Brazil's Tax Reform Spurs Record Surge in Property Donation Deeds

Brazil's tax reform, enacted in December 2023, has driven a sharp rise in real‑estate donation deeds. The Notarial College of Brazil (CNB) recorded 185,861 donation deeds in 2025, a 59 % increase over 2020 and the highest volume in its history. Families and businesses are accelerating transfers to avoid higher future rates under the revised Inheritance and Donation Tax (ITCMD), which will become progressive, reaching up to 8 % and will be calculated on market value rather than book value.

State rules vary: the Federal District currently applies 4‑6 % rates, while São Paulo lawmakers debate caps of either 4 % or 8 %. CNB president Eduardo Calais noted the trend will likely continue. Tax lawyer Gabriel Santana Vieira warned that early donations are not always tax‑saving, citing possible income‑tax liabilities, notary fees, loss of control over assets and potential inheritance disputes. The new Complementary Law 227/2026, effective from 2027, also limits the benefit of splitting donations and extends rules to assets abroad.