If you are a foreigner with assets, heirs, or investments in Brazil, it is crucial to understand how inheritance tax works under Brazilian law. Whether you own real estate, a company, or a bank account in Brazil, these assets may be subject to taxation upon your death. Planning ahead with a qualified attorney can help reduce risks, avoid unnecessary costs, and ensure a smooth transfer of wealth to your beneficiaries. What is inheritance tax in Brazil?In Brazil, inheritance tax is called ITCMD (Imposto sobre Transmissão Causa Mortis e Doação), which translates to “Tax on Transmission Cause of Death and Donations.” It is a state-level tax, meaning each Brazilian state determines its own tax rate and rules within limits set by the Federal Constitution. How much is inheritance tax in Brazil?As of today, most states in Brazil charge between 4% and 8% of the total value of the estate transferred. The exact rate will depend on the state where the deceased had residency or where the assets are located. Some states apply progressive rates depending on the value of the inheritance. For example: Does the inheritance tax apply to foreigners?Yes. Foreigners who own assets in Brazil — such as real estate, vehicles, companies, or bank accounts — are subject to ITCMD on the transfer of these assets, even if their heirs live abroad. Brazilian law applies to assets located in Brazil, regardless of the deceased’s nationality or residence. Are international heirs taxed in Brazil?Yes. If the deceased leaves Brazilian assets to foreign heirs, ITCMD will still be due in Brazil. The tax must be paid before the inheritance can be transferred to the heirs. In most cases, the estate (not the heir) is responsible for the payment, but the process may be blocked until the tax is settled. How is inheritance tax calculated?The tax is calculated based on the market value of each asset at the time of death. An official appraisal may be required, especially for real estate. The government then applies the state’s ITCMD rate to this amount. Heirs are required to pay the tax before receiving the property or financial assets. Can inheritance tax be reduced or avoided?There are legal strategies to reduce exposure, such as: These strategies must be carefully planned with the support of a lawyer and tax advisor in Brazil. Do I need to pay inheritance tax in two countries?It depends on whether Brazil has a tax treaty with the other country (e.g., the United States or a European country). Brazil does not currently have a specific inheritance tax treaty with the U.S., which means double taxation is possible — once in Brazil (ITCMD) and again in the U.S. under federal or state inheritance rules. To avoid unnecessary tax burdens, international estate planning is highly recommended. Is there a deadline to pay inheritance tax in Brazil?Yes. Each state sets a deadline, but typically the tax must be paid within 60 to 180 days from the date of death or the opening of the succession process. Interest and fines apply for late payment. In most cases, the succession (inventário) cannot be concluded without proof of ITCMD payment. How is the tax collected?The payment is usually made through the state’s online system, and the taxpayer receives a DAR (Documento de Arrecadação) to present in the succession process. A Brazilian lawyer handles the full process, including asset valuation, tax calculation, payment, and proof submission. Do digital assets or cryptocurrencies pay inheritance tax in Brazil?Yes. While not all Brazilian states have clear rules for crypto-assets, they are considered part of the estate and should be declared. Their value will be included in the ITCMD calculation. It’s important to ensure that digital assets are properly documented and accessible to heirs. Is inheritance planning necessary if I already have a will abroad?Yes. Foreign wills are not automatically valid in Brazil. To be enforced, they must go through homologation (court recognition), which is slow and expensive. The better solution is to draft a Brazilian will, specifically addressing assets located in Brazil. This helps simplify the process and ensures your heirs avoid bureaucratic and tax issues. What happens if ITCMD is not paid?The estate cannot be transferred to the heirs until the tax is paid. The property may be frozen, blocked from sale or rental, and subject to legal action. In some cases, heirs may lose rights due to missed deadlines or legal errors. What documents are required to pay ITCMD? How can WNAdvogados help?At WNAdvogados, we specialize in assisting foreigners and international families with inheritance tax planning, succession processes, and estate structuring in Brazil. Whether you want to protect your Brazilian assets or support your heirs in receiving their inheritance safely and legally, our legal team provides complete solutions in English and Portuguese. We handle tax filings, represent heirs in court, draft wills, and develop strategies to reduce your tax burden. Need expert legal help in Brazil? Contact WNAdvogados todayIf you are a foreigner with assets in Brazil or an international heir, don’t risk losing time or money with bureaucratic mistakes. WNAdvogados offers legal expertise in succession law, international inheritance, and tax planning for individuals and families across borders. Visit www.wnadvogados.adv.br or email us to schedule a confidential consultation. Learn how inheritance tax (ITCMD) works in Brazil for foreigners. Avoid legal risks and double taxation with expert planning by WNAdvogados.
