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Start here - Absolute basics of investing in Brazil

Discussion in 'Brazil Property' started by JMBroad, Mar 26, 2009.

  1. elma

    elma New Member



    Do you need regestering the land to your own name if you intend to resell the land in short time? I have been told that another way to do that is if the solicitors hold the deeds for that time. I am not sure if that is common practice?! :hmmmm2:
     
  2. debzor

    debzor New Member

    To not transfer into your name and then sell is illegal as you are evading paying the tax due.

    No solicitor will hold in their name, as they then become liable for the tax. Brazilians will sometimes delay registering the property to delay paying the taxes, but this is very risky and can cause a number of problems.

    I would also advise against flipping in the Brazilian market - due to the costs to buy and sell - unless you are here on the ground, very well advised, lucky or a seasoned Brazilian investor/developer.
     
  3. Maid Marion

    Maid Marion New Member

    I am talking to a reputable lawyer recommended by the Brazilian Embassy but he is in Rio and a lot of the searches etc have to be done in Fortaleza. He has colleagues in Fortaleza.
    The benefit to me is that he is not embroiled in local politics and scams but is it going to be far cheaper to have a lawyer in Fortaleza and if so can you recommend anyone?
     
  4. debzor

    debzor New Member

    I guess you will also want one who speaks good English? Have you tried Flavio Pinto?
     
  5. Maid Marion

    Maid Marion New Member

    Thanks for that but what can you tell me about him?
     
  6. debzor

    debzor New Member

    He is an attorney in Fortaleza who also speaks excellent English. I have had no direct dealings with him, but know others who have, and I have been included in correspondence. Once you have made 5 posts, I can pm his email address to you.
     
  7. jmates

    jmates New Member

    Is it not dodgy investing in Brazil??? :S
     
  8. debzor

    debzor New Member

    There are dodgy sellers, developers and agents everywhere in the world, just as in Brazil. Using a reputable and licensed broker and English speaking attorney, as well as carrying out your own due diligence will help a great deal towards a successful investment.
     
  9. Mineiro

    Mineiro New Member

    [/QUOTE][/QUOTE]Jmates unfortunately it is very "dodgy". Unfortunately corruption and dishonesty are endemic here in Brasil. My advise to anyone interested in investing here but doesn't live here, is don't. It's complicated enough for people who have lived here for years, never mind for gringos. Just look at the huge number of people on this site who have lost their money.
     
  10. LMM

    LMM New Member

    Investing in Brazil

    Investing in Brazil can be very dodgy in the sense that you must beware of the developers and sellers of the land. Make sure due diligence is done and you recieve and keep all items in writing. You may protect yourself by using a reputable brazilian lawyer who can take you through the correct steps and legal requirements for purchasing, but if you buy on a complex or development yet to be built, offered by a foreign company, it is common for the development never to come to fruition after they have taken your money and you own a plot of land with no road access, electricity or even worse no planning permission or environmental protections. I speak from experience. I can give you list of firms to avoid who currently have class actions in court against them.

    The Brazilian legal system has a third world way about it, meaning it is incredibly slow and beaurocratic, and lawyers ask for large fees. Happy to give you advice if you private mail me or answer to this thread.
     
  11. debzor

    debzor New Member

    When buying off-plan (pre-construction) in Brazil, the document you need to ask to see for your protection is called 'Memorial de Incorporaçao'. The developer must have registered it with the local notary, and it is available for the public to view. Brazilians will know this, but, most probably, not all foreigners.
     
  12. LMM

    LMM New Member

    Buying in Brazil

    Thanks for the response. I have successfully purchased land in Brazil without my current problems, however in Fortaleza the developer had permission/licence to build renewable every two years at the time of purchase and did prove that by way of documents. However since 2009, Semace has refused to allow building permission, and the developer can do no more, hence the buyers of plots have lost out as they cannot build either. Unfortunately it seems nothing can protect against that particular outcome, or if the firm cease trade and run away with peoples money like Greenland Securities in Joao Pessoa, Paraiba who currently have a class action against them.

    Have you heard of Kapital Nordeste Ltda, Kapital International Investments Ltd or Kapital Assets Ltd, which are all related companies? Would be very grateful your feedback if you have.
     
  13. LMM

    LMM New Member

    Yes I have noticed some info about Kapital on the forum, but very little in 2012 and nothing on any legal action against them. I'm trying to find other victims of yet another non existent development. The principals of Greenland from my understanding were two irish guys sitting in a spanish jail, hopefully they are not in Brazil that has no extradition treaty. Peixoto and the related laywer leading the class action against the disappearing Steve Naish of Greenland securities, are asking for 20% of all the money any given victim spent, 10% up front, and are giving away no info as to whether assets are frozen or even existent. Greenland is no longer operating, but is only registered in Brazil, and have made no representations to any legal action made against them, and it is most likely they have scampered away with the money to sell more drugs.

    However I now know that Peixoto staff in joao Pessoa and Rui Farias of Kapital Nordeste/Kapital International and Kapital Assets in Fortaleza are friends, and pulling the same expensive scam on gringoes, selling useless land at a high fee reserved for gringoes with no due diligence or Semace licences, not keeping their end of the bargain/contract and failing to complete these developments and disappearing. Brazil has been a money pit of thieves in my experience, bit like Russia right now.
     
