As a foreigner, can I buy and own property in Brazil?
With the exception of some limitations on ownership of farm land, foreigners are able to buy and own property in Brazil with freehold titles. Under Brazilian law, foreign capital investments are provided the same protections and guarantees as investments made by Brazilians. Foreign buyers can own both the land and the structures on the property.
How is property in Brazil registered?
Property in Brazil is registered in a notary, with records held in a municipal cartorio. The matrícula is a document that contains the property descriptions, previous owners, dimensions and boundaries, and financial history. Property information is publically available.
What is a CPF number?
Foreigners must acquire a CPF number before purchasing property in Brazil. A CPF (Cadastro de Pessoas Fisicas) is a tax registration number, like a Social Security number. To obtain a CPF, you must present your birth certificate, passport and marriage certificate, if applicable.
Your CPF number will be included and used on all official documentation as a way of tracking and authenticating transactions. In Brazil, you can receive a CPF number at the Receita Federal, or state tax office. From your home country, applications can be made to a Brazilian consulate.
Do I need a lawyer?
We recommend that foreign buyers take the assistance of a qualified lawyer. When purchasing property in Brazil, it is important to verify that the current owner has the correct title to the property, and that the property carries no liabilities. A good lawyer will also ensure that contracts are structured properly, and will arrange the payment/funds transfer process. Lastly, the lawyer will make sure the property is properly registered in your name.
We can provide you with a list of English speaking Law firms in the city of Fortaleza.
Can you get finance or a mortgage in Brazil?
You cannot as a foreigner get a mortgage in Brazil. However large developers do offer payment terms ovbuying property in braziler short periods (12, 24, or 36 months).
What is the payment process for property purchases?
After a sales contract has been prepared and signed by all parties, the buyer is normally required to provide a down payment of 10-30% of the purchase price. Taxes and registration fees, usually 5-10% of purchase price, are also paid at this time. Registration and tax payments will require a few weeks to process. Once registration is completed, full payment will be required per the terms of the contract. All funds are held in an escrow account until the title transfer is approved.
What are the rules on remittance and repatriation of foreign capital?
Brazil's Foreign Capital Remittance Law of 1962 regulates the registration of foreign capital. Foreign funds should be wired directly from the buyers bank account to the seller's account in Brazil. These funds will be registered with the Central Bank. There is no limit on repatriation of funds that have been registered as foreign capital with the Central Bank.
Tax
Property owners must pay an annual property tax (IPTU) of approximately 0.6% of the property's value.
As a non-resident any income from rentals of property is taxed at 15% of the gross income of the property.
When selling property, capital gains tax of 15% is applicable and calculated by deducting the cost of the property from the gross selling price. Capital gains tax can be avoided if proceeds are re-invested into a new property purchase. Capital gains tax can also be avoided if the real estate is the owner's sole property.
Off-plan Properties are?
Off-plan property is still in the planning stages and not yet built. Buying off-plan from reputable developers can be a way to purchase property at a lower price point, thereby ensuring a profit after construction is complete.
To travel to Brazil, do I need a visa?
Visitors from Europe receive a tourist visa when entering Brazil, valid for 90 days. The tourist visa can be extended to a maximum of 180 days. US nationals and citizens of some other countries need to apply for a tourist visa before they travel. More information can be found on Brazil's consular websites.
How do I get a Permanent Visa to live in Brazil?
When investing R$200,000 or more in Brazil you can apply for a permanent investment visa, which allows you to work and live in Brazil. We can put you in contact with Lawyers who specialise in this area.
