Advice on Buying Property in Brazil

Brazil is the fifth largest country in the world with many diverse attractions from its famed rain forest, the Amazon River, 1300 meter plus mountain peeks, and a coastline that stretches for 4500 miles and with Rio de Janeiro it incorporates one of the world’s most famous cities renowned for its famed carnival.
Most Europeans will tend to purchase their property within the southern coastal areas but the whole of Brazil is open to property purchase by foreign nationals as there are now no restrictions on foreign nationals purchasing property in Brazil.
 
To start the property purchase procedure you will first of all need to apply to the Brazilian Consulate in your own country for a translation of your birth certificate into Portuguese by a certified translator, and then legalised by the Consulate.
It is advisable to do this before you travel to Brazil as this will be your first stage of your property purchase,
Having arrived in Brazil and found the property you wish to purchase you then need to apply for a Brazilian ID known as a CPF.
With your Certified Birth Certificate and Passport you go to the Banco do Brazil and for a small fee you can formally apply for your CPF.
The following day you can go to the Receita Federal to collect your assigned CPF number, your CPF card is then sent to you within 2 months to your new address.
 In all cases we recommend that you use a registered estate agent to ensure a smooth transaction. They will help you every step of the way, checking that the documentation is correct and that there are no debts on the property, and ensuring that the price you pay is correct and fair.
Your agent will prepare the “Sale of Property Contract” having first got the sellers details, the purchaser’s details and the specifications of the property that is being purchased. Also included are the payment details. Upon a deposit of 10000 Reais, (to secure the property) the property purchase contract is then signed at your agent’s office. Your agent will then take the contact to a Caterio (Notary) to get the property registered in your name .You will be expected to pay a property transfer tax, between 4-5 of the property purchase price.
Payment can be made at once or in instalments which have been decided before hand (beware interest rates can be as high as 35 and there is also a 1 tax on funds imported from abroad).
Once this is done you are now the legal owner.
As the owner you are responsible for a yearly property tax of 0.6 of the property value and if not resident you have to appoint a person to oversee the property whilst you are not there.
   
These guidelines are meant for guidance only and describe a straightforward purchase scenario. However this information is not meant to replace proper legal advice, which we always insist you take.