Brazilian mortgages and home loans: A foreigner's guide (2024)

FAQs

Can foreigners get mortgages in Brazil? ›

Yes, you can. In fact, you do not need to be a Brazilian resident (or have any special kind of visa) to own property in Brazil. Foreign property buyers who purchase urban land, coastal properties, residences, or condos face no limitations. In fact, foreigners enjoy the same rights as Brazilians in this matter.

Foreigners, resident or not, can legally buy property in Brazil. However, getting a mortgage might be tricky, as it's down to the rules of the institution you choose. Unless you're a legal permanent resident, it's highly unlikely you'll be able to get a home loan.

Yes, foreign citizens can buy real estate in Brazil, and they actually buy a LOT. Currency exchange favorable to strong currencies such as the dollar and the euro is just one of the many reasons why buying properties in Brazil is an opportunity for foreign citizens.

Today the Dominican Republic is the easiest place in the Americas for a foreign buyer to qualify for a mortgage. Because the country is eager to attract foreign investment, banks offer financing to foreigners at a fixed rate of 8 percent.

Opening a bank account in Brazil

That said, foreigners will need a residence visa to open an account. Other documents required for opening a Brazilian bank account usually include a valid identity document, a taxpayer's number (Cadastro de Pessoas Físicas, or CPF), proof of domicile and proof of residence.

Lending interest rate (%) in Brazil was reported at 39.38 % in 2022, according to the World Bank collection of development indicators, compiled from officially recognized sources. Brazil - Lending interest rate - actual values, historical data, forecasts and projections were sourced from the World Bank on June of 2023.

Main international mortgage providers

As a general rule, US banks do not generally offer international mortgages to American citizens. Those that do typically cover selected countries only.

Retire in Brazil – Visas and Residence Permit

Americans can retire to Brazil on a retiree visa. To obtain a retirement visa, you must be over age 60 and have a pension that earns at least $2,000 per month. To apply for the retirement visa, you must apply at least four to eight weeks before arriving in Brazil.

If you want to reside in Brazil legally, you must apply for and obtain a visa before traveling to the country, or you will be denied entry by Brazilian authorities. Depending on the reason why you want to move to Brazil, you need to choose a type of VITEM visa and submit the application for that type of visa.

The visit visa will be issued to foreigners traveling to Brazil for staying up to 90 days without purposes of immigration or the exercise of paid activity (daily allowances, artistic paychecks, compensation or other travel expenses are allowed).

Is it worth buying property in Brazil? ›

Brazil is one of the best places for investing at any time. From world-class beaches to highly-sough urban neighborhoods, Brazil is known as one of the best places to purchase real estate. Now, due to currency exchange factors and the higher purchase power of foreigners, this is even more of an opportunity than before.

Stay less than 180 days within a 12-month period. Hold a passport valid at least six months on entry with one blank visa page. Hold proof of sufficient funds.

At a Glance: Non-U.S. citizens can get personal loans, but it can be challenging. Some lenders require a cosigner, while others have options for immigrants. Factors like credit history, income, employment, visa status, and future plans impact eligibility. Alternative credit references and documentation may be needed.

Yes, American expats abroad can take out a personal loan. However, some limitations or restrictions can make the process difficult.

No, you do not need to be a U.S. citizen to qualify for a mortgage. Foreign nationals can qualify for a mortgage, as long as you can prove your residency status and meet the loan's eligibility requirement.

Of the top 50 banks in Brazil, 14 are foreign-owned or controlled. As of September 2022, the top U.S. banks in terms of net equity are, Citibank (ranking 10th overall), JP Morgan (12th), BofA Merrill Lynch (25th), and Goldman Sachs (32nd). Fintechs have made inroads in terms of number of clients.

Credit and debit cards are widely accepted in Brazil, with coverage on all the major networks.

