Assessed Value (Valor Venal)
The assessed value (valor venal) is calculated by the city government based on a generic value table (approved by municipal law) that considers location, area, type, and construction standard — but not real-time market conditions. Because of this, it tends…
Explanation
The assessed value (valor venal) is calculated by the city government based on a generic value table (approved by municipal law) that considers location, area, type, and construction standard — but not real-time market conditions. Because of this, it tends to run below market value, especially in areas seeing strong appreciation.
In Florianópolis, the assessed value is used as the basis for property tax (IPTU) (rate × assessed value) and for the real estate transfer tax (ITBI) when the city uses assessed value as its tax base. In many cities, ITBI is calculated on whichever is higher between the assessed value and the declared transaction value — which encourages accurately declaring the real price.