There exists an enormous opportunity for sophisticated investors and lenders in leveraging Brazilian properties. Property prices are low and the Brazil currency the REAL is getting stronger. This means the overseas property investor can win twice once on rising property values twice on the strengthening currency. So how do foreigners buy property in Brazil? RULES OF THE GAME. You need a Brazilian ID called a CPF. To get a CPF you need a birth certificate translated into Portuguese by a certified translator and legalized by the Brazilian consulate in your home country. .You make a trip to Banco Do Brasil with your passport and your birth certificate to formally apply for a CPF and pay a small fee. The next day you go to the Receita Federal to receive your assigned CPF number. Your CPF card is mailed to an address in Brazil within two months. (That's right, you need a Brazilian address.) Its best to use a trustworthy broker. Not only will the a good broker help you find a property, but he or she will make sure the price is fair, as well as make certain that the property is owned by the seller, and that there are no debts on it. The contract is prepared by the selling broker and contains: All information of the seller and All information of the buyer. Location and specifications of the real estate - The conditions of payment(s) The contract is signed at the office of the broker. You pay a down payment (usually about 10,000 Reais, or $3,500 usd, or $ 3,000 Euros). When payment has been made, your broker will arrange the registration of the property into your name via a Cartorio (similar to a notary). The cost for the property transfer is approximately 4%-5% of the purchase price. Payment can be made all at once or in installments of 12, 24, 36 or 48 months, but interest rates can be as high as 35%. If you opt to pay in installments, there is also a currency risk. In other words, if the value of the Brazilian Real goes down, your real estate becomes cheaper, and vice versa. There is a 1% "import" tax on transfer of funds from abroad. After registration, you are the legal owner. There is an annual property tax of approximately 0.6% per year of the assessed value. You will need to hire a caretaker to live on the property when you are not there. Visas: Foreigners are allowed 3 month visas, or 180 days total per year in Brazil. If you want to apply for a permanent visa, one of the following conditions must be met: - You are married to a Brazilian. - You have a child with a Brazilian. - You invest minimum 50.000 US dollar or 40.000 Euros in Brazil.- You have reached the age of retirement (50 years) with a pension of at least 2,000 euro or US dollar per month. Some investors in North Eastern Brazil in the region of Ceara have seen enormous profits in a short time. Beach properties and land in Fortaleza and Cumbuco have sold fast. Now is the time to buy property in Brazil. Copyright 2006 Nicholas Marr |
