High
Liquidity - No usecoming
soon!
Moderate
Liquidity - Limited use
Our purchase process in Brazil:
Ownership of land and property by foreigners is permitted, and all
property is freehold.
Once a buyer has found a suitable
investment property, it is necessary to apply for a certificate known as
Certidao de Onus Reais.
Once the purchaser receives this for the
chosen property and has negotiated an agreed price with the vendor, a
small non-refundable deposit is usually paid to the seller.
A sales contract is then drawn up which
details the full conditions of the sale and also acts as a receipt for
the deposit paid.
Finally, it is important to draw up the
property’s sales deed completion (‘escritura’) normally carried out at
the notary.
Costs of a standard property purchase in Brazil include the following:
Low
Liquidity - High use
As Brazil Real Estate Funds approaches
its projects purely from an investment perspective, its priority is to
deliver each real estate product with an emphasis on simplicity and
transparency throughout the purchase process. Therefore, Obelisk
International has already identified the purchase procedure for its
clients as a simple, four step process:
1) The client chooses and reserves the unit that best suits their
investment requirements, and Brazil Real Estate Funds takes the client
through a compliance procedure.
2) An independent lawyer, sourced and appointed for the client by Brazil
Real Estate Funds, will have already carried out full due diligence on
the real estate product. They will issue all purchase contracts and
paperwork to the client.
3) On receipt of this contract, the client will sign and make the first
payment. The lawyer will notify the client of all further payments when
required.
4) The appointed lawyer will also represent the client in all aspects
legally required within the country of purchase, ensuring that clients
of Brazil Real Estate Funds enjoy the benefits of simple and hassle-free
real estate investment.
Stamp duty (or purchase tax) at 3% of the
purchase price.
Government purchase tax of between 2% and 7% of the purchase price.
Property transfer tax (ITBI) of 2%, payable at the city hall.
Capital gains received by individuals on the sale of real estate will be
subject to Brazilian withholding income tax at 15%, applicable to
foreign investors who are not domiciled in a tax haven. The gain is
determined as the difference between the sales price and the acquisition
cost duly reported on the seller’s annual income tax return. |
