Tax Reform Spurs Property Donations in Brazil

Brazil registered 185,861 property donation deeds in 2025 — a 59% surge since 2020 — as families rush to transfer assets before new Tax Reform rules raise the ITCMD inheritance-and-gift tax. The reform will increase maximum rates to 8% and shift the tax base from book value to market value, pushing up the actual tax bill.

Why Are Brazilians Rushing to Transfer Property Now?

Brazil's Tax Reform (Constitutional Amendment 132/2023) is reshaping inheritance and gift taxation. The ITCMD — the state-level tax on inheritances and donations — will shift to progressive rates capped at 8%, and critically, the tax base will move from the assessed (book) value of a property to its market value, which is typically much higher. Families are acting fast to lock in current, lower rates.

How Much Have Donations Increased?

According to the Colégio Notarial do Brasil (CNB), 185,861 public deeds for property donations were registered in 2025 — a 59% jump compared to 116,225 recorded in 2020. CNB president Eduardo Calais stated that this volume is expected to keep growing, along with the number of notarial deeds issued.

What Are the New ITCMD Rules?

Each Brazilian state and the Federal District sets its own ITCMD rates and timelines. Under the reform:

Maximum rate rises to 8% (progressive scale based on asset value).
The Federal District currently charges 4%–6% progressively, regardless of asset value.
São Paulo has two competing bills: one capping rates at 4%, another at 8%.
The tax base switches from book value to market value — increasing the effective tax burden for most families.

Any changes must first be approved and regulated by the local legislative body, as established by Brazil's Supreme Court (STF).

What Are Families Doing to Prepare?

Specialist Joanna Oliveira Rezende Barbosa noted a clear surge in clients seeking to advance wealth succession, either through direct donations to descendants or by transferring assets into holdings familiares (family holding companies). Experts warn, however, that donations require careful planning — a rushed transfer may create legal or financial complications.

Key Facts:

185,861 property donation deeds registered in Brazil in 2025.
59% increase vs. 2020 (116,225 deeds).
ITCMD cap set at 8% under the Tax Reform.
Tax base will shift from book value to market value.
Federal District: 4%–6% progressive rate currently.
São Paulo: two competing bills (4% or 8% cap) under discussion.
STF requires local legislative approval before rate changes take effect.