Guide to Buying Real Estate in Brazil
Buying real estate in Brazil involves a three-phase process, which ensures both the buyer and seller are legally protected.
Phase 1: Agreement on Purchase Intent
Once buyer and seller reach an agreement after the property viewing, a date is set to sign a Purchase Intent Agreement.
Phase 2: Purchase Intent Agreement (Promessa de Compra e Venda)
In Brazil, a formal purchase contract is not signed immediately. Instead, a Purchase Intent Agreement is drafted, and a 10% deposit of the total purchase price is paid.
The Purchase Intent Agreement serves as a security measure:
- The seller is guaranteed that the buyer is committed to purchasing.
- The buyer is assured that the property will no longer be offered on the market.
The agreement must include:
✅ Full names, addresses, marital status, professions, and tax numbers (CPF) of both parties.
✅ Property details (address, description, and total purchase price).
✅ Deposit amount (10% of the total price).
✅ Proof that the seller is the legal owner of the property.
✅ Full names, addresses, marital status, professions, and tax numbers (CPF) of both parties.
✅ Property details (address, description, and total purchase price).
✅ Deposit amount (10% of the total price).
✅ Proof that the seller is the legal owner of the property.
💡 Legal Consequences of the 10% Deposit:
- If the buyer withdraws, they lose the deposit.
- If the seller withdraws, they must refund double the deposit.
- This applies whether the agreement is privately signed or notarized.
📌 Signature Verification
After signing, both parties must go to a notary (cartório) to authenticate their signatures, ensuring the agreement is legally binding.
After signing, both parties must go to a notary (cartório) to authenticate their signatures, ensuring the agreement is legally binding.
Phase 3: Signing the Final Purchase Contract
After the deposit is paid and receipt confirmed, it usually takes 1–2 weeks to schedule a notary appointment for signing the final purchase contract (Escritura Pública de Compra e Venda).
Seller’s Required Documents
Before signing, the seller must provide various up-to-date documents, including:
✔ Proof of no outstanding taxes or debts on the property.
✔ Confirmation that neither the seller nor the property is involved in legal disputes.
✔ Proof that all municipal fees have been paid.
✔ Proof of no outstanding taxes or debts on the property.
✔ Confirmation that neither the seller nor the property is involved in legal disputes.
✔ Proof that all municipal fees have been paid.
💡 The real estate agent is legally required to verify the accuracy and completeness of these documents.
📌 Notary Verification
The notary (cartório) checks:
The notary (cartório) checks:
- All documents comply with legal requirements.
- There are no tax debts or restrictions preventing the sale.
- The property transfer tax (ITBI) has been paid by the buyer.
🏡 Final Steps:
- Signing the final contract.
- Payment of the remaining balance.
- Handover of property keys.
Important Notes for Foreign Buyers
✔ CPF Number (Brazilian Tax ID)
To legally conduct business in Brazil, you must obtain a CPF (Cadastro de Pessoa Física) from the Brazilian tax office (Receita Federal).
To legally conduct business in Brazil, you must obtain a CPF (Cadastro de Pessoa Física) from the Brazilian tax office (Receita Federal).
💡 How to get a CPF:
- In Brazil: Apply at Banco do Brasil or Caixa Econômica Federal with a passport.
- Online: Apply directly on the Receita Federal website.
- Through the Brazilian Consulate in your home country.
📌 Processing Time: The CPF can be printed online within 3–4 business days.
🚫 Bank Account Restrictions for Foreigners
Foreigners without a residence permit cannot open a bank account in Brazil. Therefore, you should plan in advance how to transfer funds for the deposit payment.
Foreigners without a residence permit cannot open a bank account in Brazil. Therefore, you should plan in advance how to transfer funds for the deposit payment.
✔ Residence Permit for Real Estate Investment
According to Law RN 36/2018, foreigners can obtain a residence permit if they purchase a property worth:
According to Law RN 36/2018, foreigners can obtain a residence permit if they purchase a property worth:
- BRL 700,000 or more in Northern Brazil.
- BRL 1,000,000 or more in Southern Brazil.