Guide for Foreign Investors

Absolutely. Brazilian law grants foreigners the right to purchase urban property with the same rights as Brazilian nationals. There are minimal restrictions, primarily applying to: - Rural land larger than specific limits (varies by region) - Properties in border zones or national security areas - Coastal land under certain conditions For the vast majority of urban residential and commercial properties — which represent the primary interest of international investors — there are no restrictions whatsoever. You can buy, sell, rent, and inherit property freely.

Brazil has a robust legal framework for property ownership: - Civil Code (Law 10.406/2002): Governs property rights, contracts, and obligations - Real Estate Registry Law (Law 6.015/1973): Regulates property registration and title transfer - Foreign Investment Law (Law 4.131/1962): Covers foreign capital regulations - LGPD (Law 13.709/2018): Protects personal data during transactions Property ownership in Brazil is recorded in the Registro de Imóveis (Real Estate Registry), which provides strong legal certainty. Each property has a unique registration number (matrícula) that records the complete chain of ownership, liens, and encumbrances.

To purchase property in Brazil, you will need: Essential Documents: - Valid passport (original and certified copy) - CPF (Cadastro de Pessoa Física) — Brazilian tax identification number - Proof of address in your home country (certified translation may be required) - Power of Attorney (if not present for the transaction, must be apostilled) For the CPF: - Can be obtained at any Brazilian consulate or embassy abroad - Can also be obtained through the Brazilian Federal Revenue Service (Receita Federal) in Brazil - Processing typically takes 1-5 business days - Required for any financial transaction in Brazil For Fund Transfers: - Declaration of foreign capital (BACEN/Central Bank registration) - Proof of funds and source documentation - International wire transfer receipts All foreign documents must be apostilled (Hague Convention) or consularized, and officially translated into Portuguese by a sworn translator (tradutor juramentado).

Key taxes for foreign property owners in Brazil: Purchase Taxes: - ITBI (Transfer Tax): 2-3% of property value, paid at purchase - Registration Fees: Approximately 1% of property value Ongoing Taxes: - IPTU (Property Tax): Annual municipal tax, varies by location (typically 0.5-1.5% of assessed value) - Income Tax on Rental: 15% flat rate on rental income for non-residents (withheld at source) Sale Taxes: - Capital Gains Tax: 15-22.5% on the profit from the sale (progressive rates) - Non-residents pay 15% flat rate on capital gains Important Considerations: - Brazil has double taxation treaties with several countries — check if yours applies - Rental income must be declared to Brazilian tax authorities - Currency exchange gains may also be taxable - Consult a tax professional specializing in international real estate for personalized advice Note: Tax rates and regulations are subject to change. Always verify current rates with a qualified professional.

Step-by-step process for buying property in Brazil: 1. Obtain Your CPF: Apply at a Brazilian consulate or embassy 2. Hire a Lawyer: Engage a Brazilian attorney experienced with international transactions 3. Property Search: Identify properties that match your investment criteria 4. Due Diligence: Your lawyer verifies title, checks for liens, and reviews documentation 5. Sign a Promise of Purchase (Compromisso): A binding contract between buyer and seller 6. Fund Transfer: Send purchase funds via official international wire transfer, registered with the Central Bank 7. Execute the Deed (Escritura): Sign the definitive purchase deed at a notary public (Cartório) 8. Register the Property: Register the deed at the Real Estate Registry (Registro de Imóveis) The entire process typically takes 30-90 days, depending on complexity and documentation.

Financial considerations for foreign investors: Bank Account: - Foreigners can open a bank account in Brazil with a CPF and valid passport - Non-resident accounts (Conta de Não Residente) are specifically designed for foreign investors - These accounts facilitate property transactions and rental income management Fund Transfers: - All incoming funds for property purchases must be routed through official banking channels - The Central Bank of Brazil (BACEN) requires registration of foreign capital - This registration is essential for future repatriation of funds and capital gains - Keep all transfer receipts and exchange rate documentation Mortgages: - Brazilian banks generally do not offer mortgages to non-residents - Some international banks operating in Brazil may offer financing with specific conditions - Most international investors purchase properties with cash - Developer financing (parcelamento) may be available for new developments