The recent tax reform, regulated by Complementary Law No. 214/2025, has generated heated discussions in the real estate sector, bringing significant changes that directly affect taxation on the purchase, sale and rental of properties. 

For André de Ataide Martins, lawyer and accountant, these changes to Complementary Law No. 214/2025 are essential to understanding the new tax scenario that is emerging. Among the main points of the reform, the replacement of traditional taxes, such as PIS and COFINS, by the new Contribution on Goods and Services (CBS) stands out. In addition, ICMS and ISS were replaced by the Tax on Goods and Services (IBS). These changes aim to simplify the tax system, but they also impose new challenges for professionals in the sector. 

Martins points out that “the new rules make individuals operating in the real estate sector mandatory taxpayers of these taxes.” This means that, in addition to companies, individuals who buy and sell real estate, as well as rent it out, will also need to adapt to this new tax reality. This inclusion may increase the tax burden on small investors and property owners, who must now familiarize themselves with tax obligations that were previously exclusive to legal entities. 

The reform also promises to impact the rental market, as the new taxation could influence rental prices. With the possibility of increased operating costs, landlords may pass these costs on to tenants, making access to housing even more challenging in an already complicated scenario. 

On the other hand, tax simplification can bring long-term benefits, such as attracting new investments to the real estate sector. The expectation is that, with a clearer and less bureaucratic system, there will be an increase in investor confidence, which can boost the construction industry and, consequently, the supply of properties. 

In short, tax reform brings with it a series of changes that require attention and adaptation from everyone involved in the real estate sector. The transition to the new tax system can be challenging, but it also opens doors to a more dynamic and efficient market. 

Necessary guidelines in this new scenario 

To help our readers stay up to date with these changes in tax reform and their impact on the real estate sector, André de Ataide Martins provides a brief analysis of the main questions he receives in his office. He holds a master's degree in international tax law from the University of Florida and a specialization in accounting and finance from Harvard. 

OFFICIAL MEDIA – What are the main changes that the tax reform will bring to the real estate market? In the sale, purchase or rental of properties? 

ANDRE –The main change is the replacement of part of the current taxes by the new IBS and CBS, which, in terms of real estate transactions, have a broader scope and include transactions that were not previously taxed by ICMS and ISS, such as the purchase and sale of real estate. The positive side is that taxation will become more uniform, with reduced rates for the sector, but changes in the calculation method and incidence of taxes may alter the pricing and profitability of these transactions, both positively and negatively, in addition to bringing complexities due to the various regimes and specific rules that have been created. One of the major changes occurs for individuals, those citizens who
own properties rented, leased or transferred for a fee, as well as those who frequently sell properties, such as those who build houses to resell them. In a simplistic way, anyone who receives rents above R$240,000 per year and owns more than three rented properties or, even, rents that exceed R$201,003 of this amount (that is, R$288,000), will be considered a regular taxpayer of the IBS and CBS, starting to pay these taxes on the rents received, in addition to the current collection of Income Tax (IRPF). In addition, the individual who sells or transfers the rights to more than three properties in a year, or who sells a single property that was built by him in the last five years, will also become a taxpayer of the IBS and CBS on these sales, in addition to the current ITBI and Income Tax (IR) on the capital gain from the transaction. These new requirements require a review of the structures currently adopted for these activities, which may impact supply and prices in the market, both upwards and downwards, depending largely on the circumstances of each specific case. 

OFFICIAL MEDIA – Should real estate financing costs increase? 

ANDRE –The tax reform provides for a specific regime for financial services, including real estate financing. However, Complementary Law No. 214/2025 provides that the tax burden on these transactions must be maintained, without increases or reductions during the transition period, between 2027 and 2033. In other words, financial transactions will be taxed by the new IBS and CBS, but the rates will be adjusted so as to maintain the current tax burden, with no increase or reduction expected. Therefore, the expectation is that there will be no immediate impact on the cost of real estate financing offered by banking institutions due to the new taxes. However, the changes in the calculation method, coexistence with the current regime during the transition, and the adaptation of teams and systems to the new rules undoubtedly generate an additional cost for all taxpayers. Thus, like all other companies, financial institutions will have to bear these adaptation costs and will possibly pass them on to consumers, even if they do not suffer a direct increase in the tax burden. Furthermore, after 2033, it is not possible to rule out an impact on the sector's tax burden. 

OFFICIAL MEDIA – What is the impact of tax reform for those investing in purchasing real estate? 