Real Estate Due Diligence in Brazil: Why Foreign Buyers Should Hire a Local Lawyer
Buying property in Brazil can be an excellent investment opportunity, especially for foreigners looking to expand their portfolio or secure a second home. However, Brazilian property law and bureaucratic processes are complex and can be a legal minefield without professional guidance. If you’re an American or a foreign buyer considering purchasing real estate in Brazil, performing a thorough due diligence process with a qualified local attorney is not optional — it’s essential. What is real estate due diligence?Real estate due diligence is the legal, technical, and financial investigation of a property before purchase. The goal is to verify that the property is legally sound, free from encumbrances, compliant with local regulations, and that the seller has full and legal ownership. In Brazil, this step is especially critical, as the real estate system operates differently than in the United States or Europe. What does a Brazilian lawyer verify during due diligence?A local attorney will conduct a comprehensive review, including: Can foreign investors perform due diligence remotely?Yes. Foreigners can and often do complete real estate transactions in Brazil remotely. Your lawyer will act on your behalf, collect documents, access public registries, request certificates, and issue a legal opinion about the risks and recommendations. With a power of attorney, the lawyer may also sign documents for you, attend notary appointments, and represent you through the entire process. Why is due diligence different in Brazil compared to other countries?In Brazil, all property information is centralized in the real estate registry (Cartório de Registro de Imóveis). This registry contains the full legal history of the property, and ownership is only valid if recorded there. However, it is common for important information to be omitted or not updated, making legal review essential. For example, judicial claims, pending taxes, or environmental restrictions may not appear unless requested through additional certificates. A lawyer ensures you have access to all sources of legal risk, not just what’s visible on the surface. What are common risks if I skip due diligence?Skipping proper legal due diligence in Brazil may result in: These risks are more common than many foreign buyers realize, especially when dealing with rural land, beachfront property, or units under construction. Once you sign the deed (escritura), the consequences become your responsibility — not the seller’s. Do I need to verify zoning or land use laws before purchasing?Absolutely. Many American buyers assume that if a property looks ready to build or rent, it must be legal. In Brazil, this is not always the case. Local zoning laws may restrict commercial use, expansion, or even residency. Some areas require environmental permits or have limitations due to cultural heritage status. Your lawyer will check all relevant regulations before you commit to a purchase. How long does due diligence take in Brazil?Most due diligence processes take between 2 to 4 weeks, depending on the property type, location, and whether the seller has all required documents. The process may take longer if the property is rural, under litigation, or part of a larger development. If problems are found, your lawyer may advise holding the transaction or renegotiating the deal. Can I back out of a purchase if issues are found during due diligence?Yes. A proper purchase agreement in Brazil includes clauses that condition the closing on a clean due diligence report. If serious legal or financial risks are discovered, you may cancel the contract, renegotiate the price, or require the seller to resolve the issues before moving forward. Your lawyer will ensure these rights are protected in your contract. What kind of lawyer should I hire for due diligence in Brazil?You should hire a real estate attorney with experience representing foreign clients, ideally fluent in English and familiar with international property transactions. This lawyer should not be affiliated with the seller, developer, or real estate agent. Independent legal counsel will work solely in your interest and guide you through each step of the purchase with transparency. Is due diligence only necessary for completed properties?No. In fact, off-plan (pre-construction) purchases carry even more risk. Your lawyer should verify that the developer has registered the real estate project properly, obtained the necessary construction permits, and has a clean financial and legal background. Contracts for off-plan units are often complex and require experienced legal review to protect your investment. Are there inheritance or tax implications to consider?Yes. Brazilian property may be subject to inheritance taxes (ITCMD), income tax on capital gains, and other fiscal implications. If you are planning to pass the property on to family or use it as an investment, your lawyer can assist with estate planning, tax optimization, and succession strategies. WNAdvogados provides specialized support in this area. Can I use a will from my home country to cover the Brazilian property?You can, but it is strongly recommended to prepare a local Brazilian will for real estate located in Brazil. A foreign will must go through a complex recognition process in Brazil, which delays the succession and increases costs. Your lawyer can assist with preparing a valid, bilingual will that complies with local inheritance law. What’s the first step to begin the due diligence process?The first step is to contact a trusted real estate law firm in Brazil, explain the type of property you intend to purchase, and share any preliminary documentation you have. The lawyer will prepare a due diligence checklist, guide you on the required steps, and help negotiate the contract with your interests fully protected. Looking to Buy Real Estate in Brazil? Start with Legal ConfidenceIf you’re a foreign buyer interested in investing in Brazilian real estate, avoid legal surprises and protect your investment from the start. At WNAdvogados, we specialize in representing international clients in due diligence, property transactions, and legal compliance. Our team will guide you through every step, from title verification to closing, and ensure your rights are respected under Brazilian law. Visit www.wnadvogados.adv.br to schedule a consultation and learn how we can help you buy property in Brazil with peace of mind. Meta descriptionForeigners buying
