Foreign investment in the Brazilian Real Estate Market continue to grow at a rapid pace. Here are some useful tips to help ensure your investment is a smashing success.
1. Seek Reliable Legal Guidance
It is recommended that you use a reliable lawyer, particularly one who understands the Brazilian real estate market; so you can ensure that your interests are being protected. Using a Brazilian lawyer who is accredited by the OAB (Ordem Dos Advogados Do Brasil), is the equivalent of hiring a lawyer registered with the UK Bar Association.
Further protection of your interests could also be ensured if you appoint a Brazilian lawyer who has connections to a company in your own country. For example, in the UK, you can hire a Brazil-based lawyer who is affiliated with the UK Law Society.
2. Know your rights as a foreign investor when buying land and/or property in Brazil.
The Brazilian authorities will actively encourage foreign investors to invest in property and/or land in Brazil because there are no significant barriers that prevent foreigners from purchasing residential or commercial property and/or land in Brazil.
However, some restrictions apply to certain locations, such as offshore land, islands, agricultural land, and locations close to Brazil’s international borders. Therefore, if you buy property and/or land in Brazil in any of these places, be sure to consult with your legal representative(s) what your rights will be, as a foreign investor.
3. If you are buying land to build a property, make sure you hire a reputable home development company and register your property properly.
If you are looking to purchase land for the purpose of building a property on it, always do your research to find a reputable home or commercial real estate development company.
Also be sure to record the land you are building on. Property in Brazil is registered through private public notaries, under the control of justice. Make sure you understand the costs associated with buying land in Brazil. There are currently a number of taxes that apply to the purchase of land and it is recommended that you seek legal advice to understand the registration process and property costs.
4. If you are not sure, fly to Brazil and check it out. It is important to know what you are investing in and an important tip for foreign investors is to fly to Brazil and check if you are unsure about anything. At the end of the day, the cost of a flight is much cheaper than a lifetime real estate investment in Brazil that could bankrupt you if it goes wrong.
If you plan to visit, be sure to get a foreign visa, which are generally granted for up to 90 days, by Brazilian Immigration. If you need to extend your stay in Brazil for any reason, you can apply for a visa extension of up to 90 days at any Brazilian police station.