Many people's dream is to be able to acquire a property to call their own. And did you know that you can buy a property in Brazil even if you are living abroad?
That's right! That is exactly what we are going to deal with in today's article. Many Brazilians who live abroad do not know, but they can acquire the dream of their own property even though they are far from Brazil.
But, how do you do that? What are the criteria and what are the documents required for this type of transaction? This is what we will clarify below.
Stay with us and learn all about real estate credit for emigrants and how to buy a property in Brazil even if you are abroad.
Is it possible to buy a property in Brazil living abroad?
The answer is simple: yes! It is completely possible to buy an apartment or a house in Brazil living abroad.
And that's not all: anyone who wants to make a purchase of real estate in Brazil can do it. It is not necessary, necessarily, to have been born in Brazil or to be Brazilian.
Below, we explain how this process works.
How does it work to buy a property living outside Brazil?
In this case, it is necessary to go to the consulate, make the power of attorney, register it and send the original documentation to the bank that will finance the mortgage or to the construction company.
The buyer needs to indicate the person to whom he will send the power of attorney and who will be authorized to sign all necessary documents, and to resolve bureaucratic issues with the notary and bank.
Is it worth buying property in Brazil living outside Brazil?
After knowing what are the procedures for buying real estate in Brazil living abroad, is it worth it?
We believe that it is worth it, because the bureaucratic processes are very similar to those that happen with those who live in Brazil and want to acquire a property here.
In other words, the bureaucracy is relatively low, and in addition, there is the factor devaluation of the real and the appreciation of other currencies in comparison with the Brazilian currency.
So it may be worthwhile to make this transaction and acquire your property in Brazil even if you live abroad.
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 only restrictions existing by foreigners are related to the purchase of rural properties, marine land and along the borders, the restrictions do not apply in the case of an autonomous unit of condominiums, such as the purchase of apartments in a building located on land of marine or land lots. The Constitution of the Federative Republic of Brazil states that the law will regulate and limit the acquisition of rural property by foreigners, leaving the acquisition of urban properties free. It should be noted that the purchase of minimum R$ 1.000.000 Brazilian Reais in real estate in Brazil give foreigners the right to obtain a permanent visa.
The foreigner cannot acquire journalistic, radio broadcasting and image companies - only Brazilians born or naturalized for more than 10 (ten) years - or legal entity constituted under the Brazilian laws that have their headquarters in the country. These companies must have at least 70% (seventy percent) of the capital in the hands of native or naturalized Brazilians, who will necessarily exercise the direction of the company and the responsibility for the selection of the program transmitted and regulated by the Public Power.
Necessary documents for the purchase of real estate for foreigners in Brazil:
• Foreigner's passport or RNE (National Alien Registration) if you have a permanent visa;
• CPF, Individual Taxpayer Registration at the Ministry of Finance, if the buyer is married, in Brazil or abroad, the spouse's CPF and marriage certificate will also be required.
To acquire the CPF registration, the foreigner in Brazil must go to any Federal Revenue Office (RFB) in the main Brazilian cities with the passport and the entry visa in Brazil, requesting their registration after filling out the Individual Taxpayer Registration Form. Registration with the CPF can be done by means of a power of attorney with specific powers that can even be drawn up at the Brazilian consulate. In this case, in addition to filling out the Individual Taxpayer Registration Form, a certified copy of the identity used in the foreigner's country of residence is required, in addition to the proxy's identity and the power of attorney.
Necessary documents for the purchase of real estate for foreigners residing abroad:
• Foreigner's passport or RNE (National Alien Registration) if you have a permanent visa;
• CPF (individual registration). The CPF can also be requested at Brazilian consulates in the foreigner's country of origin or in Brazil by proxy, and if the buyer is married, the other spouse's CPF will also be required for purchase;
• Public power of attorney legalized in the Brazilian consular office of the country of origin of the foreigner, in Brazil registered in the Titles and Documents Offices and translated, with full powers, to buy, sign deed, private contracts and resolve any matter before the Notaries, Registry Real Estate (CRI) and IRS for regularization in Brazil of the property acquired on behalf of the foreigner.
