REFORMA TRIBUTÁRIA: ENTENDA o que foi aprovado para o MERCADO IMOBILIÁRIO

Summary

The Brazilian Chamber of Deputies approved a tax reform bill, setting a 26.5% cap on the Value Added Tax (VAT) for real estate transactions, with a 40% discount leading to a maximum rate of 15.9%. The reform, which will be phased in between 2026 and 2033, also includes a 60% discount on rental VAT, resulting in a 10.6% rate. The reform is not immediate and awaits Senate approval. Despite government assurances that the reform will not increase real estate taxes, studies suggest varying impacts, with some property taxes potentially rising. The reform aims to replace existing taxes with a new tax structure, including the IBS and CBS, which will affect both businesses and consumers.

Takeaways

• 🗓️ The tax reform approved by the Chamber of Deputies on the 10th is not immediate and will be gradually implemented between 2026 and 2033 after Senate approval.
• 🏢 The reform sets a maximum IVA (Value Added Tax) rate of 26.5% for real estate transactions, with a 40% discount resulting in a maximum rate of 15.9%.
• 📉 For rentals, the approved discount is 60%, leading to a total of 10.6%.
• 📈 The reform is expected to increase the tax burden on properties priced up to R$240,000 by 15.4%, and on properties priced between R$500,000 to R$1,000,000 by 30.7%.
• 💰 For properties over R$1,000,000, the tax rate is expected to increase by 48.8%, and for properties over R$2,000,000, by 51.7%.
• 🏡 Sales of properties by individuals not primarily involved in real estate will not be taxed differently under the reform.
• 📉 The 'social reducer' for calculating taxes on new residential properties is maintained at R$100,000, with an additional R$30,000 reducer for residential lots.
• 🏘️ For rental agreements or leases, the social reducer is set at 400 per property.
• 📉 The Ministry of Finance states that the reform will not increase taxes on real estate and any such claims are misinformation.
• 📈 The government estimates that the cost of a popular new property valued at R$2.5 million will decrease by about 3.5%, while a high-standard property valued at R$2 million will increase by about R$3.5%.
• 📊 There is a dispute between the real estate sector entities and the Ministry of Finance regarding the impact of the reform, with the government asserting that the impact will be minimal.

Q & A

What was the outcome of the vote on the tax reform bill in the Chamber of Deputies on the 10th?

The Chamber of Deputies approved the tax reform bill with 336 votes in favor and 132 against.

Is the tax reform going to be implemented immediately after the vote on the 10th?

No, the reform will not be implemented immediately. It still needs to be approved by the Senate and the transition to the new model is expected to happen gradually between 2026 and 2033.

What is the maximum rate for the Value Added Tax (VAT) on real estate operations according to the approved text?

The maximum rate for VAT on real estate operations is set at 26.5%.

What is the approved discount for VAT on real estate operations?

The approved discount for VAT on real estate operations is 40%, resulting in a maximum rate of 15.9%.

What is the approved discount for VAT on property rentals?

The approved discount for VAT on property rentals is 60%, resulting in a total of 10.6%.

According to the SECOV of São Paulo and Braink studies, what discount rates are necessary to maintain the current tax burden on real estate operations and rentals?

According to the studies, a 60% discount on the tax rate for real estate operations and an 80% discount for rentals would be necessary to maintain the current tax burden.

How will the tax burden change for properties priced up to R$240,000 after the reform?

For properties priced up to R$240,000, the tax burden is expected to increase from 6.41% to 7.4%, a 15.4% increase in taxes.

What is the expected tax increase for properties valued between R$500,000 and R$1 million after the reform?

For properties in the R$500,000 to R$1 million range, the tax is expected to rise from 8.11% to 10.6%, a 30.7% increase.

What is the expected tax rate for properties over R$2 million after the reform?

For properties over R$2 million, the tax rate is expected to increase from 8.11% to 12.3%, a 51.7% increase.

Will the tax reform affect the tax on transactions between private individuals?

No, the tax reform approved by the Chamber of Deputies clarifies that transactions between private individuals will not be taxed.

What is the expected impact of the tax reform on the cost of a popular new property valued at R$2.5 million according to the Ministry of Finance?

According to the Ministry of Finance, the cost of a popular new property valued at R$2.5 million is expected to decrease by about 3.5%.

What are the new taxes that will replace PIS, COFINS, IPI, and ICMS?

The new taxes that will replace PIS, COFINS, IPI, and ICMS are the Imposto sobre Bens e Serviços (IBS) and Contribuição sobre Bens e Serviços (CBS).

What is the current total tax burden for real estate companies, considering the IRPJ, CSLL, OIS, and the variable ISS rate?

The current total tax burden for real estate companies, considering the IRPJ, CSLL, OIS, and the variable ISS rate, can reach up to 9%.

How does the tax burden compare between the current model and the new model approved by the Chamber of Deputies?

In the current model, the total tax burden is close to 10%, while in the new model approved, the tax rate could reach up to 15.9%, plus additional taxes like IRPJ and CSLL.

What is the special tax regime for real estate companies that sell fractions of land or condominiums?

The special tax regime for real estate companies that sell fractions of land or condominiums limits the tax on revenue to 4%.

Who ultimately bears the tax burden in the transaction of new properties?

Although the tax burden is levied on companies, it is the consumers who effectively pay these taxes to the government through their purchases and consumption.