Helbor Patteo Vila Mariana –
Life & Office

Property Payment Plan in Brazil: How It Works

Paying for real estate in Brazil typically happens in several stages, especially when purchasing new developments directly from a developer:

1. Initial Down Payment

Buyers are usually required to make an initial payment of 10% to 15% of the property value. This is paid upon signing the purchase agreement.

2. Installments During Construction

Most developers offer interest-free installment plans throughout the construction period. These payments are usually small and made monthly or quarterly until the property is completed.

3. Final Payment at Handover

The remaining balance is paid at the end of construction, when the final contract is signed and ownership is officially transferred.

Flexible Payment Options

Brazilian developers are often flexible with payment structures, allowing buyers to tailor the plan based on their financial situation and preferences. This flexibility makes it easier for international investors to enter the market without the need for full upfront capital.

You can find a detailed example of a real payment schedule in our blog post here.

Do You Need to Be in Brazil to Buy Property?

No — purchasing property in Brazil can be done 100% remotely.
With a properly issued power of attorney and digital signatures, the entire transaction — including the transfer of ownership — can be completed without visiting the country.

All documentation, including the property title, can be legally executed at a distance.

Remote Support from ALTUM ESTATE

At ALTUM ESTATE, we represent your interests at every stage of the transaction.
Our team handles all communication with developers, legal parties, and notaries to ensure your property purchase is completed smoothly, securely, and remotely.

The Only Thing You’ll Need: A CPF

To buy property in Brazil, you will need a CPF (Cadastro de Pessoas Físicas) — a tax identification number required for any financial transaction in the country.

You can obtain your CPF:

• Remotely (with the help of ALTUM ESTATE), or

• In person at a Brazilian consulate in your country of residence.

We assist our clients in obtaining their CPF as part of our end-to-end service — so you can complete the purchase process without leaving your home.

Yes, Brazil imposes taxes on real estate sales, and these taxes apply equally to both residents and non-residents. The two main taxes involved in property sales are:

1. Capital Gains Tax (Imposto de Renda)

When you sell property in Brazil, you are required to pay a 15% capital gains tax on the profit—that is, the difference between the purchase price and the sale price.

Exemptions and Deductions:
In certain cases, exemptions and deductions may apply. For example, if you sell your primary residence and reinvest the full amount from the sale into another residential property within 180 days (6 months), the capital gains tax on the profit may be exempted, provided you do not own another primary home at the time of reinvestment.

2. Property Transfer Tax (ITBI – Imposto sobre Transmissão de Bens Imóveis)

This tax is paid by the buyer during the property transfer process. The ITBI rate varies by municipality and typically ranges from 2% to 4% of the property’s sale value.

Support from ALTUM ESTATE

At ALTUM ESTATE, we offer comprehensive consultation and assistance throughout every stage of your transaction — from understanding and calculating taxes to handling all administrative tasks. Our experts ensure that you fully understand your tax obligations and help optimize your expenses, making the selling process as smooth and profitable as possible.

Whether you are a resident or a foreign investor, our team is here to support you through every step, ensuring that your real estate transactions in Brazil are handled with professionalism and expertise.

Annual Property Tax in Brazil: What Is IPTU?

In Brazil, the annual property tax is known as IPTU (Imposto Predial e Territorial Urbano). This tax is collected by local municipalities and varies based on the location and assessed value of the property.

Key Facts About IPTU:

1. Tax Rate
IPTU rates depend on the municipality and typically range from 0.2% to 1.5% of the property’s cadastral value. In major cities like São Paulo and Rio de Janeiro, IPTU rates are generally higher than in smaller towns.

2. Cadastral Value
The cadastral value is determined by the municipal authority and may differ significantly from the market value. It is based on factors such as location, size, and property condition.

Example: How IPTU Is Calculated

If your property has a cadastral value of BRL 500,000 (approx. USD 100,000) and the local IPTU rate is 1%, your annual property tax will be BRL 5,000 (approx. USD 1,000).

Support from ALTUM ESTATE

At ALTUM ESTATE, we provide expert assistance with IPTU calculation, payment coordination, and full tax guidance. Whether you’re buying your first property in Brazil or managing a portfolio, our team will help you understand your tax obligations and minimize ownership costs.

Apartment Finishing Costs in Brazil After Handover

Apartments from developers in Brazil are typically delivered in “white box” condition. This means the walls are painted, tilework is completed, plumbing and electrical systems are installed — but the unit is not yet fully furnished.

To fully prepare an apartment for living or rental, you’ll usually need to install lighting fixtures, flooring finishes, furniture, and appliances.

How Much Does It Cost to Fully Equip an Apartment?

Finishing and furnishing an apartment for rental — including essentials like dishes, curtains, and small accessories — generally costs between 10% and 20% of the property’s value, depending on the quality and level of customization.

Full-Service Delivery with ALTUM ESTATE

At ALTUM ESTATE, we manage this entire process on your behalf. We work with trusted local partners in Brazil to represent your interests and ensure high-quality execution — from finishing to furnishing — so your property is ready for rental or personal use.