Property Holding Taxation in Brazil in 2026: Rent, ITBI and Dividends

Under the presumed profit regime, a property-holding company that rents out real estate presumes 32% of the rent as profit (Law No. 9,249/1995 (Lei 9.249/1995), art. 15, § 1, III, c) and pays IRPJ, CSLL, PIS and Cofins on revenue: 11.33% of the rent, plus a 10% IRPJ surcharge on the presumed base above BRL 20,000 per month.

This guide covers the Brazilian holding company that concentrates a family's real estate. Each tax comes with the article of law checked against the official text. Points that depend on state or municipal law are flagged as such, with no estimates. To compare with a structure abroad, read holding company or offshore: which to choose in 2026.

How is a property holding company taxed on rent under presumed profit?

The holding pays IRPJ and CSLL on a presumed base of 32% of rental revenue, and PIS and Cofins on gross revenue. Real estate leasing is on the list of activities with a 32% presumption (Law 9,249, art. 15, § 1, III, c), and CSLL uses the same percentage (art. 20).

The billing referred to by PIS and Cofins is gross revenue (Law 9,718, art. 3). A company under presumed profit stays in the cumulative Cofins regime (Law No. 10,833/2003 (Lei 10.833/2003), art. 10, II) and therefore takes no credits on expenses.

Worked example (rent of BRL 100,000 per month):

The surcharge only appears when the presumed base exceeds BRL 20,000 per month, which equals BRL 62,500 of monthly rent (32% of BRL 62,500 = BRL 20,000). Below that, the federal burden on revenue stays at 11.33%: 4.8% IRPJ, 2.88% CSLL and 3.65% PIS and Cofins. The calculation is arithmetic and holds for the example; the actual assessment must be done by your accountant, using the bookkeeping and period of your regime.

Did Complementary Law 224/2025 change presumed profit?

Yes, for companies with higher revenue. Complementary Law No. 224/2025 (Lei Complementar 224/2025) provides, for presumed-base regimes, a 10% increase in the presumption percentages (art. 4, § 4, VII). Under presumed profit, this increase only reaches the portion of total gross revenue that exceeds BRL 5,000,000 in the calendar year (art. 4, § 5). Holdings with rental revenue below that amount are not affected by this rule. Art. 14 sets the dates when the rules take effect, which vary by tax.

Do IBS and CBS apply to the holding's rent?

Real estate leasing is a taxable transaction for IBS and CBS (Complementary Law No. 214/2025 (Lei Complementar 214/2025), art. 252, III), with a 70% reduction in the rates (art. 261, sole paragraph). Whether your holding will be a taxpayer, and by when, depends on the consumption tax reform transition. Ask your accountant for that simulation before closing the long-term numbers.

Does ITBI apply when you contribute real estate to the holding?

As a rule no, but there is an exception that hits exactly the rental holding. The Constitution rules out ITBI on the transfer of assets to pay in capital, unless the acquirer's main activity is buying and selling or leasing real estate (Constitution, art. 156, § 2, I).

The National Tax Code (CTN) defines what "main activity" means:

• •Rule (art. 37, § 1): more than 50% of the company's operating revenue, in the 2 years before and the 2 years after the acquisition, comes from selling or leasing real estate.
• •New company (art. 37, § 2): if it began less than 2 years before, the count covers the first 3 years after the acquisition.
• •Consequence (art. 37, § 3): once the main activity is established, the tax becomes due on the value of the asset on the acquisition date.

In practice, a holding that only receives rent tends to fall into the exception, and ITBI may be charged after the contribution. The tax base is the assessed value (valor venal), understood as the cash sale value under normal market conditions (CTN, art. 38 and § 1, as worded by Complementary Law No. 227/2026 (Lei Complementar 227/2026)). The rate is municipal: check the law of the municipality where the property is located. The Supreme Court (STF) has a thesis on the limit of this immunity in Topic 796 of general repercussion; read it before contributing a property at a value far above the capital.

Does contributing at the declared value or at market value trigger income tax?

At the value on the asset declaration, there is no gain. At market value, the excess is taxed as a capital gain. An individual may transfer assets to the company at either value (Law 9,249, art. 23). If the declared value is used, the individual records the quotas received at the same value (art. 23, § 1). If another value is used, the excess is a capital gain (art. 23, § 2).

How does ITCMD apply to a gift of the holding's quotas?

ITCMD applies to the gift of the quotas and is owed by the donee, that is, by whoever receives them. The competence is state-level (Constitution, art. 155, I). For movable assets, securities and credits, it belongs to the State where the donor is domiciled (Constitution, art. 155, § 1, II). Complementary Law 227/2026 (Lei Complementar 227/2026) sets general rules that apply to this calculation:

• •Rate: it is progressive according to the value of the gift (Constitution, art. 155, § 1, VI), and the ceiling is 8% (Senate Resolution No. 9/1992 (Resolução do Senado 9/1992), art. 1). The effective rate is in your State's law.
• •Tax base: the market value of the transferred asset (LC 227, art. 152).
• •Quotas of a closely held company: the valuation must use a technically suitable method and correspond, at a minimum, to net equity adjusted to market value, plus goodwill (LC 227, art. 154, II). This means the holding's properties count at market value, not at book cost.
• •Successive gifts: transfers between the same donor and the same donee are added together within the period set by state law (LC 227, art. 155).
• •Taxpayer: the donee (LC 227, art. 157, II).
• •Usufruct: creating a conventional usufruct is a taxable event (art. 151, II, c), and the termination that returns full ownership to the person who created it is not taxed (art. 150, II). Confirm in your state law how a reserved usufruct is treated.

For complete succession planning, see the international succession planning framework.

Are the holding's dividends still exempt from income tax?

They remain exempt under the general rule, but since January 2026 there is a 10% withholding at source on high amounts. The exemption is in art. 10 of Law 9,249, which now refers to arts. 6-A and 16-A of Law No. 9,250 (Lei 9.250). Those articles were added by Law No. 15,270/2025 (Lei 15.270/2025).

• •Monthly withholding (Law 9,250, art. 6-A): when the same legal entity pays more than BRL 50,000 in a month to the same individual resident in Brazil, 10% is withheld on the total paid, with no deductions. With BRL 60,000 paid to a partner in the month, the withholding is BRL 6,000.
• •Old profits (art. 6-A, § 3): profits earned up to 2025 whose distribution was approved by December 31, 2025 are left out, provided they are paid under the terms of the approval act.
• •Minimum taxation (art. 16-A): from the 2027 tax year (calendar year 2026), an individual with income above BRL 600,000 in the year falls under minimum taxation. The rate is 10% from BRL 1,200,000 and rises from 0 to 10% between the two amounts. Tax withheld at source under art. 6-A is deducted from the amount assessed (art. 16-A, § 5).
• •Partner abroad: profits and dividends sent abroad are subject to a 10% withholding (Law 9,249, art. 10, § 4).

What steps should you follow before opening a property holding company?

1. •List the properties and the rental revenue of each, with the acquisition value on the declaration and the market value.
2. •Simulate presumed profit with the calculation in the first section and compare it with actual profit, if there are relevant expenses.
3. •Set the contribution value and calculate the capital gain if it is the market value.
4. •Check ITBI in the municipal law and the main-activity rule of the CTN.
5. •Plan the gift of the quotas with a market-value valuation and a check of your State's law.
6. •Set a distribution policy that considers the BRL 50,000 limit per partner per month.
7. •Formalize everything with an accountant and a lawyer before signing the articles of association.

For help structuring the holding with specialist support, see our tax planning and corporate structures services.