Property in Brazil | Brazilian Property for sale or Beach Real Estate for rent by Brazil Overseas Property in Brasil | Buy Apartments, Farms, Houses, Land and Villas in Brazil

Yes, there are no major restrictions for overseas buyers or foreign investors wishing to buy into Brazilian property. The Brazilian Government encourages overseas investment, and offers the benefit of a foreign overseas purchaser being able to own property in Brazil 100% freehold.

Once you have visited and know Brazil well, this question may not be foremost in your mind. Having said this, putting your feelings about the country and culture itself aside for one moment, Brazil has seen progressive economical growth, in particular over the past 5 years, and people who decided to make investments in Brazil a few years ago are now seeing significant returns on their investment in the form of capital gain and ongoing rental yields. As an example, Brazil has seen stable increases on property prices of up to 25% per annum in some areas for a sustained period.

The all year round good climate in Brazil's Northeast is also worth taking into account because you can visit your property at any time during the year and experience sunny weather meaning that property rental yields in Brazil are potentially high as a consequence.

Brazil is amongst many emerging markets that are delivering similar returns for the overseas property investor, so it can be regarded as one of the best opportunities for worldwide property investment at present, not only from the viewpoint of capital gain on the property itself, but also the huge potential with ongoing property rentals.

When you have decided upon a property that you wish to buy in Brazil a verbal offer will need to be made through the agent and often some negotiations will follow. At this stage a lawyer should be appointed by you to formalise your final price agreement and to oversee purchase proceedings, including deposit or reservation payments. With off-plan purchases, the price is however, often fixed and dependent upon the current phase of construction.

The buying procedure in Brazil may vary slightly according to which developer you are buying property from in Brazil, so when buying on a new or off-plan development as an example, you will need to establish the specific procedures and financial arrangements relating to the property development in question.

It is wise to appoint a lawyer who is fluent in your language so that you fully understand all the legalities and proceedings when purchasing Brazilian property. Legal costs are generally between £ 750 and £ 1,500 depending on the value of the property purchased.

Your lawyers will:

• Check the current owners have the correct title to the property
• Check for any charges and liabilities still owed on the property
• Check the owners financial status/credibility
• Check your contract and advise you on the obligations for both parties
• Provide a translation of the contract into your native language
• Help you through the payment/funds transfer
• Ensure the property is registered in your name

The property registry system in Brazil is well developed and safe. The registration itself is carried out by private notary publics. All property is registered at one single registry, which records details of the entire commercial history and the physical identification of each property. It is obviously very important to ensure that any property you buy in Brazil has a clear title. Access to registry information is available to the public and includes relevant details on ownership, mortgages and other pending debts. In the larger cities, these services may be automated.

If you are thinking of investing in Brazilian property with your friends or business colleagues as just examples, then this is no problem at all, as up to 10 individual names can appear on a title deed following a property purchase

You will need a CPF number in order to buy property. To get a CPF number (Cadastro de Pessoa Fisica): a) you can apply in your home country by supplying your birth certificate translated into Portuguese by a certified translator and legalised by the Brazilian Consulate in your home country. This will then need to be taken to the Banco Do Brasil with your passport and birth certificate in order to formally apply for a CPF. A small fee is payable and the following day you will receive your assigned CPF number at the Receita Federal, or b) Alternatively, if you are visiting Brazil to buy property, it can be much easier to apply for your CPF when you are here, although we recommend that you bring your birth certificate with you and marriage certificate if this applies. Your CPF number can then be obtained during your visit.

With the help of Brazil Overseas Property, we can obtain your CPF number at Receita Federal within an hour or so, but at absolute minimum to achieve this, we will need you here in person at our offices in Brazil with your passport, and you will need to know the maiden name of your mother as issued on your original birth certificate.

Transaction costs, including stamp duty (registration fee), fees etc. can average at between 3% and 8% of the purchase price. These costs may differ according to location, type of property and the State you buy in. If it takes a significant amount of work to establish title and ownership, the costs could amount to more.
Breakdown:

• A down-payment for your chosen property of usually about 10% of the purchase price is requested.
• Property transfer/registration fees average about 5% of the purchase price, but this can vary depending on the type of property that you buy, and also the state in which you buy.
• Payment can often be made all at once or in instalments of 12, 24, 36, 48, or even up to 84 months when buying off plan or a building in construction, but interest rates are very high, and generally not fixed via constructer finance in Brazil. If you opt to pay in instalments, bear in mind there is also a currency risk: if the value of the Brazilian Real goes down, your property becomes cheaper, and vice versa.
• Payment for private purchases are often made all at once, although short-term payment agreements of up to 3 months can be made.
• 1% import tax on the transfer of funds from abroad.

When you have decided to buy your property in Brazil, and assuming you are sending money from overseas, funds are sent directly from your own bank account to the seller’s bank account in Brazil, via the Central Bank of Brazil (Banco do Brasil). The bank records your funds entering into the country and in order to release the funds, the seller must present the sale and purchase contract to the bank. We strongly recommend you use only this official route, or you may have problems transferring funds out of Brazil when you sell your property in the future.

