Settlement of an Inherited Property in Brazil
First things first: Anyone who inherits real estate in Brazil must, as a general rule, go through Brazilian probate proceedings in order to transfer or sell the property.
This also applies if the decedent was a German citizen, last resided in Germany, and the estate has already been settled in Germany.
For German heirs, settling the estate of a property in Brazil involves significant legal and administrative requirements. In addition to determining heir status, ownership must be verified, Brazilian inheritance tax must be taken into account, and the necessary conditions for transferring ownership in the real estate registry must be met.
If the property is not to be inherited by the heirs but rather sold, the question also arises as to whether the entire probate process must first be completed.
Below, we explain how real estate in Brazil is settled following an inheritance, what procedural options are available, and what heirs residing in Germany should pay particular attention to.
1. Does an inherited property in Brazil have to be settled?
If a property is located in Brazil, Brazilian proceedings are generally required for its settlement under estate law.
Pursuant to Article 23(II) of the Brazilian Code of Civil Procedure (Código de Processo Civil—CPC), Brazilian authorities have exclusive jurisdiction over the administration of estates with respect to assets located in Brazil. This applies expressly even if the decedent was a foreign national or had his or her last place of residence outside Brazil.
A German certificate of inheritance is therefore not sufficient to transfer ownership of a Brazilian property to the heirs. Even if the distribution of a German estate has already taken place, it does not replace the Brazilian probate proceedings.
However, the issue of which inheritance law applies to the succession must be distinguished from the question of jurisdiction over the administration of the estate.
While the settlement of a real estate estate located in Brazil is generally the responsibility of the Brazilian authorities, foreign inheritance law may be applicable in determining the heirs and their shares of the estate. According to Article 10 of the Brazilian Introductory Law to the Rules ofBrazilian Law (Lei de Introdução às Normas do Direito Brasileiro – LINDB), succession is generally governed by the law of the country in which the decedent was last domiciled.
If a German testator’s last place of residence was in Germany, German inheritance law may therefore apply. However, the specific provisions of Brazilian private international law—particularly those regarding the protection of certain relatives residing in Brazil—must be taken into account.
Therefore, particularly in cases involving German-Brazilian inheritances, it is important to determine at the outset which law governs the succession and how its application must be demonstrated in Brazilian probate proceedings.
2. First, the ownership structure must be clarified
Before initiating the Brazilian probate proceedings, it should be determined whether and to what extent the property in question is actually part of the estate. The entry in the Brazilian real estate registry (Registro de Imóveis) is decisive in this regard.
Every properly registered property generally has its own registry page, known as the matrícula. This document records, among other things, the registered owner, a description of the property, previous transfers of ownership, and existing encumbrances. An up-to-date registry extract thus allows for an initial legal assessment of the property.
In practice, however, it is often the case that the actual ownership structure differs from the information provided by the parties involved.
This is the case, for example, when the decedent purchased the property but never had the purchase properly recorded in the real estate registry. It also happens that a property has been passed down through several generations without the respective probate proceedings having been finalized. In such cases, it may be necessary to retroactively register previous transfers of ownership or to first resolve other legal issues.
Special attention should also be given to real estate acquired during a marriage. Depending on the applicable matrimonial property regime, the surviving spouse may already be entitled to a separate share of the property (known as “meação”). This share is then not included in the estate.
The distinction between a share under matrimonial property law and an inheritance under estate law is particularly important in German-Brazilian marriages because the German matrimonial property regime of “community of accrued gains” cannot automatically be equated with Brazilian matrimonial property regimes.
3. The Brazilian Probate Process: Inventário
In Brazil, the actual settlement of an estate takes place as part of a process known as an “Inventário.”
This process is intended to take inventory of the estate, identify the heirs, account for existing liabilities, and legally carry out the distribution of the estate.
There are two main procedural options.
3.1 Notarial Probate Proceedings – Inventário extrajudicial
If the parties involved agree on the order of succession and the distribution of the estate, and if the legal requirements are met, the estate can be settled by means of a notarial deed.
The so-called “Inventário extrajudicial” is conducted at a Brazilian notary’s office (Tabelionato de Notas).
The parties involved must be represented or accompanied by an attorney. If all necessary documents are available and the tax issues have been resolved, the notarial process can offer significant time savings compared to a court-administered probate proceeding.
