Are there any restrictions on investors buying and owning in Brasil?
There are no real restrictions on foreign investment. The Government encourages investment through offering the investor 100% freehold ownership on their purchase.
You will need to obtain a CPF number (Brasilian ID) to purchase property and other items, such as cars, white goods, mobile phones etc.
It is an easy process to obtain this number but in order to do so you must have your passport, birth certificate and if applicable a marriage certificate.
How is the economical growth in Brasil?
In the last 5 years Brasil’s economy has shown a very significant growth. The average growth on property investments are 20%, and in some areas achieving 25%, on a yearly basis. This is set to continue and Brasil has been predicted to be one of the four largest emerging world markets, by the BRIC report.
How does the purchase process work?
After you have chosen your investment property, it is strongly recommended that you hire a Lawyer who is fluent in your native language and they will be able to guide you through, and safely complete the process. The lawyer will be able to undertake the following:
What methods can I pay for my property?
This depends on the vendor, and to split payments are a regular occurrence within the Brasil property market to pay over instalments. This is more common when buying off plan and instalments are made during the building. This on the whole shows a greater return on investments, and some investors will buy off plan just to resell on build completion to realise the profit.
To make purchase outright in the first instance has it’s own merits as it can cut bank transfer charges and you know the exchange rate at the time of purchase.
The only official way to send funds to Brasil is from your own bank account, through the Central Bank of Brasil. The transaction is recorded at the Central Bank and will only release the funds to the vendor when he produces the signed copy of the contract of sale.
If you later wish to sell your property and withdraw the funds from Brasil, then the initial record will allow you to do this, but without the funds entering through this channel you may encounter problems.
The registration fee, including taxes average at approximately 5-6% of the purchase price but this has variables depending on property type, location, or area of Brasil you buy in.
There is also IPTU tax, which is a yearly tax that equates to about 1% of the property value, and this is similar to the council tax in the UK.
Is there any risk buying in Brasil?
There is no more risk than anywhere else in the world. If the estate agent you are buying from is legitimate than they will have a CRECI registered number, if they don’t have this then they in acting illegally. The CRECI is the governing body of Brasilian estate agents and all must abide by strict rules laid down, or they will have their Creci withdrawn and will no longer be able to trade in the property business.
There are numerous options in gaining a Visa to stay on a permanent basis in Brasil. The best person to advise on an individual basis is a solicitor. We can provide contact details for solicitors both in Brasil and the UK who can assist in this matter.
When buying off plan, how do I know the quality will be good?
When buying off plan always ask the developer what the grade of the build is. It will usually be quoted on a scale of 1-5, with 5 being exceptional quality.
Is it safe to drink the water?
The water in the North East is fine to drink, but bottled water is available everywhere and cheap to buy. In most rural areas the water is extracted straight from natural water springs beneath the ground, and it services the whole water supply of the house or apartment.
The shopping is very much like any other country. There is local supermarkets or hypermarkets where you can buy anything you need. There are several shopping malls which contain cinemas, bowling alley’s and a vast variety of shops catering to all needs. They also contain food halls with all types of restaurants and take away chains.
Is there internet cafes so I can email people?
There are many internet cafes and more and more restaurants and bars are getting Wifi zones fitted. In all the shopping malls there is free Wifi zones so you have plenty of opportunities to use the net.
It is possible to call home from public telephones but with the use of Skype and MSN it is so much cheaper to keep in touch by this medium.
Compared to the UK the crime rate is very low in North East Brasil, but common sense tells you not to walk around with your finest jewellery on, where ever you may be in the world. It may surprise you that you very rarely hear a police siren in the city, and at numerous locations there are community police points, and police have got time to man these, unlike the UK.
On other points, Brasil has never had a natural disaster and has a very low risk or any terrorism attack.
How is the cost of living in comparison to the UK?
For the day to day running costs, ie food, energy etc it is approximately 3-4 times cheaper to live in Brasil, and this figure is based on a family unit of 4. A meal in a restaurant, with drinks, average out at about R$50 to R$70, there are cheaper places where all you can eat buffet is anywhere from R$6.
Items that do work out more expensive are some electrical items, such as Lap tops, Plasma televisions and games consoles, also some branded trainers.
The easiest way to fly is via either Natal or Recife. Numerous airlines run into north east Brasil and the flights range from £300 to £800 return, depending on the airline and time of fligts. It is important to note that when leaving Brasil you have to pay tax at the airport, which works out at about R$80. If you fly with Tap, the tax is included in the flight price but please confirm this on booking.
João Pessoa’s airport is now an international airport and available to take the larger planes. It is hopeful that the tour operators will commence sending flights direct to Joao Pessoa as the tourism industry is starting to boom.
What is the climate like in north east Brasil?
North east Brasil does have seasonal changes, but as it is in the Southern Hemisphere they are opposite to those in Europe. Summer time starts in November and carries on through to March and temperatures are between 25 to 33°c. Unlike some other tropical countries, north east Brasil coast doesn’t have a humid heat as there is a cooling breeze coming in from the ocean. Winter is from June to the end of August, and temperatures are 23 to 28°c.
What currency is used in Brasil?
The currency is Brasilian Reals and Real is made up of a hundred centavo’s. To check up on the current exchange rate follow link to: www.xe.com/ucc/convert.cgi
The language spoken is Brasilian Portuguese, not to be confused with Portuguese. Although very similar there are differences so if you are looking to learn the basics of the language make sure it is Brasilian Portuguese you study. English is taught in the schools in Brasil, and there are lots of language schools that teach English and Spanish, so there are more people starting to speak in these languages.
There is a free healthcare service but the most popular form is private healthcare. There are many different schemes and if you are planning to move permanently we can advise on the different types. The chemists are trained to help diagnose minor aliments and carry a very wide range of products that can be bought over the counter.
If travelling for a short period it is recommended that you have travel and health insurance to cover you for any problems that may occur.