Tax Reform: Deadline to register lease agreements and guarantee reduced tax rate ends on 12/31

Complementary Law No. 214/2025, in its Article 487, established a special regime applicable to lease agreements, onerous assignments, and real estate rentals.

Taxpayers may choose to tax gross rental income at a reduced rate of 3.65%, instead of the regular rate, which is estimated at 8%.

For non-residential contracts, the requirements for adopting this Transition Regime are:

• contracts that have been entered into for a fixed term and signed by January 16, 2025 (electronic signature or notarized signature); and
• contracts that are registered with the Real Estate Registry or the Registry of Deeds and Documents or are made available to the Federal Revenue Service and the IBS Management Committee by December 31, 2025.

Contracts for residential purposes may also benefit from the reduced rate, but for these, there is no deadline for registering the contract. However, the reduced rate may only be used until December 31, 2028, or until the end of the contract, whichever comes first.

Therefore, the alternative tends to be beneficial, even though this option implies waiving the use of IBS and CBS credits related to property expenses, such as maintenance, insurance, or construction work. A case-by-case assessment is recommended.

Please note: In the case of non-residential contracts, if the contract is not registered by December 31, 2025, it will not be possible to join the 3.65% regime in the future.

Specialized support

Count on DPC to assess the impacts of the Tax Reform, support the adaptation of processes, and guide your company in defining a tax strategy aligned with the new scenario. Contact DPC: dpc@dpc.com.br.