATI administrative fee in developer sales, extra certificates needed when a seller has a complicated situation like divorce or estate issues, and condominium special assessments.
In our property pack covering the property buying process in Brazil, we go into details so you can avoid these pitfalls.
Are there extra fees if the property has a tenant in Brazil?
If you buy a tenanted property in Brazil, you may face extra legal costs of a few hundred to a few thousand BRL (around USD 100 to USD 600 or EUR 90 to EUR 550) to review and transfer existing management contracts, verify deposit holdings, and confirm tenant notice periods.
When purchasing a tenanted property in Brazil, you inherit the existing lease agreement and must honor its terms, including notice periods and deposit obligations, until the lease expires or is legally terminated.
Terminating an existing lease immediately after purchase in Brazil is generally not possible unless the lease allows it or you reach a mutual agreement with the tenant, as Brazilian tenant protections can be strong.
A sitting tenant in Brazil typically affects the property's appeal to owner-occupiers and may reduce the buyer pool, but it can also provide leverage for negotiating a lower price if you plan to keep it as an investment.
If you want to optimize your rental strategy, you can read our complete guide on how to buy and rent out in Brazil.
We have made this infographic to give you a quick and clear snapshot of the property market in Brazil. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Which fees are negotiable, and who really pays what in Brazil?
Which closing costs are negotiable in Brazil right now?
The negotiable closing costs in Brazil include who pays the brokerage commission (especially in new-build sales), the scope and fee for your lawyer, and how many optional due diligence certificates you choose to order.
The closing costs fixed by law or regulation in Brazil that cannot be negotiated include the ITBI transfer tax rate (set by the municipality) and the cartório notary and registry fees (set by regulated state fee tables).
On negotiable fees in Brazil, buyers can sometimes achieve discounts of 10% to 20% on lawyer fees or push back successfully on SATI-style charges in developer contracts, though brokerage commission reductions depend heavily on market conditions.
Can I ask the seller to cover some closing costs in Brazil?
In Brazil, sellers rarely agree to cover buyer closing costs like ITBI or cartório fees, but in slower markets or for properties that have been listed a long time, there is some room to ask.
The closing costs sellers in Brazil are most commonly willing to cover include settling any outstanding IPTU property tax arrears, clearing condominium debts, and sometimes sharing the cost of due diligence fixes like missing documents or regularization issues.
Sellers in Brazil are more likely to accept covering some closing costs when the property has been on the market for several months, when the buyer offers a quick and clean transaction with proof of funds, or in neighborhoods with less buyer demand.
Is price bargaining common in Brazil in 2026?
As of early 2026, price bargaining is common in Brazil's residential property market, especially for resale properties that have been listed for a while or need renovation.
Buyers in Brazil typically negotiate between 3% and 8% below the asking price on reasonably priced properties, with discounts of 10% or more possible for stale listings or aspirationally priced units in neighborhoods like Pinheiros, Vila Madalena, Moema in São Paulo or Botafogo in Rio de Janeiro.
Don't sign a document you don't understand in Brazil
Buying a property over there? We have reviewed all the documents you need to know. Stay out of trouble - grab our comprehensive guide.
What monthly, quarterly or annual costs will I pay as an owner in Brazil?
What's the realistic monthly owner budget in Brazil right now?
A realistic monthly owner budget for an apartment in Brazil ranges from about BRL 1,000 to BRL 4,000 (around USD 170 to USD 680 or EUR 155 to EUR 620), depending on the property type, location, and building amenities.
The main recurring expense categories in Brazil include the condominium fee (condomínio), monthly IPTU property tax installments, utilities, and a maintenance reserve for repairs.
The realistic range for monthly owner costs in Brazil spans from roughly BRL 600 to BRL 1,500 (USD 100 to USD 255 or EUR 90 to EUR 235) for a modest apartment with few amenities, up to BRL 3,000 to BRL 6,000 (USD 510 to USD 1,020 or EUR 465 to EUR 930) for a luxury building with doormen and extensive facilities.
In Brazil, the condominium fee tends to vary the most because it depends heavily on building size, age, staffing levels, and amenities like pools, gyms, and 24-hour security.
You can see how this budget affect your gross and rental yields in Brazil here.
What is the annual property tax amount in Brazil in 2026?
As of early 2026, annual IPTU property tax in Brazil typically runs between 0.1% and 0.3% of the municipal assessed value (valor venal), which can differ significantly from your purchase price.
The realistic range for annual IPTU in Brazil spans from a few hundred BRL for modest properties to tens of thousands of BRL for high-value homes, so a BRL 1,000,000 property might pay roughly BRL 1,000 to BRL 3,000 (around USD 170 to USD 510 or EUR 155 to EUR 465) per year.
IPTU in Brazil is calculated based on the municipal "valor venal" (assessed value), which the city sets using its own formula and often differs from the market price you actually paid.
Some municipalities in Brazil offer IPTU exemptions or reductions for pensioners, low-income owners, or properties in designated social housing programs, though these vary by city and require application.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Brazil. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
If I rent it out, what extra taxes and fees apply in Brazil in 2026?
What tax rate applies to rental income in Brazil in 2026?
