Brazil

Houses for sale on the beach in Brazil
Brazil is the giant on the South American continent, larger than Europe in extent. The country is politically stable and has a fast-growing economy. Strong growth in tourism is expected in north-eastern Brazil in the coming years. This is due to the fantastic climate, the low price level, the exotic culture and the people is another new destination - a little out of the way, but aren't all the best places to be - This is on an island in the South part of Brazil and has the wow factor - Browse through our current listings handpicked for investment,location and quality and for rental income potential.

Property investors are now turning their attention to Brazil as it fast becomes a leader in the field of emerging markets. Real estate is really booming on this part of the world. Returns on investment are considered to be excellent and investors are increasingly aware of the high growth potential that Brazil offers as a stable though fresh, new investment market. Economists now predict that Brazil will be amongst the economic leaders of the future, along with Russia, India and China.

1) Property capital appreciation of 20% per annum in some locations.
2) Favorable currency exchange rates, making property transactions cheap for foreign investors.
3) Govern’s improvements policies which bringing many improvements to Brazil,including a decrease in inflation to an all-time low, market stability and investments security.
4) Active encouragement and incentives for foreign investment - you can own 100% of land and property and have all the legal rights on it.
5) Cost of living only 20% of that in the UK/Europe and property maintenance costs extremely low.
6) Some of the lowest property prices in the world.
7) Increase of thriving manufacturing industries relocated to Brazil and boosting the economy.
8) Self sufficiency in oil reserves and energy supply.
9) Some economists believe Brazil is amongst the leaders of the future, along with Russia, India and China.
10) Year-round sunshine, with average summer temperatures of 21°C.
11) Great natural beauty with fantastic scenery and 7,000km of beaches.
12) Friendly nature of the Brazilian people. Vibrant cities with carnivals and music.
13) Low international risk of war, terrorism or SARS in Brazil.
14) Easy access via direct flights from many international airports.
15) Foreign individuals and non-residents may invest in urban and rural properties through direct ownership from abroad, or through resident companies or partnerships. To be able to buy a property, a tax registration number from the Cadastro de Pessoa Fisica (CPF) is required.

Property purchase specifically as an investment vehicle is a popular option amongst those aiming to capitalize on the excellent growth potential of property in Brazil. This type of investment can consist of an off-plan purchase for sale prior to project completion.Alternatively, a buy-to-let situation can provide reliable rental income from the property, along with substantial capital appreciation. According to independent investment experts, including many articles in international investment press, Brazil is now widely considered to be a highly profitable market. The economic climate and tourist infrastructure are currently undergoing major upheaval, while the country’s economic strategy has caused much growth in the past 3 years. While Brazil remains on a steady growth curve, investors are urged to catch this promising market from the very start, while prices
remain low and high returns on investment are inevitable in current hotspot locations. Brazil has excellent direct flight communications with the UK and the rest of Europe, making it a convenient holiday destination. This accessibility increases potential investment yields and reinforces the promising future of Brazil. A low cost of living at only 20% of that in the UK, great quality of life, a fantastic climate, Tropical beaches and a rich and vibrant culture are all valuable contributing factors to Brazil's success.

Entry Visas

Foreigners are allowed 3 month visas, or a maximum stay of 180 days per year. If you wish to apply for a permanent visa, one of the following conditions must be met:

* You are married to a Brazilian.
* You have a child with a Brazilian.
* You invest 250.000 US Dollars or Euros in Brazil.
* You have reached the age of retirement (50 years) with a pension.

WHY INVEST IN THE NORTH EAST ?

