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Owning property in Florianópolis comes with several mandatory municipal taxes and fees that can significantly impact your investment returns.
As of September 2025, property owners in Brazil's "Magic Island" face multiple charges including IPTU (property tax), ITBI (transfer tax), garbage collection fees, and public lighting contributions. Understanding these costs upfront helps you budget accurately and avoid surprises when investing in Florianópolis real estate.
If you want to go deeper, you can check our pack of documents related to the real estate market in Florianópolis, based on reliable facts and data, not opinions or rumors.
Property owners in Florianópolis pay IPTU rates ranging from 0.5% to 1.7% annually based on property size and type, plus fixed garbage collection fees of R$575-R$1,736 per year and monthly COSIP lighting contributions of R$18-R$150.
When purchasing property, buyers must pay ITBI transfer tax at 2% of the property value, while ongoing annual costs for a typical apartment range from R$2,905 to R$15,356 depending on size and location.
| Tax/Fee Type | Rate/Amount | Payment Schedule |
|---|---|---|
| IPTU (Property Tax) | 0.5% - 1.7% of assessed value | Annual (up to 10 installments) |
| ITBI (Transfer Tax) | 2% of property value | One-time at purchase |
| Garbage Collection Fee | R$575 - R$1,736 annually | Annual or with IPTU |
| COSIP (Public Lighting) | R$18 - R$150 monthly | Monthly via electricity bill |
| Fire Brigade Inspection | Varies by property type | When required |
What taxes and municipal charges apply to property ownership in Florianópolis in 2025?
Property owners in Florianópolis face five main municipal taxes and charges in 2025.
The IPTU (Imposto sobre Propriedade Predial e Territorial Urbana) applies to all urban properties including houses, apartments, vacant land, commercial buildings, mixed-use properties, and second homes. This annual property tax forms the largest component of your ongoing ownership costs.
The ITBI (Imposto de Transmissão de Bens Imóveis) is a one-time transfer tax paid when purchasing any property in Florianópolis. This tax applies to all property transactions including cash purchases and financed acquisitions.
The TCRS (Taxa de Coleta de Resíduos Sólidos) or garbage collection fee applies to all residential and commercial properties. Every property owner pays this annual fee regardless of whether they actually use municipal garbage collection services.
The COSIP (Contribuição para Custeio do Serviço de Iluminação Pública) public lighting contribution is charged monthly through your electricity bill to all properties connected to the electrical grid.
Additional charges include fire brigade inspection fees for commercial properties and certain residential buildings, plus municipal operation licenses for businesses.
How is the IPTU tax base calculated in Florianópolis in 2025?
The IPTU calculation uses an assessed property value called "valor venal" determined by the municipality's official valuation table.
The city establishes this value through the Planta de Valores Genéricos, which sets standardized per-square-meter rates for each neighborhood, zone, and construction standard. Land value equals your lot area in square meters multiplied by the official per-square-meter rate for your specific zone, adjusted by correction factors for topography, location, and access.
Construction value uses your built area in square meters multiplied by the per-square-meter rate based on your building's construction standard (basic, standard, or luxury), then adjusted for factors like age, usage type, and condition. The municipality classifies buildings into different standards based on materials, finishes, and architectural features.
Your total assessed value combines both land and construction values. The municipality updates these per-square-meter rates annually, typically adjusting them by Brazil's accumulated IPCA inflation index to maintain real value.
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What are the exact IPTU rates for each property category in 2025?
IPTU rates in Florianópolis vary significantly based on property size and type, with residential properties facing progressive rates.
| Property Category | Size Range | IPTU Rate |
|---|---|---|
| Residential Buildings | Up to 150m² | 0.5% - 1.0% |
| Residential Buildings | 151m² - 300m² | 0.7% - 1.2% |
| Residential Buildings | 301m² - 600m² | 1.0% - 1.2% |
| Residential Buildings | Above 600m² | 1.2% - 1.7% |
| Vacant Land | All sizes | 0.5% - 2.0% |
| Commercial/Mixed Use | All sizes | Up to 2.0% |
Vacant land faces higher rates than built properties, with progressive IPTU potentially applying to encourage development. Commercial and mixed-use properties can reach the maximum 2% rate depending on their specific classification.
