Taxation in Brazil
Rental Income
The Brazilian tax system encompasses the following tax categories: federal taxes, state taxes and municipal taxes.
Income Tax
Nonresident taxpayers are only subject to tax on their Brazilian-source income. From 1 January 1999, nonresidents are taxed at a flat rate of 25% on their gross income, without any deductions.
Real Estate Tax
0.6% Municipal Taxes
Capital Gains Tax
Brazilian tax at a rate of 15%. The taxable gain is computed by deducting the acquisition costs from the gross selling price.
As of January 2004, capital gains earned by these individuals are subject to a withholding tax rate of 25%.
However, gains are tax-exempt if you have owned the real estate for 20 or more years, or if the real estate is the sole estate you own, and you have owned it for at least 5 years and the sale price is not over, approximately, €200,000.