There are generally no limitations in returning funds from Brazil provided they were originally registered with the Central Bank of Brasil at the time of purchase.

Yes, that is why it is strongly recommended that you always use a registered CRECI property agent in Brazil, and that you are buying a property that has been thoroughly checked out by a qualified Lawyer, then, your property purchase should run very smoothly.

Buying “off-plan” means purchasing an overseas property at the planning stage before it is actually built. When you buy "off-plan" it can be an exciting process that will normally deliver good returns on your overseas investment because you have fixed the price at an early stage, and bought property in a desired established location. Certain off-plan developments in Brazil will also enable the buyer to have a say on the final outcome of the property, whether that be for general finish of the property or infact a totally different internal design just as a few examples.

Property sold "off-plan" is generally bought for a substantially lower price when comparing to the price on completion of the build. This means that buying off-plan in Brazil for example can potentially deliver an excellent return on investment for overseas buyers. The building process in Brazil of any project generally takes between 24 and 36 months from off-plan purchase to completion. The majority of buyers tend to agree that seeing the dream unfold infront of you can be very rewarding from the point of view that you can possibly contribute to the final shape and look of your off-plan investment along with having the time to plan ahead, which can be extremely useful when planning to move and retire abroad as just one example.

If you are thinking of buying beach land or making investments in the state of Paraíba to build your future holiday home abroad for example, then areas to concentrate on are Jacuma, Praia Bela, Praia do Amor, Coquerinhos, Praia de Tambaba, and Pitimbu beach areas. All of these areas will provide you a good return on your investment over time. More established areas in the city of João Pessoa such as Cabo Branco, Tambaú, Bessa, and Areia Dourada will provide excellent returns on investment as of today with excellent capital growth on investment combined with guaranteed ongoing rental returns. If you want to buy a rural property close to the beach in Paraíba, then a 'Granja' in Conde can be a very good option for you, which is basically a hobby farm, and Brazil Overseas Property can supply 'Granjas', 'Sitios', or 'Chacaras' delivering over 10 acres of land with home, swimming pool, plantations of tropical fruit trees, and much more, for less than 50,000 sterling for example.

Yes, Brazil's estate agents are monitored carefully by a governing body known as CRECI, which stands for 'Conselho Regional de Corretores de Imóveis'. Each qualified agent or business based in Brazil will be registered with CRECI and will be assigned a unique number which is lodged at the companies house. As an example, Brazil Overseas Property Negócios Imobiliários Ltda  is a registered Real Estate Agents in Joao Pessoa, Paraiba (CRECI - 383J).

The mortgage market is underdeveloped in Brazil and as yet overseas investors cannot obtain a mortgage in Brazil. Buyers usually arrange alternative financing in their own countries. In 2005 about 50,000 mortgages were granted to Brazilian nationals but at high rates. However, we expect mortgages to become available in the foreseeable future as interest rates drop and as banks continue to develop their products.

Some constructors of new build and off-plan developments offer instalment plans covering periods of 12 to 84 months. The charges applicable vary according to constructor and repayments are usually index linked.

Opening a bank account in Brazil is an option only if you have a permanent visa and buying a property doesn't automatically entitle you to have a permanent visa, although this of course does not stop you from buying your property in Brazil as funds are sent direct from your bank account overseas to the sellers bank account in Brazil using the usual route for international bank-to-bank transfers (SWIFT or CHAPS are examples of organisations that will be involved here).

If you have a permanent visa then you have the opportunity to open a current account (conta corrente) or deposit/savings account (conta de poupança). Current accounts give all the usual benefits including cheque books and cash withdrawal cards which you use at ATM's or for point of sale transactions in Brazil. Deposit or savings accounts in Brazil offer extremely favourable interest rates for your investment when comparing to other countries around the world.

Both 'conta corrente' and 'conta de poupança' are available to individuals (pessoas fisicas) with permanent visas or for directors of a registered company in Brazil (pessoas juridicas).

If a Brazilian bank offers you the facility to open a bank account without a permanent visa, then please be warned, as this does not conform to current Brazilian banking laws.

This very much depends on what property you buy in Brazil, but as a guideline ongoing council taxes can be approximately 1% of the property value. Condominium payments for apartments vary depending on the type of building, but average between R$200 and R$750 per month. The minimum monthly wage in Brazil is R$415 (equivalent to 240 US Dollars), so if you need workers to maintain your property for example then this can be a viable option.

Although in some parts of Brazil the holiday property rental market is still emerging, there is great potential for renting holiday homes in the Northeast of Brazil, whether it's apartments, rural properties, or beach homes, as the climate is suitable all year round for taking vacations or holiday breaks. Realistically speaking, it is expected that occupancy for fully furnished Brazilian real estate can achieve up to 30 weeks per year and possibly even more.

