IPTU is the acronym for Property Tax and Urban Territorial. Everyone who owns real estate in the city needs to shoulder a series of obligations, and this is one more.
Maintaining a property has its costs. Many people end up not considering this at the time of the acquisition, and are in a complicated financial situation when they need to account for the obligations that involve this acquisition.
Therefore, it is important to understand what the IPTU is, how it is calculated and all other issues that involve this annual obligation of property owners.
What is IPTU
The IPTU is a fee charged every year to property owners. It is set on fire by the city hall, which has an obligation to inform the value of the persons who must pay the fee.
Fortunately the amount can be paid in cash or in installments. This will depend on the choice of the owner, that is, the owner of the property. It is important to note that each property has its value charged individually.
Therefore, whoever owns several properties must bear the IPTU of each one, which is calculated considering a series of factors regarding the property.
The amount is charged for both commercial and residential properties. Those who work with leasing, in some cases, end up passing the amount on to their tenants – but this must be agreed in advance.
The amount collected with this fee is destined to the city hall. Therefore, it should be reverted to improvements for the city or municipality. Some common applications of this money are for:
- Improvement of infrastructure and paving of streets;
- Construction of sewage and sanitation systems;
- Maintenance and expansion of the public lighting network;
- Investments in health, education, among other areas.
That is why it is very important to keep IPTU up to date. The payment must be planned and must be included in the obligations of the property owners.
How IPTU is calculated
The criteria for calculating the IPTU value may vary according to a number of factors. Each city hall can determine its own bases, so the value is not the same for all Brazilians.
What is important to know is that the calculation is made from the property’s market value, which has nothing to do with the property’s market value on the market.
What is the venal value?
The venal value is determined by the city hall considering several factors. It is not necessarily the same as the one set up by a broker to sell the property.
The city hall, as previously mentioned, can determine its own parameters for evaluation. Therefore, the venal value can vary a lot, which directly impacts the price of IPTU that will be charged to the owner.
Yes, the base price of the property on the market is one of the indicators. But, in addition, other issues will be taken into account, such as:
- Function of the building area;
- Property features;
- Purpose (residential or not);
- Square meter value of real estate in the street, among other indexes.
Precisely because of these indices, there can be quite exponential variations in relation to the value of a property compared to another of the same size.
How the exemption works
There are some situations in which the property is considered exempt from IPTU. In this case, the owner is released from the obligation to pay the fee.
It is important to know the criteria to know if this is your case, and if your property can be exempt from the collection of the Property and Urban Territorial Tax. See what are the criteria for exemption.
- Permanent Environmental Preservation Properties;
- Historic Preservation Properties
- Property of ex-combatant member of the Brazilian Expeditionary Force
In addition, seniors can have a rebate of up to 75% of the value invested in their properties. However, this only applies to those who own only one property, and who use it as their own home.
Therefore, properties used as rental income are excluded. It is also important to understand that only people over 60 years of age or retired due to disability are eligible for this discount.
Another factor to be considered is the monthly income of this elderly person, which should not exceed 5 minimum wages – in the total sum of the household income. Therefore, the salaries of children, grandchildren, spouses or other relatives residing in the same household will be considered.
How to pay IPTU
The IPTU is charged from a ticket that is sent to the residence. The traditional method of payment is by attending a bank branch. But, there are other possibilities.
You can make the payment using the eu bank application on your cell phone. There are two ways to pay – and this can vary from institution to institution:
- Typing the billing barcode;
- Informing the property registration number.
Analyze how your bank usually makes this charge. In both situations the payment of IPTU is very simple, fast and secure. So it must be done on the correct date so as not to pose risks to your property.