Brazil
There are no restrictions on the ownership of
land or property in Brazil by foreign nationals. However, in order to
purchase property, you need a Brazilian identity card called a CPF. To
obtain this, you will first need to have your birth certificate
translated into Portuguese and notarized by the Brazilian consulate in
your home country. You can then apply for the CPF to Banco de Brasil
submitting your notarized birth certificate and your passport. You will
also need a Brazilian mailing address, to which your CPF card will be
sent. The CPF
number is obtained from any office of the Brazilian Internal Revenue
Service, at any Brazilian consular office or Brazilian Embassy abroad or
by visiting www.receita.fazenda.gov.br.
- Fees and Taxes.
The buyer is liable for a number of other fees and taxes (around 7-8%
of the purchase price) when purchasing in Brazil and these vary by state
and by legal firm. Notary Fees (2 - 2.5%) are paid upon completion for
the registration of title deeds at the Land Registry. Also payable on
completion is Transfer Tax (around 3%). Legal fees (around 1.5% – 2%)
are usually paid in two stages and the amount paid depends on the price
of the property. ExpatMoneyChannel
adds: Make sure you have a clear idea of all of the fees and ensure this
is added to the total amount of money you need to raise to purchase the
property.
- You
may well find it is cheaper and quicker to use a specialist currency
exchange provider than a lawyer or bank. For example, MoneyCorp has a
partnership with Banco Rendimento in Brazil. The service fixes the
Brazilian real rate of exchange throughout the transaction so that
clients know exactly how many reals will be delivered. It also reduces
the time between transfer and receipt of funds, while guaranteeing that
each trade will be registered with the Central Bank to facilitate the
future repatriation of funds. Money arrives on the day it is expected.
Work with reputable partners – agents, lawyers and currency providers who can be trusted.
When
choosing a reputable partner always check that they are certified or
registered to undertake the necessary work. Experience in dealing with
foreign citizens buying abroad is recommended.
Never, ever, trust an estate agent here. They work for the seller for a
normal 5% commission. They will always tell you the paperwork on the
property is in order, but it almost never is. The consequences can be
serious: if there are outstanding taxes and condominium fees (to name
but two) the buyer can get clobbered later as these debts attach to the
property not to the person who incurred them. You often find the the
seller is not the formal registered owner as they never paid the money
to do this step. A lot of properties are tied up in inheritance disputes
so this has to be checked 100% by a professional.
Always engage a lawyer to work for you and brief them completely and
carefully. Negotiate their fee up front. Their union rates allow them to
charge up to 2% of the transaction value but you can get this down.
Lawyers are insured and properly governed, estate agents are not.
Cash is the name of the game. Moreover, the usual deposit is 10-15% and
almost always the balance has to be paid 30 days later. If you don't
pay, you lose the deposit unless there are sound legal grounds like
undeclared debts against the property etc. That is why it is essential
to have a trusted lawyer check all the 'certidoes' of the property and
the seller. Only proceed if they all check out.
If you are bringing money in from overseas, it is essential you speak to
your Brazilian bank early and make sure you get them cranked up to get
the funds in through the Central Bank. This can take a few days so make
sure you allow for it with plenty of time before your 30 days run out.
Don't leave the funds too tight as a blip in the rate can leave you
short and could threaten your deposit if you don't complete on the nail.
Make sure it is your lawyer who sorts out registering the transfer of
the property. Do not leave it to the broker and/or cartorio.
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