Cost of Buying Property in Brazil: ITBI, Notary Fees and Registration Explained

Cost of buying a property in Brazil involves more than paying the price agreed with the seller. There is also the property transfer tax, the public deed when required, registration at the Real Estate Registry and several smaller administrative expenses.

These additional costs are not difficult to understand, but foreign buyers are often surprised by them because the process may be very different in their own country.

I have worked in the Ceará real estate market since 2009, and one of the first questions international clients ask me is: “If the property costs R$700,000, how much money will I actually need?”

For a regular property purchase in Fortaleza, I normally recommend reserving up to approximately 5% of the property value for taxes, notary fees, registration and documentation. The final amount is often lower, especially when everything is organized in advance. Properties subject to laudêmio may require a slightly higher budget.

Let’s use a R$700,000 property as a practical example.

ITBI: the property transfer tax stands for Imposto sobre a Transmissão de Bens Imóveis. It is the municipal tax charged when real estate ownership is transferred from one person to another.

Because ITBI is a municipal tax, the rate is not the same everywhere in Brazil. Buyers should always check the rules of the city where the property is located.

In Fortaleza, ITBI can be paid at a 2% rate when it is collected within the required period before the deed or other transfer instrument is executed. If the correct procedure and deadline are not followed, the applicable rate may rise to 4%.

For a property valued at R$700,000, the difference is significant:

• At 2%, the ITBI is R$14,000.
• At 4%, the ITBI is R$28,000.

This is why the timing of the payment should be checked before signing the deed. With proper planning, the buyer can normally avoid paying the higher rate.

Before completing a purchase, I always recommend checking the expected ITBI calculation rather than relying on a general percentage alone.

How much does the escritura pública cost?

The escritura pública is the public deed prepared by a Cartório de Notas, or Brazilian notary office.

There is no single nationwide price for a public deed. Notary fees are regulated by each state and calculated according to an official fee table. In Ceará, the amount depends on the value of the property and the type of transaction.

This means that the public deed is not simply calculated as a fixed percentage of the purchase price. It is also misleading to assume that the deed for a R$700,000 property will automatically cost something like R$18,000. The correct amount must be calculated under the current Ceará notarial fee table and confirmed with the notary office preparing the document.

The official rates are periodically updated by the Court of Justice of Ceará.

In some transactions, a separate public deed is not required. For example, certain bank financing agreements have the same legal effect as a public deed. In those cases, the buyer will still have ITBI and registration expenses, but may not pay for a separate escritura.

A signed deed does not make you the registered owner

This is probably the most important point for a foreign buyer to understand: signing the purchase agreement or even the public deed does not, by itself, complete the transfer of ownership.

Once the deed or equivalent transfer instrument has been signed, it must be submitted to the competent Registro de Imóveis.

The Real Estate Registry will examine the documents and record the transaction in the property’s official registration record, known as the matrícula. Only after this registration is completed does the buyer officially appear as the property’s new owner.

The deed and the registration are therefore two different stages, usually handled by two different offices:

• The Cartório de Notas prepares the public deed.
• The Registro de Imóveis registers the transfer of ownership.

The registration office also charges according to the official state fee table. The amount depends on the property value and the acts required in that particular transaction.

Certificates and smaller administrative expenses

In addition to ITBI, the deed and property registration, the transaction may involve smaller expenses for certificates and document checks.

These may include an updated copy of the property’s matrícula, municipal tax certificates, condominium statements, certificates concerning the seller and other documents required by the notary or registry office.

Individually, these expenses are relatively small. However, they should still be included when estimating the overall cost of buying property in Brazil.

Foreign buyers may also need sworn translations, apostilles, powers of attorney or assistance with transferring funds into Brazil. These are not standard property registration fees and depend on the buyer’s individual circumstances.

How much should you budget for a R$700,000 property?

For a standard property purchase in Fortaleza, without laudêmio or unusual legal complications, a practical calculation would be:

• Property price: R$700,000
• ITBI at 2%: R$14,000
• Public deed: according to the current Ceará notarial table
• Property registration: according to the current Ceará registry table
• Certificates and documents: variable

Rather than inventing a fixed amount for the deed or registration, I advise buyers to reserve up to approximately R$35,000, equivalent to 5% of the purchase price.

This is a conservative budget. When ITBI is paid correctly at the 2% rate, the complete cost of transferring a regular property in Fortaleza should normally remain within that amount.

The exact figures should always be confirmed before the purchase because official fee tables are updated and every transaction has its own characteristics.

Is the real estate commission charged separately?

In Brazil, the standard real estate commission on a property sale is generally 5% of the agreed price.

In the transactions this commission should always be included in the advertised sale price. It is paid from the sale proceeds according to the brokerage agreement and is not added again to the amount paid by the buyer.

If a property is advertised for R$700,000, the buyer normally pays R$700,000 for the property—not R$700,000 plus an additional 5% brokerage fee.

This is worth clarifying because commission practices differ from one country to another. Some foreign buyers are accustomed to paying a buyer’s agent separately, while others assume that every professional involved will charge an additional fee.

The purchase agreement should always state the agreed price clearly and confirm how the brokerage commission will be handled.

Hanna Zborowska

CRECI 6933