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As of 2026, the Federal Revenue will automatically identify any hidden contracts through the Brazilian Property Registration, which will cross data from notaries, banks, and municipalities, applying fines of up to 75% for landlords and 20% for tenants who omit rents.
As of 2026, the hidden contract, according to JusBrasil, will no longer be a safe practice in the rental market. The Federal Revenue will launch a national system that will allow automatic detection of informal rental contracts, crossing data from notaries, municipalities, utility companies, and banks.
The new inspection model is part of the Brazilian Property Registration (CIB), which will function as a unique property identifier, gathering information on ownership, location, and transactions in a single database. This way, undeclared rents can be identified accurately, closing the loopholes that sustained the informal rental market.
How The System Will Detect Hidden Contracts
The Brazilian Property Registration will gather data from real estate registry offices, municipalities, and notary offices, integrating information about ownership, property tax (IPTU), and occupancy.
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These records will be crossed with the Federal Revenue’s databases, which already access Income Tax declarations, bank transactions, and utility accounts.
The cross-referencing of these data will allow for the identification of clear indications of undeclared rentals.
For example, if the tenant declares the address as residence and the owner does not report rental income, the system will assume the existence of an informal contract.
From this point, the Federal Revenue may automatically initiate an inspection and impose fines.
According to the Federal Revenue, the integration between the CIB and the e-Financial, which monitors banking transactions and Pix transfers, will make tracking even more accurate.
Even recurring deposits between the same parties may be interpreted as indications of rental.
Legal Basis and Regulations Supporting the Inspection
The new control structure relies on laws and regulations that already mandate the obligation to declare rental income and payments:
Rent Law (Law No. 8,245/1991): defines the basic rules for urban rentals. Although it allows verbal contracts, the lack of formalization becomes risky in light of digital data cross-referencing.
National Tax Code (Law No. 5,172/1966): establishes the duty to declare and pay taxes on any income, including that from rent.
Decree No. 9,580/2018 (Income Tax Regulation): defines the Carnê-Leão as mandatory monthly collection for individuals receiving rents from other individuals.
Normative Instruction RFB No. 2,278/2025: expanded the scope of electronic data cross-referencing, allowing the Federal Revenue to integrate information from banks, notaries, and municipalities.
Brazilian Property Registration (CIB): expected to officially start in 2026, beginning with the capitals and gradually expanding across the country.
These regulations consolidate the legal basis that will support the new automated inspection model, drastically reducing the possibility of hidden contracts going unnoticed.
Fines and Penalties for Non-Declaration
The omission of rental amounts will bring severe penalties for both the landlord and the tenant.
For the owner:
Fine of 75% on the tax owed, which can reach 150% in case of intentional fraud.
Retroactive collection of up to five years, plus interest and correction.
Possibility of criminal proceedings for tax evasion in severe cases.
For the tenant:
Fine of 20% on the omitted amounts, plus interest.
Risk of fine mesh, if the declared address and income do not match the CIB data.
Possible classification for collusion with tax fraud, if it is proven that they knew about the omission.
The Federal Revenue may also use electronic evidence, such as repeated monthly transfers, to prove the existence of undeclared rentals.
How to Prepare for the New System
Formalizing contracts will be essential starting in 2026.
Owners and tenants should regularize their rentals before the system comes into effect, avoiding fines and automatic penalties.
For the landlord:
Formalize the rental contract in writing, with clear value and duration.
Keep proof of payment receipts and use the Carnê-Leão to collect the tax owed monthly.
Declare the income in the Annual Income Tax Declaration, in the section “Taxable Income Received from Individuals”.
For the tenant:
Request the formal contract and keep payment receipts.
Declare the amounts paid in the “Payments Made” section of the income tax, informing the landlord’s CPF.
Prefer payments via bank transfer or Pix, which generate automatic records of the transaction.
These measures ensure tax compliance and reduce the risk of penalties.
The Role of Brazilian Property Registration
The Brazilian Property Registration is the central axis of the new inspection.
It will create a unique identifier number for each property, similar to the CPF for individuals.
This will allow tracking who is the owner, who occupies the property, and what amounts are being transacted around it.
The system will be integrated with the databases of the Federal Revenue and public and private banks, allowing for automatic identification of discrepancies between declarations and actual transactions.
The goal is to gradually eliminate informality and ensure that taxes are paid fairly and transparently.
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