Brazil: your next real estate investment destination

With stunning beaches and a booming market, Brazil is the perfect choice for those seeking leisure or real estate investment.

The Brazilian real estate market in 2024 continues on a positive trajectory, proving to be resilient and promising, driven by economic and institutional factors, such as the recovery of the office and commercial rental market in urban areas, and the interest in properties in coastal regions, such as those located on the beaches of the Northeast Brazil and the cities of Rio de Janeiro and Florianópolis.

Aiming to encourage these investments and facilitate the process of staying in Brazil, the Brazilian government grants Residence Permits to foreigners who invest, with their own external funds, amounts starting from R$1 million.

Moreover, foreigners who don’t intend to settle in the country can also acquire real estate for other purposes, with no value limitations, as long as they respect restrictions for border areas, rural properties or marine lands, which require specific authorizations from the Brazilian government. In this case, only a Visit Visa is required, which can be applied for online and is valid for 90 days, extendable for an equal period upon request. For foreigners coming from Mercosur countries and European countries such as Germany, France and Spain, which have a reciprocity agreement with Brazil, visas are not required for tourist trips.

How to buy a property in Brazil?

The following documents are required to purchase a property in Brazil:

Individuals

(i) Valid registration in the Brazilian Individual Taxpayer Registry (CPF), to be carried out at Brazilian consular offices abroad. In general, a valid passport and the applicant’s birth or marriage certificate are required, as well as other information that may be requested when applying for registration.

(ii) A copy of the applicant’s Identity Document and Birth and Marriage Certificates (if applicable), which must be apostilled in the applicant’s country of origin, with an official translation and subsequent registration at the Official Notary for Titles and Documents in Brazil. If the purchaser is married, the spouse must also provide the documentation.

(iii) Power of attorney granted to a person in Brazil, conferring full authority to handle any matters related to the property with the relevant authorities. To be valid in Brazil, the power of attorney must be signed, notarized, apostilled, and officially translated into Portuguese by an official translator, followed by registration with the Official Notary for Titles and Documents.

Legal Entities

(i) Valid registration in the Brazilian National Registry of Legal Entities (CNPJ), to be requested from the Brazilian Federal Revenue Service, by submitting the company’s updated articles of incorporation, including the company name, full address and personal information of the company’s legal representative.

(ii) Appointment of a Legal Representative in Brazil, who must reside in the country, through a power of attorney under the same terms described in the previous item, plus the powers to administer the company’s assets and rights before the Brazilian Federal Revenue Service or the Central Bank of Brazil.

Common obligations for individuals and legal entities

(i) Signing a Real Estate Sales Agreement, an instrument by which sellers and buyers define the terms of the negotiation, such as resolutive conditions, price, form of payment and responsibilities. At this stage, real estate due diligence is carried out, which consists of obtaining documents and information from both sellers and the property, with the aim of proving that both are in order and assessing the viability of the deal.

(ii) Public Deed of Sale and subsequent Registration at the Real State Registry Office, documents that formalize the real estate transaction and effect the transfer of ownership of the property to the buyer, guaranteeing the legal security of the parties.

Payment

(i) Spot Payment: The foreigner can transfer the entire amount directly to the seller if they have a bank account in Brazil. Otherwise, they will need a representative to carry out the exchange transaction in accordance with the requirements of the Central Bank of Brazil.

(ii) Financing: In this case, it is mandatory for the foreigner buyer to have a bank account in Brazil, and the financing institution may require proof of income to comply with foreign exchange regulations.

Note: In any of the cases mentioned here, taxes and fees apply to the purchase, such as the Real Estate Conveyance Tax (ITBI), which ranges from 2% to 4% of the purchase price. With its natural beauties, wealthy culture and constantly growing real estate market, Brazil offers many investment opportunities. Facilities such as the reduction in the minimum purchase price for real estate in the North and Northeast regions and the extension of the Residence Permit make the country attractive for those looking for a safe investment with appreciation potential.

However, the procedures for buying property can be complex for foreigners unfamiliar with the country’s bureaucratic requirements. To make the most of everything Brazil has to offer, it is essential to have specialized legal support. Vaz de Almeida Advogados Associados, through its experienced professionals, is ready and diligent to help foreigners who want to invest in real estate in Brazil.

Carolina Madeira

Carolina Madeira is a Corporate Lawyer, specializing in commercial contracts and corporate planning for several business groups. With experience in operations regulated by the Central Bank, she also works in real estate law, providing strategic support to her clients.

Thiago Pereira

Thiago Pereira is a Corporate Lawyer in the Business and Strategic Operations area, with a postgraduate degree in contract law. With experience working as an in-house legal counsel for companies, Thiago attends to contractual demands and provides corporate guidance.

Userful links

Here are useful links from public institutions in Brazil that are relevant for prospective property buyers:

1. Land Registry and Property Registration
   Registro de Imóveis (Real Estate Registry)
   Information on property registration and official property records in Brazil.
2. Taxes and Financial Matters
   Receita Federal do Brasil (Brazilian Federal Revenue Service)
   Details on property taxes (e.g., IPTU – property tax) and tax obligations for property owners.
3. Visas and Residence Permits
   Ministério das Relações Exteriores (Ministry of Foreign Affairs)
   Information on residence visas for foreign property buyers, including the investor visa.
4. Housing and Building Regulations
   Ministério do Desenvolvimento Regional (Ministry of Regional Development)
   Information on housing policy, subsidies, and building regulations across Brazil.
5. National Statistics
   Instituto Brasileiro de Geografia e Estatística (IBGE)
   Access to market analyses and statistics on property prices, demographic data, and regional development.
6. Environment and Construction Regulations
   Ministério do Meio Ambiente (Ministry of the Environment)
   Information on environmental regulations and construction guidelines in protected areas.
7. Urban Planning and Permits
   Websites of local Prefeituras (Municipal Councils), such as Prefeitura de São Paulo for São Paulo. These sites provide information on urban planning rules and construction permit procedures.

These links provide essential legal, tax, and building regulation information and facilitate access to key governmental resources for property acquisition in Brazil.