Brazilian families accelerate property donations ahead of tax reform

In the Brazilian state of Maranhão, the number of public deeds for property donation recorded a historic high of 570 in 2025, a 59% rise since 2020. Families are transferring real estate to children and heirs to lock in the current ITCMD rates before the tax reform, which could raise the progressive rate to as much as 8% from 2027.

Similarly, Tocantins saw 459 donation deeds in 2025, more than double the 220 recorded in 2020, reflecting a 108% increase. The upcoming reform will shift the calculation of the inheritance and donation tax to market values and introduce higher progressive brackets, prompting a surge in succession planning.

Both states report that many donors are using the “donation with reservation of usufruct” instrument, allowing parents to retain use and income from the property while transferring ownership. Gustavo Dal Molin, president of the Notarial College of Brazil – Maranhão Section, noted that families are increasingly seeking succession planning to avoid higher future tax burdens.