It is important to know what happens if you do not pay the IPTU or delay the payment of this tax, which in some cases may not be charged
Summary
Property owners who do not pay the IPTU are fined and, as a last resort, could even lose their home. To pay the IPTU late, simply obtain a second copy of the tax invoice on the town hall website.
At the beginning of the year, bills arrive for some taxes, such as the Urban Property and Land Tax (IPTU). Many Brazilians manage to plan to have money in January, but this is not a rule.
Do you know what happens if you don’t pay the IPTU? If you are a tenant or property owner, it is critical to understand what happens when this tax payment is late or missed.
IPTU is charged in the first quarter of the year and is levied on urban properties in cities, such as apartments, houses, businesses and warehouses. The responsibility for collection lies with the Municipalities, which issue physical or digital slips for payment in cash or in installments.
The amount of tax is calculated on the basis of the so-called market value of the property, used by the public administration and which takes into account aspects such as location, built area and land value. The IPTU rate can increase proportionately with the value of the property, meaning higher value properties pay more tax.
Consequences of non-payment of IPTU
Just like dealing with another expense at the start of the year, such as IPVA (motor vehicle ownership tax), not paying IPTU can cause a number of problems for residential and commercial property owners.
One of the first consequences is that, as long as the tax is not paid, the relevant amounts interest, fines and monetary correction on the amount due. As a result, you will have to pay more money than if the payment was made by the due date.
Another problem is that of the IPTU of a property must be paid off before being sold or its ownership is transferred. Otherwise, the tax debt will appear on the debt settlement certificate and could hinder the completion of the sale of the property or, for example, obtaining real estate financing.
Can someone who doesn’t pay IPTU lose their property?
A big problem that can cause non-payment of IPTU is the loss of property. However, this only happens after a series of measures adopted by the Municipality, such as notifying the owner of the deadline for paying the debt.
If the owner of the property does not pay the IPTU, the Municipality can protest against the debt by formalizing with a notary that someone has not paid the tax. Furthermore, the person’s name may be registered in the registers of defaulters, which creates other complications in financial life, such as being banned from opening a bank account.
The municipality can also legally collect the IPTU amount owed, plus interest and fines. If there is no payment, the property will be registered as a municipal debt asset and, in the last caseauctioned or pledged to pay debt.
How long can I go without paying IPTU?
There is no specific time that can be indicated as the deadline for non-payment of IPTU, as interest and penalties are applied from the first day of late payment.
Furthermore, after the municipality’s communication regarding the outstanding debt, the deadline for foreclosure of the property depends on the legal procedures for collecting the expired IPTU.
How to renegotiate IPTU debt?
To pay the IPTU late, simply obtain the second copy of the tax invoice on the website of the town hall of the city where the property is located. Interest and penalty amounts will be included in the new document, which will have a new expiration date.
If the debt is significant and there is notification from the Municipality, it is necessary to contact the municipal administration to renegotiate it. In some cases there are particular installment conditions and discounts on interest and penalties for the IPTU to be paid, the so-called Recharges.
How can I be exempt from the IPTU?
Is it possible to stay? exempt from IPTU payment in some cases, as defined by each municipality. In general the property must belong to someone or companies that fall into classifications such as:
- INSS pensioners and retirees;
- Cultural entities, such as theatres, cinemas and cultural spaces;
- Sports associations;
- Organ of the Union, States, Municipalities, local authorities and Public Power Foundations.
In the city of Sao Paulo it is also possible to obtain the IPTU exemption for i
residential furniture with a market value greater than R$ 120 thousand and equal to or less than R$ 230 thousand, as well as properties used as headquarters of Friends of the Neighborhood Societies.
To learn more about other topics related to taxes, duties and personal finances, browse Terra Dinheiros to discover news and information on the economic scenario.
Source: Terra

Rose James is a Gossipify movie and series reviewer known for her in-depth analysis and unique perspective on the latest releases. With a background in film studies, she provides engaging and informative reviews, and keeps readers up to date with industry trends and emerging talents.