The requirements have been expanded in recent years. Since Resolution No. 571/2024 of the Brazilian National Council of Justice (Conselho Nacional de Justiça – CNJ), a notarial “inventário” may also be conducted under certain conditions even when the parties involved are minors or legally incapacitated, or when a will exists.
However, additional requirements apply in such cases, such as the involvement of the public prosecutor’s office (Ministério Público) or a prior judicial review of the will.
The specific admissibility of the notarial procedure must therefore be examined on a case-by-case basis.
3.2 Judicial Probate Proceedings – Inventário judicial
A judicial inventory is required, in particular, when there are disputes among the heirs or when the requirements for a notarial settlement are not met.
The case is being heard before the competent Brazilian court.
As part of the proceedings, an estate administrator (inventory taker) is regularly appointed. This person acts on behalf of the estate and is required to provide the necessary information regarding the estate’s assets, the parties involved, and existing liabilities.
The judicial administration of an estate can take considerably longer than a notarial procedure. The duration depends, in particular, on the complexity of the estate, the cooperation of the heirs, and any disputes regarding the order of succession or the distribution of assets.
However, even in the case of a judicial inventory, it is not absolutely necessary to resolve all issues through litigation. An amicable settlement of the estate can significantly simplify the proceedings.
4. What documents are required to complete the transaction?
The documents required depend, in particular, on whether the decedent and the heirs lived in Germany or Brazil and whether probate proceedings have already been conducted in Germany.
In cases of German-Brazilian inheritance, the following documents are typically required:
Death certificate of the decedent;
Birth certificates and, if applicable, marriage certificates of the heirs;
Documentation regarding the decedent's marital status and matrimonial property regime;
existing wills or inheritance agreements;
if applicable, a German certificate of inheritance or another court order regarding succession;
current extract from the Brazilian real estate registry (Matrícula);
Documents related to the purchase of the property;
Brazilian tax and registration documents for the property;
Identification and tax information for the parties involved, particularly the Brazilian tax identification number (CPF).
When using German documents in Brazil (and vice versa), an apostille is required under the Hague Apostille Convention.
In addition, translations by appropriately certified translators are generally required for Brazilian proceedings. Depending on the document and its intended use, there may also be additional registration requirements.
Another practical problem often arises from the fact that German heirs do not initially have a Brazilian tax identification number (CPF). However, the CPF is required for nearly all notarial, tax, and registry-related procedures. The necessary registrations and the collection of documents should therefore be initiated as early as possible.
However, it is important to note that German heirs generally do not need to travel to Brazil in person to settle the estate of a property. In many cases, the necessary declarations can be made by duly authorized representatives. The power of attorney must, however, meet Brazilian formal requirements and sufficiently specify the legal acts to be performed.
5. How is the property transferred to the heirs?
The determination of the heirs and their shares of the estate does not mark the complete conclusion of the estate settlement process.
In order for the heirs to be able to dispose of the property—for example, by selling it—the settlement of the estate must also be recorded in the Brazilian real estate registry.
In the case of a notarial inventory, the notarial estate deed (Escritura Pública de Inventário e Partilha) serves as the basis for registration under estate law.
In court proceedings, this is typically carried out on the basis of a corresponding court-issued partition document (Formal de Partilha) or another appropriate court order.
The documents are submitted to the appropriate Registro de Imóveis so that the ownership information in the registry can be updated.
It should be noted that succession under inheritance law and registration in the property registry are legally distinct processes. Under Brazilian law, ownership of the estate generally passes to the heirs upon the testator’s death. However, for the purposes of providing proof of ownership and exercising practical control over the property, the proper completion of the Inventário and the corresponding registration in the property registry are typically of crucial importance.
Only once the property’s title has been cleared can it generally be resold without encountering any legal obstacles arising from the inheritance.
6. Can an inherited property in Brazil be sold immediately?
Many heirs do not wish to keep a property in Brazil permanently, but rather to sell it as soon as possible.
This applies in particular to communities of heirs whose members live in Germany and do not intend to use the property themselves or to rent it out on a long-term basis.
This raises the question of whether the entire inventory must first be finalized and the property transferred to the heirs.
Under certain conditions, a sale may take place even while probate proceedings are still ongoing.
6.1 Sale Following the Completion of the Inventory
From a legal standpoint, the simplest approach is usually to first complete the probate proceedings, transfer ownership of the property to the heirs, and then proceed with the sale.
If there are multiple heirs, they must generally dispose of the property jointly, unless the estate has already been settled in some other manner.
