Pedro Rezek Andery Altran
Lawyer at Marcos Martins Advogados
Real Estate Transfer Tax (ITBI) is levied whenever real estate is transferred for a consideration. Therefore, if there is a need for the transfer to take place, the tax cannot be levied until it has been registered with the registry office.
However, some municipalities have enacted laws stating that payment must take place before the instrument of transfer of real estate and rights arising from it is drawn up.
This results in the taxpayer paying the tax before it is actually due and the transfer is fully completed.
There are currently several decisions handed down by the Federal Supreme Court, ruling that ITBI cannot be demanded before registration at the real estate registry office.
If the taxpayer has to pay the tax in the municipality that demands the tax before registration, they should go to the courts to have their rights protected.
Marcos Martins Advogados makes its tax team available to answer any questions on the subject.
