Why buy property in Brazil?

The emerging property market of Brazil's north east coastal region is increasingly attracting investors from around the world as property investment buyers are becoming more confident in the Brazilian property investment market because of bullish returns.

Brazil's booming economy is only supporting the growing confidence in its property market. Kenneth Thorkildsen, Director of Obelisk Private Finance, comments "Brazil has now taken the mantle as the largest emerging property market.

Investors who have already made gains from property in other regions, may find Brazil to be a profitable addition. "I would recommend that investors have a geographically balanced property portfolio and Brazil, with its low entry levels and booming economy, offers both experienced and new investors the opportunity to capitalize on higher than average returns."

The Brazilian Property Market

The attraction of buying property in Brazil is driving demand for Brazil beach front property in Natal and Bahia where property prices are on an upward trend. The growth of new property developments in the North East region supported by a fast developing tourist industry, huge investments in the local infrastructure and strong economic growth.

Buying Property in Brazil - The Purchase Process

The law in Brazil states that both nationals and foreigners are on almost equal footing when it comes to property ownership and tenant rights. However, property buyers from abroad are subject to some limitations dictated by national and security interests.

Below is the standard purchase process in Brazil, and issues that may affect that purchase:

• Ownership of land and property by foreigners is permitted, and all property is freehold. Non-residents may invest in property through direct ownership from abroad, or through vehicles (resident companies, partnerships or investment funds). With regards to rural property, there can be some restrictions regarding the size of the area to be acquired.
• Once a buyer has found a suitable investment property, it is necessary to apply for a certificate known as Certidao de Onus Reais. (This is not required if you are buying an off-plan property).
• When buying off plan property in Brazil it is advisable to carry out all due diligence with regards to checking building licenses are in place, the land is properly registered and has 'copia da escritura publica' and a certificate from the notary.
• The cost of the purchase must be brought into Brazil through an international wire transfer to the Banco Central do Brasil, which allows the government to record all investment into the country from overseas.
• Once a buyer has found a suitable investment property, it is necessary to apply for a certificate known as Certidao de Onus Reais, which is an identification document for the property recounting its entire ownership history. This is issued from the Cartorio de Registro de Imoveis (Real Estate Registry Office).
• Once the purchaser receives this for the chosen property and has negotiated an agreed price with the vendor, a small non-refundable deposit is usually paid to the seller.
• A sales contract is then drawn up which details the full conditions of the sale and also acts as a receipt for the deposit paid.
• Finally, it is important to draw up the property's sales deed completion ('escritura') normally carried out at the notary. Once this has been acquired, it should then be taken to the Real Estate Registry Office to effect registry.

Costs of a standard property purchase in Brazil include the following:

• Stamp duty (or purchase tax) at 3% of the purchase price.
• Government purchase tax of between 2% and 7% of the purchase price.

Buying Property Overseas:

If you consider buying a property overseas then choose your desired country location from our list below. On all our country pages you will find useful information on buying investment property including information on mortgages, foreign currency, solicitors, economic & tourism factors, research sources, due diligence reports, books and property investment guides to assist you in making a well informed decision when buying a property abroad.

• Investment Property Brazil
• Buying Property in Brazil
• Economy Brazil
• Legal Aspects
• Mortgages Brazil
• Tourism Brazil
• Investment Research
• Property News Brazil
• Books on Brazil
• Featured Development
• Brazil Weblog