What is ITBI

ITBI (Imposto sobre Transmissão de Bens Imóveis) is the Brazilian municipal tax on transfer of real property ownership. It is calculated as a percentage of the transaction value or the municipality's assessed value — whichever is higher — and must be paid or payment confirmed before the escritura pública can be executed at the Cartório de Notas.

What ITBI is

Rates typically range from two to three percent but vary by city and may change with local legislation. In Florianópolis, São Paulo, Rio de Janeiro, and other major markets, specific rules govern calculation base, payment deadlines, exemptions for certain transfers, and penalties for underreporting transaction value. ITBI is distinct from IPTU, which is the annual property tax assessed on ownership rather than transfer.

Rates and calculation

Failure to pay ITBI blocks property closing and land registry recording. Municipal tax authorities may challenge declared values that appear below market. Your lawyer calculates expected ITBI early, confirms payment procedure with the relevant prefecture, ensures the escritura references proper tax clearance, and resolves base-value disputes before closing deadlines.