In Brazil, the purchase agreement is routinely notarized for real estate transactions of this nature. The transfer of ownership must then be recorded in the appropriate real estate registry.
For buyers, this approach offers the advantage that the heirs are already listed as owners, and ownership can be verified as part of the standard legal due diligence process.
6.2 Sales During the Ongoing Inventory
Under certain circumstances, a property in an estate may be sold even before the estate is settled.
In legal proceedings, court approval is a particular option to consider in this regard. Among other factors, the court will take into account the interests of the heirs, any estate liabilities, and the intended use of the proceeds from the sale.
Corresponding options are now also available in the notarial inventory. Under the provisions introduced by Resolution No. 571/2024, the estate administrator (Inventariante) may, under certain conditions, be authorized by notarial deed to sell estate assets without the need for separate court approval.
However, this requires compliance with various legal requirements. In particular, the terms of the sale and the use of the proceeds must meet the relevant requirements. Such an arrangement can make economic sense, especially when the heirs agree on the sale.
Under certain circumstances, this makes it possible to sell the property while the estate is still being settled and to use a portion of the proceeds to pay taxes and legal fees.
In practice, however, selling the property during ongoing probate proceedings is often problematic if the buyer intends to finance the purchase.
Whether such a sale is permissible and appropriate in a specific case must be determined on a case-by-case basis.
6.3 Sale of Inheritance Rights Instead of the Property
A distinction must be made between the direct sale of the property and the transfer of inheritance rights.
Under certain conditions, Brazilian law permits the notarized assignment of inheritance rights (Cessão de Direitos Hereditários).
However, in this process, the buyer does not automatically acquire ownership of a specific property in the estate, but rather the corresponding rights under inheritance law.
Such an arrangement differs significantly from a regular real estate purchase, both legally and economically. It should therefore be carefully reviewed, particularly with regard to the other heirs, the subsequent distribution of the estate, and potential risks associated with the acquisition.
7. What taxes apply to an inherited property in Brazil?
The taxation of real estate in an estate is an essential part of the Brazilian estate settlement process.
A distinction must be made between the taxation of an inheritance and a possible subsequent sale.
7.1 Brazilian Inheritance Tax – ITCMD
In Brazil, the acquisition of real estate through inheritance is generally subject to the inheritance tax, the Imposto sobre Transmissão Causa Mortis e Doação (ITCMD).
The tax is levied by the Brazilian states. For a property located in Brazil, the state in which the property is situated is generally responsible for collecting the tax.
The specific tax rates and assessment methods therefore depend on the respective state and the applicable laws.
Brazilian inheritance tax law was further standardized by Complementary Law No. 227 of January 13, 2026. The provisions of federal law must be observed when applying the respective state law, taking into account the effective dates.
The amount of the tax is generally based on the tax-related value of the transferred assets. This value does not necessarily have to correspond to the purchase price originally paid or the market value assumed by the heirs.
Tax valuation can therefore be a significant cost factor.
In addition, delays in initiating the estate settlement process or in fulfilling tax obligations may result in surcharges and other costs.
7.2 Income Tax on a Subsequent Sale of Real Estate
If the inherited property is subsequently sold, Brazilian income tax may also be due on the capital gain (Ganho de Capital).
The key factor is generally the difference between the tax-basis acquisition or purchase value and the proceeds from the sale, taking into account any adjustments and exceptions provided for by law.
Therefore, even during the estate settlement process, the question of the value at which the real estate is transferred to the heirs for tax purposes may become relevant.
Depending on the initial circumstances, different valuation approaches can lead to different tax consequences. In particular, a valuation above the previous tax basis can already have tax implications at the estate level.
The valuation in the inventory should therefore not be conducted in isolation with the sole aim of minimizing inheritance tax. Rather, it is necessary to assess the overall tax consequences resulting from the transfer and any subsequent sale.
7.3 Taxation in Germany
If the heirs live in Germany, they may also be subject to German tax obligations.
A property in Brazil is not exempt from German inheritance tax simply because it is located abroad.
If a person is subject to unlimited German inheritance tax liability, foreign real estate assets may generally also be included in the German tax assessment.
Under the conditions set forth in § 21 of the German Inheritance Tax Act (ErbStG), the inheritance tax paid in Brazil may be credited against the German inheritance tax. The scope and conditions of this credit must be examined on a case-by-case basis.
