Country Buying Guides - Brazil

The conveyancing process

• Independent Lawyer
It is essential to use an independent lawyer with a legal knowledge of both the English and Brazilian legal systems, who are able to translate the documents and explain the terms to your full understanding.

• Due Diligence
It is important to carry out due diligence on the property you are purchasing in order to ensure there are no encumbrances on the property. Your independent lawyer will do this on your behalf.

• Promissory Contract
The first step when buying a property in Brazil will be to sign a reservation agreement and then a promissory contract, both of which should be checked by your independent lawyers as they are binding and when registered at the Registration Offices they give you real rights over the property. A non refundable deposit is usually payable at this point

• Notary Public
After the promissory contract is signed, the deed can be signed at the Notary.
The acquisition of a real estate property in Brazil due to inter vivos transactions are generally agreed between the purchaser and the seller by means of a sale agreement. This is signed before a notary public by both parties. It is common for a Power of Attorney to be used, which effectively gives someone the power to sign the contract on your behalf. A notary fee is applicable and is normally a fixed rate of £180.

• Registration
Ownership of real estate property in Brazil is constituted upon the registration of the deed of sale at the appropriate Real Estate Registry of the location where the property is situated. If the contact is not registered it will only be binding between those party to the contract and will not be enforceable against third parties.

• Restrictions
Ownership of land and property by foreigners is permitted in Brazil, and all property is freehold. Non-residents may invest in property through direct ownership from abroad, or through companies etc. however some restrictions do apply with regards to the size of rural properties. A small fee of £180 is payable upon registration.

• CPF Number
A purchaser In Brazil requires a Catastro de Pessao Fisica (CPF), a tax registration number in order to buy property. A small fee is payable and the card takes around two months to get. Your CPF number can be obtained from overseas through the Embassy, or through your a independent lawyer.

• Transfer of Money
The Central Bank of Brazil, the Banco Central do Brasil records all funds entering the country, which allows the Government to record all investment into the country from overseas. Funds should be sent directly from your own bank to the vendors’s bank account in Brazil, via the Central Bank of Brazil in order to release the funds, the vendor must present the contract of sale to the bank.

• Costs & Taxation
Stamp duty (or purchase tax) is also payable at 3% of the purchase price. Government purchase tax of between 2% and 7% of the purchase price and Property transfer tax (ITBI) of 2%, which is payable at the city hall all need to be accounted for before the purchase of property within Brazil, as well as a 1% import tax of fund coming into the country from abroad.

In Assocation With The International Property Law Centre LLP