Inter Vivos Property Transfer Tax
In Portuguese Inter Vivos Property Transfer Tax is named Imposto sobre Transmissão de Bens Inter Vivos and often referred to by the abbreviation ITBI.
Inter Vivos Property Transfer Tax, also called Imposto sobre a Transmissão de Bens Imóveis, is the Real Property Transfer Tax that applies to sales and purchases of a good such as real estate, made between two people who are alive and therefore, it doesn't apply to inheritances.
Each municipality has its own rules and exemptions for applying the tax. Usually, the rate applied on the value of the property is 2%. There are variations too, such as in Porto Alegre and Fortaleza, where the rate is 3%. ITBI must be paid in full, not in installments.