Brazil » Taxes

Income Tax	VAT	Transfer Tax

Income Tax

Individual income tax rates in Brazil are from 0% to 27.5% based on the amount of income.

Capital Gains Tax

Capital gains on the sale of a property are generally subject to Brazilian tax at a rate of 15%. The tax is determined by the difference between the sales price and the acquisition cost.

VAT

Buyers of brand new houses in Brazil have to pay 8% IVA (VAT) if the house is completed or is being built at the time of the purchase.

The circulation of merchandise is subject to tax, as are transportation and communication services (ICMS). This is similar to VAT in other countries and the standard VAT rate in Brazil (ICMS) is 18%.

Intrastate transactions are taxed at 18%
Rates of inter-state supplies within Brazil are 7%-12% and most imports 18% to 25%. Communication services are taxed at 13% to 35

Transfer Tax

House buyers of re-sale property are required to pay the Transfer Tax of 8%. Transfer tax can vary from 2% and 8% of the real value or the appraised value of the real estate whichever is higher.