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With Binding Decision on Topic 1.113, the STJ Opens the Way to Refund Thousands of Reais to Those Who Bought Property in the Last 5 Years: Thesis Redefines ITBI, Invalidates Arbitrary Values, and Exposes Abusive Practices Spread Throughout the Brazilian Real Estate Market
The decision of the Superior Court of Justice on Topic 1.113 has become, since 2022, one of the most important theses for property buyers in Brazil. The First Section of the STJ, when judging Special Appeal 1.937.821 under the repetitive proceedings, established binding understanding for all courts: the calculation base for ITBI — Tax on the Transmission of Real Estate must be the actual transaction value, reflecting normal market conditions, and not values arbitrarily set by municipalities.
In practice, this decision opens a direct precedent for the restitution of overpaid taxes, especially for those who purchased property in the last five years and were required to pay ITBI based on tables of “reference value” unilaterally created by municipalities. Sources such as the STJ itself, Migalhas, CNM, and specialized legal portals confirm the scope and effects of this thesis.
STJ Redefines the ITBI Calculation Base and Limits the Power of Municipalities
For decades, municipalities in large cities have started adopting their own tables to calculate ITBI, using a “reference taxable value” often significantly higher than the actual purchase price. In practice, the taxpayer was forced to pay tax on a fictitious price.
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The STJ, however, was categorical in establishing three points that now have national effect:
- The calculation base for ITBI is the value of the property under normal market conditions, that is, the actual transaction price.
- The buyer’s declaration is presumed to be truthful, and can only be contested through formal administrative proceedings.
- The municipality cannot preemptively impose a reference value as an automatic floor, as this violates the National Tax Code.
This set of theses profoundly alters the tax landscape of the real estate market, restricting abusive practices and restoring to the taxpayer the right to pay the tax according to the reality of the negotiation.
Why Topic 1.113 Can Refund Money to Those Who Bought Property in the Last Five Years
The Brazilian tax legislation provides for a period of up to five years to request the restitution of taxes paid unduly or in excess. Thus, when the buyer paid ITBI based on inflated values set by municipalities — often 10%, 20%, or even 40% above the purchase price, they can request a refund of the difference.
In practice, this means that:
- Those who purchased property between 2020 and 2025 may be entitled to a refund.
- The decision does not distinguish the type of property: apartments, houses, lots, and commercial properties are included.
- The recoverable amount can reach thousands of reais, depending on the difference between the real value and the municipal reference value.
Articles from Migalhas, JusBrasil, and official documents from CNM reinforce that the repetitive thesis generates a direct impact on refund requests and ongoing legal actions.
Real Estate Market and Economic Impact: What the Decision Changes in Practice
Topic 1.113 is not just an individual victory for buyers. It has systemic impact on:
Municipal Revenue
Municipalities that used their own tables may lose revenue from collections above the legal base. The trend is that municipalities will adjust their calculation methodologies to avoid mass judicial defeat.
Legal Certainty in Transactions
The STJ’s decision brings predictability to the buyer, who now has clarity on which value can be used in the tax calculation, without surprises when arriving at the notary or the treasury department.
Reduction of Future Litigation
With the thesis established, the trend is that new cases will no longer need to go to the judiciary, as the rule is established and binding.
Rebalancing the Relationship Between Taxpayer and Municipality
By removing from municipalities the possibility of imposing artificial minimum values, the STJ corrects a distortion that had been accumulating over years in the Brazilian real estate market.
How to Know if You Are Entitled to a Refund of Overpaid ITBI
Although each case requires specific analysis, there are general criteria defined based on the STJ thesis and the tax regulations:
• Check the ITBI guide from the purchase period
If the base used was not the actual purchase value, there is an indication of undue collection.
• Compare with the purchase and sale deed
The deed records the actual price of the transaction, which should be the main parameter for the tax.
• Observe the method used by the municipality
If the municipality used “reference taxable value,” “minimum value,” “estimated fiscal value,” or similar terms, it is likely to have applied an illegal base.
• Confirm the five-year period
Purchases made more than five years ago typically do not allow for administrative or judicial requests for restitution, due to prescription.
Legal portals and technical articles highlight that even buyers who financed the ITBI in installments can request a refund of the part overpaid.
What Lawyers and Experts Say About Topic 1.113
Various law firms and tax specialists have been publishing analyses emphasizing that Topic 1.113 represents a turning point in municipal tax litigation. Specialists highlight three main points:
- The decision applies to all municipalities in Brazil, regardless of local legislation.
- The refund depends on proving the undue charge, but the STJ’s decision significantly strengthens the taxpayer.
- There is a tendency for an increase in actions for the repetition of undue payment, especially in markets where the difference between reference value and real value is very high, such as São Paulo, Rio de Janeiro, Belo Horizonte, and capitals in the Northeast.
Experts also emphasize that this thesis reduces the incentive to artificially inflate calculation bases, which has historically generated distortions and legal uncertainty in the Brazilian real estate market.
And Now? Why Has Topic 1.113 Become One of the Most Important Decisions for the Modern Buyer?
The STJ’s decision corrects an asymmetry that penalized those seeking to acquire property, one of the most relevant investments in the financial life of Brazilians.
By returning the power of choice to the taxpayer and demanding transparency from municipalities, Topic 1.113 strengthens little-known rights and paves the way for a possible wave of refunds.
And for those who purchased property recently, the question that remains is inevitable: Did you also pay ITBI in excess and have amounts to recover?
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