How to buy property in Brazil

Learn about different aspects of property purchase in Brazil. Learn how to purchase property wisely, while adhering to all laws and paying all necessary taxes. Find out about the purchase process, basic legal requirements, and costs involved.

Urban and rural properties can be acquired by foreigners through direct ownership, or through resident companies or partnerships. To conduct any economic activity, including purchase of property, a tax registration number from the Cadastro de Pessoa Fisica (CPF) is required. It is inexpensive and usually quick to receive a CPF.

After buyer and seller conclude negotiations, both parties have to sign a public deed drafted by a notary public (Cartorio). Sale also is recorded at the real estate registrar. Each property can only be registered in a single registry. Registry records contain the physical description and commercial history of each property, including its owners, mortgages, and other burdens. Real estate registration process in Brazil is well developed and usually easily accessible in most major cities.

In case of off plan property purchase, builder will provide a contract. Usually the contract is the same for all buyers in a development. Sometimes price and payment terms are negotiable. It is very important to deal only with reputable developers who have a good track record. It is strongly advised to register the signed contract with a local notary (Cartorio) for future reference.

It is also advisable to hire an attorney to check the contract and property for possible liens and other encumbrances which could affect the implications of the contract or have a negative effect on your investment.

All property purchase in Brazil has specific transaction costs associated with the process. Here are some common costs buyers should be aware of:

• Transfer Tax: 3% paid by the buyer
• Notary’s Fees: 2% to 3% paid by buyer
• Real Estate Broker Fees: 6% paid by seller

  When purchasing any property in Brazil, always make sure to enlist quality counsel in the form of an attorney and established broker to get the best deals in your real estate venture. You have the potential to realize a significant return on your investment by purchasing property in Brazil. Always ensure to work with reputable and well established developers when purchasing off plan property to ensure that you do not lose money in the long run and to protect the viability of your investment.