According to the Federal Revenue Service, the CIB will not impose any new costs on property owners. However, online speculation has raised concerns about a potential increase in the overall tax burden, particularly in real estate purchase and sale transactions. 

The REsource newsroom contacted the Federal Revenue Service to clarify these points. 

“The *Cadastro Imobiliário Brasileiro* (CIB), established under the Tax Reform, is an inventory of properties fed by data from municipalities, notary offices, and other entities. Its purpose is to provide Brazil with a unified real estate registry, ensuring legal security for property owners, buyers, and sellers, and supporting operations involving real estate under the dual VAT system — which will only take effect starting in 2027,” the agency said in a statement. 

In addition, during the legislative process for both the constitutional amendment and the supplementary law regulating the new tax system, Brazil’s Congress introduced several tax relief mechanisms for the real estate sector. Rental income will benefit from a 70% tax reduction, while other real estate transactions will receive a 50% discount. 

In practice, individuals who own up to three rental properties and earn no more than BRL 240,000 per year in rental income will be exempt from paying the dual VAT. Only landlords exceeding that income threshold or holding more than three properties will be taxed. Residential leases of up to BRL 600 per month will also be fully exempt, thanks to a social deduction designed to protect lower-value contracts and low-income families.