Take it, with your passport and proof of address, to a Caixa or Banco do Brasil bank branch or a post office. Note that your card will be mailed to this address. At the post office, submit the form and proof of address. The fee is currently 5.70 reais—about US$1.60.

The costs of rent in Brazil, range from $784 – $2416 (3,920 BRL – 12,080 BRL) Per Month., depending on your budget. A budget food and grocery plan in Brazil will cost around $220 – $800 per month, depending on location and budget.

Also called monetary correction, this Brazilian oddity was invented during the military dictatorship. Brazil was thought to have discovered the infallible remedy for inflation. If prices in general were automatically corrected, it was thought, inflation would tend to zero.

Where can I get a loan in Brazil? ›

Financing property overseas can be tricky. Getting a mortgage in the foreign country means you'll need a very big down payment and you'll probably also be paying super high interest rates. You might also be required to get a new life insurance policy so your new mortgage is secured in case something happens to you.

Yes, you can get a mortgage for a property in another country. The bank or lender will need to have an overseas presence in order to assist you with getting an international mortgage.

Approval Route: Under the approval route, in order to get a loan from a foreign entity, the borrower is required to submit an application with the RBI in the prescribed form through authorized dealer as specified by the RBI.

Generally, people who are not U.S. citizens may get U.S. Social Security benefits while outside the United States only if they meet certain requirements. However, under the agreement you can receive benefits as long as you live in Brazil, regardless of your nationality.

Expats usually live in São Paulo. It's the most important city for business and finance. If you prefer a more relaxed lifestyle, you can consider moving to Rio de Janeiro. If you are looking for a more relaxed life you can either go north or south.

In the southern region of Brazil, on an idyllic island just off the coast sits Florianopolis, arguably Brazil's best place to be. Sunset in the city of Florianopolis, Brasil's safest city.

Dual citizenship is recognized in Brazil. You are not required to renounce your previous nationality to become a citizen of Brazil.

That is, the national legal system allows Brazilians to have dual or multiple nationalities ONLY if the other nationality(ies) arise from birth in a foreign territory (original nationality), of foreign ancestry (original nationality) or naturalization by imposition of a foreign rule.

Brazilians are very warm, friendly people. If you are staying with a local, within days the whole neighborhood will know everything about you. Don't be alarmed, Brazilians love meeting new people, and having a visitor is a novelty for them, especially if you visit a small town.

Do US citizens need a visa for Brazil 2023? ›

Regrettably, the United States is not of those states that have signed a visa-waiver agreement with South America's largest economy. What is this? This means that, as soon as October 1, 2023, Americans will be barred entry unless holding a valid tourist or long-term residency visa.

You can get Brazilian citizenship if you live in the country for, at least, 4 years under residence authorization for an indefinite term (permanent residency). But if you are married to a Brazilian citizen or have Brazilian offspring, then the 4 years fall for 1 year living in the country with permanent residency.

You will need: A valid U.S. passport. U.S. citizens do not need a visa if they are traveling to Brazil for tourism, business, transit, artistic or sport activities, with no intention of establishing residence.

Property taxes

Imposto de Transmissão de Bens Imóveis Inter Vivos (ITBI) is a property tax levied at the transfer of immovable property, with rates also varying based on the municipality where the property is located. The ITBI of up to 3% is payable by the acquirer on sales or transfers of real estate.

The Brazilian passport is one of the most powerful in the world, giving access to 164 countries visa-free or with visa-on-arrival, according to the Global Passport Index.

Absences of more than 365 consecutive days

You must apply for a re-entry permit (Form I-131) before you leave the United States, or your permanent residence status will be considered abandoned. A re-entry permit enables you to be abroad for up to two years. Apply for a re-entry permit.

Yes, it is possible for a non-permanent resident to buy a house in the United States. Mortgage approval odds generally depend on the lender, type of mortgage, income status and whether the non-permanent resident can prove their intent for long-term residency.

