Brazil Property Tax — ITBI on Purchase & Capital Gains (GCAP)
When you buy property in Brazil the buyer pays ITBI (a municipal transfer tax). When you sell at a profit, the seller pays capital-gains tax (ganho de capital), calculated in the tax authority’s GCAP software. The two are completely different taxes — here are the rates and brackets.
ITBI — purchase transfer tax (paid by the buyer)
ITBI is a municipal tax, so the rate varies by city — typically 2%–3% of the transaction value (or the assessed "valor venal" if higher). In the city of São Paulo the rate is 3%. Examples from the WizeDeal model:
| State / city | ITBI rate |
|---|---|
| São Paulo (SP) | 3.0% |
| Rio de Janeiro (RJ) | 2.0% |
| Minas Gerais (MG) | 3.0% |
| Paraná (PR) | 2.7% |
Some financing programs (SFH / Minha Casa Minha Vida) give a reduced ITBI on the financed portion. Always verify with the municipality.
GCAP — capital-gains tax (paid by the seller)
An individual selling property at a profit is taxed on the difference between sale and purchase price, in progressive brackets under Law 13.259/2016:
| Gain band (R$) | Rate |
|---|---|
| Up to 5,000,000 | 15% |
| 5,000,000 – 10,000,000 | 17.5% |
| 10,000,000 – 30,000,000 | 20% |
| Over 30,000,000 | 22.5% |
Main exemptions: sale of the only property up to R$440,000 (if none sold in the last 5 years); full reinvestment in a residential property within 180 days; monthly gains up to R$35,000 on small assets. Non-residents: 15% (or 25% if in a tax haven).
Frequently asked questions
How much ITBI do you pay in São Paulo?
In the city of São Paulo the rate is 3% of the transaction value; other cities are typically between 2% and 3%.
What are the capital-gains tax rates in Brazil?
15% up to R$5M gain, 17.5% up to R$10M, 20% up to R$30M and 22.5% above that (Law 13.259/2016).
Can the capital-gains tax be avoided?
Yes in some cases: full reinvestment in a Brazilian residential property within 180 days is exempt, as is the sale of the only property up to R$440,000.
Do foreigners pay higher ITBI?
No. Brazil does not charge foreigners a higher ITBI — only a CPF is required. Capital gains for non-residents are taxed at 15%.