Most travellers visiting Brazil will receive a 90 day tourist visa on entering the country, although please note that USA citizens do need to apply before travelling to Brazil. You can apply for an additional 90 days on your tourist visa whilst in Brazil via the Federal Police station if you so wish.

In many cases our company has encountered this issue whereby people do not have the time to visit before they buy property in Brazil. Brazil Overseas Property does recommend you always visit the country before you invest here, although we do understand that some people cannot physically take time out from their busy schedules, so we can provide services for you whereby the transaction can be completed without you actually being here, and find that this situation happens quite frequently especially when people are buying off plan in Brazil purely for investment purposes and therefore do not have so many emotional feelings that are generally associated with buying houses or homes for eventual retirement as just one example. Please ask for further information about our 'remote buying' procedures that can help you invest without being in Brazil.

Construction costs in Brazil can range on average between R$500 to R$1,000 per square metre as a good guide for you to work against, and the building cost will be determined on the quality of internal finishings, amount of floor levels you intend to construct with the building project, the location of the development project, and whether you require project management for the building phase itself. Please ask Brazil Overseas Property in Joao Pessoa for more information and details about building your home in Brazil.

A hectare of land in Brazil is 2.47 acres or 10,000 square metres (as an example, an area measuring 100 x 100 metres = 1 hectare). An acre itself approximately represents half of an averaged sized football pitch as a guide for you, and a hectare could accommodate 8 Olympic sized swimming pools as just another example.

If you want to apply for a permanent residency visa for living in Brazil then you must satisfy one of the following conditions:

The administrator, manager or director of a professional or business corporation

The applicant must already be employed outside of Brazil by the parent company or by an affiliate or subsidiary of the company that proposes to employ him inside Brazil. Necessary documents for the first step will include:

Proof that the applicant is employed outside Brazil by the parent company, or an affiliate or subsidiary of the Brazilian hiring company;

Demonstrate that the Brazilian company is bringing in specialised labour that will transfer technology, increase productivity and/or bring social benefits;

Proof that the company outside of Brazil or its parent has effected total foreign-capital investments of at least US$ 200,000 in the employing company in Brazil for each visa requested.

Administrator, manager or director of a start-up company

Planned and recent start-up companies may apply for a maximum of three visas, essentially for the executives who will get the operation off the ground. The following conditions will apply:

Proof that the non-Brazilian company has been in business outside of Brazil for at least five years;

Power of attorney granted by the foreign investor to its new legal representatives for the purposes of setting up the company in Brazil;

A visa of this type will be issued initially for two years.

Investor

A foreigner who intends to remain in Brazil and will invest foreign funds in productive activities, so absorbing or training specialised labour. This category was planned for those foreigners who wish to invest funds (minimum of US$ 50,000) in any kind of productive activity in Brazil. This kind of permanent visa is issued conditionally for five years.

A researcher or high level specialist

The applicant must supply:

A document from a Brazilian research institution manifesting its interest in the services of the researcher;

A curriculum vitae and appropriate academic references and diplomas.

Retiree

A retired foreigner, over 50, who will transfer to Brazil the monthly equivalent of at least US$ 2,000. There is no limit to the number of dependents who may also receive permanent residence visas, but the main applicant must provide proof that they are genuine dependent relatives, as defined in Brazilian law.

The main applicant must prove he has a pension of at least US$ 2,000 a month. This will entitle him to visas for himself and two dependents. The applicant must demonstrate an additional US$ 1,000/month for each additional dependent, over and above the two already mentioned, and must supply, amongst other things:

A statement from the foreign agency responsible for paying his retirement pension, informing the total monthly sum;

A bank declaration authorizing monthly transfer of at least US$ 2,000.

Marriage to a Brazilian citizen

A permanent residence visa is granted to foreigners married to Brazilian citizens. Application is made to the Ministry of Justice (normally via regional Federal Police offices) or to a Brazilian Consulate abroad. Evidence (e.g. marriage certificate, statement from witnesses) should be presented of the matrimonial union. Immigration officials can make surprise visits to the couple's home to make sure that the relationship exists.

Foreigner with Brazilian offspring

A permanent visa can be granted to the foreign parent of a Brazilian child. Application is made to the Ministry of Justice (normally via regional Federal Police offices) or to a Brazilian Consulate abroad. The offspring should be economically dependent on the foreign mother or father.

if you are thinking of living in Brazil permanently, then you can bring your dog, cat, or birds with you and your family. You will have to present a health certificate issued by a local veterinarian in your home country and then approach the Brazilian Consulate to get the certificate endorsed. The timing of you obtaining this endorsed certificate and you travelling to Brazil needs to be carefully considered, as the certificate is only valid for a 10 day period from when it was endorsed. The only remaining responsibility will be to contact the flight company to arrange suitable transport for your family pets, and ensure that the transport waiting for you at the airport in Brazil is suitable for transporting your pets safely to their final destination. Please note that charter flight operators into Brazil can charge a lot of money for transporting your pets, although options such as TAP Air Portugal who fly from Europe into Brazil offer better financial terms.