Short or increasingly long term rentals for the expatriate community of multinational companies associated with the discovery of huge oil deposits off Rio's coast can provide rental returns in the region of 20%. The day to day managing of the apartments is taken care of locally.

Purchasing Process in Brazil

The process for buying apartments in Brazil is quite straightforward, particularly for our buyers. We have direct access to English-speaking lawyers who understand the local market and are used to dealing with overseas property buyers.

It is definitely worthwhile investing in a decent and reputable lawyer and we can provide this to our clients. In our experience the legal team we work with are able to deal with the normal concerns that an overseas property buyer has when purchasing in a new country for the first time and will be able to provide ´peace of mind´.

One of the major advantages of investing in Brazil unlike many other countries around the world, is that the buyer will own the freehold to both the land and property in their own names. Each owner will own both his/her individual unit as well as a certain percentage of the common areas, though from an administrative viewpoint this will be owned and managed by the condominium company.

Each buyer will require a tax registration number (CPF - Cadastro de Pessoa Fisica). We will be able to arrange this through our lawyers for each buyer or alternatively it can be applied for at the local Brazilian embassy in the country of residence.

Transfer of Funds
All transfers of funds to Brazil will take place through the international transfer system and should be from one bank to another. The funds will pass through Banco do Brasil who have a responsibility to check where the funds have come from and where they are going to but generally this does not create any undue problems.

It normally takes 5-7 days for the transfer to take place depending on which Banks are involved. 

Fees and Taxes
On purchase you will need to allow for approximately 7% of the purchase price to cover legal fees and taxes.These are generally as follows - 

- Legal fees can vary but we aim to provide our clients with the best possible rates through local discounts.Fees vary from 1-2%.

- Purchase tax is currently 3-4% of purchase price depending on location.

- Notary fees and registration are both 1% each.

- On resale Capital Gains Tax is charged at 15% of net gain though this is exempt if   the profit is reinvested in another property purchase in Brazil.                   

- Income tax on rentals will be for individual accounts according to local practice in country of residence.