For the purchase of real estate, you need a CPF; this is a Brazilian ID. For the application of an
CPF you need;
- An extract from birth registration.
This extract is needed, because the Brazilian authorities want to know the names of the parents. This certificate needs to be translated into Portuguese by a certified translator and legalized by the Brazilian consulate in your country.
When in Brazil you need to go to Banco Do Brasil, with your passport and your birth certificate to pay a small fee. The next day you have to go to the Receita Federal to receive the number of the CPF. The CPF card itself will be mailed within 2 months to your address in Brazil.
Make sure you have a trustworthy broker; FortalezaHouses is such a broker. We check if there are no debts on the real estate. Debts like unpaid taxes, water bills, electricity bills etc. etc. These bills may add up to thousands of dollars and stay with the property; not with the former owner!
You as a buyer will never pay commission to a broker; In Brazil the seller pays the broker. If you bring your own broker, the selling broker will divide his commission with the broker representing the buyer.
The contract is made up by the selling broker. These are simple simple contracts in which everything is described;
- all information of the seller
- all information of the buyer
- location and specifications of the real estate
- the payments conditions
The contract is signed at the office of the broker without intervention of a notary.
After signing the contract and paying a down payment you will receive the keys of the house. When the real estate has been paid completely, the buying broker will arrange the registration of the real estate into your name via a cartorio. A cartorio is to be compared with a notary office. The costs for the transfer are approximately 4%-5% of the purchase price. These 4%-5% costs consist of different taxes and the cartorio expenses. Only after this registration, you are the legal owner.
There is an annual tax on the ownership of real estate. This tax is approximately 0.6% per year of the assessment value. The assessment is done by the city, and this value is (in general) lower than the purchase price.
There are two ways of payment. You can pay at once or in installments. These installments can be in 12, 24, 36 or 48 months. The interest rates for payment in installments can be as high as 35%! Also you have a currency risk; if the value of the Brazilian Real goes down, your real estate becomes cheaper, and vice versa.
Normally, a down payment of 10.000 Reais (3,500 dollar) is sufficient. The remainder you can transfer via a bank. When you transfer the money from abroad there will be a 1% "import" tax. This tax will be deducted from the amount you transfer so keep in mind that the receiver will be short 1%
What to buy?
There are three options;
1) Buy ground and then build a house yourself
Off course this is cheaper than buying an existing house, but the bureaucracy in Brazil is enormous, so if you do not know your way around, it might end up being an expensive option.
2) A house
If you are looking to buy property to spent your holidays, a house has some disadvantages. If people notice that the house is empty for a large part of the year, the chance of a break in is very high. If you do want to buy a house, you have to consider to pay a family to live on your property. This will cost about 150 dollar per month. When you come over for your holidays, these people will remain on your property, effecting your privacy, but at the same time they can clean and cook for you.
3) An apartment
For holidays the most ideal option; all good apartment buildings have 24 hour security; the chance of burglary is minimal.
Keep in mind, that foreigners are only allowed to spent 180 days per 360 days in Brazil.
If you want to apply for a permanent visa, one of the following conditions has to apply to you;
- married to a Brazilian
- a child with a Brazilian
- 200.000 US dollar invested in Brazil (in some cases a permanent visa is granted on a 50.000 usd investment)
- Age of retirement (50 year) with a pension of at least 2000 euro or US dollar per month.
Documents required for application permanent visa
You can apply for the permanent visa at he Brazilian consulate in your country or with the Federal Police in Brazil. For this request, you need the following documents;
- an extract from birth registration
- a certified copy of data from the Basic Administration of Personal Details
- a certificate of conduct
- copy passport
- 3 special sized photographs (inquire size specifications at the Brazilian consulate)
- If it states "divorced" on any of the documents mentioned above, you also need an "extract marriage registration."
If you apply for you permanent visa in Brazil, all the documents have to be translated by a translator acknowledged by the Brazilian Consulate. After this translation all documents have to be legalized by the Brazilian Consulate. On arrival in Brazil, you have to go to the Federal Police to apply for your visa. After application it can take up to two years before you receive this visa. When you apply through the Brazilian Consulate in your country, you receive the visa within two months.