As of 2026, the Brazilian Real Estate Registry (Cadastro Imobiliário Brasileiro – CIB) will come into operation, integrated into the National System for the Management of Territorial Information (Sistema Nacional de Gestão de Informações Territoriais – SINTER), administered by the Federal Revenue Service (Receita Federal). This initiative represents a significant step forward in transparency and fiscal oversight of income derived from the rental of both urban and rural properties.
Key Changes
- Data Integration and Automatic Cross-Checking
With the implementation of CIB/SINTER, registries, municipalities, and other public bodies will be required to feed the national database with information regarding:
- Property registrations;
- Real estate transactions (purchase, sale, donation, assignment);
- Lease agreements.
Such information will be automatically cross-checked against the income tax returns of lessors and lessees, enabling the Federal Revenue Service to promptly identify inconsistencies and omissions.
- Impacts on Lessors and Lessees
- Failure to declare rental income will be readily detected;
- Lessors who fail to properly report their income will be subject to a penalty of 75%, in addition to interest and monetary correction;
- Lessees may also be summoned to provide clarifications in cases of discrepancies.
- More Efficient and Anticipatory Oversight
Although full integration is scheduled for 2026, the tax authority has already been making use of digital data to monitor real estate income. The expectation is that scrutiny over rental income will intensify as early as 2025.
- Possible Withholding at Source (Split Payment)
Authorities are also considering the adoption of a split payment mechanism for rental income, involving automatic withholding of the tax at the time of payment. Such a measure would require specific regulation and could materially affect lessors’ cash flow.
Recommendations
- Lessors should ensure that all lease agreements are duly registered and that rental income is properly reported in the Carnê-Leão or in the Individual Income Tax Return (DIRPF);
- Lessees should demand receipts and maintain updated proof of payment;
- Accounting firms and property management companies must adjust their internal processes and provide proper guidance to clients on the new obligations.
The new federal systems will bring full transparency to rental payments and receipts. Concealing income will become virtually impossible — and those who attempt to do so will be exposed to penalties, interest, and potential legal proceedings. Importantly, these measures will begin to take effect even before full implementation of the ongoing Tax Reform.