Buying Property in Brazil

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Buying property in Brazil is refreshingly straightforward...

Appointing a Lawyer

As with any legal transaction, the first step in your land purchase is to appoint a reputable lawyer to act on your behalf. Your lawyer will carry out all necessary checks on the property or land in Brazil and fulfill the legal requirements of the purchase.

We recommend you appoint a lawyer who is fluent in your language so that you fully understand all the legalities and proceedings.

(Legal costs are generally between £500 and £1,000 depending on the value of the land purchased.)

Your lawyer will:

Check the current owners have the correct title to the property

Check for any charges and liabilities still owed on the property

Check your contract and advise you on the obligations for both parties

Help you through the payment/funds transfer

Ensure the property is registered in your name

Registration

The property registry system in Brazil is well developed and safe and real estate registration in Brazil is carried out by private notary publics. All land and property is registered at one single registry, which records details of the entire commercial history and the physical identification of each property. It is obviously very important to ensure that any land or property you buy has a clear title and your lawyer will ensure this is the case.

Brazilian CPF

You will need a Brazilian ID called a CPF. This is the UK equivalent of a national insurance number and can be obtained fairly simply by submitting a copy of your passport with a request for a CPF signature card. Once you receive the signature card you simply sign it and send it back with a small fee, and your CPF number is assigned to you at the Receita Federal. This can then be included in any purchase agreement. A formal copy of the CPF card will be posted out to you at an address in Brazil – usually your lawyer´s address for ease.

Costs

Transaction costs, including stamp duty, fees etc. are on average between 3% and 8% of the purchase price. Costs vary according to location, type of property and the State you buy in.

Breakdown:

A down-payment for your chosen property

Property transfer fees of approximately 4%-5% of the purchase price.

Balance payment (or installments if financed)

1% import tax on the transfer of funds from abroad.

Money Transfer

Funds are sent via the official route of the Central Bank of Brazil. The bank records your funds entering the country and in order to release the funds, Purchase Brazil must present the contract to the bank. We strongly recommend you use only this official route, or you may have problems transferring funds out of Brazil when you sell your property in the future.

There are generally no limitations to returning funds overseas provided they were originally registered with the Central Bank at the time of purchase.