Historically, individuals were not treated as regular taxpayers in real estate transactions, except in exceptional circumstances recognized by case law. Complementary Law No. 214/2025 changes this scenario by establishing, in Article 251, objective criteria under which an individual becomes a regular IBS and CBS taxpayer, even without a Brazilian taxpayer registration number (CNPJ).

In property sales, an individual becomes a taxpayer starting in the following calendar year if, during the previous calendar year, they sold more than three distinct properties or sold more than one property they had personally constructed within the five years preceding the sale.

The regulations clarify that this classification may also take effect immediately within the same calendar year: an individual becomes a taxpayer upon the fourth sale of properties they acquired or the second sale of a property they personally constructed. The count is based on the number of properties, not on the number of contracts or transactions formalized.

For habitual rental activities, the criteria combine two cumulative requirements, assessed based on the previous calendar year: annual revenue exceeding BRL 240,000, adjusted according to the IPCA, and the rental or exploitation of more than three distinct properties. If, during the current year, revenue exceeds this threshold by more than 20%, meaning it surpasses BRL 288,000, the classification takes effect immediately within that same year.

A systematic interpretation of these criteria is just as important as the individual thresholds. Merely investing personal assets in a small number of properties, without combining the factors of production characteristic of an economic activity, should not, in itself, establish habitual business activity. Revenue and property-count requirements must be interpreted together to avoid classifying someone who simply invests personal wealth in a few real estate assets as a business operator.

Non-remunerated transactions or transactions carried out below market value between related parties also count toward the thresholds, based on the market value of the transaction. This prevents donations, loans for use, or transactions between family members from being used to artificially circumvent the classification rules. Similarly, a partner in a stable domestic partnership is treated as equivalent to a spouse entitled to an undivided share of marital property when calculating the five-year period for properties received through inheritance, donation, or division of jointly owned assets.

Once classified as a taxpayer, the individual becomes subject to registration requirements, the issuance of tax documents, and the calculation of IBS and CBS on their real estate transactions. However, they also gain access to the same benefits available under the specific tax regime, such as reduced tax rates and, where applicable, the social reduction and the Adjustment Reducer.

For individual investors and families whose wealth is concentrated in real estate, the message is clear: tracking the history of property sales and rentals over recent years is no longer merely a good asset-management practice. It has become a prerequisite for determining in advance whether and when they will need to operate as regular taxpayers under the new tax system.