What Brazilian Law Defines as a Vacation Rental
Brazil's Tenancy Law (Law 8,245/1991, Art. 48) defines a seasonal or vacation rental as a stay of up to 90 days for leisure, studies, medical treatment, or home renovations. The owner is allowed to receive total rent upfront in a single payment (Art. 49). App-based short-term rentals fall under these general rules, combined with the specific bylaws of the building's homeowners association.
Run the numbersWhat renting pays: vacation rental and long-termCDI net of 15% tax: 11.60% a year (reference)Open the calculatorCan the HOA Ban Short-Term Rentals?
In 2021, Brazil's Superior Court of Justice ruled (REsp 1,819,075) that a residential HOA convention can prohibit short-term rentals that function like hotel services. When buying off-plan, the HOA bylaws exist as a draft prepared by the developer. Request this draft and verify:
- whether vacation rentals and app bookings are permitted;
- if there are rules regarding guest registration, quiet hours, and access to amenities;
- if the project includes dedicated infrastructure for guest management, such as a front desk or smart access control.
Costs to Include in Your Calculations
- Monthly HOA fees (condomínio) and annual property taxes (IPTU), which you pay year-round whether the unit is occupied or not.
- Furniture, linens, and appliances before listing the property.
- Electricity, internet, water, and gas during guest stays.
- Professional cleaning and laundry services between guests.
- Booking platform fees and management service fees if using a local property manager.
- Routine maintenance and replacement of items.
- Income tax on rental revenue.
How to Run the Numbers
Hypothetical example to illustrate the financial structure: an average daily rate of R$600 with 120 occupied nights per year generates R$72,000 in gross revenue. If platform and local management fees total 25% (R$18,000), cleaning costs R$9,000, HOA fees and property taxes total R$16,000, and utilities plus maintenance add R$7,000, net revenue before income tax is R$22,000. Drop occupancy to 70 nights and the net income falls to approximately R$1,000. Actual returns vary by property, neighborhood, and year.
This calculation highlights the main takeaway: occupancy drives everything, and it is never guaranteed. Look at historical performance for similar properties in the same neighborhood, model summer peak season separately from off-peak months, and always test a downside scenario.
Tax Requirements
Tax residents in Brazil report rental income on their annual return, paying monthly taxes via carnê-leão when renting to individuals. Non-residents face tax withheld at the source on Brazilian rental income; tax residents in Portugal, for instance, must also report this foreign income locally. Consumption tax reforms (Complementary Law 214/2025) introduce updated rules for property leasing with gradual implementation. Specific obligations depend on your tax residency: consult a tax advisor before purchasing.
Choosing a Property for Vacation Rentals
- Walking distance to the beach and straightforward parking options.
- Floor plans that comfortably fit families with good airflow and balcony or outdoor space.
- On-site amenities that add value during rainy days or off-peak seasons.
- HOA guidelines that explicitly permit short-term rentals with clear operating rules.
Compare locations in our guide to investing in real estate on the Santa Catarina coast and review key selection criteria in how to choose an off-plan development.
Remote Ownership and Management
Managing from abroad requires a trusted local property management company to handle guest check-ins, cleaning, and maintenance. Include these service management fees in your yield calculations from day one. Learn more in our guide on buying property in Brazil while living abroad.