Owning property in Florianópolis as a foreigner: IPTU, rental income and the non-resident's taxes

Resident or non-resident: the line that changes everything

Before talking about taxes, there is a distinction that defines everything else: whether you are a tax resident in Brazil or a non-resident. It is not the same as your immigration status. A foreigner who lives in Brazil for more than 183 days or holds a permanent visa is usually a tax resident and is taxed like a Brazilian. Someone who keeps their tax life abroad — or who has filed a formal declaration of definitive departure — is a non-resident, and their treatment changes across almost every tax that follows.

IPTU: the annual tax everyone pays

IPTU is the annual municipal tax on the property, and it does not distinguish between a resident and a foreign owner. In Florianópolis, the reported residential rates for 2026 are 0.3% of the assessed value up to around R$ 73,000 and 0.5% above that, and 1.0% for commercial use. The municipality adjusted IPTU 2026 upward by 5.17% and offers early-payment discounts — up to 20% for a single payment in January, 10% in February, 5% in March — or up to ten installments. There is also the IPTU Sustentável (art. 244 of the municipal Tax Code), an additional discount of up to 5% for properties that meet sustainability criteria, renewed each year. Confirm the figures in force with the Prefeitura de Florianópolis.

CPF and attorney-in-fact: the two requirements for the foreign owner

Every foreigner taking part in a real-estate transaction needs a CPF — the tax registry for individuals — obtained at a Brazilian consulate or through a representative in Brazil. In addition, a non-resident who owns assets or earns income in the country must have a resident attorney-in-fact (IN SRF 208/2002), responsible for their local tax obligations, plus a power of attorney with specific authority to sign the deed if they cannot appear in person.

Rental income: why the non-resident does not use the carnê-leão

Here is one of the most common mistakes. The carnê-leão — the monthly mechanism for declaring rental income — is for residents, who then reconcile it in the annual return (progressive, up to 27.5%). A non-resident's rental income, by contrast, is taxed exclusively at source: a final withholding, with no deductions and no annual return. According to tax specialists, that withholding is usually 15% — and 25% if the beneficiary is in a favorably taxed jurisdiction — to be confirmed with an accountant before you act; but the core rule, taxation at source rather than through the carnê-leão, is the one to be clear about.

Sale: capital gains and the exemptions the foreigner doesn't have

On a sale, the capital gain is calculated using the GCAP program and a progressive scale of 15% (up to R$ 5 million), 17.5%, 20% and 22.5% in the higher brackets, for residents and non-residents alike. The key difference: the resident's exemptions — the one for a sole property up to R$ 440,000 and the one for reinvestment in another home within 180 days — do not apply to the non-resident.

ITR, condominium fees and the holding-company option

The ITR is the annual federal tax on rural real estate; it does not apply to an urban apartment in Florianópolis unless the property sits in a rural zone. The condominium fee is not a tax: it is a private monthly charge for the building's upkeep, always owed, separate from IPTU and independent of residency.

For someone who rents out the property, an asset holding company — a company that holds title to the property — can reduce the tax burden on rental income compared with holding it as an individual, in exchange for setup and accounting costs. This is a planning decision, not a recommendation: Law 15,270/2025 introduces dividend taxation from 2026, and the tax reform (LC 214/2025) reshapes the real-estate regime between 2026 and 2028, so it is worth modeling the specific case with a specialist.

In summary

The foreigner pays IPTU like anyone else, needs a CPF and an attorney-in-fact, is taxed on rental income at source — not through the carnê-leão — and, on a sale, does not have access to the resident's exemptions. This is general information, not tax advice: confirm every figure and your own situation with a Brazilian accountant.

Sources

• Receita Federal — Carnê-Leão / Rendimentos (taxation at source for the non-resident).
• Receita Federal — DITR (ITR).
• IN SRF 208/2002 (representative of the non-resident); IN RFB 461/2004 (CPF for the foreigner).
• Prefeitura de Florianópolis — IPTU 2026 and IPTU Sustentável (art. 244 of the Municipal Tax Code).
• GCAP program — capital gains; Law 13,259/2015 (progressive scale).
• Tax reform — LC 214/2025; Law 15,270/2025 (dividend taxation).