Foreign investment into the Brazilian Real Estate Market continues to grow at a rapid pace. Here are some useful tips to help make sure that your investment is a resounding success.
1. Seek reliable legal guidance
It is recommended that you use a reliable lawyer, particularly one who understands the Brazil property market; so that you can ensure that your interests are being protected. Using a Brazilian Lawyer that is accredited by the OAB (Ordem Dos Advogados Do Brasil), is the equivalent of hiring a Lawyer that is registered with the Bar Council in the UK.
Further protection of your interests could also be guaranteed if you appoint a Brazilian Lawyer who has connections to a society in your own country. For instance, in the UK you could hire a Lawyer based in Brazil that is affiliated with the UK Law Society.
2. Know your rights as a foreign investor when buying land and/or property in Brazil.
Brazilian authorities will actively encourage foreign investors to invest in Brazil property and/or land because there are no significant barriers preventing foreigners from purchasing residential or commercial property and/or land in Brazil.
However, some restrictions do apply to certain locations such as marine land, islands, agricultural land and locations close to Brazilian International Borders. Therefore, should you purchase Brazil property and/or land in any of these locations, be sure to check with your legal representative(s) what your rights, as a foreign investor, will be.
3. If you’re purchasing land to build a property on, be sure to hire a reputable housing development company and register your property correctly.
If you’re looking to buy land with the purpose of building property on it, then always do your research in order to find a reputable housing or commercial property development company.
Also be sure to register the land that you’re building on. Brazil property is registered through private notary publics, under justice control. Make sure that you understand the costs that are involved with purchasing land in Brazil. At present there are number of taxes that apply to purchasing land and it is advisable that you seek legal consultation to understand the land registry and costs process.
4. If you’re unsure, fly out to Brazil and check. It’s important to know what you’re investing in and a top tip for foreign investors is to fly to Brazil and check if you’re uncertain on any issues. At the end of the day the cost of a flight is far cheaper than a lifelong Brazil property investment that could bankrupt you if it goes wrong.
If you do plan to visit be sure to obtain a Visit Visa, which are usually granted for up to 90 days, by Brazilian Immigration. If you need to extend your stay in Brazil for any reason you are able to apply for Visa extension of up to 90 days at any Brazilian police station.