Real estate is one of the more complicated investments you can pursue in Brazil. Pursuant to their law, URBAN property can be acquired by any foreign citizen, and buying real estate in the urban areas is considered to be a relatively secure investment. Their real estate market is well-developed, and an organized and safe property registration system is in place.
However, for RURAL areas, there are limitations on investments. Foreign individuals who plan to migrate to Brazil may purchase rural properties directly from abroad, but they must realize that they have to come to live there within three years from the date of acquisition. Rural properties acquired by foreign companies must be destined for the implementation of industrial, agricultural, or settlement projects, and these activities must be related directly to the purposes of the companies.
Note that non-residents and foreign individuals may also invest in rural and urban properties by direct ownership from abroad or through partnerships or resident companies.
* In order to buy a piece of property, a tax registration number is required from the Cadastro de Pessoa Fisica (CPF).
* Although the Real Estate Agent’s fee is paid by the seller, the buyer has to pay the fees for registration, a transfer tax, the lawyer, the notary, and 6 percent to 8 percent of the price for costs.
* Both parties sign a public deed, drafted by a private notary public, who registers the sale at the real estate registrar. Real estate can only be registered at a single registry, which makes it a safe system.
* There are 13 procedures to register a property, which takes about 42 days to complete.
Once a suitable piece of property has been successfully purchased and it is time to place a building on it, it is then necessary to find a reputable and well-experienced firm to do its part. One fine example is CONSTRUCAP, which is among the biggest ten construction companies in Brazil.