In Brazil revenue tax isn’t as relevant as in Europe or the USA, because the Brazilian state finances itself mainly through product circulation taxes. Monthly revenues of up to R$ 1.903,98 are currently tax free.

Relevant taxes in acquisitions of Brazilian real-estate are:

Real-estate acquisition tax („ITIV“ or „ITBI“): to be paid once at acquisition. As a municipal tax, it is established by each local municipality and therefore can vary between different municipalities. In Salvador and most of the Bahian municipalities it is 3% over the documented sales price in the notarized sales contract.

Land (real-estate) tax („IPTU“): has to be paid either monthly or yearly by the owner as soon as real-estate has been acquired. Its value is set by a municipal table, which considers the area and the location (present infrastructure, fancy or humble city district, center or periphery, etc.).

Laudêmio: this is a one time tribute paid to great private or public land owners like the catholic church or the Federal Union when the right to use their real estate is transferred to a purchaser. Its value is generally established as between 2,5% and 5% over the transaction price, similar to ITIV.

Foro: a yearly tribute referring to the right to use of real-estate of the Federal Union or private great land owners (for example the catholic church), similar to IPTU.

ITR: property tax for agricultural real-estate. Corresponds to the IPTU tax charged in urban areas.

For a Brazilian company (Ltda.), besides other trade specific emoluments, 15% tax over the sales profit are being collected.