Real estate acquisition in Brazil is a good investment, especially when the property chosen is rented. So, the question that appears is can a foreigner buy a property in Brazil? The answer is yes, with the mention that specific procedures and steps must be respected.
Below, our lawyers in Brazil explain how you can buy an apartment in Rio de Janeiro or even a house in another important city.
Steps to buy a property in Brazil
If you want to buy a house in Brazil, you must first know the steps you need to complete:
- looking for houses for sale in Brazil can be done by checking local newspapers, the internet, or using a real estate agent;
- after finding the right property, you need to complete a verification of the respective place of living;
- setting up a bank account is also necessary for depositing the amount to be paid and from which the transfer to the seller’s account will occur;
- the transaction will take place in front of a public notary;
- then, the new property title must be registered with the Land Register.
Can a foreigner buy a property in Brazil? Yes. Do they need to comply with specific requirements? Yes, but they are quite simple. For example, they are not required to obtain Brazilian residence permits.
Feel free to address our law firm in Brazil for guidance on how to buy a property.
How to acquire Brazilian real estate as a foreigner
In general, foreign property ownership in Brazil is permitted and acknowledged under the law. Foreigners are free to purchase land, business, or residential property. However, they need to meet a few conditions.
No matter if you want to buy an apartment in Rio de Janeiro or a house in another city, you must obtain a CPF (Cadastro de Pessoa Fisica), or individual taxpayer identification number, if you are a foreign national. This number, which you can get from the Brazilian embassy or consulate in your home country, is necessary for any real estate transaction in Brazil.
It is also possible to acquire a property without immigration to Brazil, and only by securing an address here. Our lawyers in Brasilia are at your disposal if you need assistance in buying a property in the capital city, for example.
Important aspects to consider when you buy a property in Brazil
After searching the market for houses for sale in Brazil and finding the one that interests you, here are some pointers on how to ensure a smooth transaction:
- if you do not want to travel, you can use a power of attorney for a local representative, such as one of our Brazilian lawyers;
- all your personal documents used for the transaction need to be translated into Portuguese and apostilled, so make sure you do not leave this detail out;
- it is common for the buyer to pay a 10 to 15% advance for the desired property, so you should also make sure you have this aspect covered;
- the transfer tax when you buy a property in Brazil must be paid before closing the transaction.
If you plan to buy an apartment in Rio de Janeiro, our local law office can help you.
Taxes when buying real estate in Brazil
According to statistics, the real estate market in Brazil is expected to end with a total value of USD 7.92 trillion in 2023, which makes the country great for buying a house or apartment. For this purpose, here are the main taxes you need to consider:
- property taxes range between 0.3% and 1% of the property value;
- home insurance rates range from 0.4% to 1% of the total amount insured;
- notary fees are 1.25% of the buying price;
- the transfer tax is 3% of the acquisition price;
- attorney fees are also 2% of the purchase cost.
If you need support in buying a house or apartment in Rio de Janeiro, contact us. Our lawyers can also help you obtain citizenship in Brazil.