EXPENSES AND REQUIREMENTS
EXPENSES ON BEHALF OF THE BUYER:
- Legal fees: depending on the lawyer you decide to work with and the nominal value of the transaction, these are typically between 1 and 3% of the acquisition price.
- The Transfer Tax (ITBI – Imposto de Transmissão de Bens Imóveis). In Bahia, this is a fixed 3% of the acquisition price and needs to be paid by the buyer before the deed is signed.
- The notary (the Cartório – Tabelião de Notas). Generally, the notaries in Bahia will charge 1.5% of the acquisition price, although in some cases discounts are possible.
- The registration of the deed at the real estate registers in Porto Seguro. these fees are determined by a sliding scale with a maximum of 1.5% of the acquisition price.
All in all, you should count for between approximately 6% and 9% of costs on top of the total acquisition price. This is, thankfully, a lot lower than in most other countries in the world.
The brokerage fee is already included in the sales price and will be paid by the seller (unless otherwise agreed upon).
Foreigners may freely acquire real estate in Bahia without limitations (except for rural areas, for which certain conditions apply). The only requirement is that the procedures of the sales process and registration of the deed are followed. one must also obtain a Brazilian tax identification number (a so-called CPF). This is easy and fast, and we may assist with this process.
With regards to payments in foreign currencies, we may also assist in the process and generally currency brokers are less bureaucratic and give better rates than traditional banks.
Although the sales and purchase agreement and the deed must be denominated in Brazilian Reais, it is perfectly legal to make payments in a foreign currency outside of brazil, as long as buyer and seller agree on the exchange rate and as long as both pay the required taxes and fees in brazil.