7 Tips You Should Know Before Investing In Brazil

Tip 1: Register Your Money

The money you bring into Brazil to invest in property should first be registered with Brazil’s Central Bank at the time of purchase. This will avoid problems further down the line when you decide to sell the property and take your cash home.


Tip 2: Seek Advice

A foreign national has the same legal rights as a Brazilian when it comes to property ownership and is also subject to the same laws. If you are new to investing in Brazil it is essential that you seek advice from someone who knows the market and the best places to invest.


Tip 3: Your Property Type

Decide on your investment strategy. There are many opportunities to invest in coastal holiday property taking advantage of short-term lets. The downside is, Brazil has many miles of coastline and vacancy rates will be higher. Unless you are investing purely as a lifestyle choice, properties in areas close to business districts and regional transport connections are usually best.


Tip 4: Find The Right Location

Brazil is a huge country; however the best areas for foreign investors to invest in Brazil at the moment are Natal, Fortaleza, Rio de Janeiro and Sao Paolo. In Natal, properties around beach resorts close to the city are seeing yields of around 10% a year. Units are currently available from £60,000 in the best developments.


Tip 5: New Is Better

Invest in new developments – as these will find more tenants attracted by superior amenities. New properties will be better suited to meeting the aspirations of the growing middle classes and young professionals living and working in Brazil’s major cities.


Tip 6: Register Yourself

Before investing in Brazilian property you should apply for a tax registration number, known as a CPF – which stands for Cadastro de Pessoas Fisicas. This is a tax registration number that enables investors to be identified for title and taxation purposes.


Tip 7: Know The Timescale

The purchasing process is fairly quick in Brazil – however it is recommended that you allow approximately three months from the first down payment, which will include a month for the formal issue of the deed.