There are generally main categories of taxes relating to foreign property:

  • Transaction or Purchase Taxes (Stamp Duty, Transfer Tax and Purchase Tax);
  • Operating Taxes (usually an annual real estate tax, Municipal tax); and
  • Profit Taxes (Capital Gains Tax) – This comes into effect when you sell an asset and if a gain or profit occurs.

Other tax that may apply is wealth and inheritance tax, if applicable to the specific case.

Brazilian Tax Identification Number

In Brazil non-residents that wish to invest in Brazil in property, as well as conducting other kinds of investments, is required to have a tax registration number. Individuals will obtain a  CPF (Cadastro de Pessoa Física) and entities will obtain the CNPJ (Cadastro Nacional de Pessoa Jurídica).

The CPF may be obtained through the local Embassy where the non-Brazilian-residence has residence or in Brazil through a local representative, and the procedure is very simple. For creating a CNPJ number, the local regulation requires the supply of more documents. However, it is a plain process as well.

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