Real Estate Purchases by Foreigners

Real Estate Purchases by Foreigners in Brazil: What Brazilian Law Says

Brazil is open to foreign investment and generally allows foreigners to purchase real estate within its territory, provided certain specific legal rules are observed, which vary depending on the type of property: urban or rural.

1. Can Foreigners Buy Property in Brazil?

Yes. Foreigners, whether residents or non-residents, can acquire real estate with nearly the same rights as Brazilian citizens, especially regarding urban properties.

A residence visa is not required to buy property. However, the foreign buyer must:

• Have a CPF (Cadastro de Pessoa Física – Brazilian tax ID)

• Present a valid identification document (passport)

• Complete the purchase through a public deed

• Register the property at the Real Estate Registry Office (Cartório de Registro de Imóveis)

Only after registration does the ownership become legally valid.

2. Definition of Urban Property in Brazil

In Brazil, an urban property is one that:

• Is located within the municipality’s urban perimeter, and

• Is intended for residential, commercial, industrial, or service purposes

Examples:

• Apartments

• Houses in cities

• Commercial offices

• Shops

• Urban plots

For urban properties, there are no limits on the number, value, or location for foreign buyers.

3. Definition of Rural Property in Brazil

A rural property is defined as one that:

• Is located outside the urban perimeter, and

• Is intended for agricultural, livestock, extractive, or agro-industrial activities

Examples:

• Farms

• Smallholdings (sítios)

• Productive ranches or chacaras

• Agricultural lands

4. Rules for Foreigners Purchasing Rural Property

Foreigners can purchase rural properties, but there are legal restrictions, according to Law No. 5,709/1971 and complementary regulations.

Key requirements include:

• Authorization from INCRA (National Institute for Colonization and Agrarian Reform)

• Limits on the size of the area acquired

• Restrictions in border areas and strategic zones

• In some cases, approval by the National Defense Council

These rules aim to protect:

• National sovereignty

• Territorial security

• Land control

5. Can Foreigners Obtain a Visa by Purchasing Property?

Yes. Brazilian immigration law allows foreigners to obtain a residence visa through real estate investment, provided the minimum investment values set by the federal government are met, which vary by region.

6. Conclusion

In summary:

• Urban properties: free purchase by foreigners

• Rural properties: purchase allowed but subject to control and authorizations

Brazil has one of the most open systems in Latin America for foreign real estate investment, offering legal security as long as all legal steps are properly followed.

Contact Hütter Advogados Associados for further guidance and professional assistance.

Real Estate Purchases by Foreigners in Brazil: What Brazilian Law Says