Buyers Guide

Invest in Brazil

Buyers Guide

Foreign buyers can purchase Brazilian residential or commercial property without any major restrictions, but there are a few limitations or fees applicable for some specific areas including marine land, islands, rural land or areas near to Brazil 's international borders.

A good agent is essential when you buy a property in Brazil , and Mila Investments have the experience and expertise to guide you through each step of the process and ensure you are kept fully informed and avoid any potential pitfalls.

When you have decided upon a property in Brazil you will need to make a verbal offer through Mila and appoint a lawyer to formalise your final price agreement and oversee purchase proceedings, including deposit or reservation payments.

With off-plan purchases the price is often fixed and dependent upon the current phase of construction, and the buying procedure may vary slightly depending on which developer you are purchasing from. At Mila we ensure that you have full details of the specific procedures relating to the development.

It is advisable to appoint a lawyer who is fluent in your language so that you fully understand all the legalities and proceedings and who will carry out all the necessary checks and fulfil the legal requirements of the sale.

Legal costs are generally between £500 and £1,000, depending on the value of the property purchased. Mila Inversiones can recommend all related professional services you require to make a safe, reliable purchase.

Your lawyer will check the current owners have the correct title to the property: If there are any charges outstanding on the property, the contract and advise you on the obligations for both parties and through the payment/funds transfer to ensure the property is registered in your name.

The property registry system in Brazil is well developed and carried out by private notary publics. All property is registered at one place, which records details of the entire commercial history and the physical identification of each property. Access to registry information is available to the public and includes relevant details on ownership, mortgages and other pending debts.

You will need a Brazilian ID called a CPF in order to buy property. This requires you to get your birth certificate translated into Portuguese by a certified translator and legalized by the Brazilian Consulate in your home country. This then has to be taken to the Banco Do Brasil with your passport and birth certificate, when a small fee is payable and the following day you will receive your assigned CPF number at the Receita Federal. The CPF card will be posted to you within two months to an address in Brazil .

Transaction costs (stamp duty and fees) average between 3% and 8% of the purchase price. The costs vary according to location and type of property. You will be asked for a down-payment of around 10,000 $R ($3,500 USD).

Payment can often be made all at once or in instalments of 12, 24, 36 or 48 months, but interest rates can be as high as 35%.

Funds are sent directly from your own bank to the seller's bank account in Brazil , via the Central Bank of Brazil . The bank records your funds entering the country, and the seller must present the contract to the bank in order to release the funds. We strongly recommend you use this official route, or you may have problems transferring funds out of Brazil If you decide to sell your property in the future as there are generally no limitations to returning funds overseas provided they were originally registered with the Central Bank at the time of purchase.