São Paulo Court Reaffirms the Limits of Brazilian Jurisdiction over Foreign Assets in Inheritance Matters

As Brazilian individuals continue to diversify their assets internationally, disputes involving the succession of assets located abroad have become increasingly common. Although Brazilian income tax is governed by the principle of worldwide taxation—requiring Brazilian tax residents to report all assets, including those located outside Brazil—the principle of territoriality prevails in matters of succession.

Accordingly, pursuant to Article 23, II, of the Brazilian Code of Civil Procedure, Brazilian courts have exclusive jurisdiction to conduct probate proceedings and administer the distribution of estates only with respect to assets located within Brazilian territory.

This principle was recently reaffirmed by the 7th Private Law Chamber of the São Paulo Court of Justice (TJSP). In reviewing a petition filed by certain heirs seeking the identification of assets allegedly held abroad and subsequently repatriated, the Court held that Brazilian courts lack jurisdiction to adjudicate inheritance disputes involving assets located outside Brazil, even where the purpose is to investigate the alleged concealment of assets or to promote an equalization of the estate among the heirs.