Investing in a luxury villa in Trancoso or high value beachfront property in Espelho Beach or Caraiva, is a savvy financial move for overseas buyers. Brazil is South America’s largest economy, which reported annual growth of 2.5% in the first quarter of 2024. There is also a bouyant property market which saw nationwide property prices rise by 1.5% in the first quarter of 2024 (figures from Brazil’s FipeZap Properties Asking Price Index).
There are no restrictions to buying Trancoso real estate as a foregner per se, but there is a process that must be followed if you want to make sure everything goes smoothly. The amount of assistance required will depend upon your familiarity with Brazil and your level of Portuguese, but in every case you are advised to use the services of Exclusive Realty Brasil, the most experienced international real estate agent in Brazil. They will also hook you up with a lawyer who is familiar with your preferred region and the country’s property laws.
No matter which area you are considering purchasing property in, whether you prefer beachfront villas in Bahia Trancoso Brazil or Espelho Beach, here is a summary of the steps to buying property in Brazil.
Get the right help: hire a lawyer
Investing in luxury real estate in Brazil is a big financial commitment and probably one of the most expensive investments you will make. So it stands to reason that you would get professional advice from people who have experience of property law in Brazil to look after your interests. Exclusive Realty Brasil has all the right contacts for legal and fiscal advisors.
Contract a property broker
No one would stick a pin in a map to decide where to look for property for sale in Brazil. A wiser move would be to engage the services of a property broker with extensive experience of the country. Advice from those who specialise in Trancoso property is invaluable when making an informed decision about the location, type of property and expected budget. A broker, like Exclusive Realty Brasil, works exclusively for their client to source properties based on the buyer’s specific requirements.
Find the best houses for sale in Trancoso Brazil
Once you have found an experienced property broker with intimate knowledge of the property market and country, it’s time to put their contacts and local knowledge to the test. Remember, this is a partnership; the more information you can provide about your requirements, wish lists and red lines, the easier it will be for your broker to find your perfect Trancoso real estate.
Brazilian Tax CPF card
The CPF (Cadastro de Pessoa Fisica) fiscal ID card is the single most important document you will need to carry out financial transactions in Brazil. The card is issued by the Brazilan Government and includes a unique fiscal number that must be recorded against any property purchase, opening a bank account or paying taxes etc. You can apply for the card once you arrive in Brazil or at consulate or embassy in your home country.
Reservation agreement
Brazilian property prices are sometimes confusing and generally speaking there is no parameter for prices per square meter or square feet. Exclusive Realty Brasil knows the market, the properties´ histories and right market value, so that you will not be overpaying. Payment conditions can sometimes be flexible and based on individual sellers / buyers preferences. Once you have found your perfect property and agreed the price, you will need to sign the reservation agreement or directly sign a purchase agreement (depending on negotiations and the need to quickly take a property off the market). These agreements will list the details of the sale and the deposit paid. It is at this stage that your lawyer needs to carry out due diligence to ensure the property can legally change ownership. This document should also include a timeline for each stage / payment up until closing.
Due diligence
Once you have found the right property, your lawyer will need to verify the legal status of the property by obtaining a copy of the property deed (escritura) and the register (matricula). This document lists in detail all of the properties features, ownership and any problems such as liens, disputes or issues with probate. Searches will need to be carried out to ascertain whether the property has been built legally and registered, and that any alterations or additions to the property were approved by the local authoriity etc.
Sales contract
Once all searches have been completed, both parties can sign the ‘contrato de compra e venda’, which is your legal proof of purchase. All details pertaining to the sale will be listed, including the seller / buyer information, details of the property, the agreed sale price, the payment method and the closing date.
Title Deed / Notary
The final step of the purchase is to pay the balance and sign the title deed before a Notary, pay any necessary taxes (including Transfer Tax, Local Tax, Urban Real Estate Tax, Income Tax and Capital Gains Tax). Once the Title Deed has been stamped it guarantees that there is no legal impediment preventing the buyer from legally taking possession.
Please note, It is important to know that in order for any official documents to be recognised in Brazil, they must be written in Portuguese or translated by official translators registered with the authorities. Most documents presented by overseas buyers, will also need to be validated by Apostille, a legal certificate confirming a document’s authenticity.
Power of Attorney
If you cannot attend the closing in person, you can nominate your lawyer or another person to present your interests. Your legal representative will attend the Notary’s office, register your property at Brazilian Consulate-General, and ensure the document is validated at your country’s Consulate General.
It pays to use professionals
No matter where you are in the world, every country has its own specific property laws and purchasing processes. It is crucial to engage the services of experienced legal and property professionals who are up to date with the latest legislation, local bureaucracy and who also speak your language. Making the right choice now can ensure a smooth buying experience, and prevent unnecessary hassle and costs.
For further details about the Espelho Beach, Caraiva, Arraial d Ajuda and Trancoso real estate markets and the purchasing process, visit Exclusive Realty Brasil www.exclusiverealtybrasil.com, Whats App +34 629892894 or call or WhatsApp +55 73 991514091.