By: Vitor Ferrari and Ivan Kubala

One of the most beloved investments by Brazilians, if not the most, is real estate.. Due to its security, annual appreciation and possibility of generating income through dividends, this form of investment is extremely popular, so much so that many have some properties in their own names.

However, registering these assets in the name of an individual may result in lawsuits relating to inheritance disputes and the possible need for spousal consent when the owner is married, bureaucracy and high costs for selling or acquiring them, among other obstacles, which certainly reduce the attractiveness of these investments.

In view of this, legal ways were sought to resolve such issues. The Family Holding was then created: a company whose sole and exclusive function is to manage the real estate assets of its partners, so that many of the complications imposed on individuals do not affect the company.

All properties that would be in the name of an individual are transferred to the holding company, becoming part of its capital. Thus, the properties are included in your company, but only the shares or shares of the legal entity that belongs to you.

This maneuver speeds up the activities of managing, acquiring, selling and renting properties. In addition, it ensures greater asset security and faster inventories and lower incidence of tax on receivables.

When making an inventory of the properties in the name of the deceased person, all properties in his/her name must be inventoried and ITCMD must be paid for the amount, which is currently 4%, although there is a bill to increase this amount to 8%; In the case of the inventory of a partner of a holding company, the object to be inventoried is not directly their properties, but rather the shares or stocks of the holding company that they held. In this way, the procedure is faster and the incidence of tax is lower, as it is levied on the value of each share or stock.

Regarding taxes, the tax on rent can reach 27.5% for an individual. The same rent, if paid to a legal entity that operates with presumed profits, will have a maximum rate of 14%. It is worth noting that the tax reduction is made through tax avoidance, within strict legality, without constituting a crime of tax evasion.

Regarding the conjugal grant for the sale of real estate, present in the partial community property regime, adopted by most Brazilians, if one of the spouses wants to sell their own property, they must have the consent of the other, in order to avoid alleged dilapidation of the couple's assets. However, the partner of a holding company does not need such permission, and can dispose of his assets included in the holding company as he wishes.

Given the above, the benefits of a holding company are clear, both for asset security and for speed in managing assets. Therefore, anyone who owns real estate, whether as an investment or not, can include it in a holding company.

However, creating one is not a simple task, since it involves several areas of law, such as: Family and Succession, Corporate and Tax. Therefore, it requires a multidisciplinary team of lawyers with full technical capacity, which you will certainly find here.

With the collaboration of Luis Felipe Simão