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Donation Attorneys in Brazil

How to Donate in Brazil - Donation Step by Step

Donation is a legal procedure intended to transfer property from one person to another. One example is when a party abroad wants to buy real estate property in Brazil for a relative or friend.

Since the party abroad cannot simply wire money into Brazil, a formal donation must be in place so the Brazilian Central bank will allow the funds to enter the country.

There has been a long discussion about the application of taxes to sums of money and assets coming from abroad to Brazil. In March of 2021, to address such doubts, the Government started the legislative procedure to make a law specifically addressing the application of taxes to such type of donation.

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Need help structuring a donation transaction from abroad to Brazil? We can help. Need help sending monies to Brazil for real estate purchases or other investments? We can help!

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Donation Tax

The tax on the transfer of assets based on death and donation in Brazil is called ITCMD. ITCMD stands for "Imposto applicable to the Transfer caused by Death or Donation. It is a Brazilian tax under the jurisdiction of the states and the Federal District, and it is levied on the non-onerous transfer of assets or rights such as in inheritance (upon death) or donations.

The triggering event of the ITD occurs when the transmission "cause mortis" or donation for any reason or for the useful domain of real estate and related rights, such as movable property, titles and credits, including rights related thereto.

Taxpayers are, in case of inheritance, the heirs or legatees. In the case of donation, it can be either the donor or the recipient.

The rate used varies according to a progressive table, which determines the rate according to the sum of the sales value of the donated or transferred goods. The calculation basis is the market value of the assets, titles, or credits transmitted or donated.  The ITCMD's function is extra fiscal and fiscal.

Contact Us Now
info@oliveiralawyers.com
+55-11-4349-1915 Brazil
+1-212-300-7174 USA
Get a Quote Today!