Income tax on a property sale: when an exemption may apply

The question “how can I avoid income tax when selling property?” needs a responsible answer. The right approach is not to bypass the rules, but to understand when the law allows an exemption, reduction or correct calculation of capital gains.

When tax may arise

If a person sells a property for more than its acquisition cost, there may be a capital gain. It may be taxable unless a legal exemption or specific rule applies. Documented renovations and the acquisition date can affect the calculation.

Situations to review carefully

• Selling a residential property and buying another residential property within the legal deadline.
• Selling a person’s only property under a specified limit and subject to the applicable waiting period.
• Older properties, documented improvements and reductions provided by law.
• Correct use of the capital-gains calculation program.

Do not rely on rumors

Tax rules require care and may depend on the circumstances. Consult an accountant and confirm the current guidance from the Brazilian Federal Revenue Service. If you are planning a future purchase, explore neighborhoods served by Planlar and plan ahead.

Cover photo: Luis Alvaz via Wikimedia Commons — CC BY-SA 4.0. Image adapted to a horizontal format.