Brazil Rental Laws: Pro-landlord, Neutral or Pro-tenant?

Brazil landlord and tenant laws are judged by the Global Property Guide to be Neutral between landlord and tenant. Brazil is not strongly tilted in favor of either side, but in practice, tenants tend to have more procedural protections, particularly around eviction and contract renewals. That said, with proper legal support and a well-drafted contract, landlords can operate effectively and securely within the legal framework.

Rent: Can landlord and tenant freely agree rents in Brazil?

Rent amounts are freely negotiable, and the parties commonly agree to annual adjustments pegged to inflation. Brazilian law, however, forbids setting rent in foreign currency or linking payments to exchange-rate movements or the minimum wage. Either landlord or tenant may petition the court for a rent review every three years, unless both explicitly waive that right in the contract.

The landlord cannot demand that the rent should be paid in advance, except in cases of temporary leases, which may not exceed 90 days.

Deposits

Private rentals offer greater flexibility, allowing tenants to negotiate terms directly with property owners. These agreements typically require a security deposit equivalent to two to three months’ rent and must be formalized with a signed contract at a notary public office (Cartório). In contrast, agency rentals provide a more structured and regulated process. They usually require proof of income and a comparable deposit. While agencies may impose stricter requirements, they are often considered a safer and more reliable option, helping ensure a smoother rental experience.

What rights do landlords and tenants have in Brazil, especially as to duration of contract, and eviction?

In Brazil, there are two main types of rental agreements: long-term leases and seasonal rentals. Long-term leases typically require a security deposit equivalent to two to three months' rent. Seasonal rentals, on the other hand, are limited to a maximum duration of 90 days. For rentals lasting less than 30 days, income is subject to a distinct tax treatment—generally taxed at around 10% of the property's fair market value. Short-term rentals are becoming increasingly popular and, notably, are governed by the same general rules established under Brazil's tenancy law, reinforcing the legal validity of both rental formats.

Tax implications are an important consideration, as rental income may be subject to Brazilian taxes. To ensure compliance with local tax laws, it’s recommended to consult a qualified tax professional who understands the Brazilian tax system.

Legal documentation must be handled with care. All rental agreements should be legally valid and written in both Portuguese and the foreigner’s native language. This dual-language approach helps prevent misunderstandings and ensures clarity for all parties involved.

Specialized legal support is also essential. Engaging a Brazilian lawyer with expertise in property and tenancy law can be invaluable. They can assist in navigating legal requirements, reviewing contracts, and protecting your rights throughout the rental process.

How effective is the Brazilian legal system?

The duration of lawsuits concerning tenant eviction varies by State. Courts in Brazil tend to be saturated, due to the volume of lawsuits.

In some cases, the eviction can be determined by an injunction, which will give 15 days for the tenant to leave, for instance, when the original tenant die,s leaving unauthorized individuals in the property.

Legislation

The legal basis for property rentals in Brazil is established by Law No. 8.245/1991, which permits property owners to rent out their residential units for up to 90 days without changing their designated residential use. This law supports the practice of seasonal rentals while protecting landlords from undue restrictions imposed by condominium rules. Additionally, the Brazilian Federal Constitution upholds the right of property owners to lease their properties without excessive limitations.

Brief history: Recent changes in Brazilian landlord and tenant law

In 1991, the present legislation consolidated in one law all matters regarding urban real property rent, including its legal procedures by the law 8.245/91, known as Lei do Inquilinato.

Previous to that, the rules were strung across the Civil Code and several other laws, like the decree-law 24.150/1934, law 6.239/1975, and law 6.698/1979.