Property tax (IPTU) and condominium fees while you live abroad

Of all the things that can go wrong with a Brazilian property while its owner lives abroad, unpaid bills are the most common and the most avoidable. Statements go to an old address, the bank account in Brazil is closed, the relative who used to pay moves away — and a few years later there is a lawsuit.

The two main recurring costs

• IPTU — the annual municipal property tax (in the Federal District it is charged together with a garbage fee). It can usually be paid in a single installment or monthly during part of the year.
• Condominium fees — monthly, in apartment buildings and gated communities, to cover the common expenses. Extraordinary charges may be approved by the owners’ assembly.

Add utilities if the property is empty, and insurance.

Why these debts are different

Both IPTU and condominium fees are linked to the property, not only to the person. In practice:

• the debt follows the property if it is sold — buyers check for it, and it reduces the price or blocks the sale;
• the condominium can sue and, eventually, have the property auctioned to pay the debt;
• the usual protection of a family’s only home does not stop the collection of debts arising from the property itself, such as these.

Interest, fines and legal fees grow quickly. A small debt left alone becomes a serious one.

How to keep them paid from abroad

1. Update your contact details with the condominium management and the city hall, including an e-mail address you read.
2. Automatic debit from a Brazilian account in your name, when the bank and the creditor allow it.
3. A local manager or broker who pays and sends you proof every month, with a written mandate.
4. Annual planning for IPTU: many cities offer a discount for single payment.

Check, don’t assume

Every quarter, ask for a statement of debts from the condominium and check the city’s IPTU records online. If a debt appears, negotiate early — condominiums and cities often offer installment plans before the case goes to court.

Empty property: additional care

An empty property also needs:

• periodic visits to check leaks, pests and security;
• utilities kept on at a minimum (water and power) where needed for maintenance;
• insurance that covers an unoccupied property;
• a decision about the future: rent, sell or keep. See renting out your property in Brazil while living abroad.

If there is already a lawsuit

Get a copy of the case number and talk to a lawyer immediately. In many situations an agreement is still possible before the auction. Do not ignore court notifications sent to the property’s address.

Next step

If you are not sure whether there are debts on your property, start by asking the condominium and checking the city’s records. If you prefer someone local to take care of this routine, describe your property in the consultation form.