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Brazil Inheritance & Gift Tax 2025: How to Avoid ITCMD on Donations and Foreign Assets

  • Pontes Vieira Advogados
  • Sep 24
  • 2 min read
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For expatriates, foreign families, and investors connected to Brazil, 2025 is the right moment to organize gifts and inheritances from abroad.


Are you living in Brazil as a foreign resident? Do you plan to donate assets abroad to someone in Brazil, or are you about to receive an inheritance from outside the country?


In 2025, there is a unique tax opportunity: Brazilian residents can receive donations or inheritances from abroad without paying ITCMD (the Brazilian inheritance and gift tax).


This article explains in simple terms the recent rulings of the Brazilian Supreme Court (STF), why this year is crucial, and how to avoid double taxation on foreign assets.


What is ITCMD in Brazil?


The ITCMD (Imposto sobre Transmissão Causa Mortis e Doação) is a state-level tax charged on:


  • Donations (gifts of money, real estate, or other assets),

  • Inheritances (assets passed after death).


Normally, if a Brazilian resident receives an asset from abroad (for example, a bank account in France or a property in Portugal), ITCMD should also be paid in Brazil.


The Supreme Court Decisions: No Tax Without a Valid Law


In 2021, the STF decided in RE 851.108/DF (Theme 825) that Brazilian states cannot collect ITCMD on assets coming from abroad without a specific federal complementary law.


Later, in 2025, the STF reaffirmed this position in RE 1.553.620/SP:


  • Even though a constitutional amendment (EC 132/2023, Article 16) gave states the power to tax,

  • The Court ruled that no tax can be collected without a valid law.


👉 In practice, this means that in 2025, there is no legal basis to charge ITCMD on donations and inheritances from abroad.


Why 2025 Is a Window of Opportunity


For families and individuals with international assets, 2025 is a tax-free window:


  • No ITCMD in Brazil on donations or inheritances from foreign assets,

  • Only the country where the asset is located can apply its inheritance or gift tax,

  • This rule may change once a federal law is passed and adopted by the states.


Acting before the end of 2025 allows you to transfer assets internationally without paying ITCMD in Brazil.


The Double Taxation Risk


Unlike income taxes, Brazil has no tax treaties with other countries for inheritance or gift taxes.


This means:

  • Assets abroad are usually taxed in the country where they are located,

  • And, normally, the beneficiary in Brazil would also pay ITCMD again.

That’s a double taxation situation. But in 2025, thanks to the STF rulings, Brazilian residents will not be taxed twice if they receive assets from abroad.


Why You Should Plan Now


  • Save money: no ITCMD in Brazil during 2025,

  • Legal certainty: the Supreme Court’s decisions are clear,

  • Future-proof planning: once the State law is approved, ITCMD will return.


Conclusion: 2025 is a Key Year for Cross-Border Wealth Transfers


For expatriates, foreign families, and investors connected to Brazil, 2025 is the right moment to organize gifts and inheritances from abroad.


By acting now, you can:

  • Avoid double taxation,

  • Optimize cross-border wealth transfers,

  • Secure a more efficient estate plan for your family.


 Consult our Brazilian tax and succession lawyer to structure your donations and inheritances before the end of 2025 : Iure Pontes Vieira, email: iurevieira@pontesvieira.com.br

 
 
 

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