Brazil is becoming a hot property investment spot, even in the midst of the tough financial times we are facing. The demand for Brazilian property has increased, particularly since Brazil was chosen as the country to be the host for two major international sporting events, the 2014 World Cup and the 2016 Olympics. Listed below are a few tips, none Brazilians should consider before they plan to buy Brazilian property.
1. To buy real estate property within Brazil, you must get a CPF (Cadastro de Pessoas Físicas) which is simply the Brazilian official Identification card. You might also have to acquire an RNE which means "national record of foreigners", specifically if you intend to open a bank account in the country.
2. The funds you use to buy your Brazilian property should be taken into Brazil through an approved finance company, who should also be signed up with Brazil's Central Bank during the acquisition. This will help to avoid problems getting your money back to your country of origin should you decide to sell your property in the future.
3. You should ensure that the property is legally authorised for purchase and that its title is free and clear.
4. Use a trustworthy Brazilian real estate consultant that can demonstrate past satisfied clients.
5. It's advisable to get specialised legal counselling with regard to Brazilian taxation law. For example a foreigner that resides in the country for over 183 days in a given year might become liable for taxation as a resident. Additionally, you will be asked to pay property taxes and even income taxes on the money earned if you rent out your property.
Purchase tax on Brazilian real estate will be normally be 2 to 7 per cent. But Brazil has agreements with quite a few countries to help you avoid being taxed twice, however this is not true with every single country, so you will need to check if your country is covered. Tax returns in Brazil are filed on a yearly basis, during the month of April.
6. People from other countries are generally not eligible for Mortgages in Brazil, though there are some firms that may permit buyers to purchase their property in instalments. Interest rates in Brazil are really high (almost twenty to thirty percent) so you are most unlikely to want a mortgage here anyway.
7. A bit of research and advice when you first start considering a Brazilian property investment will help you to bypass many complications at the later stages.
Brazil is the perfect place to obtain a holiday property or home. On the other hand, foreign investors need to understand that they will be dealing with a different kind of legal system when buying property in Brazil and must take that under consideration when investing in property here. Investing in Brazil real estate can be hugely profitable but it's also relatively complex.
Brazil Bahia Property helps real estate investors make smarter judgements and more informed investments. Being Brazilian Real-Estate Agents we're experts when it comes to the
Bahia property market. Furthermore, we are native English speakers serving foreign purchasers each and every day.
Contact
For all your property enquiries and general questions on Brazil please feel free to contact us at any time. We are available by phone and email 7 days a week.
For a rapid response by one of our Brazilian property experts please either fill the form in below, email us directly or call either our UK or Brazilian office on the number's below:
UK: +44 (0)207 801 3107
Brazil: +55 (71) 3013-1413
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