It can take immigrants with no credit several months to build a positive credit report. Generally, it takes at least three months and probably six months of activity before a credit score can be calculated. Many immigrants are able to develop a good score within a year.

There's no law saying you can't move to another country if you have debt—even if it's in collections. But if you've taken on debt in the U.S., you're contractually obligated to pay it, regardless of where you choose to live. Living abroad can make it more difficult for creditors to find you and collect on your debt.

Do I need to report a foreign loan to IRS? ›

You may be required to file Form 8938, Statement of Specified Foreign Financial Assets, to report your specified foreign financial assets if the total value of all the specified foreign financial assets in which you have an interest is more than certain reporting thresholds.

You must report any account with more than $10,000, or if your combined accounts have a total value greater than $10,000. In addition, overseas banks are required to report their U.S.-owned accounts or risk exclusion from U.S. markets. Internal Revenue Service. "Report of Foreign Bank and Financial Accounts (FBAR)."

It's 100% legal for US citizens to have foreign bank accounts. You just need to tell the IRS and report it properly. In fact, we've found hundreds of banks still willing to accept US clients.

Eligible immigration statuses: U.S. citizenship is not required to obtain an FHA loan, but an immigrant must have lawful permanent residence status, have nonpermanent residency status or be a DACA recipient.

Does buying a property in the USA give you residency? Purchasing American homes doesn't automatically put you on your path to citizenship. But there are other ways to earn permanent residency in the United States if you are a foreign national or an immigrant.

If you intend to invest in real estate in Brazil, here are some tips. Any citizen can purchase urban properties in Brazil, including foreigners.

The basic requirement for any foreigner to open a bank account in Brazil is to have a residence visa. With that, you can prepare for your visit at the local branch of the bank, and bring with you the following documents: Permanent or temporary resident visa (with a minimum duration of 12 months)

Can a foreigner open a company in Brazil? Yes, the opening of a company by a foreigner in Brazil is possible, and he may form or have interests in companies in Brazil, living in the national territory or not. But he must fulfill some requirements and carry out some bureaucratic procedures.

No, you do not need to be a U.S. citizen to qualify for a mortgage. Foreign nationals can qualify for a mortgage, as long as you can prove your residency status and meet the loan's eligibility requirement.

Is buying real estate in Brazil a good investment? ›

Brazil has one of the world's largest economies, making it a stable investment environment. Its stability means that investing in beach real estate is a secure long-term investment option. Brazil affords foreign property buyers 100% ownership rights. All you need is your passport and a C.P.F number.

Property TAX (IPTU - Imposto Predial e Territorial Urbano)

The tax, collected by the municipality where property is located, is calculated on a deemed "sales price" of the property. The tax rate varies from city to city, but may be estimated in the range of 0.3% to 1.0%.

Credit and debit cards are widely accepted in Brazil, with coverage on all the major networks.

Nubank (Our pick)

Nubank is the biggest digital bank in the world at the moment. It acquired more than 40 million customers, mainly in Brazil, but some in Colombia and Mexico. It's opening its app for the people of Argentina in the near future as well.

Brazil Remote Work Visa Overview

Foreigners that are employed by a foreign company who wish to work remotely in Brazil can now live and work in the country for one year.

If you want to reside in Brazil legally, you must apply for and obtain a visa before traveling to the country, or you will be denied entry by Brazilian authorities. Depending on the reason why you want to move to Brazil, you need to choose a type of VITEM visa and submit the application for that type of visa.

In Brazil, the right to own property is assured by Article 5, XXII of the Brazilian Federal Constitution. According to the Brazilian Civil Code (Law No. 10,406 of 2002), the owner has the right to use, enjoy and dispose of his or her property, as well as to defend it from whoever may unlawfully hold it.

It is entirely possible to purchase a home as a non-U.S. citizen — whether you're a foreign national or a permanent or a temporary resident. There are no limitations on the type of property that can be purchased or how the property is used.