What Is ITBI and Who Pays It?
In short: ITBI is the Real Estate Transfer Tax, charged by the city government at the time a property is purchased. In Florianópolis, the rate is 2% of the transaction value, and payment is the buyer’s responsibility.
What ITBI Is
ITBI (Imposto sobre Transmissão de Bens Imóveis, or Real Estate Transfer Tax) is a municipal tax charged every time a property changes ownership. It is provided for in Article 156 of the Federal Constitution and regulated by each municipality. In Florianópolis, Municipal Complementary Law No. 007/97 and its subsequent updates set the applicable rates and exemptions.
Who Pays ITBI
Payment is always the buyer’s responsibility. This obligation cannot be transferred to the seller by agreement — any clause to that effect has no legal validity. The tax must be paid before the property is registered at the Real Estate Registry Office (Cartório de Registro de Imóveis), within the standard 30-day period after the city issues the payment form.
How It Works in Practice in Florianópolis
- After signing the purchase and sale deed, the buyer requests the ITBI payment form from the Florianópolis City Hall (Prefeitura Municipal de Florianópolis, PMF).
- The tax base is the higher of the transaction’s declared value or the property’s assessed value (valor venal). Starting in 2026, the Superior Court of Justice (STJ, Theme 1113) ruled that the city cannot automatically apply its own reference value — the taxpayer declares the market value, and the PMF must open an administrative proceeding to challenge it.
- The standard rate is 2%. For properties financed through the Housing Finance System (Sistema Financeiro da Habitação, SFH), the rate drops to 0.5% on the financed amount, up to a limit of R$ 226,007.12.
- Proof of ITBI payment is required by the registry office before the transfer can be recorded.
Practical Example in Florianópolis
A property purchased for R$ 600,000 in the Trindade neighborhood, with no financing: ITBI = 2% × R$ 600,000 = R$ 12,000. If part of the value were financed through the SFH (e.g., R$ 226,007), the ITBI on that portion would be 0.5% = R$ 1,130. The remaining amount (R$ 373,993) would be taxed at 2% = R$ 7,480. Total: approximately R$ 8,610.
ITBI Exemptions in Florianópolis
Residential properties with an assessed value of up to R$ 100,000 are fully exempt. Exemptions also exist for corporate reorganizations and capital contributions — specific cases that should be reviewed with legal counsel.
Related Questions
- What documents are required to buy a property?
- What is the difference between a deed and a purchase and sale agreement?
- What is a certificate of occupancy (habite-se) and when is it required?
Need help with the calculations or purchase documentation? Talk to a Regente agent.