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Brazil Property Group and Market Intelligence - Brazil Real Estate for Sale

Frequently Asked Questions about Buying in Brazil

  1. Will the property be freehold?
  2. What's the next step?
  3. Do I need a lawyer?
  4. How do I reserve a property?
  5. What purchasing costs can I expect?
  6. What running cost can I expect?
  7. What about Tax on profits?
  8. Is my money safe? - Investor's guarantee
  9. Can I get a mortgage on a Brazilian property?
  10. Is Brazil a safe country?
  11. What's the climate like?
  12. How are the roads?

Will the property be freehold?

Investing in real estate in Brazil is as safe and easy as in any developed 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. However on large pieces of land, they must be purchased in a Brazilian company.

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.

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Do I need a lawyer?

We have lawyers that we use approved by First American Title Insurance, but our Real Estate agents in Brazil can handle all the paperwork that goes along with a purchase. We will introduce you to a lawyer based on your needs. If you still feel uncomfortable, hire a third party attorney to oversee all activities of the sale.

How do I reserve a property?

Contact us at Brazil Property Group.

What purchasing costs can I expect?

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

  • ITIV (similar to VAT or Purchase Tax): approx. 2 % to 4%
  • Title Deed (cost for the Notary office): approx. 1.25%
  • Registration of the deeds: 0.75%
  • Legal fees: approx. 2%
  • Possibly money transfer fees from bank to bank.
  • Title insurance fees and lawyers fees for the title research. (optional)

What running cost can I expect?

This depends on the property; annually, fees should not exceed $500 + tax. The annual real estate tax is 0.6%, but this tax is based on a value far inferior to the value of the property; in other words, the tax is minimal.

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.

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Is my money safe? - Investor's guarantee

Brazil Property Group works with Lawyers in the USA. The purchase money will be held in their trust account until the sale date. Once property is transferred into the buyers name the money will be released to First American Title Insurance wire services and wired to the seller. This allows the security of the sale to be as safe as we can make it. Not only will you have your property before the seller is paid - you will be using tried and tested systems. First American Title Insurance has assets of 6 billion dollars and is one of the largest title insurance companies in the world.

Can I get a mortgage on a Brazilian property?

No.

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.

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

What's the climate like?

Brazil is as large as the United States - it is a varying climate, hot in the north of the country which sits on the equator, and a four season climate in the south.

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How are the roads?

The roads in Brazil are excellent. Sometimes in the cities they get a bit rough and in the way-out countryside they can be dirt, but overall they are well maintained.

Example of a Road in Brazil Top of Page