Buying Property in Brazil
A quick guide to buying and living in BrazilBUYING IN BRAZIL In Brazil, foreigners have the same legal rights and entitlement to property as Brazilians, so the process of buying property couldn’t be simpler. A government tax of around 2-7% is paid when the legal title of the property is transferred to the new owner (like UK stamp duty). Combined with legal fees (see below “legal team”), we estimate that most purchases can be completed with fees amounting to approximately 5-10% of the property value. For second-hand properties, a small deposit (a few hundred pounds) will usually secure a property and take it off the market. The remaining funds can then be wired to Brazil direct from your bank in the UK. Off-plan properties are usually funded using a payments scheme spread over the period of the construction works. Typically, a deposit of 10-15% is then followed with monthly payments and top-up payments during the construction period. Legal title transfers on handover of the keys. The payments are linked to a national “constructor price index” which means the monthly payments and thus total price of the property can fluctuate during the construction as the price of the raw materials and construction fluctuates. We suggest you register every funds transfer to Brazil with the Brazilian central bank, as this will greatly facilitate taking the funds back to the UK if you ever need to. LEGAL In Brazil you general use a notary public but for people unfamiliar with the legal and taxation aspects, we suggest you use an (English speaking) lawyer who has dealt with helping overseas buyers buy property before. who can help you with your purchase. They can then help you with
- Checking the current owners have correct title to the property
- Check for any charges and liabilities against the property
- Check your contract and advise you on the obligations for both parties
- Help you through the payment/funds transfer
- Ensure that the property correctly registered in your name. (For example husband and wife both need to be recorded as owners and you will need a CPF to buy property).
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