Buyers Guide For Brazil
Autor: Antonio Severini | Publicado: 2011-12-14T05:09:00-08:00


Buyers Guide For Brazil



There are always a few questions that seem to come up when talking with potential buyers of Brazilian properties. Below we have compiled a list of the most common ones.


Please feel free to get in touch by phone or email if there are other questions you might have. We have a wealth of knowledge about this wonderful and energetic place on earth and of course you are free to enquire about our business practices as well.

Common questions and their answers:


What purchasing costs can I expect?

You can expect to pay approx. 7, 5% in purchasing expenses as follows:  

ITIV (similar to VAT): 3%
Notary office: 1.25%
Registration of the deeds: 0.75%
Administrative expenses: 1%
Legal fees: approx. 1.5%&nbsp;&nbsp;&nbsp;&nbsp; 


What Running Cost Can I Expect?

 The estimated monthly community fees are between 50-200 Euros, depending on type and size of property. The yearly real estate tax (IPTU) paid on a Brazilian property varies between different municipalities, and is typically between 0,5% - 1% based on a value which is usually below the real market value for the property.

Will the Brazilian Property be Freehold?

 Investing in real estate in Brazil is as safe and easy as in any modern country like the USA or Europe. There are no restrictions for foreigners buying Brazilian property and ownership is solid and secure. Brazil receives international investments with open arms, assuring respect to contracts and the rights of foreign investors. You own 100 % of land and property and as such ownership is freehold.

Is My Money Safe?
 
YES. When the client transfers the funds into Brazil, they are registered at the Central Bank of Brazil. The developer has to present the contract to the bank in order to release the funds. This guarantees that the Brazilian Government has recorded your investment into the country. Also, we only promote Brazilian properties that fulfill strict due diligence requirements.

Can I Get a Mortgage on a Brazilian Property?

 Currently foreigners cannot get a Brazilian mortgage. If needed, it is better to organize finance from one’s home country. However, a Brazilian Mortgage product is believed to enter the market in the close future. Along with lower interest rates this is expected to trigger a mortgage boom in the coming years which will have a positive impact on the Brazilian property market.

What About Rental Potential?

 The rental potential for Brazilian properties is exceptionally solid. Brazil is a big country with a population of approx. 186 million. The economy is growing fast and the spending powers of the Brazilians will increase significantly for the foreseeable future. No other emerging property market benefit from such a strong domestic demand as the Brazilian real estate market does. Read more about the growing Brazilian domestic demand in our Brazil real estate news section.

The northeast of Brazil is also one of the fastest growing tropical holiday destinations in the world, and will become one of the leading tourist destinations in the world. Rental rates will increase as every year the area attracts more affluent tourists to enjoy peace and the magnificent nature on offer. Northeastern Brazil has a wide market appeal and is already attracting tourists from Spain, Portugal, Italy, France, Holland, USA, UK, Sweden, Norway, Denmark, Finland, Japan, Switzerland, Argentina, Chile, Uruguay and last but not least, the big Brazilian tourist market.

The rental market is almost all year round and with the massive investments in resorts and golf courses in the northeastern Brazil, the quality of the tourism offer will greatly improve, and as a consequence the rental market for Brazilian properties (along with increased rental prices) will grow rapidly.

What About Tax on Profits?
 
 Income earned from Brazilian properties is taxable whether the investor is resident or non-resident in Brazil. Non-residents are subject to a capital gains tax rate of 15% on any gains they make on properties in Brazil.

How do I Reserve a Property?

 Fill in the property reservation form, the non-refundable fee is 3000€ per Brazilian property reserved. Should the due diligence for whatever reason not be satisfactory, the fee would be fully refunded.

What’s The Next Step? 

For a foreign investor to own real estate in Brazil the only requirement is that they have a CPF number. The number is a legal requirement, as it enables the investor to be uniquely identified for taxation and title purposes. Your lawyer will assist you in obtaining this and the whole process can be done without visiting the country, providing that power of attorney is given to the lawyer.

Next, the real estate purchase and sales agreement is drawn up which details the full conditions of the sale and also acts as a receipt for the deposit paid. At this stage the client deposit their first payment for his Brazilian property.

Do I Need a Lawyer? 
 

We recommend that you use a lawyer. Most well established lawyers charge between 1-1, 5% of the purchase price in legal fees. This is money well invested and we recommend that you don’t try and get the cheapest lawyer you can find as being legally safe is imperative for a safe and profitable Brazilian property investment.

