When purchasing property be aware that there are additional costs in terms of taxes and fees. You have to consider those when calculating your budget but also when choosing the location of your new property.
Property transfer charge (ITBI): In order to transfer the purchased real estate and your rights to it you have to pay a transfer tax (Imposto de Transmissão de Bens Imóveis) which is usually 3% - 5% of the purchasing price.
Registration tax: To register your property in your name an annual property tax of 0,6% is to be paid.
Stamp duty: When purchasing property you will be required to pay a stamp duty on the purchase documents which vary from 2% to 4% of the declared value of the property.
Import tax: A 1% import tax is due if you transfer funds from abroad.
Real Estate Accounting tax: This tax is around 0,6% and has to be paid for the authentication of the purchase papers.
Navy Fee: Navy fees (laudemeo) are due if your real estate is located on the coast. They amount to 5% of the total land value (the value of the buildings being disregarded).
Council tax: This annual local tax is levied by the local municipalities and is aimed for the provision of services, such as rubbish collection, schools, hospitals etc. The amount of this tax depends on the size of your property but but is usually quite low.
Capital gains tax: When selling your property the capital gains tax is applied at 25% but for foreign nationals who withdraw money from their home country the rate is reduced to 15%.
Insurance: There is no title insurance in Brazil. Some foreign insurance companies provide it but there are also numerous insurance plans available in Brazil. The basic plans usually cover fire, lightning strokes and explosions. Advanced plans can additionally cover burglary (this insurance is highly recommendable), wind storms, hail etc. Minor water damages (e.g. burst pipes), on the other hand, are not insurable.