What expenses can a landlord deduct from rental income tax?

In short: A landlord can deduct from gross rental income, in both carnê-leão and the annual tax return, expenses paid directly to maintain the rented property: property tax (IPTU), the regular condo fee, the agency’s management fee, and mandatory insurance. Every real deducted lowers the income tax base.

Deductions allowed by the Federal Revenue Service

1. Property tax (IPTU)

• Deductible when the landlord pays the property tax (and does not pass it on to the tenant by contract)
• Amount is prorated for the period the property was rented during the year

2. Regular condo fee

• Deductible when the landlord pays the regular fee (and does not pass it on to the tenant)
• Note: if the lease specifies the tenant pays it, the landlord cannot deduct it

3. Agency’s management / brokerage fee

• The percentage paid to Regente for management services is fully deductible
• Example: R$ 2,500 rent, 10% fee = R$ 250 deductible per month
• Keep the monthly payout statements issued by Regente as proof

4. Mandatory fire insurance

• Deductible when the landlord takes out and pays for the insurance
• Keep the policy and proof of payment

What is NOT deductible

• Renovations and improvements to the property (not rental-related expenses themselves)
• Extraordinary condo fee
• Furniture or equipment purchased for the property
• Expenses paid by the tenant (even if listed on the landlord’s invoice)

How to apply deductions in carnê-leão

1. Open Carnê-Leão Web in e-CAC
2. Enter the gross rent received in the month
3. Record each deduction separately in the “Deductions” field
4. The system automatically calculates the taxable base and tax owed

Practical calculation example

A landlord receives R$ 2,800/month from an individual tenant. They pay property tax (R$ 320/month), Regente’s 10% fee (R$ 280), and insurance of R$ 35/month.

• Gross rent: R$ 2,800
• (-) Property tax: R$ 320
• (-) Regente fee: R$ 280
• (-) Insurance: R$ 35
• Taxable base: R$ 2,165 → exempt (below R$ 2,428.80)
• Tax owed: R$ 0

Documents to keep

• Regente’s monthly payout statements (proving rent received and fees withheld)
• Paid property tax bills
• Fire insurance policy and receipts
• Condo invoices (if you pay them)

Related questions

• How do I report rental income on my tax return?
• What is carnê-leão and when does a landlord need to pay it?
• Is rental income up to R$ 5,000 exempt from income tax in 2026?
• How much does a real estate agency charge to manage my property?

Need Regente’s statements for your tax return? Request them from the team.