Complementary Law No. 214/2025 introduces a specific regime for real estate transactions, redefining the tax incidence on sales, leases, and related operations, with reduced rates and habituality criteria for individuals.
By Nicolle Alcântara
—
Legale Overseas, no. 955.
Constitutional Amendment No. 132/2023, regulated by Complementary Law No. 214/2025, part of the Brazilian Tax Reform, has introduced significant changes for transactions involving real estate, establishing a specific taxation regime for this sector.
The law provides that real estate transactions carried out by taxpayers subject to the regular regime of the Goods and Services Tax (IBS) and the Social Contribution on Goods and Services (CBS) are subject to the specific regime. The following operations are therefore included:
- Sale, including those arising from real estate development and land parceling;
- Transfer and onerous constitutive or translative acts of real rights;
- Lease, onerous assignment, and leasing;
- Property management and intermediation services; and
- Construction services.
Regarding individual taxpayers, they may also be considered taxpayers under the regular IBS and CBS regime when engaging in real estate transactions. That is, IBS and CBS will apply when there is:
- Lease, onerous assignment, or leasing of real estate if, in the previous calendar year, total revenue from such operations exceeds BRL 240,000 and involves more than three distinct properties;
- Sale or transfer of property rights involving more than three distinct properties in the previous calendar year;
- Sale or transfer of property rights of more than one property constructed by the seller within the five years prior to the sale;
- Sale or transfer of property rights exceeding, in the current calendar year, the limit of three distinct properties; and
- Lease, onerous assignment, or leasing in the current calendar year of a property exceeding 20% of the value of BRL 240,000.
For the calculation basis, the transaction value is considered, including interest and monetary adjustments, with certain exclusions such as taxes, fees related to the property, and condominium expenses.
There are also mechanisms to prevent double taxation, including the adjustment reduction, which takes into account previously paid taxes and other elements linked to the property.
The adjustment reduction aims to tax only the economic margin of the transaction, not the total exit value, and is linked to each property depending on the acquisition date and values incorporated, such as the Property Transfer Tax (ITBI), laudemium, and urban development charges, when applicable.
IBS and CBS will be calculated by deducting the adjustment reduction from the transaction value and applying the reduced rate, thus determining the amount due. In addition, the law provides for reduced rates of 50% for real estate transactions and 70% for lease, onerous assignment, and leasing operations.
The new system seeks greater fiscal fairness by distinguishing habitual from occasional transactions and by applying reduced rates to mitigate economic impacts. Taxpayers must adapt to the new requirements, ensuring compliance and taking advantage of the benefits provided.
With solid experience in tax law and deep knowledge of sector regulations, the team at Vaz de Almeida Advogados continuously monitors legislative developments, offering clients reliable technical support for the correct interpretation and application of the new IBS and CBS regime.
Translation Disclaimer
This document was originally drafted in Portuguese and subsequently translated into English using artificial intelligence (AI).
—
Follow us on LinkedIn >
People & Community >
Meet Our Leaders >
Awards, Seals, and Recognitions >
News: Quality Content on Our Portal >
—
Tax Law >
Corporate Law >
Automotive Sector Relations >
Conflict Prevention and Resolution >
Labor Relations, Global Mobility, and People Management >
Intellectual Property >
ESG, Environmental, and Sustainability >
Innovation, Digital Law, and Cybersecurity >
Infrastructure, Real Estate, and Construction Law >
Administrative, Public, and Regulatory Law >
—
Our publications aim to communicate the legal perspective on relevant developments and provide context to the most significant legal events that may affect companies and organizations. Specific cases require personalized technical attention to the facts and should seek customized legal advice before taking any legal or paralegal action. If you, your company, or your board of directors need counsel, contact a trusted attorney.
«Legale», «Legale Overseas», «Articles», «Especial», «Tax Panel», «Tax Alert», «Projects» e «News & Alerts» are periodic publications intended as a service to the business community. These materials may include links to third-party websites to facilitate access to referenced services and publications. However, we are not responsible for the integrity of third-party links, which may encounter issues such as server failures, network security vulnerabilities, or other accessibility problems.
—
+55 19 3252-4324
Barão de Itapura, 2323
8th floor, Guanabara
Campinas, SP
Brazil
