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Buying real estate in Brazil: foreign ownership limits, deed and registry, transfer tax and how non residents are taxed

Last verified: 2026-10-26 · Status: Changing

Foreigners, resident or not, can buy urban property in Brazil on the same terms as Brazilians; the limits bite on rural land, where foreign individuals, foreign companies and Brazilian companies controlled from abroad face area caps and INCRA authorization, and on rural land in the 150 km border zone, which needs prior national defense assent. Ownership passes only when the title is registered at the property registry, and the registry record is what protects a buyer in good faith, so the deed and registration are the core of the deal. The buyer pays municipal transfer tax (ITBI, 3 percent in São Paulo); a non resident seller pays capital gains tax at 15 to 22.5 percent, withheld by the buyer or the seller's attorney, and non resident landlords pay 15 percent on net rent, while the new IBS and CBS consumption taxes are being phased in for professional property sellers and landlords.

USD figures use the Banco Central do Brasil PTAX selling rate of R$5.0377 per US dollar for 23 October 2026, the last business day before verification. Conversions are for orientation only.

Key facts

Foreign ownership of urban property	No specific restriction in the laws governing foreign land ownership, which apply to rural property Lei nº 5.709/1971 art. 1 (scope: imóvel rural), as of 2026-10-26 · in force
Maximum rural area a foreign individual may acquire	50 módulos de exploração indefinidaLei nº 5.709/1971 art. 3, as of 2026-10-26 · in force
Rural area a foreign individual may acquire without authorization	3 módulos de exploração indefinidaLei nº 5.709/1971 art. 3 § 1, as of 2026-10-26 · in force
Cap on total foreign owned rural land per municipality	25 % of municipal areaLei nº 5.709/1971 art. 12, as of 2026-10-26 · in force
Width of the border zone where foreign rural acquisitions need prior national defense assent	150 kmLei nº 6.634/1979 arts. 1 and 2 V, as of 2026-10-26 · in force
Property value above which a public deed is mandatory (30 minimum wages, 2026)	48630 BRLCivil Code art. 108; Decreto nº 12.797 (minimum wage R$1,621), as of 2026-01-01 · in force
ITBI transfer tax rate, city of São Paulo (general rate)	3 %Lei Municipal de São Paulo nº 11.154/1991 art. 10 II, as worded by Lei nº 16.098/2014, as of 2026-10-26 · in force
Capital gains tax on property sold by a non resident individual (lowest to highest bracket)	15 to 22.5 %Lei nº 8.981/1995 art. 21 as worded by Lei nº 13.259/2016; Lei nº 9.249/1995 art. 18, as of 2026-10-26 · in force
Withholding tax on net rent paid to a non resident owner	15 %Decreto nº 9.580/2018 arts. 744 III and 763, as of 2026-10-26 · in force

The rule

1. Rural land is restricted for foreigners. A foreign individual resident in Brazil and a foreign company authorized to operate in Brazil may acquire rural property only under Lei nº 5.709, and a Brazilian company is treated the same way when foreign individuals or companies resident or seated abroad hold the majority of its capital. A foreign individual may not acquire more than 50 módulos de exploração indefinida (MEI, a regional area unit set by INCRA); up to 3 modules the purchase is free of authorization, and between 3 and 50 modules it needs INCRA authorization. Foreign companies may buy rural land only for agricultural, livestock, industrial or colonization projects tied to their corporate purpose. All rural land owned by foreigners may not exceed one quarter of the area of the municipality, and persons of the same nationality may not own more than 40 percent of that quarter, that is 10 percent of the municipality. A public deed is of the essence of the act, registries keep a special book of foreign acquisitions, and any acquisition in breach of the law is null.
Cost to do it: No fee is set in the law for the INCRA authorization; the cost is the authorization process itself (required between 3 and 50 MEI) and the public deed, which is mandatory for any rural purchase by a foreigner. Purchases of up to 3 MEI need no authorization but still need the deed. A purchase made in breach is null, the seller must return the price and the notary and registrar can be liable for damages (art. 15).Lei nº 5.709 of 7 October 1971 (acquisition of rural property by foreigners), regulated by Decreto nº 74.965 of 26 November 1974, Lei nº 5.709 art. 1 caput and § 1; art. 3 caput and § 1; art. 5; art. 8; art. 10; art. 12 caput and § 1; art. 15. Decreto nº 74.965 art. 4 and art. 7 §§ 1 and 2, 1971-10-07 official text · verified 2026-10-26