ANDRE –As mentioned, the tax reform directly impacts real estate investors by including real estate purchase and sale transactions in the scope of IBS and CBS, including when carried out by individuals, subject to certain rules established for this purpose. In addition to existing taxes, such as ITBI and Income Tax (IR) on capital gains, individuals who sell or assign rights to more than three properties in a year or who sell a single property built by themselves in the last five years will be considered taxpayers of IBS and CBS on the revenue from this sale. This may increase the tax burden on these transactions, making investment in real estate less attractive. The calculation basis for these taxes will be the value of the transaction, discounted by up to two reductions, depending on the situation. One of them is the “adjustment reduction”, applicable to the sale of properties by taxpayers under the regular IBS and CBS regime, allowing the deduction of the acquisition cost. For properties acquired up to 12/31/2026, this reduction will be the acquisition value updated by the IPCA or the reference value of the property. For those under construction on the same date, the reducer will correspond to those purchased

Editorial | Official Media  

The recent tax reform, regulated by Complementary Law No. 214/2025, has generated heated discussions in the real estate sector, bringing significant changes that directly affect taxation on the purchase, sale and rental of properties. 

For André de Ataide Martins, lawyer and accountant, these changes to Complementary Law No. 214/2025 are essential to understanding the new tax scenario that is emerging. Among the main points of the reform, the replacement of traditional taxes, such as PIS and COFINS, by the new Contribution on Goods and Services (CBS) stands out. In addition, ICMS and ISS were replaced by the Tax on Goods and Services (IBS). These changes aim to simplify the tax system, but they also impose new challenges for professionals in the sector. 

Martins points out that “the new rules make individuals operating in the real estate sector mandatory taxpayers of these taxes.” This means that, in addition to companies, individuals who buy and sell real estate, as well as rent it out, will also need to adapt to this new tax reality. This inclusion may increase the tax burden on small investors and property owners, who must now familiarize themselves with tax obligations that were previously exclusive to legal entities. 

The reform also promises to impact the rental market, as the new taxation could influence rental prices. With the possibility of increased operating costs, landlords may pass these costs on to tenants, making access to housing even more challenging in an already complicated scenario. 

On the other hand, tax simplification can bring long-term benefits, such as attracting new investments to the real estate sector. The expectation is that, with a clearer and less bureaucratic system, there will be an increase in investor confidence, which can boost the construction industry and, consequently, the supply of properties. 

In short, tax reform brings with it a series of changes that require attention and adaptation from everyone involved in the real estate sector. The transition to the new tax system can be challenging, but it also opens doors to a more dynamic and efficient market. 

Necessary guidelines in this new scenario 

To help our readers stay up to date with these changes in tax reform and their impact on the real estate sector, André de Ataide Martins provides a brief analysis of the main questions he receives in his office. He holds a master's degree in international tax law from the University of Florida and a specialization in accounting and finance from Harvard. 

OFFICIAL MEDIA – What are the main changes that the tax reform will bring to the real estate market? In the sale, purchase or rental of properties? 

ANDRE –The main change is the replacement of part of the current taxes by the new IBS and CBS, which, in terms of real estate transactions, have a broader scope and include transactions that were not previously taxed by ICMS and ISS, such as the purchase and sale of real estate. The positive side is that taxation will become more uniform, with reduced rates for the sector, but changes in the calculation method and incidence of taxes may alter the pricing and profitability of these transactions, both positively and negatively, in addition to bringing complexities due to the various regimes and specific rules that have been created. One of the major changes occurs for individuals, those citizens who
own properties rented, leased or transferred for a fee, as well as those who frequently sell properties, such as those who build houses to resell them. In a simplistic way, anyone who receives rents above R$240,000 per year and owns more than three rented properties or, even, rents that exceed R$201,003 of this amount (that is, R$288,000), will be considered a regular taxpayer of the IBS and CBS, starting to pay these taxes on the rents received, in addition to the current collection of Income Tax (IRPF). In addition, the individual who sells or transfers the rights to more than three properties in a year, or who sells a single property that was built by him in the last five years, will also become a taxpayer of the IBS and CBS on these sales, in addition to the current ITBI and Income Tax (IR) on the capital gain from the transaction. These new requirements require a review of the structures currently adopted for these activities, which may impact supply and prices in the market, both upwards and downwards, depending largely on the circumstances of each specific case. 

OFFICIAL MEDIA – Should real estate financing costs increase? 

