The exemption from IPTU (Brazilian property tax) in Natal/RN is a right assured by municipal law under some special conditions, which we will detail below.

If you fit into these situations, you can request to stop paying the tax to the municipality.

In the city of Natal, there are two laws that provide for the cases in which it is possible to request the exemption: Law 117/94 and Law 3.882/89, which is the Tax Code of the Municipality of Natal. The latter deals precisely with the exemption in articles 48 and 57.

Let’s learn more below. 

 

Criteria for IPTU exemption in Natal/RN

According to the laws, there are some rules that allow the exemption of the IPTU in the city, these are:

  • The property must have less than 50 square meters of floor area on a lot less than 120 square meters, the owner must live on the property, and the owners or spouses must not own another property in the city.
    The property is exempt if it belongs to a mothers’ club, neighborhood association, or welfare institution, is for the use of the entity, is non-profit, and does not operate as a private business.
    Real estate ceded by the city hall.
    If the property belongs to a sports organization with a commercial value lower than R$ 23.405,04.
    If the property belongs to municipalities and other institutions maintained by the City Hall.
    Low-income people without other real estate and with real estate in specific construction conditions.
    People who adopt or take legal custody of needy children.

To better guide people, the Brazilian Bar Association, Rio Grande do Norte Section, prepared a booklet with details about the tax in the city of Natal. 

You will find details about the tax exemption on pages 10, 11, and 12, by clicking on this link.

What is the IPTU? 

The Urban Land and Building Tax, with the acronym IPTU, is a tax collected from citizens and companies that own real estate in the urban area of a city. Be they houses, apartments, buildings…

An urban area is one that has, for example, a water supply and sewage system, public lighting, an educational facility and a health center at least 3 km away, and sidewalk and a rainwater drainage system.

 

What is the IPTU for?

Since this is a municipal tax, there are rules in the Federal Constitution that guide how the tax should be used by the municipalities.

At least 25% of the tax must be earmarked for investments in health and 15% for education in the municipality.

The rest of the amount must be used to improve urban infrastructure, such as asphalt, lighting, housing projects and other social actions.

Just like the other taxes paid by taxpayers, the focus should be on improving the quality of life of citizens. 

 

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