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Article by: emmanuel@seekinternationalproperty.net (Emmanuel Adeyanju) Published: 24/05/2012

Purchasing Process in Brazil by Foreign

Legal Situation, Fees and Taxes.

The process for buying apartments in Brazil is quite straightforward particularly for buyers and investors using Seek International Propery. We have direct access to English-speaking lawyers who understand the local market and are used to dealing with overseas property buyers.

In our experience the legal team we work with are able to deal with the normal concerns that an overseas property buyer has when purchasing in a new country for the first time and will be able to provide ´peace of mind´.

It is definitely worthwhile investing in a decent and reputable lawyer and we can provide this to our clients for a very reasonable fee.

The Process for Buying an Apartment.

One of the major advantages in investing in Brazil unlike many other countries around the world is that the buyer will own the freehold to both the land and property in their own names. In the case of any properties each owner will own both his/her individual unit as well as a certain percentage of the common areas though from an administrative viewpoint this will be owned and managed by the condominium company.

Each buyer will require a tax registration number (CPF - Cadastro de Pessoa Fisica).We will be able to arrange this through our lawyers for each buyer or alternatively it can be applied for at the local Brazilian embassy in the country of residence.

It should be noted however that the CPF is only required when taking the full title of the property so in cases where a buyer is purchasing off-plan this will not be required until the buyer receives the keys and takes full ownership.

The process for buying a house or plot of land may vary from the above but we will be pleased to provide any assistance or advice in cases where a client wishes to purchase something different.

Transfer of Funds

All transfers of funds to Brazil will take place through the international transfer system and should be from one bank to another. The funds will pass through Banco do Brasil who have a responsibility to check where the funds have come from and where they are going to but generally this does not create any undue problems.

It normally takes 5-7 days for the transfer to take place depending on which Banks are involved. HSBC has a full network in Brazil and we would recommend that buyers use their services for a faster and more reliable transfer.

Fees and Taxes

On purchase you will need to allow for approximately 7% of the purchase price to cover legal fees and taxes.

These are generally as follows :

Legal fees can vary but we aim to provide our clients with the best possible rates through local discounts. Fees vary from 1-2%.

Purchase tax is currently 3-4% of purchase price depending on location.

Notary fees and registration are both 1% each.

On resale Capital Gains Tax is charged at 15% of net gain though this is exempt if the profit is reinvested in another property purchase in Brazil. Income tax on rentals will be for individual accounts according to local practice in country of residence.

External Article Link: http://www.property-partnership.com/overseas-property-guides/overseas-property-guide.cfm?id=386

Article Link: http://www.property-partnership.com/overseas-property-guides/overseas-property-guide.cfm?id=386

Please contact the author at emmanuel@seekinternationalproperty.net for more information.