Second homes receive the same treatment as primary residences without additional surcharges, unless they fall under progressive IPTU rules for underutilized properties.
What are the minimum IPTU amounts and fixed charges in 2025?
Florianópolis establishes minimum IPTU thresholds below which properties receive complete exemptions.
Properties with assessed values up to R$5,912 and built areas up to 70 square meters qualify for full IPTU exemption. This exemption primarily benefits owners of small apartments and modest homes in less central areas.
The municipality sets no fixed minimum IPTU amount for properties above the exemption threshold - your IPTU equals the percentage rate applied to your assessed value. However, very small properties may pay minimal amounts like R$50-R$100 annually when their assessed values fall just above exemption limits.
Garbage collection fees and COSIP charges apply regardless of IPTU exemption status. These represent fixed costs that all property owners pay regardless of their property's value or size within their respective categories.
When are IPTU bills issued and what are the payment options in 2025?
Florianópolis issues IPTU bills in December and January, with multiple payment schedules offering significant discounts for early payment.
Single payment (cota única) discounts include 20% discount when paid by January 6, 10% discount when paid by February 5, and 5% discount when paid by March 5. These discounts only apply to property owners current on their 2024 obligations as of September 30, with a special grace period extending to January 20, 2025.
Installment payment allows up to 10 monthly payments, with the first installment due March 5 and subsequent payments due monthly thereafter. No discounts apply to installment payments, making single payment significantly more cost-effective.
Property owners receive bills by mail or can access them online through the municipal website using their property registration number. Late payment after the due date immediately triggers penalty charges and interest.
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What penalties apply for late IPTU payments in 2025?
Late IPTU payments in Florianópolis trigger immediate penalties and escalating consequences.
The municipality charges a late payment fee up to 2% of the outstanding amount plus monthly interest of 1% on overdue balances. These charges compound monthly, making delays increasingly expensive.
After 60-90 days of non-payment, the municipality transfers debts to "dívida ativa" (active debt) status, which adds collection costs and legal fees to your outstanding balance. This process can lead to judicial collection proceedings and property liens.
Active debt status also enables the municipality to protest your debt with credit bureaus, potentially impacting your credit score and ability to obtain financing. Property owners in active debt cannot receive tax clearance certificates required for property sales or transfers.
The municipality may eventually pursue forced collection through judicial procedures, though this typically occurs only after extended non-payment periods and substantial accumulated debts.
Who qualifies for IPTU exemptions and reductions in 2025?
Several categories of property owners qualify for IPTU exemptions or reductions in Florianópolis.
Complete exemptions apply to retirees and pensioners over 65 with monthly income up to 5 minimum wages, residential properties up to 70m² with assessed values up to R$5,912, and properties owned by non-profit organizations, religious temples, and public entities.
Additional exemptions cover people with serious illnesses or disabilities, fishermen, artisans, and widows/widowers with single-source income, subject to specific income and property value limits detailed on the municipal website.
Property owners must apply for exemptions by March 31 annually, providing required documentation like income statements, medical certificates, or organizational registrations. Exemptions require annual renewal with updated documentation to maintain eligibility.
Some exemptions apply automatically for qualifying properties, while others require formal application and approval. Property owners should verify their specific situation with municipal tax authorities to ensure proper exemption status.
How much is the garbage collection fee in 2025?
The TCRS garbage collection fee in Florianópolis follows a fixed annual schedule based on property size and type.
Residential properties pay approximately R$575 annually for units up to 50m², R$865 for properties between 51-100m², and R$1,300 for properties between 101-150m². Larger residential properties face proportionally higher fees within their respective size brackets.
Commercial properties pay significantly higher fees, often exceeding R$2,000 annually for large business premises. The exact amount depends on the commercial property's size, location, and business type classification.
Property owners can pay garbage fees as a single annual payment due March 5 or include them in IPTU installment payments. This fee applies regardless of whether property owners actually use municipal garbage collection services.
The municipality calculates these fees as fixed amounts per property category rather than variable monthly charges, providing predictable annual costs for budgeting purposes.
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What is the COSIP public lighting contribution in 2025?
