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The reduction of ITBI to 1% is approved in the second round of the CLDF
With 17 votes in favor, five against and one abstention, the Legislative Chamber approved, on Tuesday evening (3), a project that reduces the value of the real estate transfer tax (ITBI). Now, in the first negotiation of a property, the percentage will be 1%, rather of the 3% previously applied. In other negotiations the percentage fell from 3% to 2%.
According to bill 1.445/2024, the measure aims to encourage “the regularization of the registration of transfers and of the civil construction market, considering that the 1% rate covers only the first transfer of a newly built property, registered at a notary’s office, while currently in force the only one is ITBI rate for the Federal District, 3%, without distinction between situations of transfer of real estate for their fixation” .
The proposal was from the Executive and aimed,at the same time,to encourage the regularization of properties by the owners and to overheat the construction market . According to governor Ibaneis Rocha (MDB), the reduction of ITBI rates was his commitment to the productive sector. “We will increase the number of new properties delivered and we will remove past contracts from the drawer” he revealed, also predicting an increase in revenue with the collection of taxes on operations already carried out, but never legalized.
The deputies Chico Vigilante, Gabriel Magno and ricardo Vale, all from the PT, Fábio Félix and Max Maciel, from the PSOL, voted against the project. Representative Dayse Amarilio abstained. Deputy Thiago Manzoni (PL), author of bill 501/2023, drawn up together with the Executive’s proposal, was not present in the chamber.
The mail the reduction of ITBI to 1% is approved in the second round of the CLDF appeared first on GPS Brasilia – DF news portal .
How will the ITBI reduction to 1% for newly built properties affect first-time homebuyers?
Interview: The Impact of ITBI Reduction on the Real Estate Market
Time.news Editor: Welcome, everyone! Today, we have the pleasure of speaking with Dr. Laura Mendes, a renowned expert in real estate taxation adn market regulations. Recently, the Legislative Chamber approved a notable reduction of the Imposto de Transmissão de Bens Imóveis (ITBI) to 1% for the first transfer of newly built properties. Dr. Mendes,can you explain the implications of this reduction?
Dr. Laura mendes: Thank you for having me! The reduction of ITBI from 3% to 1% for the initial property transfer is a monumental shift in our real estate market.This decision aims not only to make property transactions more affordable but also to stimulate the construction sector, creating an surroundings conducive to economic growth. By lowering this tax, the government hopes to promote the regularization of property transfers and increase the volume of new construction projects.
Time.news Editor: It’s interesting to note that this new rate applies specifically to the first transfer of newly constructed properties. Why is this distinction important?
Dr. Laura Mendes: This distinction is crucial because it targets first-time buyers and new real estate projects, making it easier for developers and individuals to enter the market. The lower tax burden can encourage more individuals to register new properties, thereby formalizing transactions that might have stayed off the books due to the previous tax rate. It’s a strategic measure designed to heat up the construction market and stimulate local economies.
Time.news Editor: Governor Ibaneis Rocha stated that this change was part of his commitment to the productive sector. How do you see this affecting overall revenue collection in the long term?
Dr. Laura Mendes: That’s a key point. While the initial reduction might seem like a step back in tax revenue, the government anticipates that the increased volume of transactions will lead to greater overall tax collections over time. When previously unregistered properties are legalized, the state can tap into those tax revenues. Ultimately, this could create a more robust revenue stream as more properties are bought and sold.
Time.news Editor: Some lawmakers, including Chico Vigilante and Fábio Félix, voted against this proposal. What concerns might they have had regarding this tax reduction?
Dr. laura Mendes: Thier concerns likely stem from social equity issues and potential loss of immediate revenue for essential services. Critics of tax reductions often fear that such measures will predominantly benefit wealthier developers and buyers, leaving out lower-income individuals who may not have equal opportunities in property ownership. They might also worry about the long-term financial implications for public services that rely on stable tax revenues.
Time.news editor: Given this significant policy change,what practical advice would you offer to potential homebuyers or real estate investors in the upcoming market conditions?
Dr. Laura Mendes: For homebuyers, this is an opportune moment to consider investing in newly constructed properties, especially with the reduced ITBI. Be sure to do your research, understand the different financial incentives available, and consider the long-term benefits of purchasing a property now. For real estate investors, this reduction can mean higher demand for new projects, so identifying areas that are likely to experience growth and investing strategically can yield remarkable returns.
Time.news editor: Dr. Mendes, thank you for your valuable insights today. As this tax reduction begins to take effect, it will be interesting to observe its impact on the real estate landscape and the overall economy.
Dr. Laura Mendes: Thank you! It’s critical to continue monitoring these changes and their implications as they unfold. I appreciate the opportunity to discuss these critically important issues with you!