The property purchase process is simple and straightforward for non-Brazilians an the right of freehold is incontrovertible. Title insurance is available and the legal process is inexpensive and relatively quick.
 
In order to buy a property in Brazil, the foreign investor should be in the possession of a CPF number which is similar to a social security number.
 
On average transaction costs (ie stamp duty, fees etc) can be between 3% and 8% of the purchase price. This may differ on the location (ie beachfront), type of property and area you buy in. If there is a significant amount of work to establish title and ownership then these costs may be more.
 
This budget will cover you for Government Purchase tax (2%-7%), legal and registration fees.
 
Legal
It is recommended that a reputable solicitor is appointed to:-

• Check the current owners have the correct title to the property,
• Check for any charges and liabilities on the property,
• Checking your contract and advise you on the obligations for both parties,
• Helping you through the payment/funds transfer,
• Ensuring the property is registered in your name.

Funds are sent directly from your own bank to the sellers bank account in Brazil, via the Central Bank of Brazil who record your funds into the country. The seller has to present their contract to the bank to release the funds. This ensures the government have recorded your investment into the country. We recommend you only use the official route otherwise you may have problems transferring funds out of Brazil when you sell your property.
 
Currency
The Brazilian currency is the Real ("hay-ahl"), and Reais ("hay-ice") for the plural. The symbol for the Real is R$. The official exchange rate is published daily in the newspapers.
 
Currency is easily exchanged at hotels, banks, travel agencies and currency exchange offices. Generally, the exchange rate for traveller's checks is lower than for cash.
Credit cards are widely accepted in large cities in Brazil, however, if you are traveling to smaller towns, it is advisable to exchange some money before your trip.
 
Most Brazilian banks offer ATMs, however some foreign cards may not be accepted.
 
Mortgages
The mortgage market is quite underdeveloped in Brazil. Brazilians have tended not to get mortgages because the sector is not as well developed as in the UK and rates have been very high (20-30%) or the difficulty in providing adequate proof of income etc.
 
Foreigners cannot get mortgages. Buyers usually arrange alternative financing in their own countries.
 
Some Developers of new build & off-plan developments offer installment plans over a between 12 to 60 months. The charges applicable vary from developer to developer and payments are usually indexed.