Taxes and Fees for Buying Real Estate in Fortaleza
This might not be the first city that comes to foreigners’ minds, but the capital city of Ceará is one of the five more populated municipalities in Brazil. The main fees that need to be paid when buying a property in Fortaleza will be listed in this article.
Acquiring Real Estate requires financial planning. Buyers must pay attention to all the extra costs that could arise from a transaction like this, since fees can substantially raise the amount to be paid.
The taxes and diverse costs that need to be considered when buying a property are, basically:
- Imposto Sobre Transmissão de Bens Móveis - ITBI
- Real Estate register
- Public deed
- Imposto Sobre a Propriedade e Território Urbano - IPTU
- Imposto Sobre Operações Financeiras - IOF
Imposto Sobre Transmissão de Bens Móveis - ITBI
This tax is charged over the property transfer, and is considered the largest additional expense faced by Real Estate buyers. This fee is a percentage, charged on top of the property’s value, and is variable depending on the state where the property is located.
In the city of Fortaleza, located in the state of Ceará, ITBI equals to 3% of the price of the house or apartment. This rate, though, can drop to 2%, if the owner pays the tax before taking the property register to the registry.
Real Estate Register
This register basically states that the property now belongs officially to the buyer. This fee does not come in the form of a percentage, like ITBI. Instead, the price is set according to the market value of the house or apartment price.
Below are some of the approximate examples of Real Estate register costs for Fortaleza in 2014.
- Properties worth BRL 34,500 to 41,300 - BRL 785.76
- Properties worth BRL 48,400 to 55,300 - BRL 1,038.50
- Above this value, around BRL 0.105 will be added for each BRL 8.51, reaching a maximum of BRL 1,057.84; also, a fee of BRL 48.12 will be charged, along with a rate of 5% on top of the surplus value
Public deed
This document might be needed, at some point, to prove that the buyer owns the house or apartment. The price of this fee is also set based on the property’s value, and it varies from state to state.
Below are some of the approximate examples of public deed costs for Ceará in 2014.
- Properties worth BRL 18,500 to 23,300 - BRL 447.98
- Above this value, around BRL 0.116 will be added for each BRL 8.51, reaching a maximum of BRL 1,564.86; also, a fee of BRL 24.24 will be charged, along with a rate of 5% on top of the surplus value
Imposto Sobre a Propriedade e Território Urbano - IPTU
IPTU is not a privilege of those buying a property, since this tax must be paid every year, but, it must also be considered by a buyer who is studying a certain property. The tax rate is based on the property’s market value, but, it is also variable from municipality to municipality.
In Fortaleza, IPTU rate varies between the market value of the property and also its type. This tax may suffer reductions, but, basically, the aliquot for residential spaces is:
- For properties worth up to BRL 58,500 = 0.6%
- Properties worth BRL 58,500 to 210,600 = 0.8%
- Above this value = 1.4%
For non-residential spaces, the aliquot is:
- For properties worth up to BRL 210,600 = 1%
- Above this value = 2%
Imposto Sobre Operações Financeiras - IOF
This tax is not related directly to Real Estate sales. IOF is charged on top of financial transactions involving currency exchange, insurance operations, loans, and securities.
People coming to Brazil must have in mind that IOF tax needs to be paid whenever foreigners bring money into the country. Since this is a federal tax, the rate does not vary from place to place. Some aliquots examples are:
- IOF in credit operations - maximum of 1.5%/day, but, it usually consists of a variable percentage plus an additional rate of 0.38%
- IOF in foreign trade operations - maximum of 25%, but, it is usually reduced; for the payment of import services, for example, the rate is 0.38%
- IOF in securities and Real Estate titles - maximum of 1.5%/day, but, in some cases, it may be reduced