COSIP charges appear monthly on electricity bills for all properties connected to Florianópolis's electrical grid.
Residential properties typically pay R$18-R$30 monthly for smaller units, while larger homes may pay R$50-R$80 monthly. Commercial properties face higher charges ranging from R$80-R$150 monthly depending on their electricity consumption levels.
The contribution calculation uses tiered brackets based on monthly kilowatt-hour consumption multiplied by public lighting tariff percentages. Higher electricity usage results in proportionally higher COSIP charges.
All properties with electrical connections pay COSIP regardless of occupancy status, with limited exemptions available only for religious temples and certain public institutions. Property owners cannot opt out of this charge as long as they maintain electrical service.
COSIP payments fund municipal street lighting maintenance, expansion, and energy costs throughout Florianópolis, making this a mandatory infrastructure contribution rather than an optional service fee.
How much is ITBI transfer tax when purchasing property in 2025?
ITBI transfer tax in Florianópolis costs 2% of the property's transaction value when purchasing real estate.
The tax calculation uses the higher amount between the municipal assessed value (valor venal) and the declared transaction price. This prevents underreporting of sale prices to reduce tax obligations.
Financed purchases through the SFH (Sistema Financeiro de Habitação) housing finance system receive reduced rates of 0.5% on the financed portion up to R$226,000, with the standard 2% rate applying to any amount above this threshold.
Buyers must pay ITBI before completing property registration at the cartório (registry office). The municipality requires proof of ITBI payment to authorize property transfer documentation.
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Are there different rules for vacant land and rural properties in 2025?
Vacant land in Florianópolis faces higher IPTU rates and potential progressive taxation compared to built properties.
Undeveloped urban lots pay IPTU rates ranging from 0.5% to 2% of assessed value, with the possibility of progressive rate increases to encourage development. Properties without proper "habite-se" (occupancy permits) are taxed as vacant land regardless of construction status.
Rural properties located outside Florianópolis's urban perimeter pay ITR (Imposto Territorial Rural) to the federal government instead of municipal IPTU. ITR rates depend on property size and productive use, with rates potentially reaching higher percentages for large unproductive rural holdings.
New constructions awaiting habite-se permits are assessed only for land value until receiving occupancy authorization. Property owners should expedite permit processes to access lower built-property tax rates.
Mixed urban-rural properties may face split taxation, with urban portions subject to IPTU and rural portions subject to ITR based on official zoning classifications.
Can you provide detailed calculation examples for typical properties?
Here are comprehensive cost breakdowns for two representative Florianópolis properties in 2025.
60m² Apartment Example (R$300,000 assessed value): IPTU at 0.6% rate equals R$1,800 annually, garbage collection fee costs R$865 annually, COSIP averages R$240 annually (R$20 monthly), and ITBI on purchase totals R$6,000 one-time. Total annual ownership costs reach R$2,905 excluding the one-time ITBI.
300m² House Example (R$1,200,000 assessed value): IPTU at 1.1% rate equals R$13,200 annually, garbage collection fee costs R$1,736 annually, COSIP averages R$420 annually (R$35 monthly), and ITBI on purchase totals R$24,000 one-time. Total annual ownership costs reach R$15,356 excluding the one-time ITBI.
These examples demonstrate how property size dramatically impacts annual costs, with larger properties facing exponentially higher tax burdens. Investors should factor these ongoing expenses into rental yield calculations and investment returns.
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Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Property taxes represent a significant ongoing cost for Florianópolis real estate investors, with annual charges ranging from under R$3,000 for small apartments to over R$15,000 for large houses.
Understanding these tax obligations before purchasing helps investors accurately calculate returns and budget for long-term ownership costs in Brazil's premier coastal destination.
Sources
- BGT Advogados - IPTU Increase Commercial Properties
- Prefeitura Municipal de Florianópolis - Tax Calculation Formulas
- CBN Total - IPTU 2025 Discount Deadline
- ND Mais - IPTU 2025 Payment Dates and Methods
- Prefeitura Municipal de Florianópolis - TCRS Values 2025
- MySide - ITBI Florianópolis
- Andrea Cardoso - ITBI Rules and Rates
- Prefeitura do Rio - COSIP Information