Overview of Brazilian Tax System

Under the Brazilian tax system, non-residents are taxed on income arising from French sources only and are liable to a number of property related taxes highlighted below.

Stamp duty (or purchase tax) at 3% is payable on the purchase price.
Government purchase tax is payable between 2% and 7% of the purchase price.

Property transfer tax (ITBI) of 2%, payable at the city hall.

Local tax varies between regions, but is normally around 0.6% of the purchase price.

Brazilian Income Tax is a federal tax levied on income, and proceeds of any nature, received by individuals or corporations.

Capital gains received by individuals on the sale of real estate will be subject to Brazilian withholding income tax,applicable to foreign investors who are not domiciled in a tax haven. The gain is determined as the difference between the sales price and the acquisition cost duly reported on the seller’s annual income tax return.

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