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All properties are sold with freehold title, you own 100% of land and property.
Investing in property in Brazil is as safe and easy as in any modern country like the USA or Europe. There are no restrictions for foreigners buying property and ownership is solid and secure.
One of the world's most captivating places, Brazil is South America's giant, a dazzling country of pristine beaches, all year round sunshine, steamy jungles and music-filled metropolises, that never fails to attract visitors. With so many attractions, it is no surprise that Brazil is experiencing a tourism boom.
Economically, Brazil is on the up. Under the strong leadership of President Lula, it's finances have finally stabilised after years of boom and bust, interest rates have fallen and inflation is under control. Foreign direct investment reached record levels of US$ 37 billion in 2007, more than double the amount attracted to the country in 2006 and with a property market that combines strong income returns and high property growth, Brazil can rightly be called an investor's paradise.
Don't just take our word for it, according to the much respected Forbes Magazine, "the most interesting international opportunity for investors right now is Brazil".
To purchase a property "off-plan" means simply to make a decision to buy a property before it is built. The buyer will rely purely on the architect's drawings, property location, computer generated virtual tour, and the developer's reputation to base their decision to purchase. The benefit to the investor is that prices typically increase as the development property progresses, and on larger sites there is a marked increase between each phase of the development.
We always recommend the use of an independent lawyer fluent in your language, so that you fully understand all the legalities and proceedings when buying your overseas property.
Your lawyers will:
The property registry system in Brazil is well developed and safe. The registration itself is carried out by private notary publics. All property is registered at one single registry, which records details of the entire commercial history and the physical identification of each property.
It is obviously very important to ensure that any property you buy in Brazil has a clear title. Access to registry information is available to the public and includes relevant details on ownership, mortgages and other pending debts. In the larger cities, these services may be automated.
If you are thinking of buying a property in Brazil with your friends or as a syndicate, then this is no problem at all, as up to 10 individual names can appear on a title deed following a Brazilian property purchase.
A CPF - Cadastro de Pessoas Fisicas is a tax registration number, which is similar to a social security number. The CPF number enables the investor to be uniquely identified for taxation and title purposes.
To obtain your CPF number, you will need your birth certificate translated into Portuguese by a certified translator and legalised by the Brazilian Consulate in your home country. Your lawyer will be able assist you with all of the above. The whole process is simple and can be conducted without you visiting Brazil, as long as you have given your lawyer Power of Attorney.
Alternatively, if you are visiting Brazil, and intend to buy a property in Brazil, you should bring your birth certificate with you and marriage certificate if this applies. Your CPF number can then be obtained during your visit.
We can recommend an independent lawyer who will help you to obtain your CPF number.
When you have decided to buy a property in Brazil, funds are sent directly from your own bank account to the seller's bank account in Brazil, via the Central Bank of Brazil.
The bank records your funds entering into the country and in order to release the funds, the seller must present the contract to the bank. We strongly recommend you use only this official route, or you may have problems transferring funds out of Brazil when you sell your property in the future.
There are generally no limitations in returning funds from Brazil provided they were originally registered with the Central Bank of Brazil at the time of purchase.
At present it is not possible for foreigners to obtain Brazilian mortgages - however, this situation looks set to change with the rapidly increasing popularity of the country with overseas investors. Until then purchasers should arrange alternative financing in their own countries. Our financial advisers will be able to talk you through the best options available to you.
This very much depends on what property you buy in Brazil and its location, but as a guideline ongoing council taxes can be approximately 0.60% of the property value.
Most new developments of villas or apartments that have communal facilities now arrange maintenance and will charge an annual service charge. On average this should be between £50 and £100 per month depending on the type of building.
Most travellers visiting Brazil will receive a 90 day tourist visa on entering the country, although please note that Australian, Canadian and American citizens do need to apply before travelling to Brazil. You can apply for an additional 90 days on your tourist visa whilst in Brazil via the Federal Police station if you so wish.
If you want to apply for a permanent residency visa for living in Brazil then you must satisfy one of the following conditions:
The administrator, manager or director of a professional or business corporation
The applicant must already be employed outside of Brazil by the parent company or by an affiliate or subsidiary of the company that proposes to employ him inside Brazil. Necessary documents for the first step will include:
Administrator, manager or director of a start-up company
Planned and recent start-up companies may apply for a maximum of three visas, essentially for the executives who will get the operation off the ground. The following conditions will apply:
A visa of this type will be issued initially for two years.
Investor
A foreigner who intends to remain in Brazil and will invest foreign funds in productive activities, so absorbing or training specialised labour. This category was planned for those foreigners who wish to invest funds (minimum of US$ 50,000) in any kind of productive activity in Brazil. This kind of permanent visa is issued conditionally for five years.
A researcher or high level specialist
The applicant must supply:
Retiree
A retired foreigner, over 50, who will transfer to Brazil the monthly equivalent of at least US$ 2,000. There is no limit to the number of dependents who may also receive permanent residence visas, but the main applicant must provide proof that they are genuine dependent relatives, as defined in Brazilian law.
The main applicant must prove he has a pension of at least US$ 2,000 a month. This will entitle him to visas for himself and two dependents. The applicant must demonstrate an additional US$ 1,000/month for each additional dependent, over and above the two already mentioned, and must supply, amongst other things:
A statement from the foreign agency responsible for paying his retirement pension, informing the total monthly sum;
A bank declaration authorising monthly transfer of at least US$ 2,000.
Marriage to a Brazilian citizen
A permanent residence visa is granted to foreigners married to Brazilian citizens. Application is made to the Ministry of Justice (normally via regional Federal Police offices) or to a Brazilian consulate abroad. Evidence (e.g. marriage certificate, statement from witnesses) should be presented of the matrimonial union. Immigration officials will effect a surprise visit to the couple's home to make sure that the relationship is on going.
Foreigner with Brazilian offspring
A permanent visa can be granted to the foreign parent of a Brazilian child. Application is made to the Ministry of Justice (normally via regional Federal Police offices) or to a Brazilian consulate abroad. The offspring should be economically dependent on the foreign mother or father.
Non-residents earning rental income from Brazilian property are taxed at a flat rate of 15% on the gross rent. Rental income earned by non-residents who reside in low-tax territories are taxed in Brazil at a special rate of 25%. Low-tax countries are defined as those countries that impose no tax on income or impose a corporate tax rate less than 20%.
Capital gains realised by non-residents on sale of real property, are subject to Brazilian tax at a rate of 15%. The taxable gain is computed by deducting the acquisition costs from the gross selling price or market value of the property.
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