Here is a general guide regarding buying and selling real estate in Brazil.
FOREIGN OWNERSHIP
There are no major restrictions for buyers for buying residential or commercial property.
There are some limitations or fees applicable for specific areas such as waterfront property, islands, agricultural rural land or areas near Brazil's International borders.
IS IT SAFE TO BUY REAL ESTATE IN BRAZIL?
Yes, Brazil is a safe place to buy real estate. We recommend, as with any purchase, that you use an approved estate agent and lawyer.
HOW MUCH WILL IT COST TO BUY OR SELL PROPERTY
On average, the transaction costs (ie stamp duty, fees etc) can be between 3% and 8% of the purchase price. This may differ on the location (eg waterfront), type of property and State you buy in. If there is a significant amount of work to establish the title and ownership then these costs may be more.
This budget will cover you for Goverment Purchase tax (2%-7%), legal and registration fees.
WHAT DO I NEED?
To buy a property in Brazil, you need to register for a CPF, which is a kind of credit check document issued by the Brazilian government authorities. Our representative can help you to obtain this quickly and easily.
LEGAL MATTERS
We have a panel of approved (English speaking) lawyers to help you with your purchase.
The costs are generally between £500-£1000.
For this, the lawyers will :
There are generally no limitations to returning money back overseas if registered with the Central Bank at the time of your purchase.
MONEY TRANSFER
Funds are sent directly from your own bank to the seller’s bank account in Brazil, via the Central Bank of Brazil who record your funds into the country. The seller has to present their contract to the bank to release the funds. This ensures that the government has recorded your investment into the country. We recommend you only use the official route otherwise you may have problems transferring funds out of Brazil when you sell your property.
CAN I GET A MORTGAGE?
The mortgage market is quite underdeveloped in Brazil. In 2005 about 50,000 mortgages were granted however this will grow as interest rates decline and as banks develop these products.
Brazilians have tended not to get mortgages because the sector is not as well developed as in the US, UK etc. and rates have been very high (20-30%) or the difficulty in providing adequate proof of income, etc.
Foreigners cannot get mortgages. Buyers usually arrange alternative financing in their own countries.
Some Developers of new build & off-plan developments offer installment plans over a between 12 to 60 months. The charges applicable vary from developer to developer and payments are usually indexed.
If you have property in your own country and would like to borrow against this, then we can introduce you to a Independent Financial Advisor who can help you raise finances accordingly.
LAND REGISTRATION SYSTEM
Real estate registration in Brazil is carried out by private notary publics, under the form of a public permission, under Justice Control. All real estate registries in Brazil are under control and fiscal of a State Judge. The real estate registry system in Brazil is quite developed and safe, in which each property can only be registered at a single registry, which keeps the entire commercial history and the physical identification of each property. The access to all information of a real estate, including those concerning its owners, mortgages and other burdens, is public. In the larger cities, these services may be automated.
It is very important to ensure that any property you buy has a cleared title.
CODE OF ETHICS
The Real Estate Agents Law imposes a Code of Ethics over all professionals and companies operating in the segment. There are internal disciplinary processes, with sanctions ranging from fines to violator's license suspension and cancellation. Sanctions are imposed by COFECI, through the CRECIs.
LICENSING REQUIREMENTS
All real estate agents must enroll with the Real Estate Agents Regional Councils. All real estate agencies must have a real estate agent partner as technical responsible. To enroll, the applicant must take the Real Estate Transactions Technician course.
Other Industry Professionals
To close a sale, it is a public deed is necessary and is drafted by the notary public, and it is registered by the real estate registrar. The sales can be entered into directly between sellers and purchasers, but in case of intermediation such activity can only be carried out by real estate agents or agencies accredited by the CRECIs. Lawyers are not mandatory, but they can only represent any of the parties as attorneys-in-fact.
ESTATE AGENT SERVICES
The services are designed to assist the parties in sales and rentals. The basic services are real estate appraisal and publicity (newspapers and placard placement), purchasers and potential tenants assistance, Contact between the parties through proposals and counterproposals forwarding, technical and legal advisory for the parties and real estate documentation, agreements drafting and assistance with public deeds and their registrations.
PROPERTY MARKETING SYSTEM (In the US known as MLS) & REFERAL SYSTEMS
There is no national system such as the American MLS of NAR-Homestore yet.
The agents and agencies work system is controlled by COFECI - Real Estate Agents Federal Council, that established a national "reference" in the practices for all States.
Almost all companies trading real estate are local, and also restricted to their local region/state in that activity.
RELATIONSHIP BETWEEN BUYER / SELLER & ESTATE AGENT
The purchase and sale in the Brazilian real estate market is regulated mainly by two federal laws: The Real Estate Agent Law (Law number 6530 of 1978), and the Consumer Defense Code (Law number 8078 of 1990). It does not matter whether there is a written agreement or not (although the Real Estate Agent Law requires written agreements); in case of proof that the natural or legal person professional sold or intermediated the sale or rental or any asset or service to a purchaser or seller, or to a landlord or a tenant, the Brazilian legislation is quite modern in the protection of customers rights. In general, the agreements are entered into with the sellers or with the landlords (owners).
FLIGHT COSTS
Flight costs are dramatically reducing to Brazil. We have can help you book your flight. An example of a direct flight from London airports to some destinations of the northeast of Brazil are currently around £290 to £500 (return). Prices do fluctuate depending on the season / operator and destination airport. At present there are over 220 scheduled flights from Europe to Brazil and even more if you include charter flights. For example TAP has 48 weekly flights to Brazil from Lisbon.
LIVING IN BRAZIL
As a Tourist
A normal tourist visa is for 90 days. You can either extend or leave and reenter to get a new tourist visa and you can stay for a maximum of 180 days per year as a visa. Please contact embassy for details of visa waiver countries and details of visa requirements.
As a Resident
You can live in Brazil if:
Foreign & Commonwealth Office Profile on Brazil click here.
BROKERS
We have dedicated time and effort to start an International Department to best serve our foreign investors. Functioning in English, French, Italian and Spanish, this department is here to walk you through every step. Whether it is legal or finances, project ideas or property values, we are here to help you the best way we can.
