BuyAssociation provides informative and completely independent guides to buying property overseas, making purchasing a property overseas easier and safer. Details such as the most popular locations in which to purchase property in a country, to any legal or procedural issues to be considered are covered in detail and updated on a regular basis, along with advice for those looking for investment prospects or permanent overseas residence.
Below is a sample of the beginning of our guide to buying property in Brazil - one of the many countries featured on our website - www.buyassociation.co.uk.
Brazil has come to prominence on the overseas property market in recent years due to the rapid economic and social development that has been taking place as the country leads the way among the BRIC countries for tourist development. Along with the other BRIC nations, Russia, India and China, Brazil is pushing along the road to becoming one of the largest economies in the world, and is making the infrastructure and social changes needed to keep pace with its rapid economic growth.
A new progressive government and the arrival of both the FIFA World Cup and the Olympic Games within the next decade will coincide with Brazil's emergence as the fifth-largest economy in the world. At the same time, Brazil boasts unspoilt beaches and coastal regions which are now the focus of luxury residential tourism developments to help service the rapid growth in tourist numbers.
For more information on buying property in Brazil, read on below and then read the full buying guide on our website.
Popular buying locations
The popular carnival city of Rio de Janeiro boasts 45 miles of white beaches - including Copacabana - meaning that it is popular for sure-fire tourist lets. Meanwhile, Sao Paolo is the government and financial centre of the country and, being an 11-hour flight from the UK, promises good business lettings rather than residential.
However the best potential seems to lie in the northern beach resorts. The natural beauty of these areas has been complimented by a range of high-quality developments and inward investment, meaning that capital growth is on the up. But a purchase here isn't all about money - some of the purest water and cleanest air in the continent has been found here, while the city of Natal boasts the highest quality of life, and the lowest crime rate, in the nation.
However it is the resort of Bahia which is attracting the most attention from UK buyers. Glorious beaches and an excellent climate compliment good value for money - a mix which many purchasers believe will pay dividends in the long run.
Legal issues
Brazil is perhaps one of the few emerging markets that allows foreign buyers to own both land and property in their own names on a 100 per cent freehold basis - making the buying process relatively straightforward. However, before you can buy a property in Brazil, you must obtain a CPF (Cadastro das Pessoas Físicas) number, which can be acquired via the Brazilian embassy in the UK for a small fee (around £10). Once issued, this tax registration number will enable you to open a bank account and apply for utilities, although, perhaps its main aim is to register the amount of capital that you are planning on bringing into Brazil. It also allows you to repatriate your funds should you decide to sell your property.
If you are buying a home that was built after 1973 it will come with a legal document known as a Matrícula. Similar to title deeds, this document lists a detailed property description, all previous owners, the boundary details, any outstanding debts and all legal, financial and judicial transactions relating to the property.
The buying process
The purchase process in Brazil is relatively simple once you have obtained your CPF number, however it is crucial that you seek the advice of a good, independent lawyer. This is especially true if you are buying a resale home, as checking for clean title can be a complicated and painstaking process.
Once all of the relevant searches have taken place you will need to open a local bank account, as the purchase funds must be visibly traceable from the buyer's bank account into the vendor's. In addition, all monetary transactions will need to be registered as a foreign investment with the bank of Brazil, but this cost should be covered in your legal fees.
You will be required to pay a deposit of around ten per cent when you have had your offer accepted - although this figure can range from five to 20 per cent. The balance is paid on completion, and the entire process is overseen by a notary.
Even though all contracts are processed in both Portuguese and English, it is advisable to hire a translator if your solicitor isn't fluent in both languages.
For more information on buying property in Brazil, read the full buying guide on our website.
