Who pays property tax on a rental: landlord or tenant?
Short answer: By law, IPTU (Brazil’s annual municipal property tax) is the owner’s (landlord’s) obligation. But the lease can shift that responsibility to the tenant — as long as it’s stated expressly. If the contract is silent on it, IPTU remains the landlord’s obligation.
What the law says about IPTU in a lease
The Tenancy Law (Law 8.245/91, art. 22, item VIII) establishes that paying IPTU is the landlord’s obligation, unless the contract states otherwise. Shifting it to the tenant is valid and common in the Florianópolis market, but it needs to be expressly stated in the contract — naming IPTU specifically. A generic clause like “all expenses are the tenant’s responsibility” isn’t enough.
How it works in practice
- Check the expenses clause: if IPTU is listed as the tenant’s obligation, it will be charged — usually on the monthly invoice or in annual installments.
- Tenant-paid IPTU: the tax bill is issued in the owner’s name, but Regente passes the amount to the tenant on the invoice per the contract terms. It can be paid in full (January) or in installments.
- Landlord-paid IPTU: the owner pays the city directly — it won’t appear on the tenant’s invoice.
- Note — condo fees: don’t confuse IPTU with condo (HOA) fees. Regular condo fees (monthly upkeep): the tenant’s responsibility (art. 23). Special assessments (renovations, reserve fund): the owner’s responsibility (art. 22). If a special assessment is charged incorrectly, Regente refunds it on the following invoice.
- Questions about the invoice: check with Regente’s finance department before the due date.
Practical example in Florianópolis
A tenant in Agronômica with an express clause making IPTU the tenant’s responsibility. Annual IPTU: R$ 1,200. The City of Florianópolis allows payment in up to 6 installments. Regente splits it into 6 installments of R$ 200 on the February through July invoices.
Another property in Pantanal: the contract has no such provision. The owner pays IPTU directly — it doesn’t show up on the tenant’s invoice.
Related questions
- What documents are required to rent a property?
- What is a guarantor, and what are the alternatives to renting without one?
- How does the annual rent adjustment work?
- What is the move-in/move-out inspection, and why does it matter?
Need help? Talk to a Regente agent.