FAQ

1.The purchase of land, be it a house or apartament needs to take into account issues such as security, sanitation and basic services. It is important to ask neighbours and people living in the area what the actual situation is both in the streets and in the block. 2.One must observe the specific conditions of the property. For example, it may be subject to flooding during periods of rain, and signs of this may not be visible at the time of purchase. 3.When purchasing land one should consult a specialist who will analyse the general characteristics of the soil. This is an important factor when considering whether the soil will be able to support future constructions. 4.The position of the property in relation to where the sun rises and sets will have a strong influence on the temperature within the rooms. It is preferable for the property to be facing the sun rise as these will tend to maintain a more comfortable temperature both during the day and the night. 5.Before buying a house or land, it is essential to establish whether the documentation relating to the property is legitimate and meets all regulatory standards. One should also seek to understand whether there are disputes, such as lawsuits for inheritance, for example. 6.Before signing a contract take copies of the draft to a lawyer to be reviewed. 7.When purchasing a property through an agency off-plan, ensure that the necessary due diligence process has been carried out with the construction companies involved. This is to ensure the absence of conmplaints against them, disputes or lawsuits. 8.Make sure the builder has legal permits for the labor it employs and is not currently undergoing bankrupcy procedures. Avoid signing contracts with companies that support this type of irregularity. 9.When asking for financing options it is wise not to tie down more than 30% of the family budget. 10.Try to minimise the number of instalments required to fully own the property. Also when one has extra cash try to put it towards the instalments and hence reduce the amout of time it will take you have full ownership of the property. (the late, Property Guide, July 2009)

Brasil enforces laws stating that all land that is not used productively, can be claimed by people who live permanently on the ground and are able to it productively. After ten years on the grounds, the "Squatters' gain the legal right to stay on the property. Even if you have total and legally documented ownership of the land, they are entitled to use the land. Furthermore it is possible that they request to register the land in their name and therefore put themselves in a position to be able to sell the land themselves. Due to the controversial nature of these regulations, it is extremely important that due diligence is carried out on the history of the land with the help of an excellent agent and if necessary of a good lawyer.

CRECI is the body that regulates property brokers. Each qualified broker or firm is licensed by CRECI and is assigned a unique number which refers to the company or person. http://www.creciba.org.br One should only seek to buy property from CRECI qualified agents as they are trained in all the regulatory and legal aspects involved in signing a contract that meets all requirements

The despachante is the professional who orchestrates all the tasks that need to happen from the moment a property is identified to the moment the contract is signed. The bureaucracy in Brasil can be quite complex and the main attribute of a great despachante is that of being able to make things happen. He will have a thorough understanding of all the legal requirements involved in the deal and will be able to move things along having formed strong working relationships with all the local offices involved. Often some of his tasks will also include the calculation of taxes, drafing the deed, ensuring all regulations are met for the legal and permanent transfer of the property.

• IPTU (Tax on urban land and property) - this is for owners of real estate in urban areas. Urban real estate is subject to an annual municipal tax, which is of around 0.6% of the book value of the property. However, the book value is often less than the actual value of the property. • Taxa de Ocupacao (Occupancy tax) - This is a tax charged on properties that are in areas considered to be of special interest to the government due to their location or characteristics. Normally types of property that are subject to this tax include beach-front properties, properties that are near to military zones and areas that where once underwater and have emerged over the years. Technically one may not fully own a beach a Brasil, though permission is granted by the government and a sort of "rent" needs to be paid. Properties that are built by beaches are also subject to special regulations with regards to volumes and distance from the line of high tide. • Capital Gains Tax is of 15%. However it is not charged if the funds are used to buy another property or if you hold the property for five years or more. • Income Tax - Income from rents, if declared, is subject to income tax. This is progressively charged in percentages that vary from 15% to 27.5%

If the land is not currently inhabited, you may expect to pay about 7% of the value of the property to complete a transaction, as follows: • Transfer of Registration in Archives: about 1.25%. • Registration in Registry: about 0.75%. • Sales Tax : ITIV (Tax on transfer between parties) about 3%. • Legal fees: about 2% The broker's commission is generally payable by the seller.

It means buying a property when it has been fully planned, but has not yet been built. That is, the property is not ready, but will be after a period that usually ranges from 18 to 36 months, depending on the type of property. At this point it will be delivered by the developer to the owner.

When you buy a property off-plan there are several advantages. Firstly you are able to chose the unit that best meets your needs. Secondly you will be able to purchase it at a price below the one the property will have when it is finished. Finally payment terms will the most favourable at this stage.

There is two principle ways of obtaining permanent residence here in Brazil (besides marriage): 1.) A retiree visa if you are over 50 years of age and can provide at least US$ 2,000 per month in income. 2.) An investment of US$ 50,000 or more into an existing or new Brazilian company. We can assist you with the complete process.

You can stay in Brazil for 90 days on a tourist visa. However, this can be extented locally (depends on Policia Federal) in Brazil for another 90 days totalling to 180 days per calendar year.

Yes, foreigners are permitted to own property outright in Brazil. Also, foreigners have the same property rights as Brazilians and will obtain a free & clear title to the property. It is no different than owning real estate in Europe or the US. Brazil is quickly becoming the world-leader in attracting foreign investment and immigration. There are a lot of foreign nationals in Brazil who own property and businesses. All you will need to buy property is a CPF number (tax registration number) which you can apply for via the Brazilian embassy in your home country or here in Brazil. The CPF is an important document required for anybody, Brazilian or non-Brazilians, who wishes to buy anything in Brazil. If needed we will be glad to assist you in obtaining your CPF.