The lawyer can also assist you in applying for the compulsory CPF number and can sign the final title deed on your behalf in case you are not present in Brazil for the signing. 
If you are buying a Brazilian property in the pre-construction stage, here are a few examples of what a lawyer will do to ensure your investment is safe:
  
  
Check that the developer owns the land and there      is no debt or charges on the land
  
Check that the developer has all the required      building licenses
  
Check that the development and all the units      within the project have been properly registered as required by Brazilian      real estate law



 If you are buying a Brazilian resale property, these are a few examples the lawyer will check on your behalf:


  
  
That the seller owns the property in question and      that the title deeds fulfill the legal requirements
  
That there are no debts on the property, and if      there would be any debts, that they are cleared before the title deed is      transferred to you.
  
That the seller is authorized to sell the      property&nbsp;


Is Brazil a Safe Country? 


One of the urban myths that surround Brazil is the question of safety and security. In fact, Brazil is no more dangerous than the main cities in Europe or North America. Brazilians are further known to be very friendly people and it is extremely rare to see aggressive behavior from the Brazilians. In fact, what you will see more than anywhere else in the world is a lot of smiling and dancing!

Most of the bad press about violence in Brazil, relates to the gangs operating in the slums in Rio and Sao Paulo, which are both several hours away by plane. Even in these mega cities, most of the crime is between the gangs and crime against tourists is extremely rare. Being sensible and streetwise is the key to trouble free and enjoyable stay anywhere in the world, including Brazil.

Northeastern Brazil is well known for being a very safe and relaxed area, and many of the state capitals are considered among the safest cities in South America.

What’s The Climate Like?


Expect year round sunshine! The climate in Northeastern Brazil is very sunny with a refreshing tropical sea breeze which makes the temperature even more pleasant. Compared to many other tropical destinations where the air can have levels of humidity, the climate in the North east of Brazil is dry which makes it very comfortable.

Since the Northeast of Brazil is only a few degrees from the Equator, the seasonal variations are very small. Most of the year the day temperature is around 27-29 degrees and the night temperature rarely falls below 24 degrees. The annual average temperature is approx. 27 degrees (includes day and night temperatures). The sea water temperature is equally warm and is approx. 26 degrees all year around. Further, Brazil does not suffer from any tropical storms, hurricanes or earthquakes.

What Can I Expect to Pay For Food and Drinks? 
 

A few examples: Dinner for two in a good restaurant: approx. 8 euro, beer (600 ml) in a beach bar: 75 euro cent, Caipirinha (the famous Brazilian cocktail with lime, cachaça and crushed ice) in a beach bar: 1 euro.

If you prefer to eat at home and you don't like to cook, you can contract a full time maid which will cost you only approximately 180 Euro month.
  

I hope you found this newsletter as a learning experience interesting. Thank you...
  

Ricardo Severini - Creci MGF 0024655

Andréa Severini - Creci MGF 0024652



So if you're looking for more information about the properties or want to know how to find in&nbsp;Poços de Caldas,MG&nbsp;- Brazil the property of your dreams, then go to: www.severiniimoveis.com.br&nbsp; - Or much better make us a visit, we are located:
&nbsp; 







Severini Properties – Consultoria Imobiliária – Creci 2891 J

Rua Rio Grande do Sul, 569
Centro


Poços de Caldas, MG

CEP 37701-740

Brasil



Fone: (35) 3722 6556 - Escritório

Fone: (35) 9102 8951 - Ricardo

Fone: (35) 9146 6242 – Andréa












&nbsp;

&nbsp;









ricardo@severiniproperties.com

andrea@severiniproperties.com





  

“Intelligence Real Estate - Real Estate Is a Big Business”
  

Severini Properties - Who We Are&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 
  

Ricardo Severini is bilingual, has a degree in foreign trade and has worked for various renowned Real Estate companies around the world.
  

While in his numerous international assignments has had the opportunity to visit over 33 countries. Ricardo has won several awards as the “Best Overseas Sales Director’, for the Caribbean, Florida and Italy.
  

His company is always recognized internationally by offering his clients the property of their dreams. Ricardo works with his sister Andrea Severini in fulfilling this dream. 
&nbsp; 
  

ricardo@severiniproperties.com

Fone: (35)&nbsp;9102 8951
  



Andréa Severini brings to Severini Properties her vast experience in the real estate market and many years of successful relationships with buyers and vendors alike.
  

Her impressive and inexhaustible imagination, marketing know-how and organizational skills have undoubtedly made the past few years the most successful in her field.
  


&nbsp;&nbsp;&nbsp;&nbsp; andrea@severiniproperties.com
  

(35) 9146 6242
  



     Anthony Ruddock has many years’ experience working in property sales for both lifestyle and investment. Specializing in emerging markets such as Bulgaria, Romania, Spain, Southern Italy (Calabria) and fractional ownership in Thailand.&nbsp;&nbsp; 
  

Anthony will be responsible for marketing through a network of agents, allowing them to demonstrate the excellent value obtained by Severini Properties for their clients. If you are a property consultant and wish to be considered as an agent please contact him.&nbsp;&nbsp; 
  


&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; anthony@severiniproperties.com

(44) 77 4554 3843