Buying a beach house in Brazil when both parties non-resident

Discussion in 'Brazil Property' started by jama, Oct 9, 2013.

  1. jama

    jama New Member

    Hi all, I am considering buying a place in Brazil and like myself, the seller is non resident. If all the paperwork correctly handled and monies are declared in Brazil, do the funds actually have to be transferred to Brazil only to be transferred out again? I wonder if anyone could help with this? Thank you
     
  2. jama

    jama New Member

    Thanks guys, that's very helpful. I did speak to a few brazilians who said that the Brazilian government normally like the money to come into Brazil via their central bank so that they can charge their fees and also a lawyer from the state of Minas Gerais told me that rules can vary from state to state. If that is the case then as the property I'm considering purchasing is in Bahia I would really appreciate it if anyone could recommend a good real estate lawyer who specializes in that state. Thanks in advance.
     
  3. Bidu

    Bidu New Member

    Just to add my two cents on this matter.

    The transfer don't need to happen in Brazil in any instance.

    But you need to pay for the title deed and this, of course, must pass by the city where you are buying the beach house.

    Once you have the papers in place, then, Brazilian's government doesn't have any business related to it. Of course, exception can happens, but it represents less than 5%. You really need to have a bad luck.
     
  4. jama

    jama New Member

    Hi all, my offer has been accepted on the property an the agent is saying that if I send the funds to Brazil the federal government will charge 100$ + 1% of the purchase price.
     
  5. jama

    jama New Member

    however if the funds remain outside Brazil then there is a 5% tax to pay. Surely this must be incorrect?
     
  6. jama

    jama New Member

    That's sound advice. Thanks Robh
     
  7. anthonyasael

    anthonyasael New Member

    Hi,
    so how was it in the end ? I am curious to know for future transactions as well ;-)
     
  8. debzor

    debzor New Member

    I think you are getting confused with different taxes. There are taxes to transfer funds to Brazil; there are taxes on gains from real estate sales; there are taxes on transferring a property into your name; in Brazil there are taxes on just about everything, plus there are ways to minimise these.

    Brazil is a huge country - equivalent to the whole of the USA or every country in Europe, and just as there are different taxes in US states and European countries, taxes vary in Brazil. You cannot simplify down to one size fits all.

    The best advise is to get local professional advise on local issues.
     
  9. PresidentK

    PresidentK New Member

    I was in this situation. When I bought my house (as a non-resident) in Brazil six years ago I was not so well informed and did not go via the central bank. Now i am selling my house and read scare stories about the difficulties of releasing funds oversea if it was not correctly purchased through the central bank etc. It is not the case.. they are just scare stories.. My lawyer resolved the situation in an afternoon by posthumously declaring the sale to the right tax authorities. The important thing is to absolutely ensure that when you buy your property, you follow through on the entire (long-winded) process of getting it correctly and legally registered. The name could be on the property deeds but legally registered still with the previous owner.. that is the bit you need to get right.


    So.. it is OK to deal direct overseas, you can resolve the situation down the line by selling it overseas again or declaring it posthumously with the local tax authorities. It is absolutely not the big drama that everyone talks about. But I say again... Just because your name is on the deed, it doesn't mean that you are the registered owner.. do make sure that the house is registered with ALL relevant bodies.

    Good luck.. and if your sale does not go through.. I am selling a lovely beach house in North Brazil.. so drop me a line.
     
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