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Buying Process

The Buying Procedure in Brazil Explained

The Buying Process: Hiring a Lawyer, Mortgages,

Can I buy property in Brazil?

Foreigners are allowed to buy and own property in Brazil. This is not always the case for all other countries. The Brazilian government has a strategy for encouraging foreign investment.

How can I buy property in Brazil?

Having selected a property, the process is very similar to that operating in the UK and other European countries (unsurprising, considering Brazilian law is based on that of Portugal). After choosing your property we will issue a sales memorandum confirming the apartment's details and a reservation deposit is paid. A preliminary contract is drawn up and, assuming agreement on terms, the contract is signed by both parties. A holding deposit is usually paid at this point, normally 30% of the property's value. Further payments are made as agreed within the contract. With 30 days notice on completion. Our website will display monthly, building progress photos.
What do I need to do buy a property?

All you need is proof of identity, a copy of your passport is sufficient to get the initial process started. After we obtain some personal information we can obtain your CPF for you. This can be arranged for a small fee.
Brazilian CPF.

As noted, foreigners are entitled to own freehold property in Brazil. In order to become eligible to purchase, however, one must first obtain a CPF number (Cadastro de Pessoas Fisicas), similar to a National Insurance number in the UK, which entitles the buyer to register title and register accounts with utility providers. This can be done by the buyer, assuming they speak Portuguese, or by a lawyer retained by the buyer, for a nominal fee. We can arrange this for a small fee.
What next?

1.We will have sent you our proof of title, the registered documents that state the ownership of the land and development.

2. After the contract has been signed, the original contract needs to be legalised at the Cartorio (Land Registry). This can be done by the Brazilian Embassy in your country; or we can also arrange this to be carried out in Brazil on your behalf.
Sending Money:

Once we have all your information, the contract has been signed and legalised. The contract is registered with the bank ready to receive your money entering Brazil. The Central Bank (Brazil's equivalent of the Bank of England) records this transaction. Your money enters the country in a perfectly legal and recorded manner. This allows you to sell your property in the future and take your money out of the country without any restrictions (after deducting tax; CGT=15%).

Completion:

The builder will be under contract to complete on time. The builder is fully insured and registered and on completion you will receive a 5 year house protection insurance rather like NHBC in the UK.

Fees and Taxes:

The buyer is liable for a number of fees and taxes when purchasing in Brazil. A purchase tax and registration fee is applied by the government at between 2-5% depending on the home's value and location. Furthermore, capital gains tax is normally applied at a flat rate of 15% and is payable upon the sale of the property. Exact purchase taxes can be obtained on request.

Title:

All the units in Brazil are usually sold freehold: once you have paid the purchase price in full you may obtain your title deeds, as in the UK, stating that you are the sole owner. You will need your contract and CPF number to carry this out.

Condominium Life:

A residents' association will be set up by the developer, who will see to the practical formalities and paperwork. A board of residents will make any decisions concerning maintenance and will set a monthly service charge. This will cover janitor and security services, insurance, pool cleaning, gardening and similar communal expenses.