ITCMD — Inheritance and Gift Tax

ITCMD is a state-level tax levied whenever an asset or right is transferred free of charge, either through the owner’s death (inheritance and bequest) or through a lifetime gift. For real estate, the tax is owed to the state where the property is located.

• Taxable event: the opening of probate (inheritance), distribution of assets, or a formal gift of property.
• Taxpayer: as a rule, the heir, legatee, or recipient of the gift (whoever receives the asset).
• Tax base: the assessed value of the asset, determined by the State Treasury; in Santa Catarina, SEF-SC uses its own valuation table or the declared value, whichever is higher.
• Rates in Santa Catarina: progressive from 1% to 7%, under State Law 19.053/2024, which repealed the previous flat 8% rate as of 09/18/2024. Reference brackets: 1% (up to R$20,000), 3% (R$20,000 to R$50,000), 5% (R$50,000 to R$150,000), and 7% (above R$150,000). Gifts between ascendants and descendants follow the same rates.
• Payment deadline: in probate, before the certificate of distribution (formal de partilha) is issued; for gifts, before the public deed is executed.
• Difference from ITBI: ITBI applies to transfers for consideration (purchase and sale); ITCMD applies to transfers free of charge (inheritance and gifts). They are separate taxes and never overlap on the same transaction.

In Florianópolis, high-end properties that are inherited or gifted can generate significant ITCMD liability, making estate planning an important tool for preserving family wealth.