Inheriting a property in Brazil while living abroad

Many Brazilians abroad first deal with Brazilian real estate when a parent dies. Others are foreign spouses or children who suddenly find themselves heirs to a property in a country whose system they do not know. The good news: the process can be done almost entirely at a distance. The essential part is to understand the order of the steps.

Nothing changes hands without an inventory

When someone dies, their assets form an estate (espólio). The property stays registered in the deceased person’s name until the inventory (inventário) is completed and the division is registered at the Real Estate Registry Office. Until then, the heirs cannot sell the property in the normal way — a buyer cannot receive a deed from someone who is not yet the registered owner.

Notary or court

Brazil has two routes:

• Extrajudicial inventory, at a notary. Generally possible when all heirs are adults and legally capable and agree on the division, among other conditions. It is usually faster. A lawyer must take part.
• Judicial inventory, in court. Required when there is disagreement, when there are minors or incapable heirs in certain situations, or when the case does not fit the notary route. It tends to take longer.

Your lawyer will tell you which route fits. Heirs living abroad do not, by themselves, prevent the notary route.

What each heir abroad needs

• CPF. Every heir needs a regular CPF to appear in the inventory and later in the registry. Foreign heirs can obtain one through Brazilian consulates or the Federal Revenue’s services. See CPF problems when you own property in Brazil.
• Civil documents. Birth and marriage certificates proving the relationship with the deceased. Documents issued abroad generally need an apostille and a sworn translation.
• Power of attorney. Heirs who will not travel sign a public power of attorney so that someone — often the lawyer or another heir — can represent them. See power of attorney from abroad.

Inheritance tax and deadlines

Each Brazilian state charges an inheritance tax (ITCMD), with its own rates and procedures. The law also sets a deadline to open the inventory, and many states apply a fine for delay. Rules vary by state and change over time — ask the lawyer for the current rule where the property is located.

The value used for the tax, and later the “cost” for capital gains when the heirs sell, are connected. It is worth discussing both with an accountant before closing the inventory, because decisions made here affect the tax on a future sale.

Meanwhile, the property needs care

While the inventory runs, someone must look after the property:

• keep IPTU and condominium fees paid — these debts follow the property and can lead to its sale at auction;
• keep insurance, keys and maintenance under control;
• decide whether to rent it out, which requires agreement among the heirs and a representative of the estate.

See also property tax and condominium fees while you live abroad.

After the inventory

Once the division is registered, the heirs are owners. If there are several of them, they become co-owners of the same property, which brings its own decisions — see selling an inherited property shared by heirs. Some families agree to sell during the inventory itself, with authorization; this needs careful legal handling.

Next step

Start by listing the heirs, where each one lives and whether each has a CPF. With that, a lawyer can define the route and a broker can plan the property side. If you want help organizing the real estate part of an inheritance, describe your case in the consultation form.