Income Tax on Rent Received BR

IRPF on rental income received in Brazil

If you receive rent as an individual (pessoa física), the IRPF progressive table (Law 7.713/88) taxes that money every month. The catch comes when your tenant is also an individual. In that case nobody withholds the tax for you, so the landlord pays it themselves through Carnê-Leão: IRPF = (aluguel − deduções) · alíquota − parcela dedutível, settled via DARF code 0190 by the last business day of the next month.

A few things can come off the gross rent, as long as the landlord actually paid them: IPTU, condominium fees, garbage collection and other municipal charges, and the commission the real-estate agency takes. Things change when the tenant is a legal entity (CNPJ). The company withholds IRPF at source, and the landlord just squares everything up in the annual return. Either way, the full year of rental income has to be reported under "Rendimentos Tributáveis Recebidos de Pessoa Física" or "...de Pessoa Jurídica".

Applications

Landlords can use it to work out the monthly Carnê-Leão DARF, see what the rent really yields once IRPF is taken out, weigh a residential lease against a commercial one, and budget for deductible costs like IPTU and condo fees. It also helps you stay clear of the 0.33%/day fine and Selic interest that pile up on Carnê-Leão paid late or skipped.

FAQ

Do I always have to pay Carnê-Leão? No. It only kicks in when the tenant is an individual (PF) and the net monthly rent goes above the IRPF exemption (R$ 2,259.20 in 2024). Rent from a company is taxed at source, so you don't file Carnê-Leão on that income at all.

What can I deduct from the rent? IPTU, the condominium fee, garbage and sewage taxes, and the brokerage commission. The condition is simple: you (the landlord) have to be the one paying them, with no reimbursement from the tenant. When the tenant pays directly, there's nothing to deduct.

And in the annual declaration? Every monthly rent shows up in the annual return, including the ones already taxed via Carnê-Leão. The program pulls that data straight from the e-CAC, and whatever IRPF you've already paid through the year gets offset against the final tax due.