Property Ownership in Brazil

Foreigners can purchase property in Brazil and have the same rights as Brazilian citizens when it comes to owning property. Buying property in Brazil is easy but there are several requirements you'll need to accomplish before you can start the purchase process. The first step is to obtain a Brazilian CPF or ID. For this you'll need a copy of your birth certificate translated to Portuguese by a certified translator then legalized by the Brazilian consulate in your area. You'll then need to visit Banco Do Brasil with your valid visa and your translated and legalized birth certificate. You'll apply for your CPF there and pay a nominal fee. The next day you'll head over to Receita Federal to receive your assigned number. You'll need to provide a Brazilian address for you CPF card to be mailed. You should receive your card within two months.

Once you have your assigned number you can officially purchase property in Brazil. To accomplish this you should seek the help of a competent real estate agent. Real Estate agents in Brazil are regulated and governed by several organizations. However real estate agents in Brazil are sales people and finding one who will treat you honestly is important. Remember all real estate agents in Brazil have a duty to represent the seller; however there are certain duties the real estate agent owes the buyer. Among these is the agent's duty to provide all relevant information regarding the property. They must treat all buyers fairly and they must present all offers to the seller unless stipulations exist concerning minimum pricing. Finding a good real estate agent will ensure you find a good selection of properties and will also reduce the chance of overpaying for a property.

When a property is located your agent will prepare the offer. This document will contain the offered price along with buyer and seller information as well as property terms and conditions. This document will require the signatures of both the buyer and the seller. Once the offer is accepted the buyer will provide a down payment. This amount is typically equal to 10% of the purchase price but can be negotiated between the buyer and the seller. The buyer's attorney will conduct a title search of the property and verify all property tax is current and no other liens are attached to the house.

Paying for real estate in Brazil is often a cash transaction as mortgages are quite expensive. Transferring money into Brazil to purchase a home is very easy. You'll simply wire the money into Brazil via the Central Bank of Brazil. The money is transferred directly to the sellers account; this allows the incoming funds to be registered and if the purchaser ever decides to sell and transfer this money from Brazil the process will be easier. Once the money is wired to the seller's account the seller will not be able to withdraw the money until he produces the finalized purchase contract.

1 Costs

The costs involved in a real estate transaction usually runs between 5% and 8% of the purchase price. This includes your attorney fees of 1% and registration fees of 2%. There is also a stamp tax ranging between 2% and 5%. To wire money into Brazil there is a 1% import fee. Annual property taxes run .6%