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.
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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