Selling a Property in Florianópolis: Capital Gains Tax and Exemptions

Almost everything written about buying skips the other half: selling. And when you sell, the decisive number is the capital gains tax — a federal tax the seller pays on the difference between what they received and what the property cost them.

How much you pay

The rates are progressive (Lei 13.259/2016, in force since 2017): 15% on gains up to R$ 5 million, 17.5% between R$ 5 and 10 million, 20% between R$ 10 and 30 million, and 22.5% above that. Each band taxes only its own portion. The gain is calculated as the sale price minus the acquisition cost, to which you can add documented improvements (construction, expansion, renovation) and the agency commission paid by the seller.

The exemptions worth knowing

• Single property up to R$ 440,000: exempt if it's the seller's only property and they haven't sold another in the previous five years.
• Reinvestment within 180 days: the gain on the sale of a residential property is exempt if the resident reinvests the proceeds in another residential property in Brazil within 180 days. It can be used once every five years and does not apply to the sale of land.
• Small value: a general exemption for low-value sales within the month.
• Reduction factors: older properties pay considerably less, thanks to the FR1/FR2 factors (Lei 11.196/2005) and the table for acquisitions prior to 1988.

How and when it's declared

The tax is calculated in the Receita Federal's GCAP program, which generates the DARF payment slip (code 4600 for residents), payable by the last business day of the month following the sale. For non-resident sellers the code is 0473, the buyer or their representative withholds the tax, and resident exemptions don't apply; there's professional debate over whether the rate is progressive or flat, so it's wise to seek advice.

The ITBI is not the same thing

Be careful not to confuse them: capital gains tax is federal and paid by the seller; the ITBI is municipal and paid by the buyer on the transfer. In Florianópolis the ITBI is 2%, and without paying it the Property Registry won't complete the transfer.

Documents to close

To sell, you'll typically need the updated title record (matrícula) and the certidão de ônus reais from the Property Registry, the municipal debt certificate (IPTU), proof that condo fees are paid where applicable, and the seller's personal certidões. Ownership transfers only when the deed is registered: until that moment, the contract alone does not convey the property.

Sources

• Receita Federal — Ganhos de Capital, rates and taxable transactions.
• Lei nº 13.259/2016 (progressive rates); Lei nº 11.196/2005, arts. 23, 39 and 40 (exemptions and reduction factors).
• Receita Federal — GCAP program and DARF (codes 4600 and 0473).
• Prefeitura de Florianópolis — municipal ITBI.
• Cartórios de Registro de Imóveis — documentation for the sale.