Frequent Asked Questions
Brazil is the New World. I believe is the future for humanity due to its natural resources. If you are willing to invest or to make your Strategic Relocation, you have a lot of questions for sure. I'll try here to address the most important information you need in order to be sure this is the right move.
1. How long does the investor visa process usually take?
It takes up to 2 months to have the company and bank account set up. Then it takes 4 months to make the visa application and to get it at your consulate. Which means 6 months in average to have the money invested and the residency visa for the investor granted.
2. What are the main risks involved when buying real estate in Brazil?
It depends mainly on who are your agent, accountant and lawyer. If you get the wrong people, then quite likely you are gonna be in big trouble. So, make sure you like who you are talking with and make some tests on them before getting deep on the matter. Try to find good references.
3. How much an average simple house costs in Santa Catarina?
It depends on the location. We can simplify though saying it will vary from 200k BRL to 500k BRL, depending on the location mainly. Because there are some places where houses are extremely a liquid asset and others not that much, even though I consider the entire State very easy to sell properties due to its many natural beauties and quality of life.
4. How much is a land plot in a good location?
Again, location. What city are we talking about and what neighborhood of the city. Simplifying, a beach front lot will cost +2M BRL.
Other places will vary from 100k BRL to 500k BRL.
5. Do I need permits to build in Brazil?
Depends on the location, again. In the cities, you always do. In rural areas, you mostly don't. So, that's why I prefer rural developments. You never need any permits in most of the rural areas. That means you can build chalets, 'Airnbs and so on in your rural property not having to worry about it.
6. What are the property taxes and how much is it.
For urban areas, you have the IPTU, which is a municipality tax that you have to pay annually and it is around 1% on the value of the property assessed by the municipality, and it is usually lower than the market price.
For rural areas, you have the ITR, which will vary depending on how many hectares and how much is the utilized area related to the total area. It's a Federal Tax. The rates vary accordingly from 0.3% up to 20%.
7. How is the transfer property title like in Brazil?
It is not a simple task. You better have your trust lawyer and real estate broker, just to make sure you are not going into big trouble.
Resuming, you make an offer and once both parties agree on terms, you go to the Notary and make a Private Sales Contract in order to assure the deal and start the process. Having the parties signed all documents, you call your bank and ask them to transfer the money to the seller. The seller will then call its bank and ask if the money has arrived. Once this is done, you take the the Public Deed to the Properties Registry Office to officially transfer the property title to your name. After this is done, you are now considered to be the legal owner of the property.
It looks like double trouble, however, it is what it is and I guess this is one of the reasons that characterizes Brazil as a bureaucratic country.
8. What about the commissions?
In Brazil the seller pays the commission. The rate is different for each State. In Santa Catarina, the commission for an urban property sale is 6% and for rural properties is 10%.