Innovative land & property investments
Investment Property in Brazil
Buying Guide
Buying Costs
Transaction costs
The buyer is liable for a number of fees and taxes when purchasing in Brazil.
A purchase tax is applied by the government at between two and seven per cent depending on the home’s value and location; funds brought in from abroad are liable to an import tax of 1%; stamp duty is payable at 5%; an agent will typically charge between 4% and 10%; and legal fees should come to around 500 GBP.
Furthermore, capital gains tax (technically an income tax in Brazil) will be payable upon the sale of the property at 27.5% of profits.
Tax advice essential
It is worth noting that Brazil’s tax system, despite its European origins, is extremely complicated and buyers are always advised to use a professional and independent tax adviser before embarking on any property purchase.
Resident and retirement visas
It should also be noted that foreigners applying for residency visas in Brazil must show that they possess funds of at least 50,000 USD over and above the value of their property in Brazil.
Retirement visas, on the other hand, are available to all those over 50 years of age who can demonstrate an annual pension of at least 2,000 USD.
Key Points
- A purchase tax of between 2 and 7% is liable
- Funds brought in from abroad are liable to an import tax of 1%
- Stamp duty is payable at 5%
- Agents charge between 4% and 10%
- Legal fees will be about 500 GBP
- Capital gains tax (technically an income tax in Brazil) is payable upon the sale of the property at 27.5% of profits
- Brazil has a complicated tax system so seeking professional, independent tax advice is essential
- To apply for a residency visa requires proof of funds of at least 50,000 USD over and above the value of their property
- Retirement visas are available to all over 50’s who can demonstrate an annual pension of at least 2,000 USD
Downloadable Reports and Documents
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