Campinas property transfers surge as Brazil tax reform looms

Notaries in Campinas, São Paulo, recorded a record 3,074 property transfers to heirs in 2025, a 64 % increase over the past five years. The spike is linked to the pending Brazilian tax reform, which could replace the current flat 4 % inheritance and donation tax (ITCMD) with a progressive schedule reaching up to 8 % and recalculating the tax base on market values.

The prospect of higher rates has prompted families to expedite transfers under existing rules. Ana Paula Frontini, president of the Notarial College of Brazil – São Paulo Section, warned that proactive succession planning is essential amid the uncertainty. Lawyer Júlio Ballerini described the rush as a “panic” driven by fear of steeper future taxes, noting that the Federal Revenue Service’s 2025 requirement to update property registries to market values further tightens the tax base.

Revenue from ITCMD in São Paulo rose from R$ 3.5 billion in 2020 to R$ 6.39 billion in 2025, underscoring the fiscal stakes. Common strategies include outright donation with retained usufruct, allowing parents to keep residence rights while transferring legal ownership to children.