The subsequent sale of the property may also raise income tax issues for heirs who are tax residents of Germany. In particular, the holding period, tax succession, and the rules for avoiding double taxation must be taken into account.
Therefore, particularly in the case of larger real estate portfolios, it is advisable to coordinate the tax implications in Germany and Brazil before the estate settlement is finalized.
8. Special Considerations for Heirs Residing in Germany
The settlement of an estate is often complicated by the fact that the heirs are not residents of Brazil and are unfamiliar with the local authorities, notary offices, and tax procedures.
Although in many cases it is not necessary to be present in person, there are still various practical requirements that must be met.
This involves, first and foremost, verifying the identities of the parties involved with the Brazilian authorities. In addition to the CPF, other documentation regarding residence, marital status, and tax residency may be required.
Legal representation is typically provided on the basis of a power of attorney, which must be sufficiently specific to cover the intended legal acts.
If the property is to be sold, the requirements for sales by persons residing abroad must also be taken into account.
This may include tax reporting obligations, the correct allocation of proceeds from the sale, and the proper processing of payments.
The transfer of the proceeds from the sale from Brazil to Germany should also be arranged well in advance.
Brazilian banks routinely require proof of the source of funds and the underlying legal transaction for large international wire transfers.
This may require, for example, probate documents, purchase agreement documents, tax receipts, and proof of the payee's eligibility.
If these issues are not resolved until after the real estate sale is finalized, the disbursement of the proceeds may be significantly delayed.
9. What difficulties might arise during the settlement process?
Not every Brazilian estate property can be immediately included in an *inventário* and subsequently transferred without further ado.
Additional legal problems often arise, particularly with older properties or in cases of inheritance that have remained unresolved for a long time.
A typical scenario involves real estate that is still registered in the name of a relative who died some time ago. For example, if the current testator’s father originally purchased the property and his estate was never settled, it must first be determined what intermediate steps are required under inheritance law.
Similar difficulties arise when the decedent had merely entered into a private purchase agreement without ever having been registered as the owner in the registry.
In addition, there may be discrepancies between the actual conditions of the property and the information contained in the registry. This may pertain in particular to the property’s area, structural changes, or the legal classification of individual parts of a building.
Such discrepancies may require a prior correction to the real estate registry or further measures to clarify the ownership structure.
Existing financial obligations must also be taken into account. These include, for example, mortgages, tax arrears, court-imposed restrictions, or outstanding obligations to a homeowners’ association.
Finally, disagreements among multiple heirs can make the settlement process considerably more difficult.
While some heirs may wish to keep the property, others may prefer to sell it. In such cases, it must be determined whether the estate can be settled amicably or whether a court ruling will be necessary.
An early review of the ownership structure and the interests of the parties involved can prevent such difficulties from coming to light only during the ongoing probate proceedings.
10. How long does it take to settle an estate property in Brazil?
The duration of the probate process depends largely on whether a notarial or judicial inventory can be conducted.
Under favorable circumstances, a consensual notarial procedure can be completed within a few months, provided that all necessary documents are available and tax issues have been resolved.
If, on the other hand, documents need to be obtained from abroad, questions regarding the applicable inheritance law need to be clarified, or ownership relationships need to be corrected, the preparation alone can take significantly more time.
Court-supervised probate proceedings can take considerably longer, especially if the heirs dispute the distribution of the estate or if other legal issues must be resolved in court.
It is therefore not possible to make a general statement about the duration of the proceedings.
For heirs residing in Germany, it is therefore advisable to take the necessary steps early on, even if it is not yet clear whether the property should be kept or sold. Early, well-structured guidance can save a great deal of time and money in this situation.
11. Legal Assistance in the Settlement of an Estate Property
Settling a Brazilian estate involving real estate requires coordinating various issues related to inheritance law, real estate law, and tax law.
Special requirements arise when the decedent or individual heirs are residents of Germany and both German and Brazilian law must be taken into account.
Our law firm specializes in German-Brazilian inheritance cases and assists clients with the legal settlement of estates in Brazil.
This includes, in particular, reviewing the succession and ownership structure, preparing and conducting the Brazilian “inventário” in collaboration with Brazilian attorneys, and providing legal support for any subsequent real estate transfer or sale.
In doing so, we also take into account the cross-border considerations that may arise under German inheritance and tax law.
If you have inherited real estate in Brazil, you can discuss your initial legal situation and the next steps with us during a free initial consultation.
