The Property Banks Buyers Guide to Brazil
Because non-Brazilians are entitled to own
freehold title to the land and property they purchase in Brazil this
makes the entire Brazil real estate buying process that much
simpler, and because Brazilian real estate is on the whole
incredibly attractively priced, the overall appeal of the property
market is obvious.
Associated property costs in Brazil such as taxes and maintenance
costs are also agreeably low and this adds to the attraction of the
sector. For anyone contemplating purchasing in Brazil this is a
guide to the buying process.
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. This form for application for this can be
downloaded
here: -
And the number can be obtained within a couple of days and the
investor should be in Brazil when they apply for it. This number is
a legal requirement as it enables the investor to be uniquely
identified for taxation and title purposes.
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 independent legal assistance should be
sought for the entire purchase process to ensure the investor’s
rights are properly looked after.
The process of course begins with investors seeking suitable land or
property to meet their portfolio requirements in Brazil. To this end
they can secure the services of a real estate agent or realtor who
should be regulated by the federal body known as Conselho Federal de
Corretores de Imoveis or COFECI. Because estate agents are
salespeople they do not necessarily have the buyer’s best interests
at heart and it is wise to maybe take a recommendation of a good
agent or ask to see references or referrals from any agent you
consider using.
Once a buyer has found a suitable investment property in Brazil and
has negotiated a price to buy with the vendor a small non-refundable
deposit is usually paid to the seller. A sales contract is then
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 money and title transfers then take, the latter can take a
couple of weeks to be recorded depending on whether the land or
property being purchased is beachfront or not. Once the sale has
been completed the ongoing management of properties can be handled
locally in Brazil and many investors choose to purchase with the
specific aim of letting real estate out to Brazil’s growing tourism
market. Income earned from property in Brazil is taxable whether the
investor is resident or non-resident in Brazil and 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.