2. In the border zone, a strip 150 km wide running inside and parallel to Brazil's land borders, transactions with rural property that give a foreigner ownership, possession or any real right over the property are prohibited without the prior assent of the national defense council (originally the Conselho de Segurança Nacional; the council is now the Conselho de Defesa Nacional under the wording given by Lei nº 14.004 of 2020). Certain real security interests and property received by companies in settlement are carved out by art. 2 § 4, added by Lei nº 13.097 of 2015 and reworded by Lei nº 13.986 of 2020.
Cost to do it: No fee is set in the law; the cost is the time and paperwork for prior assent, which must be in hand before the deed. Urban property in border cities is outside item V, which covers rural property.Lei nº 6.634 of 2 May 1979 (border zone), as amended by Lei nº 13.097 of 2015, Lei nº 13.986 of 2020 and Lei nº 14.004 of 2020, Art. 1; art. 2 caput, item V and § 4; art. 4, 1979-05-02 official text · verified 2026-10-26

3. Title passes only on registration. Unless the law says otherwise, a public deed (escritura pública, drawn up by a notary) is essential to the validity of any transaction that creates, transfers, modifies or waives real rights over property worth more than thirty times the highest minimum wage in force. Real rights over property created or transferred between living persons are acquired only when the title is registered at the property registry (Cartório de Registro de Imóveis), and until the transfer title is registered the seller remains the owner.
Cost to do it: With the 2026 minimum wage of R$1,621 (Decreto nº 12.797), a public deed is required for property worth more than R$48,630. Notary and registry fees are set by state fee tables and are paid on top of ITBI.
Example: Threshold for a mandatory public deed in 2026: 30 x R$1,621 = R$48,630. / About US$9,653 at PTAX R$5.0377.Lei nº 10.406 of 10 January 2002 (Civil Code), Art. 108; art. 1.227; art. 1.245 caput and §§ 1 and 2, 2002-01-10 official text · verified 2026-10-26

4. The registry record (matrícula) protects a buyer in good faith. A transaction that creates, transfers or modifies real rights over property is effective against earlier legal acts unless the property's matrícula carries a registration or annotation of: a lawsuit claiming the property; a court attachment or enforcement or judgment execution proceeding; an administrative or contractual restriction, unavailability order or other legal burden; a court annotation of another lawsuit that could make the owner insolvent; or any court attachment on the property or the owner's assets. Situations not recorded in the matrícula cannot be raised against a good faith third party who acquires or takes real rights as security, including for eviction purposes, and no documents or court certificates beyond those the law requires can be demanded for validity or to show good faith.
Cost to do it: The main cost is an updated certificate of the matrícula from the registry, under the state fee table; buyers usually also run seller due diligence even though § 2 says court certificates cannot be required.Lei nº 13.097 of 19 January 2015, art. 54 as amended by Lei nº 14.382 of 27 June 2022 and Lei nº 14.825 of 2024, Art. 54 caput, items I to V, § 1 and § 2, 2015-01-19 official text · verified 2026-10-26 · changed: Lei nº 14.382 of 27 June 2022 reworded items II and IV and added § 2, which removes the need for extra certificates to establish good faith; Lei nº 14.825 of 2024 added item V on annotations of any court attachment, including from administrative improbity suits.

5. Municipal transfer tax (ITBI) is levied by the municipality where the property is located on inter vivos transfers for consideration of real estate and real rights over it. In the city of São Paulo, the base is the value at which the property would be sold for cash in normal market conditions, and the rate is 3 percent; transfers of properties up to R$600,000 financed through the SFH, PAR or HIS housing programs pay 0.5 percent on the financed amount up to R$100,000 and 3 percent on the rest. When the transfer is by public deed, ITBI must be paid before the deed is executed; by private instrument, within 10 days. Nationally, the Superior Court of Justice (STJ, Tema 1113, REsp 1.937.821/SP) held that the ITBI base is the market value of the property, not tied to the IPTU base, that the transaction value declared by the taxpayer is presumed to be market value unless the municipality rebuts it in its own administrative proceeding, and that municipalities cannot fix the base in advance using a reference value they set unilaterally; an extraordinary appeal is pending at the Federal Supreme Court.
Cost to do it: 3 percent of the market value in São Paulo, paid by the buyer before the deed. Each municipality sets its own rate by law, so check the city where the property sits.
Example: Apartment in São Paulo bought for R$2,000,000 without SFH financing: ITBI of R$60,000. / US$397,007 purchase, ITBI of about US$11,910.Constituição Federal of 5 October 1988, art. 156 II and § 2 II; Lei Municipal de São Paulo nº 11.154 of 30 December 1991, as amended (art. 7 by Lei nº 14.256 of 2006; art. 10 by Lei nº 16.098 of 2014 and Lei nº 17.719 of 2021); STJ REsp 1.937.821/SP (Tema 1113), judged 24 February 2022, CF art. 156 II and § 2 II; Lei nº 11.154 art. 7 caput, art. 10 and art. 12, 1991-12-30 official text · verified 2026-10-26

