Since LC 214/2025 was enacted, the same question appears in every meeting with property owners: “Will the tax reform hit my wallet?”
The honest answer has two parts. The first is reassuring: the vast majority of property owners in Florianópolis will not be affected in 2026, and many will never be affected. The second part requires attention: those with larger portfolios—four or more properties generating above R$ 240 thousand per year—need to understand the rules now, because 2027 arrives quickly.
1. The exact cumulative criteria: art. 251, §1º, I of LC 214/2025
Law Complementary 214/2025 establishes that an individual becomes a taxpayer of IBS and CBS on real estate rental only when meeting, at the same time, two conditions:
- Having more than 3 rental properties simultaneously
- Having annual gross rental income exceeding R$ 240,000 in the previous calendar year
These two criteria are cumulative. It is not “one or the other”—it must be both at the same time. Examples:
- 5 properties + income of R$ 200k/year: not a taxpayer (did not reach the income threshold)
- 1 property + income of R$ 300k/year: not a taxpayer (did not reach the quantity threshold)
- 4 properties + income of R$ 250k/year: is a taxpayer (met both criteria)
2. How IBS and CBS work on rental income
The 70% reduction for residential rental—effective rate of ~8.4%
Article 261 of LC 214/2025 brings an important benefit: the standard rate of IBS+CBS is reduced by 70% for residential real estate rental operations.
With a reference rate estimated at 28% in the full system (2033): 28% × (1 − 70%) = 8.4% effective rate on the rental amount.
The social reduction: R$ 600 per month per property deducted from the base
Article 260 of LC 214/2025 creates the social reduction: on residential rentals, the taxpaying property owner can deduct from the calculation base of IBS and CBS the amount of R$ 600 per property per month (updated monthly by IPCAIPCA — Índice Nacional de Preços ao Consumidor AmploPrincipal indicador oficial de inflação do Brasil, medido pelo IBGE mensalmente. Referência para reajuste de aluguéis, financiamentos e títulos do Tesouro.Ver tudo →).
Example—rental of R$ 2,500/month:
| Step | Amount |
| Rental amount (initial base) | R$ 2,500.00 |
| Social reduction (art. 260) | − R$ 600.00 |
| Calculation base | R$ 1,900.00 |
| Effective rate with 70% reduction | 8.4% |
| IBS+CBS due in the month | R$ 159.60 |
| Real burden on rental | 6.4% |
3. Phase-by-phase timeline
| Period | What happens | Practical impact |
| 2026 | Test phase: IBS at 0.1% and CBS at 0.9% | Rates informational only—no actual collection |
| 2027–2028 | CBS at rate close to reference (~8.8%) | Effective burden of CBS on residential rental: ~2.6% |
| 2029–2032 | IBS gradually increases (10% → 40% of full rate) | Gradual transition |
| 2033 | Complete system | Effective rate ~8.4% on residential rental |
4. How much you will pay: simulations by profile
Profile 1—Owner with 4 properties and R$ 280k/year rental income
| Calculation | Per property/month |
| Rental amount | R$ 5,833 |
| Social reduction (art. 260) | − R$ 600 |
| Calculation base | R$ 5,233 |
| IBS+CBS (8.4%) | R$ 439.57 |
| Total annual burden (4 properties) | ~R$ 21,100 |
| Effective burden on gross income | ~7.5% |
Profile 2—Owner with 2 properties: outside the criteria
This property owner does not meet the requirement of “more than 3 properties.” Regardless of the rental amount, he is not a taxpayer of IBS and CBS. He continues to pay carnê-leão normally.
5. What to do now—concrete actions
CIB: Florianópolis deadline has already passed
The Brazilian Real Estate Registry (CIB) is the unique national identifier for each property, created by articles 413 et seq. of LC 214/2025. The deadline for urban properties in state capitals (including Florianópolis) was 12/31/2025—already closed. In practice, the CIB is assigned automatically by notaries in any recent legal act.
Electronic Invoice (NFS-e) mandatory as of May 2026
Property owners classified as taxpayers (4+ properties and income >R$ 240k) are now required to issue an Electronic Services Invoice (NFS-e) as of May 2026.
Finding from art. 487—exclusive benefit for old contracts: contracts entered into up to January 16, 2025, may opt for the simplified rate of 3.65% on gross income (IBS+CBS combined) instead of the regular rates. Valid until the end of the contract or until 12/31/2028. Consult an accountant to evaluate if this option is advantageous in your case.
The accounting of legal structure
| Structure | IR or IRPJ | IBS+CBS | Estimated total burden (2033) |
| Individual—residential rental | up to 27.5% | ~8.4% | up to ~35.9% |
| Individual—short-term rental | up to 27.5% | ~16.8% | up to ~44% |
| Corp. Assumed Profit—residential | 10–14% | ~8.4% | ~19–22% |
The window to organize this transition is 2026: it is the last year without effective IBS and CBS collection. CBS starts to bite in earnest in 2027.
7. FAQ—frequently asked questions
Will the tax reform increase the tax on rental income?
For the majority of property owners, no. LC 214/2025 restricts the incidence of IBS and CBS to those who have more than 3 rental properties AND annual income above R$ 240 thousand—two cumulative criteria (art. 251, §1º, I). Property owners outside this profile continue to be taxed only by Income Tax.
What is the effective rate of IBS+CBS on residential rental income?
With the 70% reduction provided for in art. 261 of LC 214/2025, the estimated effective rate is approximately 8.4% on the rental amount in the full system (2033). With the social reduction of R$ 600 per property per month (art. 260), the real burden may be even lower.
What is the R$ 600 social reduction?
It is a deduction from the calculation base of IBS and CBS, provided for in art. 260 of LC 214/2025. The taxpaying property owner can subtract R$ 600 per property per month from the rental amount before applying the rate. The amount is updated monthly by IPCA.
Is it worth opening a company to pay less tax on rental income?
It depends on your profile. A corporation under Assumed Profit may have a total burden of 19% to 22% on residential rental income, compared to up to 35.9% for an individual in full system (2033). Simples Nacional is not an option—legislation explicitly prohibits its use for rental of own properties.
