Acquire property

Safety

Is Brazil a safe country? Brazil is as safe as any European or American mayor city. Crime against tourists are rare.

Is my investment save?

It is as safe as in the USA or Europe. There are no restrictions for foreigners and the country is open to international investments.

Low building cost

In international comparison, building costs in Brazil are low. If you invest today, the value of your property will increase in the future.

Economic growth

Experts believe that Brazil will be the fifth-largest economy by the year 2016. Already in 2012, Brazil ranked on number seven (Estimation by IMF)

Favorable real estate

The time to buy is good. Real estate objects are still cheap as the country’s economy prospers. Also the Brazilian middle class has found their own market. And as the middle class is growing, prices are increasing.

Tax reforms and the economical stability contributed to a decrease of interest rate and inflation rate. The inflation rate is currently 6,6 % (MUICP – consumer index). Buying property is also attractive due to the current exchange rates. Until 1999, the Brazilian currency was pegged 1:1 to the US$. Since 2003, the currency has stabilized.

Growing mortgage market

Thanks to the new legal situation the mortgage market grows dynamically. Until some years ago, mortgages were about 2% of the BIB only, for 2014 a tremendous growth is assumed. Mortgages shall then be about 12% of the BIB

Is my money safe?

Yes. Everybody, who transfers money to Brazil, will be registered by the Brazilian Government and at the Brazilian central bank. A buyer of property submits the contract to the bank to dispose of the deposited money. Owning property in Brazil means unlimited ownership.

What about taxable profits?

Regardless of where you live, the profit you gain with your property needs to be taxed. Non-residents pay a capital gains tax of 15% on profits that arise from their property in Brazil.

Technical process:

It is recommended to hire a lawyer. He will support you to acquire a Brazilian tax number (CPF) which is necessary for purchasing real estate. This is prescribed by law and serves to identify the investor for tax and cadaster purposes. You can apply for a tax number, when your lawyer has your valid mandate. You don’t need to travel to Brazil for this purpose. He can also be entitled to sign the entry in the land registration in your name.

Purchasing property is provision-free for buyers.

What are the costs associated with the purchase of a property?

Land acquisition costs sum up to about 7,5% of the purchase price.

• 3% ITIV (similar to VAT), Notary, Change of land registration, Administration fees, Lawyer fees (ca. 4.5 %)

How are the chances for renting?

Currently, few other countries profit so much from an increasing domestic demand. The purchasing power of the people will increase in the future. Also the numbers of students are increasing, because more and more students spend a semester abroad in Brazil.