6. A non resident who sells property in Brazil pays capital gains tax under the same rules as residents. For individuals, the rates are progressive on the gain: 15 percent on the part up to R$5,000,000; 17.5 percent from R$5,000,000 to R$10,000,000; 20 percent from R$10,000,000 to R$30,000,000; and 22.5 percent above R$30,000,000. If the seller resides in a favored tax jurisdiction, the rate is 25 percent. The buyer, if resident in Brazil, or the seller's attorney in fact, if the buyer resides abroad, is responsible for withholding and paying the tax.
Cost to do it: 15 percent on the first R$5,000,000 of gain, rising to 22.5 percent above R$30,000,000 (25 percent for favored tax jurisdictions), withheld from the price.
Example: Gain of R$12,000,000: R$750,000 (15 percent of R$5,000,000) plus R$875,000 (17.5 percent of R$5,000,000) plus R$400,000 (20 percent of R$2,000,000) = R$2,025,000. / Gain of about US$2,382,039, tax of about US$401,969.Lei nº 9.249 of 26 December 1995, art. 18; Lei nº 8.981 of 20 January 1995, art. 21 as worded by Lei nº 13.259 of 16 March 2016; Lei nº 10.833 of 29 December 2003, arts. 26 and 47, Lei nº 9.249 art. 18; Lei nº 8.981 art. 21 items I to IV; Lei nº 10.833 art. 26 and art. 47, 2016-03-16 official text · verified 2026-10-26

7. Rent paid to a non resident owner for property in Brazil is taxed exclusively at source at 15 percent of net rent, that is after deducting, with proof, taxes, fees and charges on the property, rent paid for a sublet property, collection costs and condominium charges. The rate is 25 percent if the owner resides in a favored tax jurisdiction. The Receita Federal withholding manual assigns the withholding and the EFD Reinf filing to the owner's attorney in Brazil, under revenue code 9478, and states that tax treaties prevail over these rates.
Cost to do it: 15 percent of net monthly rent, with no exempt band.
Example: Rent of R$10,000 a month less R$1,500 condominium and R$500 IPTU: net R$8,000, tax R$1,200. / Rent of about US$1,985, net about US$1,588, tax about US$238.Decreto nº 9.580 of 22 November 2018 (Income Tax Regulation, RIR/2018); Lei nº 9.959 of 27 January 2000, art. 1; applied in the Receita Federal Manual do Imposto sobre a Renda Retido na Fonte (Mafon 2024), code 9478, RIR/2018 art. 744 caput, item III and § 1; art. 763, 2018-11-22 official text · verified 2026-10-26

8. Under the consumption tax reform, real estate operations carried out by taxpayers that compute IBS and CBS under the regular regime are subject to a specific regime for real estate. Individuals fall into it for leasing, onerous assignment and rental if, in the prior calendar year, their revenue from these operations exceeded R$240,000 and involved more than 3 distinct properties, and for selling or assigning rights over property when more than 3 distinct properties are involved. Rental income in the current year more than 20 percent above the limit also triggers the regime in that year.
Cost to do it: Below the thresholds an individual owner stays outside IBS and CBS on rent; above them, the specific real estate regime applies. See the reform timeline page for phase in dates.
Example: An individual who received R$240,000 or less of rent last year, or who rents 3 properties or fewer, is outside the regime this year. / R$240,000 is about US$47,641.Lei Complementar nº 214 of 16 January 2025 (IBS, CBS and Imposto Seletivo), as amended by Lei Complementar nº 227 of 2026, Art. 251 caput, § 1 items I and II and § 2, 2025-01-16 official text · verified 2026-10-26

Property	Foreign individual	Foreign company or Brazilian company majority owned from abroad	Approval
Urban property	Free	Free	None specific to foreigners
Rural, up to 3 MEI	Free (individual)	Only for agricultural, livestock, industrial or colonization projects tied to the corporate purpose	No INCRA authorization for individuals; deed always required
Rural, 3 to 50 MEI	Allowed with authorization	As above	INCRA authorization
Rural, above 50 MEI	Not allowed for an individual	As above, within municipal caps	Per Lei nº 5.709
Rural, in the 150 km border zone	Prior assent needed	Prior assent needed	Conselho de Defesa Nacional

Where foreign buyers stand by type of property (Lei nº 5.709 arts. 1, 3, 5 and 12; Decreto nº 74.965 art. 7; Lei nº 6.634 arts. 1 and 2).