Lawyer for Wills in Brazil: Everything Foreigners Need to Know Before Drafting a Will
By Dr. Willian Nunes – WNAdvogados | www.wnadvogados.adv.br When it comes to preparing for the future, few documents are more important than a legally valid will. For foreigners with assets or family members in Brazil, working with a lawyer specialized in wills and estate law in Brazil is critical. Brazilian succession laws are unique and often misunderstood—even by locals. Without proper legal support, your wishes might not be respected, and your family may face unnecessary legal complications. In this article, we’ll answer the most frequently asked questions about wills in Brazil, clarify how the legal system works, and explain why hiring a Brazilian lawyer is essential to protect your legacy. What Is a Will Under Brazilian Law? A will (testamento) in Brazil is a legal document in which a person determines how their assets will be distributed after their death. It is governed primarily by the Brazilian Civil Code (Código Civil Brasileiro), specifically from articles 1.857 to 1.990. Unlike many countries where testators can freely choose their beneficiaries, Brazilian law imposes forced heirship rules (herança legítima). This means that 50% of a person’s estate must be reserved for their legal heirs, such as children, spouse, or parents, regardless of the will. The remaining 50% can be freely allocated through a will to anyone the testator wishes. Can Foreigners Make a Valid Will in Brazil? Yes. Foreigners who own property in Brazil—whether real estate, bank accounts, businesses, or investments—can and should create a Brazilian will to ensure that their wishes are legally recognized within the country. Key points: Many foreigners wrongly assume that a will made abroad will automatically apply in Brazil. While it may be recognized with a long legal process and court approval, a locally drafted Brazilian will is much more efficient and cost-effective. What Types of Wills Are Accepted in Brazil? Brazil recognizes several types of wills: 1. Public Will (Testamento Público) 2. Closed Will (Testamento Cerrado) 3. Private Will (Testamento Particular) For foreigners, the public will is the safest and most enforceable option under Brazilian law. Why Is It Important to Hire a Lawyer for Wills in Brazil? 1. Expertise in Succession Laws Brazilian succession law is complex and differs from many other countries. A lawyer ensures that your will aligns with both your wishes and the legal framework. 2. Avoiding Legal Conflicts With proper legal advice, you can avoid potential disputes among heirs, claims of illegitimacy, or even the annulment of the will. 3. International Considerations If you have a foreign will or assets in multiple countries, your lawyer can coordinate estate planning internationally, minimizing tax implications and procedural delays. 4. Protection of Foreign Investors Many foreign investors who own real estate or businesses in Brazil are unaware that inheritance procedures (inventário) must follow Brazilian law. Without a local will, assets may be frozen for months or even years. What Happens If a Foreigner Dies Without a Will in Brazil? If a foreign national dies intestate (without a valid will), Brazilian succession law will apply to any assets located within Brazil. The estate will go through judicial succession, with legal heirs receiving the forced share (as determined by law). This process involves: Disadvantages of dying intestate in Brazil: Frequently Asked Questions About Wills in Brazil Can I leave all my assets to my spouse or partner? No. Brazilian law mandates that 50% of your estate must go to your legal heirs, including children, parents, or spouse, depending on the family structure. The remaining 50% can be left to your spouse or partner through a will. Is a will made abroad valid in Brazil? Possibly, but it must be legalized, translated into Portuguese by a sworn translator, and approved by a Brazilian court. This process is slow and costly. A Brazilian will is more efficient. Can same-sex partners or unmarried partners inherit? Yes. Stable unions (união estável), including same-sex partnerships, are recognized under Brazilian law. However, proving the union may require additional documentation. A will helps ensure protection. Can I disinherit my children in Brazil? Only under exceptional circumstances, such as severe misconduct (e.g., threats, violence, or dishonor), and you must explicitly justify this in the will. Even then, a court may reverse it. Are there taxes on inheritance in Brazil? Yes. The ITCMD (Imposto sobre Transmissão Causa Mortis e Doação) is a state-level inheritance tax. Rates vary by state, generally between 4% and 8%. Your lawyer will help you calculate and reduce exposure if possible. Do I need to register the will? Not all wills require registration, but a public will is automatically registered, which simplifies future legal procedures. Your lawyer can advise based on your case. How to Draft a Will in Brazil as a Foreigner: Step-by-Step