Brazil Property a Guide for the Overseas Property Buyer
There exists an enormous opportunity for sophisticated investors and lenders in leveraging Brazilian properties. Property prices are low and the Brazil currency the REAL is getting stronger. This means the overseas property investor can win twice once on rising property values twice on the strengthening currency.
So how do foreigners buy property in Brazil?
RULES OF THE GAME.
You need a Brazilian ID called a CPF. To get a CPF you need a birth certificate translated into Portuguese by a certified translator and legalized by the Brazilian consulate in your home country.
.You make a trip to Banco Do Brasil with your passport and your birth certificate to formally apply for a CPF and pay a small fee.
The next day you go to the Receita Federal to receive your assigned CPF number. Your CPF card is mailed to an address in Brazil within two months. (That’s right, you need a Brazilian address.)
It’s best to use a trustworthy broker. Not only will the a good broker help you find a property, but he or she will make sure the price is fair, as well as make certain that the property is owned by the seller, and that there are no debts on it.
The contract is prepared by the selling broker and contains: All information of the seller and All information of the buyer. Location and specifications of the real estate – The conditions of payment(s)
The contract is signed at the office of the broker. You pay a down payment (usually about 10,000 Reais, or $3,500 usd, or $ 3,000 Euros).
When payment has been made, your broker will arrange the registration of the property into your name via a Cartorio (similar to a notary). The cost for the property transfer is approximately 4%-5% of the purchase price.
Payment can be made all at once or in installments of 12, 24, 36 or 48 months, but interest rates can be as high as 35%. If you opt to pay in installments, there is also a currency risk. In other words, if the value of the Brazilian Real goes down, your real estate becomes cheaper, and vice versa.
There is a 1% “import” tax on transfer of funds from abroad.
After registration, you are the legal owner.
There is an annual property tax of approximately 0.6% per year of the assessed value. You will need to hire a caretaker to live on the property when you are not there.
Visas: Foreigners are allowed 3 month visas, or 180 days total per year in Brazil.
If you want to apply for a permanent visa, one of the following conditions must be met: – You are married to a Brazilian. – You have a child with a Brazilian. – You invest minimum 50.000 US dollar or 40.000 Euros in Brazil.- You have reached the age of retirement (50 years) with a pension of at least 2,000 euro or US dollar per month.
Some investors in North Eastern Brazil in the region of Ceara have seen enormous profits in a short time. Beach properties and land in Fortaleza and Cumbuco have sold fast. Now is the time to buy property in Brazil.
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Brazil Travel
Brazil is a very popular choice among tourists because it offers a lot of attractions such as exotic places like beautiful beaches and world-famous events like the Rio Carnival. Some of the most famous places that tourists go to include the Copacobana Beach in Rio de Janeiro, the Iguacu Falls in Parana and the Museo Arte de Sau Paolo in Sau Paolo. However, going to most of the exotic places in Brazil can be very challenging not only because the country is one of the largest countries in the world but going to foreign country will always involve taking the necessary steps to make the trip more enjoyable and safe.
Brazil travel essentials
One of the first steps that you should take if you decide to go to Brazil is to learn as much Portuguese as you can. Learning some common phrases can help you get around the country especially in rural areas where English is not widely used. As much as possible, you should also avoid going to dark and isolated places and you should only carry the basics because just like any other country, tourists are often the victims of petty crime. However, if you are victimized by a crime, you should report it immediately to the authorities. It would also be a good idea to plan ahead and to know where you are going before leaving so you won’t get lost or waste time in looking for a place to visit.
If you intend to spend a considerable time outdoors, you should bring the appropriate clothes and survival items. Bringing long-sleeved shirts, caps, long pants, and insect repellant can help you fend off insect bites when you are outdoors. It would also be a good idea to use taxis instead of buses for security reasons, and while traveling, you should always keep your money in a secure place. More importantly, you should respect the locals and the rules they live by so you don’t attract trouble or unwanted attention.
Traveling to Brazil can be a very exciting adventure because of the sites and the events that you will get to see and experience while you are there. However, just as you would on your other trips to foreign countries, you need to take some necessary safety measures. Taking such steps not only ensures you of an enjoyable trip but a safe one as well.
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Brazil dam break kills 5, leaves 4 missing
This photo released by Piaui's government, shows a view of a flooding area after a ruptured dam swamped a rural town in Piaui, Brazil, Thursday, May 28, 2009. Raging torrents, from a ruptured dam, swamped a rural town in Brazil, killing a young girl and destroying at least 500 homes in a region already devastated by weeks of floods, authorities said Thursday. (AP Photo/Andre Leao, Piaui's Government)
Rescue workers on Friday found the body of another Brazilian killed after a dam ruptured, raising the death count to at least five with four people still missing.
Authorities in the northeastern state of Piaui reduced the count of missing from a previous estimate of 11 after seven people were located.
