1- Purchase Process
Simple purchase processBuying a property in Brazil is fairly straight-forward and foreigners are allowed unrestricted ownership of land and property. A foreign national has the same legal rights as Brazilians when it comes to property ownership, and all property is freehold.
Non-residents may invest in property through direct ownership from abroad, or through vehicles such as resident companies, partnerships or investment funds. There may be some restrictions in areas close to environmentally sensitive land like national parks, marine reserves and nature reserves. You may find also some restrictions to land near national borders and agricultural land.
With regard to rural property, there may be some restrictions regarding the size of the area to be acquired.
CPF (Cadastro de Pessoas Fisicas, Tax Code)In the first instance, the purchaser is legally required to obtain a tax registration number known as a CPF - Cadastro de Pessoas Fisicas, which is similar to a social security number. The CPF number enables the investor to be uniquely identified for taxation and title purposes.
Your CPF number can be obtained within days and your lawyer will assist you in obtaining this. The whole process is relatively simple and can be conducted without you visiting Brazil, as long as you have given your lawyer power of attorney. We can recommend an independent lawyer who will help you to obtain your CPF number.
Money Transfer - Banco Central do BrazilThe cost of the purchase must be brought into Brazil through an international wire transfer to the Banco Central do Brasil (Central Bank of Brazil), which allows the Government to record all investment into the country from overseas. There are generally no limitations to returning funds overseas if they were originally registered with the Central Bank of Brazil at the time of purchase. Please note that Brazil levies a 1% "import" tax on transfer of funds from abroad.
Contracts and LegalWe always recommend the use of an independent lawyer when purchasing property abroad. We would be more than happy to put you in touch with a reputable English speaking lawyer to help you with your purchase.
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 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
Land RegistrationThe property registry system in Brazil is quite developed and safe. Each property is registered at one single registry, which records details of the entire commercial history and the physical identification of each property. This registration is carried out by private notary publics.
Access to all information about properties in Brazil is available to the public and includes details on ownership, mortgages and other pending debts. In the larger cities, these services may be automated.
MortgagesAt present it is not possible for foreigners to obtain Brazilian mortgages - however, this situation looks set to change with the rapidly increasing popularity of the country with overseas investors. Until then purchasers should arrange alternative financing in their own countries. Our financial advisers will be able to talk you through the best options available to you.
Typical Purchasing CostsOn purchase you will need to allow for approximately 7% - 8% of the purchase price to cover legal fees and taxes.
Notary Public Fees (Deeds)
Registration of Deeds
Land Registry Fees