Website counter

Monday, August 9, 2010

Money In and Out of Brazil.

Getting Money In and Out of Brazil
The process of getting monies in and out of Brazil is relatively straightforward if you follow the correct procedures. We know of a few property investors who tried to bypass these rules and ended up in great difficulties. In this article, we will look at the processes involved when sending money to purchase property in Brazil and the repatriation of monies received from the sale of your property. In addition, we will look at the best way to receive your rental income.
Sending Money to Purchase Property in Brazil
When you decide to purchase your property in Brazil, funds should be sent from your own bank, lawyers or currency brokers account to the sellers account via the Central Bank of Brazil (Banco do Brasil). The Central Bank of Brazil records your funds entering into Brazil and in order to release the funds, the seller will need to present the sale and purchase contract to the bank.
Lawyers and currency brokers operate a special bank account that enables them to send money on your behalf in your name and this is acceptable by the Central Bank of Brazil.
We strongly recommend you only use this official route, or you may have problems transferring funds out of Brazil when you sell your property in the future.
Repatriation of Rental Income
You have successfully purchased your investment property in Brazil and have got some fantastic tenants. Now you want to gain access to your rental income. You cannot open a bank account in Brazil unless you have a residency visa or a business there. Therefore, we recommend the appointment of a rental management company to collect the rent on your behalf or to buy into developments that will be ran as fully managed resorts. The management company will collect rent, account for taxes, help with maintenance and transfer your rental income to your bank account.
Rental income will be taxed at source (in Brazil) by the Brazilian government at approximately 15%. Most countries worldwide will allow tax relief to be claimed against this transaction.
You can transfer rental income at anytime, but in general, this is done on quarterly or half-yearly basis. These payments will need to be transferred into an account in the name of the person who owns the property, again via the Central Bank of Brazil.
Repatriation of Capital Gains
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. In most cases, the lawyer handling the sale will arrange the transfer of funds.
Once you follow the correct channels, you should not have any problems getting your money in and out of Brazil. Brazil actively encourages overseas investment and has one of the most sophisticated banking systems in the world. We would recommend that you read our Purchase Process¹ section to get further details about investing in Brazil securely and successfully.

1- Purchase Process

Simple purchase process

Buying 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 Brazil

The 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 Legal

We 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 Registration

The 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.


At 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 Costs

On purchase you will need to allow for approximately 7% - 8% of the purchase price to cover legal fees and taxes.
Purchase Tax
Between 3-4%
Notary Public Fees (Deeds)
Approx 1.25%
Registration of Deeds
Land Registry Fees
Approx 0.75%
Legal Fees
Between 1-2%
Total =
Approx 6-8%

Power of Attorney

Property purchases in Brazil can be completed entirely from overseas, by giving power of attorney to a lawyer in Brazil to sign the documents on your behalf. We can arrange this service for you.


  1. Nice information for money transfer oversea online. it's facilitate foreign exchange business, send money overseas with the help of transfer money overseas services and also transfer to abroad.

  2. For sure my friend, if you need more help please get in touch.