Property Tax for Urban Land
In Portuguese Property Tax for Urban Land is named Imposto sobre a Propriedade Predial e Territorial Urbana and often referred to by the abbreviation IPTU.
IPTU is a tax imposed by the Brazilian Federal Constitution, levied on urban property. It's main purpose is to obtain financial resources for the local municipality.
IPTU tax payers are citizens or legal entities who posses urban property. The tax amount is calculated based on the market value of the property. The value is determined by the sales price upon property completion or by the foreclosure value. The rate for this tax is established by each municipality, which varies according to the municipality.