The Public Deed and the Real Estate Registry: The purchase of a property can only be made by public deed, a document that the Law considers able to be registered at the Real Estate Registry Office. The deed of the property can be made in any notary's office (notary).
Much of this positive scenario is due to the fact that, when buying land, a house, an apartment or a living room, the property tends to appreciate over the years, while generating fruit - whether in the form of rent or its own use and enjoyment by the owner. The value of a property, especially if acquired during a crisis (which the market calls “low”), tends to increase. In addition, the property is very clean and cannot be “lost” or “stolen”. This, unlike what happens with automobiles or jewelry, for example.
Surveys points to significant growth in the commercial rental and warehouses market, including in large Brazilian capitals, such as Rio de Janeiro and São Paulo.
The survey shows that the properties used by large companies in the city of Rio recorded a decrease in vacancy, and an increase in the percentage of occupied properties. In the capital of São Paulo, the same thing happened.
The following are five reasons that show why investing in real estate is worthwhile:
Safety
As long as the structural quality and vigor of the region is maintained, a property does not lose its value. According to experts, on average an owner of an office, store or warehouse collects an income of 0.8% per month in each leased unit, reaching 9.6% per year.
This value is higher than Referenced Fixed Income Funds, such as the Bank Deposit Certificate (CDB), for example, which can reach 9% per year. Recalling that in addition to income, a property acquired during the “low”, almost always undergoes appreciation.
Residential properties, although they are the most liquid and the easiest to rent, generate lower profitability than commercial properties, an average residential property - apartment or house - is usually rented faster than a commercial property, but usually generates less income, around 0.4% per month. It would be the most suitable property for investment by a person who is less able to afford its costs, while it is empty.
Expectation of recovery
As we said at the beginning of the text, the real estate market has a positive track record, since properties are valued annually, in addition to always following inflation, not to mention the great appreciation that is expected when acquired in times of crisis. Add that to the fact that the country is going through an excellent moment for acquisition in the sector, with the lowest Selic interest rate in history, at 3% per year. In other words, having money invested in the bank, in low-risk applications, has become less profitable than ever. Meanwhile, by 2025 there will be a demand for 14.5 million new homes, according to data from the Getúlio Vargas Foundation.
Durability
A property is a long-lasting asset, whether it is a house, apartment, flat or commercial property. If the option is to rent a recently acquired property, it is estimated that the complete return on investment, with the receipt of rents, does not take more than 10 years. Except that, in addition to receiving the rents, you own a property, which, if purchased at a time like the present, is, according to experts, practically a guarantee of appreciation. In other words, everything you receive monthly after this period is profit and continues for years, requiring only repairs to maintain your assets.
Risk reduction
While other forms of investment include high volatility, the real estate market remains stable and the greatest risk is vacancy. A great example is what happened during the Coronavirus pandemic: while the stock market dropped by 39.28% in two months and the price of oil was negative, the value of the properties practically did not change and a certain profile becomes more sought: the second residence in places close to nature. Planalto Invest, a developer based in Goiás, saw its business take off. In April, the company sold 7.5 times more lots than in March, reaching R $ 9 million in PSV (general sales value).
High housing deficit
According to the Brazilian Institute of Geography and Statistics (IBGE), Brazil suffers from a lack of 7.7 million homes. Thus, with the increase in population, the demand for rental units also grows, that is, the market continues to expand.
We interviewed several specialists and managed to gather some of the main characteristics that the property must have, in Rio, to be more liquid and easier to rent.
The real estate market in Rio de Janeiro, despite the problems that the city has, is one of the most suitable for those seeking income from real estate. The city, squeezed between the mountains and the sea, has certain locations that are highly desirable, according to the proximity of the beaches or, alternatively, the main modes of transport. The choice of a property that the market considers “easy to rent” should be guided by the proximity of the shopping centers.
