Property Ownership Costs | Inheritance Issues

Overview:

In Brazil, taxes on ownership of real estate are generally lower than in most Western countries. As an owner of Brazilian real estate you will have to bear the following ongoing costs:

• Taxes

• Annual municipal real estate tax
• Income tax
• Corporate tax

 

• Other property costs

• Utility costs
• Lettings and management charges
• Maintenance
• Insurance

TAXES

Annual municipal real estate tax:

All owners of Brazilian property (including both residents and non-residents) must pay annual real estate tax to the local municipal authorities (Imposto Predial e Territorial Urbano, IPTU).  This usually works out as less than 1% of the property’s assessed value.

Income Tax:

Tax for non-residents on income in Brazil is normally 25% (income tax is levied on a sliding scale of 15-27.5%) but is reduced to 15% for passive income such as from property rentals.

Corporation tax:

There are various company structures through which you can purchase property in Brazil, all with varying liability to corporation tax.  You should consult a tax advisor to see all the options.

OTHER PROPERTY COSTS

Lettings & Management Charges:

There are lots of rental and property management agencies to choose from in key Brazilian tourist hotspots and many estate agents will also offer a property management service, including cleaning and maintenance.  They may also offer a tenant-finding service for you, at an extra charge.

Maintenance:

Your maintenance costs will depend on the level of maintenance required (or preferred by you) on your property.  A full-time housekeeper (5 days a week, 8 hours a day) will cost you between US$75-US$150 per month and to have someone simply check on the home weekly (cut the grass, etc.) you will probably spend between US$25-US$75 per month.

Alternatively, you can employ a groundskeeper who will live on the property and you can factor their lack of monthly rent into their salary.  These property managers will maintain the house and safeguard it.  In addition, they can perform helpful tasks while you are in residence, like grocery shopping and helping to arrange transport to and from the airport.

Print Contents Next Page

Bookmark This Page

Tag, share or bookmark this page:

• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 
•