Overseas buyers can purchase Brazilian residential or commercial property without major restrictions. Active encouragement and incentives for foreign investment mean you can own 100% of land and property. However, there are a few limitations or fees applicable for some specific areas such as marine land, islands, rural land or areas near Brazil’s international borders.

Using an Agent

A good agent is important when you buy a property in Brazil. Being the fifth largest country in the world, local knowledge can be invaluable. In addition they can recommend all related professional services you will require to make a safe, reliable purchase.

Making an Offer

When you have decided upon a property 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 agreed price and to oversee purchase proceedings, including deposit or reservation payments. You may also decide to have a survey undertaken depending on the age and condition of the property or to determine the size of the plot. With off-plan purchases, the price is often fixed and dependent upon the current phase of construction. The buying procedure may vary slightly according to which developer you are purchasing from so when buying on a new development, you will need to ask for specific procedures relating to the development.

Appointing a Lawyer

It is wise to appoint a lawyer who is fluent in your language so that you fully understand all the legalities and proceedings. A good lawyer will carry out all necessary checks on the property or land in Brazil and fulfil the legal requirements of the sale.

Your lawyer will:

• Check the current owners have the correct title to the property
• Check for any charges and liabilities still owed on the property
• Check your contract and advise you on the obligations for both parties
• Help you through the payment / funds transfer
• Ensure the property is registered in your name
• Deal with the land registration

The property registry system in Brazil is well developed and safe and real estate registration in Brazil 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 has a clear title. Access to registry information is available to the public and includes relevant details on ownership, mortgages and other pending debts.

Brazilian ID number

You will need a Brazilian ID number called a CPF in order to buy property. This can be obtained through any Brazilian consulate, certain banks, your lawyer, or through a reputable estate agent. You will normally need to provide a copy of your passport and an officially translated copy of your birth or marriage certificate.

Costs

Total transaction costs including stamp duty, fees etc can average at between 3 to 9% of the purchase price. These costs may differ according to location, type of property and the area/state you buy in. If it takes a significant amount of work to establish title and ownership, the costs could amount to more.

Funds are sent directly from your own bank to the seller’s bank account in Brazil, via the Central Bank of Brazil. The bank records your funds entering into the country and in order to release the funds, the seller must present the contract to the bank. There are generally no limitations to returning funds overseas provided they were originally registered with the Central Bank at the time of purchase.

Mortgages

The mortgage market is underdeveloped in Brazil and as yet foreigners 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 it is fair to expect mortgages to become more readily available in the future, as banks continue to develop their products. Some developers of new-build and off-plan developments offer instalment plans from 1 to 9 years. The charges applicable vary according to developer and repayments are usually index linked.

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