With the regulation of the consumption tax reform under Complementary Laws No. 214/2025 and No. 227/2026, those who buy, sell, or transfer real estate now face clearer and stricter rules regarding property taxation.

In the case of ITCMD (inheritance and donations), Complementary Law No. 227/2026 updates general rules and reinforces that the tax base must reflect the market value of the assets and rights, aligning the tax with the current actual value of the estate. The rules also cover situations involving assets or individuals abroad and shares in family-owned companies. Effective application depends on the adaptation of each state’s legislation, in compliance with the constitutional prior-year principle.

For ITBI (real estate purchase and sale), Complementary Law No. 227/2026 changes the definition of “venal value” as set out in the National Tax Code (Law No. 5,172/1966), which now corresponds to the price at which the property would be sold for cash under normal market conditions. Municipalities and the Federal District must adopt technical criteria (market prices, property characteristics, data from notaries and financial institutions), disclose the methodology used, and ensure taxpayers can challenge the assigned value.

At the same time, Complementary Law No. 214/2025, RFB Ordinance No. 561/2025, and RFB Normative Instruction No. 2,275/2025 promote the Brazilian Real Estate Registry (CIB), a unique national code for each property, integrating data from the Federal Revenue Service, state and municipal tax authorities, and notary offices. This broadens data cross-checking on property sales, rentals, inheritances, and donations, making it even more important to keep property structures organized, contracts formalized, and transactions properly declared.

These changes do not eliminate the use of real estate holding companies or other estate planning tools, but they make it essential to analyze each case under the new rules, paying close attention to the applicable state and municipal legislation.

Sources:
https://www.planalto.gov.br/ccivil_03/leis/lcp/lcp227.htm
https://www.planalto.gov.br/ccivil_03/leis/lcp/lcp214.htm
https://www.planalto.gov.br/ccivil_03/leis/l5172compilado.htm
https://www.in.gov.br/en/web/dou/-/portaria-rfb-n-561-de-24-de-julho-de-2025-645254064
https://www.in.gov.br/en/web/dou/-/instrucao-normativa-rfb-n-2.275-de-15-de-agosto-de-2025-648868175