Portion of the gain	Rate
Up to R$5,000,000 (about US$992,516)	15 percent
R$5,000,000 to R$10,000,000 (about US$1,985,033)	17.5 percent
R$10,000,000 to R$30,000,000 (about US$5,955,099)	20 percent
Above R$30,000,000	22.5 percent
Any gain, seller in a favored tax jurisdiction	25 percent

Capital gains tax on the sale of property by a non resident individual (Lei nº 8.981 art. 21 as worded by Lei nº 13.259; Lei nº 9.249 art. 18; Lei nº 10.833 art. 47). USD at PTAX R$5.0377.

Worked example

Foreign individual buying a São Paulo apartment. The buyer agrees a price of R$2,000,000 (about US$397,007). Because the value is above R$48,630, a public deed is mandatory (Civil Code art. 108). Before the deed is signed, the buyer pays ITBI of 3 percent, R$60,000 (about US$11,910) (Lei Municipal nº 11.154 arts. 10 and 12), plus notary and registry fees under the state tables. The buyer becomes owner only when the deed is registered on the matrícula (Civil Code art. 1.245).
Renting it out from abroad. The apartment rents for R$10,000 (about US$1,985) a month. The owner's attorney in Brazil deducts R$1,500 of condominium and R$500 of IPTU, leaving net rent of R$8,000, and withholds 15 percent, R$1,200 (about US$238), each month (RIR/2018 arts. 744 III and 763). Net rent is R$6,800 before the remittance (see FX and capital controls).
Selling later. The owner sells for R$3,000,000 (about US$595,510), a simplified gain of R$1,000,000 (about US$198,503) before any adjustments the law allows. The buyer, if resident in Brazil, withholds 15 percent, R$150,000 (about US$29,775) (Lei nº 10.833 art. 26; Lei nº 8.981 art. 21 I). If the owner lived in a favored tax jurisdiction, the rate would be 25 percent, R$250,000 (about US$49,626) (Lei nº 10.833 art. 47).
Argentine owner, high level. At a high level, the Brazil and Argentina income tax convention (Decreto nº 87.976 of 1982, art. VI) lets income from immovable property, including rent, be taxed in the country where the property sits, and art. XIII leaves gains on property to each country's domestic law, so an Argentine owner of Brazilian property is taxed in Brazil on rent and gains as described above, with relief, if any, claimed at home. For the Argentine side, see The Argentine Thread guide.

Step by step

1. Classify the property: urban, rural, or rural in the 150 km border zone. For rural land, check the INCRA module for the region and the buyer's control structure, since a Brazilian company majority owned from abroad counts as foreign (Lei nº 5.709 art. 1 § 1).
2. Pull an updated certificate of the matrícula from the property registry and review every registration and annotation: liens, lawsuits, attachments and unavailability orders (Lei nº 13.097 art. 54).
3. Sign a purchase commitment if needed, then obtain any INCRA authorization or border zone assent before the deed (Lei nº 5.709 art. 9 III; Lei nº 6.634 art. 2 V).
4. Pay ITBI to the municipality where the property sits before signing a public deed (São Paulo: Lei nº 11.154 art. 12).
5. Sign the public deed before a notary (Civil Code art. 108) and bring the funds in through an authorized FX bank (see FX and capital controls).
6. Register the deed at the property registry; ownership passes only then (Civil Code arts. 1.227 and 1.245).
7. After closing: appoint an attorney in Brazil if you will rent from abroad, so the 15 percent rent withholding can be made (RIR/2018 art. 763), and keep purchase records to compute the gain on a later sale.

Common traps

Holding rural land through a local company does not escape the limits. A Brazilian company whose majority capital belongs to foreigners resident or seated abroad is treated as foreign (Lei nº 5.709 art. 1 § 1), and a purchase in breach is null (art. 15).
Paying without registering. Until the deed is registered, the seller is still the owner in law (Civil Code art. 1.245 § 1), and later creditors who annotate the matrícula first can prevail. Register promptly.
Ignoring the matrícula. Liens or lawsuits recorded on the matrícula bind the buyer (Lei nº 13.097 art. 54); what is not recorded cannot be raised against a good faith buyer (§ 1).
Accepting the municipal reference value as the ITBI base without question. The STJ held that the declared transaction value is presumed to be market value and that municipalities cannot impose a unilateral reference value in advance (Tema 1113), although an appeal is pending at the Supreme Court.
Assuming the foreign buyer withholds nothing. When the seller is non resident and the buyer is resident in Brazil, the buyer is responsible for withholding the capital gains tax (Lei nº 10.833 art. 26).
Owning many rental properties as an individual. Revenue above R$240,000 from more than 3 properties in the prior year brings the owner into the IBS and CBS real estate regime (Lei Complementar nº 214 art. 251 § 1 I).

Sources

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