Balneário Camboriú cuts property transfer tax to attract investment

The municipality of Balneário Camboriú in Santa Catarina plans to reduce the rate of the Real Estate Transfer Tax (ITBI) applied to property transfers that are integrated into a company's capital from 2% to 1%. The change, proposed by the city executive, also extends the registration deadline for such transfers from 90 to 120 days. Officials calculate that the lower rate will forego roughly R$2.35 million annually, about half of the R$4.7 million the city collected from this tax in 2025 across 360 processes.

The city expects the reduction to stimulate more property integrations, especially by holdings, developers and leasing companies that are not covered by the constitutional exemption for standard incorporations. Municipal finance secretary Magda Bez said the aim is to increase overall registrations and ultimately boost municipal revenue despite the lower rate, while also providing greater legal certainty for taxpayers.