Property Purchase In Brazil

Unlike alot of other foreign destinations Brazil is open to property purchase by foreign nationals as there are now no restrictions on foreign nationals purchasing Brazil property.

To start the property purchase procedure you will first of all need to apply to the Brazilian Consulate in your own country for a translation of your birth certificate into Portuguese by a certified translator, and then legalised by the Consulate. This should be done before you travel to Brazil as this will be your first stage of your Brazil property purchase and will smooth the overall purchase process.

Having arrived in Brazil and found the property you wish to purchase you then need to apply for a Brazilian ID known as CPF. With your Certified Birth Certificate and Passport you go to the Banco do Brazil and for a small fee you can formally apply for your CPF. Next day you can go to the Brazil Receita Federal to collect your assigned CPF number, your CPF card is then sent to you within 2 months to your new address, which will need to be a Brazilian address.

It is recommended that you use a registered Brazil estate agent to ensure a smooth transaction. They will help you every step of the way, checking that the documentation is correct and that there are no debts on the property, and ensuring that the price you pay is correct and fair, the fees charged are more than outweighed to ensure your purchase goes through smoothly.

Your Brazil property agent will prepare the "Sale of Property Contract" having first got the sellers details, the purchaser's details and the specifications of the property that is being purchased. Also included are the payment details. A deposit of 10,000 Reals is required to secure the property and the property purchase contract is then signed at your agent's office. Your agent will then take the contact to a Caterio (Notary) to get the property registered in your name.

You will be expected to pay a property transfer tax, between 4-5% of the property purchase price. Payment can be made at once or in instalments which have been decided before hand (beware interest rates can be as high as 35% and there is also a 1% tax on funds imported to Brazil from abroad).

Once this is done you are now the properties legal owner. As the owner you are responsible for a Brazil yearly property tax of 0.6% of the property value and if not resident in Brazil you have to appoint a person to oversee the property whilst you are not there.