Civil defense officials also said Friday that water from the dam destroyed part of a highway 53 miles down river from the small farming city of Cocal where the dam is located.
Raging torrents cascaded into Cocal, population about 25,000, Wednesday night. Eighty people suffered minor injuries, nearly 3,000 were left homeless and the waters carried away cattle and inundated crops.
Floods in Brazil have caused chaos since April from the Amazon to the Atlantic Ocean — killing at least 59 people and displacing more than 423,000.
The heavy rains are blamed on an Atlantic Ocean weather system that normally moves away in April but hasn’t budged this year. Meanwhile, southern Brazil has been hit by a drought that has severely affected agriculture
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China, Brazil Sign Oil Deal
China has agreed to lend $10 billion to Brazil’s Petrobras, in return for guaranteed oil supply over the next decade. The deal was among a host of agreements signed during Brazilian President Luiz Inacio Lula da Silva’s state visit to China, which ends Wednesday.
Brazil’s president Luiz Inacio Lula da Silva toasts with China’s President Hu Jintao during signing ceremony in Beijing, 19 May 2009
Chinese President Hu Jintao and Brazilian President Lula da Silva witnessed the signing of 13 agreements in Beijing.
The highlight was a $10 billion loan from China Development Bank to Brazil’s state-owned Petrobras oil company. In return, Petrobras is to supply China’s state-owned Sinopec with up to 200,000 barrels of oil a day for the next 10 years.
China’s official Xinhua News Agency late Tuesday gave no details about the other agreements, except to say they covered equipment, financing, science, space, law, ports and agricultural products.
China last month overtook the United States to become Brazil’s number one trading partner, with two-way trade in April reaching $3.2 billion.
Chinese Foreign Ministry spokesman Ma Zhaoxu told reporters in Beijing the Brazilian leader’s visit will further strengthen what he described as “the already existing sound cooperation between the two countries.”
Ma says the visit also will promote what he described as a strategic partnership between China and Brazil. The two countries have agreed to hold a second strategic dialogue later this year.
China and Brazil are part of a loose grouping of four emerging economies, known as BRIC, which also includes Russia and India. Foreign ministers from the four BRIC nations are scheduled to meet in Russia in June.
The Chinese spokesman said his government is “positive” about its participation in the meeting.
Ma says dialogue and cooperation among the four countries are “transparent and open,” and “not directed against any other country.”
Meanwhile, in an essay printed in the China Daily, the country’s main English language newspaper, President Lula da Silva said his visit comes as Brazil and China mark 35 years of diplomatic relations. He says the two nations now need to focus on the challenges of taking the partnership to, in his words, “a higher level.”
Mr. da Silva’s last stop before leaving Beijing Wednesday was at the Chinese Aerospace Technology Agency.
China and Brazil in 1988 began a jointly-funded satellite program that generates high-definition images of the earth. The Brazilian leader praised this project as a successful and concrete example of cooperation between two emerging countries, and said the satellite images will be made freely available to countries in Africa.
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Brazil currency gains "cause for concern"
Rally in Brazil’s real a “cause for concern”
* Mantega sees c.bank continuing to buy dollars
* Brazil interest rates should continue to fall (Adds currency performance, central bank interventions)
SAO PAULO, May 22 (Reuters) – Recent gains in the Brazilian currency BRBY are a “cause for concern,” but also reflect international investors’ growing interest in the nation’s assets, Finance Minister Guido Mantega said on Friday.
“The appreciation of the exchange rate results from investors’ enthusiasm about Brazil because the country offers more stable, secure conditions,” Mantega told reporters.
“The (currency) gains harm the productive sector, exporters and farming. In fact it is a cause for concern,” he added.
Mantega’s comments mirror those of Central Bank President Henrique Meirelles on Thursday warning against “excessive euphoria” in currency markets.
The bank has bought dollars in the spot foreign exchange market every session since May 8 in a bid to soak up a flood of greenbacks to Brazil and ease the real’s appreciation. The currency has gained 15 percent since the beginning of the year and surged more than 20 percent since reaching a three-month low in early March.
Asked how the government could limit gains in Brazil’s currency, Mantega said the central bank was already buying dollars and increasing international reserves “which, by the way, is one of the reasons why we are solid.”
Mantega said Brazil’s economy would grow between 3 percent and 4 percent in the fourth quarter of this year, recovering after a deep slump in the first months of the year.
The central bank has signaled it will continue to lower domestic interest rates, a step that is in “the right direction,” he added.
“The conditions are there for the economy to grow after a tumble in the last quarter of last year,” Mantega said. “The recovery is under way, with a slower rebound in the second half that will gain steam toward the end of the year.”
Mantega foresees no changes to the government’s inflation target of 4.5 percent plus and minus 2 percentage points.
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