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Brazilian Property Investment FAQ
March 5, 2009Article by Ray Withers
Making a decision to buy a property in a country you have little or no legal and business experience is a big step – Here’s a list of some of the most popular questions asked by investors about Brazil:
Can a foreigner own a property in Brazil?
All Brazil property buyers have the same rights. Brazilian law allows overseas buyers to own freehold land and property.
Can foreigners live or retire to Brazil?
Yes – but with certain visa and residency restrictions:
* Tourist visas
Most UK passport holders can pick up a visa at the airport on entering Brazil. Tourist visas last 90 days. The maximum stay per year with a tourist visa is 180 days.
* Permanent residency
Investing £34,200 in a Brazilian company – that can be the investor’s own business – is required to apply for permanent residency. A permanent visa lasts five years, but an application for citizenship can be made after four years.
* Retirement visa:
The requirements are to be over 50 and to show an income of about £1,400 per month if you have two dependents or an additional £700 per month income for every other dependent.
Is property purchase in Brazil secure?
Brazilian property ownership is secure with a real estate registry showing the owner’s name so buyers can check if the sellers have any debts or liens on the property. Employing a Brazilian lawyer to undertake property transactions is recommended.
What is CPF all about?
CPF is the short name for a Catastro de Pessoa Fisica, which is a reference number for buying a property in Brazil. Your lawyer should see to this.
Can I buy the property jointly?
Yes, unlike the UK where only four joint owners are allowed, Brazilian property may be owned jointly by up to 10 people.
Can I get a mortgage in Brazil?
Foreign investors cannot borrow money in Brazil.
Where is the best place to buy in Brazil and why?
Many property companies are promoting property in Brazil. Property Frontiers, a leading international property consultant is offering two typical Brazilian property investment opportunities:
Natal Ocean Club, Natal, Brazil
* Chic villas and condos with exquisite décor with cliff-top views
* Yields of 15% with current operator room rates
* Prices range from £138,000 for a one-bed spa residence to £788,000 for a luxury four bed villa with infinity pool
Vision Condo Apartments, Sao Paulo, Brazil
* Vision Condo Apartments should command gross yields between 9-14%
* Small apartments (from 50 square metres) in high demand
* Serviced apartments with high standards of facilities and amenities.
* Sao Paulo investment property is fuelled solely by local demand
* Prices range from £74,590 for a studio or one bed apartment to £86,790 for a two-bed apartment.
Can I rent my property when I don’t need to use it?
Yes – buy-to-let in Vision Condo Apartments is an excellent option and resort property like Natal Ocean Club is let for most of the year, with a period of occupation for the owner.