Buyers Guide

Will the property be freehold?

Investing in real estate 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; you own 100 % of land and property. All property sales are titled and foreign investors receive the same investment and possession rights as Brazilians.

What’s the next step?

For a foreign investor to buy real estate in Brazil the only requirement is that they have a CPF number - which is like a social security number. The number can be obtained within a couple of days (by a local Brazilian lawyer) and is a legal requirement, as it enables the investor to be uniquely identified for taxation and title purposes. The lawyer will assist you in obtaining this and the whole process can be done without visiting the country, providing that power of attorney is given to the lawyer.
The Brazilian government has sophisticated and well developed real estate laws which protect the property owner whether they are a foreign or local owner and legal assistance should be sought for the entire purchase process to ensure the investor’s rights are properly looked after.
Next, a sales contract is drawn up which details the full conditions of the sale and also acts as a receipt for the deposit paid. Assuming the purchaser already has the CPF number and notarized copies of their passport etc., the sales contract can be signed either in person by the buyer or by the lawyer acting for the purchaser if they have been given power of attorney. The final title transfers can take a couple of weeks to be recorded.

Do I need a lawyer?

We recommend that you use a lawyer. We will introduce you to a lawyer based in the particular region. It is important that the lawyer is local, since the laws differ between the different municipalities.

How do I reserve a property?

Contact us and inform us of the property you want to reserve and we will do the rest. We will guide you through the buying procedure and advice on lawyers and timescales.

What purchasing costs can I expect?

You can expect to pay approx. 7-9% in purchasing expenses as follows:

If you add up these costs, you’ll come close to 7%. The reason we mention 7-9% is that in Brazil an additional tax is charged for federal land (this tax is finally calculated on completion).

What about Tax on profits?

Income earned from property in Brazil is taxable whether the investor is resident or non-resident in Brazil. Non-residents are usually subject to a capital gains tax rate of 15% on any gains they make on properties in Brazil but both these taxation facts are subject to alteration depending on any double taxation treaties in place between Brazil and the investor’s country of residence.

Can I get a mortgage on a Brazilian property?

Currently foreigners can not get a Brazilian mortgage. If needed, it is better to organize finance from one’s home country.

What about rental potential?

It Depends on the Region. For example Natal and Bahia are one of the fastest growing “long haul” holiday destinations in the world. The area has a wide market appeal and is already attracting tourists from Spain, Portugal, Italy, France, Holland, Sweden, Norway, Denmark, Finland, Germany, USA, Japan, Switzerland, England, Argentina & recently Eastern European countries and last but not least, the large domestic tourism market of 180 million consumers.

The rental market is almost all year round and with the massive investments in resorts and golf courses on the coastline. The quality of the tourism offer will greatly improve, and as a consequence the rental market (along with increased rental prices) will grow rapidly. Due to the extremely affordable property prices today, the potential for high rental yields are very good in the long term.

The opening of the new airport in June 2009 with an estimated 5 million tourists per year, gives us further confidence in the potential for high future rental incomes.

Is Brazil a safe country?

One of the urban myths that surround Brazil is the question of safety and security. In fact, Brazil is no more dangerous than the main cities in Europe or North America.
Most of the bad press about violence in Brazil, relates to the gangs operating in the slums in Rio and Sao Paulo, which are both several hours away by plane. Even in these mega cities, most of the crime is between the gangs and crime against tourists is extremely rare. Being sensible and streetwise is the key to trouble free and enjoyable stay anywhere in the world, including Brazil.

The northeast is well known for being a very safe and relaxed area and is 4 hours by plane from São Paulo.

Brazilians are further known to be very friendly people and it is extremely rare to see aggressive behavior from the Brazilians. In fact, what you will see more than anywhere else in the world is a lot of smiling and dancing!