Rent Late Fees in Brazil: Maximum Caps & Interest

Late fees in Brazil are primarily governed by the Tenancy Law (Law No. 8.245), published on 18 October 1991 and effective since 17 December 1991. When rent is late, a penalty can be applied, but there are statutory limits and judicial precedents. Landlords must adhere to anti-usury statutes when charging penalties for delayed rent.

The Standard Late Fee Limit (Multa Moratória)

When a tenant fails to pay the monthly rental by its due date, the landlord can apply a one-time late fee known as the multa moratória contratual. Decree 22.626/1933, Article 9, states that a penalty clause cannot exceed 10% of the debt. Therefore, a common and recommended maximum late fee to explicitly draft into any Brazilian residential lease is 10%.

Daily Interest Statutes (Juros de Mora)

In addition to the one-time penalty, a landlord begins accruing late interest (juros de mora) for every subsequent day the rent remains unpaid. Decree 22.626/1933, Article 5, allows for interest in arrears to be increased by 1%.

However, Article 406 of the Civil Code (Law No. 10.406/2002), as updated by Law No. 14.905/2024, states that when interest rates are not agreed upon, or when stipulated without a rate, or when derived from legal determination, they will be fixed according to the legal rate, which corresponds to the SELIC rate, deducted the monetary adjustment index. The methodology of calculation and application of this legal rate is defined by the National Monetary Council and disclosed by the Central Bank of Brazil. If the legal rate is negative, it will be considered 0 (zero) for interest calculation in the reference period.

Early Termination Fines (Multa Rescisória)

When a tenant decides to break a long-term lease, they face the multa rescisória (lease-breaking fine). Article 4 of Law No. 8.245 states that the tenant may return the property, paying the agreed penalty, proportionally to the period of fulfillment of the contract, or, in its absence, that which is judicially stipulated.

The law mandates that this fine must be calculated proportionally to the remaining unfulfilled time left on the contract, but does not specify a fixed amount like "3 months of rent" as a statutory limit. Any such fine must be explicitly agreed upon in the contract and applied proportionally to the remaining term.

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