Municipal sports incentives in Balneário Camboriú: what exists

Balneário Camboriú has a municipal tax incentive law for sports, Law nº 4,383/2020, but we could not confirm in an official source how it works or whether it is in use. What is confirmed is something else: the exemption from IPTU (municipal property tax) for public-utility organizations in the social sector (Law nº 5,195/2026) and Fundesporte, which distributes public money through calls for proposals. This is how taxpayers in Brazil do it; readers abroad do not pay tax in Brazil, but this map shows which local options really exist. This article separates what has been verified from what has not, so you do not count on a deduction that may not exist.

What has been confirmed

1. Law nº 4,383/2020 exists

The summary of Lei Ordinária nº 4.383/2020 says it “provides for tax incentives to support sports projects”. It came from Substitute Bill nº 32/2018, approved by the City Council on February 12, 2020, according to Visse. The approved text provided for:

• a tax incentive for individuals or companies resident or based in the municipality, in support of sports projects carried out in the city (art. 1);
• two areas: sports training schools and high-performance teams representing the municipality; and leisure, recreation and competition events (art. 2);
• a total incentive amount set each year by decree of the Executive (art. 3).

2. What we could not verify

We did not open the full text of the law as signed. We do not know which tax it reduces (ISS, IPTU or another), at what percentage, whether it was regulated by decree, whether there was a call for projects or whether any taxpayer has used the benefit. Until this is confirmed, treat it as unavailable. Ask the Fundação Municipal de Esportes (FME, the municipal sports foundation) and the municipal Finance Department.

3. IPTU exemption for organizations: Law nº 5,195/2026

According to City Hall, Law nº 5,195/2026, in force since January 9, 2026, exempts from IPTU properties used by public-utility organizations that work in the social sector and have a partnership with the Municipality. In return, it requires a plan to expand services and exclusive use of the property; for a property on loan or rented, the benefit lasts two years. The exemptions apply from 2027, after a call and review of the applications.

Note: the benefit goes to the organization, not to whoever donates. Nobody reduces their IPTU by supporting a sports project.

4. Fundesporte: public money through calls for proposals

The municipal option that really works is Fundesporte, run by the FME. Call 004/2026 allocated R$ 750,000 to projects in four lines: educational sport, training, events and high performance. It is not a tax incentive: it is the Municipality’s budget, passed on to selected organizations. See Fundesporte: calls for projects.

Why the municipality can only work with ISS and IPTU

Each level of government collects its own taxes, and can only grant incentives on what it collects. The Federal Constitution sets this out:

• The Federal Government collects Imposto de Renda (income tax) (art. 153, III). That is why the federal Sports Incentive Law, the FIA (Fundo da Infância e Adolescência, the Children and Adolescents Fund) and the Lei Rouanet (the federal culture incentive law) reduce income tax.
• States collect ICMS (state tax on goods and services), which covers the circulation of goods and transport and communication services (art. 155, II). That is why PIE/SC (Santa Catarina’s Sports Incentive Program) uses ICMS.
• Municipalities collect IPTU, on urban property (art. 156, I), and ISS (municipal tax on services) (art. 156, III).

So a municipal sports incentive law, like Law nº 4,383/2020, can only work with ISS and IPTU, or with money from the city’s own budget. It will never reduce your income tax. Residents of Balneário Camboriú who pay income tax use the federal options; those whose company pays ICMS use PIE/SC; the municipality comes in with ISS, IPTU or calls for proposals.

This matters in practice: a service provider who pays ISS in Balneário Camboriú has a direct interest in knowing whether Law nº 4,383/2020 is in use. A salaried employee does not: their tax is federal.

What federal law says about municipal laws

LC 222/2025 (a Lei Complementar, or complementary law), art. 24, keeps the limits of state and municipal sports incentive laws based on ICMS and ISS until those governments pass new laws, and states that these laws cease to have effect on January 1, 2033. In other words: municipal ISS incentives have an expiry date, and new laws must comply with the federal rule.

Example with round numbers: what applies today

An individual in Balneário Camboriú with R$ 10,000 of imposto devido (tax due) can allocate up to R$ 700, adding sports and funds together, under federal laws. Of that amount, R$ 600 can go to the city’s FIA or Fundo do Idoso (Elderly Fund). That is confirmed. An ISS or IPTU deduction for donating to sports is not.

Common mistakes

• Promising a sponsor an “ISS deduction” based on Law nº 4,383/2020 without checking the regulations.
• Confusing the IPTU exemption under Law nº 5,195/2026 (for the organization) with a benefit for the donor.
• Thinking Fundesporte is a tax incentive: it is a call for proposals with public money.
• Ignoring that municipal ISS laws lose effect in 2033 (LC 222, art. 24).

What about Muaythai in Balneário Camboriú?

The usual reminder: Projeto Campeões do Futuro (“Future Champions”), Mestre Paulo Ribeiro’s free project for children after school hours, and FECAMTT, the Santa Catarina Traditional Muaythai Federation, do not receive income tax or ISS or IPTU deductions from donors. Muaythai nas Escolas (“Muaythai in Schools”) is under PIE/SC, a state ICMS program: see Muaythai nas Escolas.

In Balneário Camboriú, the confirmed options are the FIA, the Fundo do Idoso and, for organizations, Fundesporte and the Bolsa Atleta athlete grant. The options are on the Support page.

How to do it today

1. If you are a company or individual and want to reduce a municipal tax: ask the FME and the Finance Department whether Law nº 4,383/2020 has been regulated and how it works. Ask for the decree.
2. If you are a public-utility organization with a property: follow the Law nº 5,195/2026 call for 2027.
3. If you are a sports organization: get ready for the next Fundesporte call.
4. If you are an individual: use the federal options, which are confirmed.

This is how taxpayers in Brazil do it. If you live abroad, you do not pay tax in Brazil, but you can still support the project. Want to know how Projeto Campeões do Futuro receives support today? Talk to the Mestre.

This content is for information only and does not replace advice from your accountant. Rules may change: always check the wording currently in force.