Tax Reform: What changes for individuals in the rent and sale of real estate

In some cases, real estate transactions will be taxed by IBS and CBS, in addition to the current income taxation

With the Tax Reform, property owners who earn income from rent or capital gains from the sale of properties will face changes related to taxation. From 2026, according to the provisions of Complementary Law No. 214/2025, the real estate landscape will change, requiring attention and planning.

 

How are rent and real estate taxed today?

Currently, real estate rents are subject to Income Tax (IRPF), and on the sale value, in addition to capital gains, the Real Estate Transfer Tax (ITBI) is also levied.

What changes for rent and sale of real estate with the Tax Reform?
With the Tax Reform, individuals will also be subject to the payment of the Tax on Goods and Services (IBS) and the Contribution on Goods and Services (CBS) in certain cases involving the rent or sale of real estate.

 

Rent

According to the new legislation, individuals will be considered IBS and CBS taxpayers if, cumulatively:

• they rent out more than 3 distinct real estate properties; and
• they earned more than BRL 240,000 from these operations in the previous calendar year.

Furthermore, the obligation to pay and file the Individual Income Tax (IRPF) remains.

If rent income exceeds the annual amount of BRL 288,000 (20% more than the BRL 240,000 threshold), regardless of the number of properties, the individual becomes liable for IBS and CBS in the same calendar year.

It is worth mentioning that the BRL 240,000 amount stated in the legislation is updated monthly based on the Amplified Consumer Price Index (IPCA), starting from the publication date of the Complementary Law.

 

Individual taxpayer of IBS and CBS
Leasing, assignment and rent
more than 3 properties and total income exceeding BRL 240,000/year	total income exceeding BRL 288,000/year

 

Sale

Regarding the sale of real estate, what changes with the Tax Reform is that, in addition to capital gains, IBS and CBS will also be collected in the case of the transfer of:

• more than 3 properties in the previous calendar year; or
• more than 1 real estate asset built by the seller themselves in the 5 years prior to the date of the transfer.

 

Individual taxpayer of IBS and CBS
Sale or assignment of rights
more than 3 separate properties in the previous year (less than 5 years in your assets)	more than one property built by the person themselves in the last five years

 

Seasonal Rent

With the Tax Reform, rents of up to 90 days are now treated as hospitality services. Hosts on Airbnb and similar platforms should be aware of this change, as they will become taxpayers of the IBS and CBS, in addition to being subject to up to 27.5% income tax according to the progressive table.

 

When does the collection of the new taxes on property rents and sales begin?

The collection of IBS and CBS on rents begins in 2026, even though with reduced rates. From then on, a transition period starts, with gradual increases until 2033, when the new Reform rules will be fully applied.

What are the IBS and CBS rates for rent and sale of property operations?
At this point, it is important to clarify that, to mitigate the impact of the new taxation, some rate reducers have been scheduled to be applied to the IBS and CBS rates starting January 1, 2027.

 

Reducers Lease: IBS and CBS rates reduced by 70%; Sale: 50% reduction in the tax base for disposal transactions; Short-term rent: 40% reduction; For residential lease transactions, a social reducer of BRL 600 per real estate unit may be deducted from the IBS and CBS tax base, up to the limit of the tax base value. For properties acquired by 12/31/2026, the reference value for calculation will be the lower of the acquisition cost adjusted by the IPCA and the official reference value.

Assuming that the full tax rate reaches 28%, the rent rate, for example, will be 8.4% with the application of the reduction.

 

What are the key points of attention for individuals?

To determine whether an individual qualifies as a regular taxpayer of IBS and CBS in relation to property rental or sale, it is necessary to assess their situation in the previous year and in the current year. Planning will be essential to minimize potential losses and ensure compliance.

Individuals who fall under the new criteria must therefore adjust their profitability expectations, since part of their income will be allocated to the payment of IBS and CBS.

The new legislative framework also has a direct impact on family holdings — legal structures often used as tools to protect assets and organize succession planning. In light of these changes, it becomes essential to conduct a specific analysis of the effects that this new legislation may have on this type of organization.

In this context, Article 5 of the mentioned Complementary Law establishes that the free transfer of goods and services, or transfers carried out at below-market value, will be subject to IBS and CBS taxation. This represents a significant change, as such transactions were previously considered advantageous from a tax perspective, contributing to the tax efficiency of holdings.

With the new rule, this advantage may no longer exist, requiring a careful reassessment of the current structure. This is the ideal time to conduct a detailed diagnosis to understand the tax impacts and, if necessary, to restructure the family holding. The objective is to ensure that the organization continues to meet tax governance requirements, avoiding risks and ensuring compliance with the new legislation.

Given this new scenario, the need for specialized guidance becomes even more critical to assist individuals in matters related to the sale and rental of real estate. This will require handling calculations and ancillary obligations related to IBS and CBS, in addition to Income Tax.

 

Tax support for individuals

Tax consulting provides individuals with guidance on the taxes levied on their assets and investments, contributing strategically to planning and compliance with obligations.
With a team dedicated to this type of service, DPC assists taxpayers in calculating taxes and maintaining tax compliance. Count on our team: dpc@dpc.com.br.