ANDRE –The tax reform provides for a specific regime for financial services, including real estate financing. However, Complementary Law No. 214/2025 provides that the tax burden on these transactions must be maintained, without increases or reductions during the transition period, between 2027 and 2033. In other words, financial transactions will be taxed by the new IBS and CBS, but the rates will be adjusted so as to maintain the current tax burden, with no increase or reduction expected. Therefore, the expectation is that there will be no immediate impact on the cost of real estate financing offered by banking institutions due to the new taxes. However, the changes in the calculation method, coexistence with the current regime during the transition, and the adaptation of teams and systems to the new rules undoubtedly generate an additional cost for all taxpayers. Thus, like all other companies, financial institutions will have to bear these adaptation costs and will possibly pass them on to consumers, even if they do not suffer a direct increase in the tax burden. Furthermore, after 2033, it is not possible to rule out an impact on the sector's tax burden. 

OFFICIAL MEDIA – What is the impact of tax reform for those investing in purchasing real estate? 

ANDRE –As mentioned, the tax reform directly impacts real estate investors by including real estate purchase and sale transactions in the scope of IBS and CBS, including when carried out by individuals, subject to certain rules established for this purpose. In addition to existing taxes, such as ITBI and Income Tax (IR) on capital gains, individuals who sell or assign rights to more than three properties in a year or who sell a single property built by themselves in the last five years will be considered taxpayers of IBS and CBS on the revenue from this sale. This may increase the tax burden on these transactions, making investment in real estate less attractive. The calculation basis for these taxes will be the value of the transaction, discounted by up to two reductions, depending on the situation. One of them is the “adjustment reduction”, applicable to the sale of properties by taxpayers under the regular IBS and CBS regime, allowing the deduction of the acquisition cost. For properties acquired up to 12/31/2026, this reduction will be the acquisition value updated by the IPCA or the reference value of the property. For those under construction on the same date, the reduction will correspond to the acquisition cost itself. For properties purchased as of January 1, 2027, the reduction will, as a rule, be the acquisition cost itself. There is also the “social reduction”, applicable exclusively to residential properties, allowing a deduction of R$100,000 on the sale of each residential property and R$1,000,000 for residential lots, and may be used only once per property. This mechanism seeks to reduce the tax burden on transactions involving housing, especially affordable housing, and the value of the reductions will be updated monthly by the IPCA, counting from the date of publication of Complementary Law No. 214/2025. The reform also provides for a reduction of R$501,000 in the IBS and CBS rates on property sales transactions. The rates have not yet been defined, but the expectation is that, added together, they will be around R$13,000 to R$141,000,000, with the aforementioned reduction. Furthermore, the reform also impacts Real Estate Investment Funds (FIIs), which are now considered CBS and IBS taxpayers after the presidential veto to their exemption. As a result, the income distributed by FIIs will now be taxed, which may affect the profitability of these investments. Congress is discussing the possibility of reversing this veto, seeking to reduce the impact of the reform on the real estate sector. 

OFFICIAL MEDIA – In general, what changes in property rentals? 

ANDRE –The tax reform changes the taxation of real estate rentals by including IBS and CBS on these transactions, especially impacting individuals who previously did not pay indirect taxes (such as ICMS, ISS and PIS/COFINS) on these transactions. As mentioned, individuals who own more than three leased properties, whose annual rental income exceeds R$$ 240 thousand, will now be subject to these collections at an estimated rate of approximately R$8%, considering the reduction of R$70% on the regular rate of these taxes, which undoubtedly represents an increase in the tax burden. In the case of properties owned by legal entities, such as in structures known as “asset holdings”, this impact ends up being less significant, given that companies already collect PIS and COFINS on rental income, with combined rates of 3.65% on gross income in presumed profit and 9.25% on real profit. The new legislation also establishes an optional transitional regime. In cases of non-residential leases, taxpayers may opt for a fixed tax of 3.65% on gross income until the end of the contract, provided that it is signed by 01/16/2025 and registered with a notary by 12/31/2025 or made available to the Federal Revenue Service and the IBS Management Committee. For residential leases, the same option will be valid until the end of the contract or until 12/31/2028, whichever occurs first, as long as the contract was formalized before 01/16/2025, which will be proven by the date stated in the recognition of signatures, or in the electronic signature, or by proof of payment of the rent until the last day of the month following the first month of the contract. 

OFFICIAL MEDIA – Will tenants be affected? Will rents increase? 

ANDRE –In the worst-case scenario, the impact on rents will be approximately 8%, which does not correspond to the reality of the entire market. There are exceptional cases in which there may even be a reduction in the tax burden, such as for companies that are currently collecting PIS and COFINS through the non-cumulative system, with rates of 9.25%. At this time, there is no way to predict the size of the impact and whether it will actually be passed on to tenants. 

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