As of early 2026, rental income from Brazilian property is taxed at different rates depending on your residency status: residents pay progressive income tax rates from 0% to 27.5%, while non-residents typically face a flat 15% withholding tax.
Resident landlords in Brazil can deduct certain expenses from rental income, including condominium fees, IPTU, and maintenance costs, which lowers the effective tax burden.
For typical resident landlords in Brazil with modest deductions, the effective rental income tax rate often falls between 15% and 22.5% after allowable expenses.
Foreign property owners who are non-residents in Brazil pay a different system: a 15% withholding tax on gross rental income, with more limited deduction options compared to residents.
Do I pay tax on short-term rentals in Brazil in 2026?
As of early 2026, short-term rental income in Brazil is subject to the same income tax rules as long-term rentals, meaning residents pay progressive rates and non-residents face the 15% withholding tax.
Short-term rentals in Brazil are not taxed at a fundamentally different rate than long-term rentals, though your biggest practical risk may be building-level restrictions since many condominium bylaws prohibit or limit short-term stays.
If you want to optimize your rental strategy, you can read our complete guide on how to buy and rent out in Brazil.
Get to know the market before buying a property in Brazil
Better information leads to better decisions. Get all the data you need before investing a large amount of money. Download our guide.
If I sell later, what taxes and fees will I pay in Brazil in 2026?
What's the total cost of selling as a % of price in Brazil in 2026?
As of early 2026, the total cost of selling a property in Brazil typically ranges from 6.5% to 9% of the sale price before any capital gains tax.
The realistic range for total selling costs in Brazil can span from about 6% for a straightforward sale with minimal legal work up to 10% or more if you have complex documentation or need extensive professional support.
The main cost categories that make up selling expenses in Brazil include the real estate agent commission (usually 6% to 8%), seller legal fees and certificate updates, and any outstanding IPTU or condominium debts that must be cleared.
The single largest contributor to selling costs in Brazil is almost always the real estate agent commission, which alone can reach 6% to 8% of the sale price.
What capital gains tax applies when selling in Brazil in 2026?
As of early 2026, capital gains tax on property sales in Brazil follows progressive federal rates: 15% on gains up to BRL 5 million, then 17.5%, 20%, and 22.5% on higher gain brackets.
Brazil offers some capital gains tax exemptions, including potential relief if you sell your only residential property below a certain value threshold or reinvest the proceeds in another residential property within a set timeframe, though eligibility conditions are strict.
Foreigners selling property in Brazil do not automatically pay a higher capital gains rate, but non-residents may face different withholding and reporting requirements, so professional tax advice is essential.
The capital gain in Brazil is generally calculated as the sale price minus your original purchase cost, with possible adjustments for documented improvements, though the specific rules can be complex and vary based on when you acquired the property.
We made this infographic to show you how property prices in Brazil compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Brazil, we always rely on the strongest methodology we can … and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source Name | Why It's Authoritative | How We Used It |
|---|---|---|
| Prefeitura de São Paulo - ITBI | Official city tax authority explaining transfer tax rules. | We used it to ground ITBI rate mechanics and taxable base calculations. We treated São Paulo as a high-liquidity reference city. |
| Prefeitura do Rio de Janeiro - ITBI | Official Rio tax authority with ITBI rules and history. | We used it to confirm the 3% ITBI rate in a major city. We validated the municipal rate plus market value pattern. |
| Receita Federal - Capital Gains | Brazil's federal tax authority publishing official rates. | We used it to state capital gains tax brackets from 15% to 22.5%. We estimated worst-case selling tax exposure for larger gains. |
| ANOREG/SP - Fee Tables | Official notary and registrar association for São Paulo state. | We used it to justify that notary and registry fees follow regulated tables. We kept estimates as ranges rather than single figures. |
| CRECI-SP - Brokerage Table | Statutory real estate broker regulator with market benchmarks. | We used it to estimate typical broker commissions of 6% to 8%. We referenced it when discussing who pays the agent. |
| Planalto - Brazilian Civil Code | Official consolidated text of Brazil's Civil Code. | We used it to support public deed requirements and why cartório steps matter. We explained why cartório fees are structural costs. |
| Registro de Imóveis - Calculator | Registry sector site with structured fee estimator. | We used it to confirm registration fees scale with declared value. We justified our 0.5% to 1% registration fee envelope. |
| Prefeitura de São Paulo - IPTU | Official municipal guidance for annual property tax rules. | We used it to explain how IPTU is calculated from valor venal. We avoided misleading shortcuts about IPTU percentages. |
| STJ - Condo Fee Liability | Brazil's higher court for non-constitutional law matters. | We used it to warn that condominium debts can become your problem. We justified why due diligence and registry timing matter. |
| SECOVI-SP - Condo Cost Index | Main real estate trade body tracking industry cost indices. | We used it to show condominium costs have measurable inflation. We framed realistic owner budgeting expectations. |
| Receita Federal - Non-Resident Tax | Official page specifically about non-resident taxation rules. | We used it to support non-resident withholding systems. We framed rental and sale tax sections for foreign owners. |
Get fresh and reliable information about the market in Brazil
Don't base significant investment decisions on outdated data. Get updated and accurate information with our guide.