Home Property in Brazil
How to buy a house in Brazil?
Here you will find the detailed information about real estate purchasing in Brazil:
- the right way to choose the property and to effect the deal;
- property taxes and duties that should be paid;
- everything about home loans in Brazil;
- home property management and renting;
- rental, commercial properties and related investment properties.
Real estate for sale
Most recent offers from house owners in Brazil and from real estate agencies. Advertisements with the fixed price and auctions are listed here.
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There are no any restrictions on the real estate purchase in Brazil for foreign nationals. Any individual despite of not being a resident of the country can buy any type of the real estate on the same rights as the resident. Taxation of foreign nationals upon purchase of the real estate also doesn't differ from the taxation of citizens of Brazil. To acquire the real estate on the territory of Brazil the foreign national has to have only two documents: they are his passport with a visa according to which he entered the country and fiscal number which he gets on arrival to Brazil. The easiest way to purchase the real estate is with the help of the real estate agency. In Brazil there is no single register of the real estate throughout the country and therefore without a special inspection it is possible to buy object with any encumbrance. It is possible to address to the help of assistance of counsel who can check the bought object closely.
Process of the real estate purchase is rather simple and consists of conclusion of the contract and its registration. All this things usually are done by the real estate agency. Any advance payments or deposits are not provided by the law and can take place only by the agreement of the parties. Officially banks don't issue mortgage loans for foreign nationals nevertheless it is possible to acquire the real estate on credit.
The rate of mortgage lending in the Brazilian banks is quite high and rarely is lower than 12% per annum.
It is also widely used the practice when it is possible to agree with the seller about division of payments into some parts. In such case it is necessary to draw up the contract in the presence of the lawyer in order to avoid any claims from the third parties cause the object does not come into the ownership till its full cost will be paid.
The real estate prices in Brazil in general are lower than for example in Europe and considerably depend on the location and on the construction and can shuffle from $200 to $1500 for sq.m. This price bracket includes guarded condominiums and apartments in modern houses with a garage, a pool and special rooms for fun holidays. The property with the cost under $1000 for sq.m appertain to the elite. Current quality of construction workmanship meet the world requirements, but does not influence on the prices cause labour power is rather qualified and low-paid in Brazil.
Construction investment is one of the most profitable capital investments in Brazil. A good land plot can make the income on house construction from 50 to 100%. The average term of construction of the house is 4 - 6 months. Recently the land rises in price year by year, and on average over the last 5 years its price grew by 3 - 5 times. Nowadays on a coastland of the northern states of the country where a tourist season lasts all the year, it is still possible to buy the land plot at the price up to $5 for sq.m and cost of construction is about $300 for sq.m.
Upon purchase of the real estate in Brazil the tax for ownership transfer (ITBI) is 2% of a sales price. All other taxes with payment for a notarial contract are also about 2%.
Also there is the annual real estate tax (IPTU):
- residential real estate - 0,85%
- nonresidential real estate - 1,1%
- the land - from 1,5 to 6,0%
- the land plot with the approved project on - residential construction - 0,95%
- the land plot with the approved project on nonresidential construction - 1,2%
- farmland - 0,03%
The tax isn't the same on all territory of the country as it is defined by municipal authorities and depends on property location.
The foreigner who has bought the real estate with the cost over $30 000 receives a visa for 5 years with the right of stay in the country no longer than 6 months per year. This visa allows to enter the country for 3 months and to prolong the stay on site for 3 months.
If until recently in Brazil it was necessary to invest over $200 000 in national economy for receiving of permanent place of residence, now this sum is reduced to $50000. Also the opening of firm with 10 workplaces and with a development project for the term of not less than 5 years gives the right for receiving of permanent place of residence.
The real estate purchase by foreigners in Brazil is an everyday occurrence and doesn't constitute a problem especially as Brazil is the country where it is possible to resolve all arising issues then and there.
The situation on the Brazil real estate market represents unique opportunities for receiving of fast profits from the real estate investments. In the country, especially in its northern states, an international tourism gains steam therefore the authorities in every possible way make advances for the foreign investors wishing to invest in construction. Also in the country a domestic tourism which allows to develop small business prospers. Some foreign investors buy or build small private hotels and get a year-round income from tourism, thus the cost of the property grows annually. Other foreign investors buy up coastal sites of tens of hectares on the north of the country with fast development of this region in mind and with corresponding multiple property appreciation.
Rapid growth of the real estate value in Brazil, extraordinary hospitality of local population make the country very attractive to investment and accommodation. The Brazilian market of the real estate undoubtedly is among advanced and new trends of world investments.