A Look at Property Buying in Brazil

Brazil is considered an up-and-coming economy, and as such, many people are interested in investing in Brazilian property. However, there are a few things to keep in mind if you're thinking of buying property in Brazil. In this blog post, we'll take a look at the process of buying property in Brazil, as well as some of the risks and rewards associated with this type of investment.

The Process of Buying Property in Brazil

The first thing to keep in mind when buying property in Brazil is that the process is very different from what you may be used to in your home country. In Brazil, the seller is responsible for finding a buyer for their property. Once a buyer has been found, the two parties will sign a purchase and sale agreement (known as a "contrato de promessa de compra e venda"). This contract is binding, and it outlines the terms of the sale, including the purchase price and any conditions that must be met before the sale is finalized. 

After the contract has been signed, a deposit (known as a "sinal") is paid to the seller. This deposit is typically 10% of the purchase price. The buyer then has 30 days to arrange to finance the remaining 90% of the purchase price. If financing can't be arranged within that time frame, the deposit is returned to the buyer and the contract is nullified. 

If everything goes according to plan and financing is secured within 30 days, then the sale will be finalized at a notary public's office (known as a "cartorio"). The buyer will be required to pay transfer taxes (known as "imposto de transmissao de bens imoveis" or ITCM), which are currently set at 3% of the purchase price. After all taxes and fees have been paid, the deed to the property will be registered in the buyer's name and they will officially become the owner of the property. 

Pro tip: If you are buying property from overseas, you should check out the currency economic calendar and historical lookup to know the right time to invest money in property purchasing. 

Risks and Rewards Associated with Investing in Brazilian Property 

One of the biggest risks associated with investing in Brazilian property is that there is no legal protection for foreign investors. This means that if something goes wrong with your investment—for example, if you don't receive a clear title to the property or if you're forced to sell at below market value—you will have no legal recourse. That being said, there are ways to mitigate this risk by working with reputable real estate agents and lawyers who specialize in helping foreign investors buy property in Brazil. 

On the flip side, there are also some significant rewards associated with investing in Brazilian property. For starters, real estate values have been on an upward trend over the past few years thanks to Brazil's strong economy. Additionally, rental demand is high due to Brazil's rapidly growing tourism industry—so if you're looking for an investment that will generate income, Brazilian real estate could be a good option for you.