The Northeast of Brazil has been the target of an explosion of investments on the part of international real estate and tourism groups. It is a general consensus among market specialists that the region will be one of the world’s greatest tourist destinations and second-home destinations within the next few years. To consolidate the security in getting and generating investments in the region, companies, associations, entities, State and Federal Government have increased their interest in promoting the Brazilian northeast before potential investors, drawing the attention to the principal reasons to invest in the region, such as:

• The Brazilian northeast is the only tropical region on the planet that is not affected by terrorism, natural disasters and so on.
• Over 3.300 kilometers of dazzling tropical beaches and more than 300 sunny days a year.
• pleasant and hearty people, always willing to receive visitors and encourage good business.
• Extremely attractive prices on the real estate market and cost of living, specially when compared to Europe
• Excellent quality private healthcare system.
• The region has a diverse culture and the folklore is strong among its people. Each state preserves its roots and culture, what makes the Brazilian northeast a truly mosaic of rhythms, dances and habits
• The Brazilian northeast has a diverse cuisine with typical dishes done from proper ingredients ( corn, cassava, dry meat, seafood and tropical juices. The gastronomy of the northeast is unique, for it gathers different peoples influence – Indians, Africans and Europeans – together with elements found in each state.
• 1,6 million km2 of natural wonders where fascinating scenery is revealed such as Parque dos Lençois no Maranhão – a truly ecological paradise with 155.000 hectare of dunes, rivers, lagoons and mangrove swamps – Chapada Diamantina – mountain ridge region, located in central Bahia state, that features its beautiful vegetation and natural shaped landmarks such as Cachoeira da Fumaça that has 380 meters of free fall, Canyons , stony walls that rise from the waters of São Francisco river. These canyons are the favorite place for those who enjoy extreme sports.

How to get to the North East of Brazil

Ceará has a privileged localization, being one of the closest points from Brazil to Europe and North America. Access to the State was favored through the opening of the Aeroporto Internacional Pinto Martins in Fortaleza, in 1998, which raised the domestic and international tourism by creating conditions for the increase of the number of planes that arrive in Ceará. Regular and direct flights bring visitors from Spain and Portugal. Ceará often receives charter flights coming from Italy, Sweden, Hungary, Holland, Finland, Switzerland and Poland. There are still many regular flights connecting Ceará to the main Brazilian capitals like Rio de Janeiro and São Paulo. Direct flights from the UK are not available at present via Madrid or Lisbon at present.

About the Location Fortaleza and the surrounding Area

Fortaleza is a modern city, modern but one of the hospitable and beautiful capitals of the world. Beach,sea and sun with plenty to do and see. The city is cultured and vibrant with many art galleries and museums. bustling markets with stores offering many handmade goods as you meander through the streets you you can stop at one of the.bars or restaurants offering local cuisine. bars, night clubs and restaurants for many tastes, open during the whole week

Fortaleza hosts one of the country’s most famous out-of-season carnivals, Four days of excitement where around 1.5 million people have fun listening to music and party into the night. Fortaleza also hosts one of the most important music festivals in Brazil, Ceará Music. In three days the annual event gathers local artists and national pop-rock stars. Around 25 thousand people enjoy the fun .

Brazil in the News

Global ratings agency, Fitch, and market intelligence provider Standard & Poor’s have upgraded Brazil’s credit rating as a safe place to invest, taking into consideration that Brazil is highly unlikely to default on its liabilities.institutional investors are now looking towards the Brazilian market to boost their profits.The new rating will make Brazil more attractive to a wide range of international investors such as large US pension funds. These funds are only allowed to invest in countries with positive confirmation that monetary obligations can be met.

BUYING COSTS

ITIV (similar to VAT): approx. 3,5%
* Title Deed(cost for the Notary office) : approx. 1,25%
* Registration of the deeds: 0,75%
* Legal fees: approx. 2%

If you add up these costs, you'll come close to 7%. this does not include lawyer fees which are typically 2% of the purchase price

Taxes
Income tax - 15% for non-residents
Capital Gains Tax -15%
Inheritance Tax 2.5% to 4% depending on the value of the inheritance

Residents are taxed on their worldwide income. Married couples are generally taxed jointly but married couples married under the separate property regime can opt for separate taxation. A spouse who is taxed separately may not be considered a dependent for tax purposes.

ANNUAL INCOME TAX RATES FOR RESIDENTS
TAXABLE INCOME, BRL (US$) MARGINAL TAX RATE
Up to 15,085.44 (US$8,443) nil
15,085.44 – 30,144.96 (US$16,871) 15% on band over US$8,443
Over 30,144.96 (US$16,871) 27.5% on all income over US$16,871