  14. LMM

    LMM New Member

    'The days of no extradition treaties with the UK or the EU ended years ago!'

    There is some Bilateral agreement made in 1997, not an outright extradition treaty. However not very helpful given the content of my post. I'm looking for those who may have found a successful means of retrieving funds from unscrupulous businessmen and their dishonest lawyers that facilitate their dishonesty, I really don't care about Brazilian politics at this point, too much money stolen.

    Would really appreciate comments from those with something helpful to add.
     
  15. Maxtris

    Maxtris New Member

    @JMBroad,

    Thank you, this is a very helpfull and informative post.
     
  16. I wonder why nobody is mentioning the legal restrictions for foreigners to have property close to the sea.
     
  17. debzor

    debzor New Member

    Actually this topic has been discussed before on this forum, together with the various problems and solutions associated.

    The easiest solution is to buy in a condominium on the beach and then there will be no restriction. The problem is not that a foreigner cannot own on the beach, but that the buyer needs special permission.

    Hope this helps you.
     
  18. The law says clearly that no foreigner is allowed to be owner of property, land, plots within a 100 meter distance from the sea, highwater line.
    Foreigners are only allowed to have a limitted participation in beachfront condo appartments.
    But no land or houses.
    Only with permission of the president or his/her "Ministro da Fazenda"
    I know that for decades this ran out of control, but Brasilia is working hard the last years to gain control over the situation again. Also lookong backwards, retroativo.
    Who, foreigners, bought, it is and was illegal.
    Left wing nationalistic leading politicians are upset, they only see "For Sale" at the beaches in the North East, not any "Vende-Se" sign.

    Yes, its also (same law) forbidden for foreigners to have property close to strategic military objects, not only at the seaside, but everywhere in Brazil.

    Noboby can be owner of the beach. never, no where.
    Beach is public federal property.
    Even if you have a private island here in Angra with a small beach, I am allowed to go there by boat with friends and family, and stay on that beach doing whatever I want.

    Or if someone owns land at the beach, he must make a public passage every 100 or 150 meters to allow people to have acess to the beach.
    The only private beach I know and been there several times, is the Inema beach within the Aratu Naval Base in Salvador. Beautiful beach by the way.
     
  19. Thanks for your link, but...
    the answer can not be a simple "I have never heard of that".
    Its a fact, foreigners are not allowed owning property closer than 100 meters from the beach.
    And only the president can authorize it.
    I came to Brazil as an young emigrant in 1977.
    Those days foreigners were not allowed to buy beachfront property.
    The law hasn't changed, the only thing that changed is that nobody gives a damn about that law. Blame the local cartórios. The situation got completly out of control.
    But as I sayd, Brasilia is trying to put order in this situation again.
    You can read it everywhere:

    "COMPRA DE IMÓVEIS POR ESTRANGEIROS:

    Qualquer cidadão pode adquirir imóveis urbanos no Brasil, inclusive os estrangeiros. A única restrição existente é a compra de imóveis rurais ou terrenos situados na faixa de 100 metros ao longo da costa marítima brasileira. Essa restrição não se aplica no caso de unidade autônoma de condomínios, como compra de apartamentos em prédio situado em terreno de marinha."



    or

    "O investidor estrangeiro pode adquirir propriedades no Brasil, seja ele pessoa física ou jurídica?

    Tanto as Pessoas físicas ou jurídicas estrangeiras podem adquirir propriedades e direitos reais relativos imóveis urbanos da mesma forma que as nacionais, desde que os mesmos não estejam localizados na faixa costeira, em áreas fronteiriças ou em áreas designadas como sendo de segurança nacional. "



    This is a thing to consider before investing in beachfront property in Brazil.
    Things can (and probably will) change again.
    Like owning rural properties by foreigners is finaly regulated again as it was.
    .
     
  20. Robh
    Don't look at sites of (foreign) real estate agents and companies. Don't listen to them.
    It's not of their interest that foreign investors and buyers know about this FACT.

    Look at juridical AND government sites, consult a lawbook (DL # 9.760).
    The results are all the same, its not allowed foreigners have beachfront properties. Properties closwer than 100 meters from high tide sea level.
    If they have it, if its registered somewhere, it is, was and will be illegal.
    Things are changing !


    "Compra de imóveis no Brasil por pessoa física ou jurídica estrangeira

    As pessoas físicas e jurídicas estrangeiras podem comprar imóveis no Brasil, sem qualquer restrição, desde que o imóvel não seja rural, não esteja na faixa costeira, fronteiriça ou de segurança nacional, caso em que será necessário o assentimento prévio da Secretaria-Geral do Conselho de Segurança Nacional."


    or

    Aquisição de imóvel por estrangeiro

    No caso de imóvel urbano, a única restrição existente para o estrangeiro, estabelecida no Decreto-Lei 9.760/46, é aquela contida no seu art. 205, que veda a aquisição de imóvel ou terreno situado na faixa de 100 metros ao longo da costa marítima, salvo se autorizado o ato de aquisição pelo presidente da República ou pelo ministro da Fazenda. Essa restrição, todavia, não se aplica, no caso de aquisição de unidade autônoma em condomínio, como em prédio de apartamentos situado em terreno de marinha, regulado pelo regime da Lei 4.591/64.


    or

    Compra de imóveis por estrangeiros

    Com o crescimento da economia em nosso país, é comum o interesse de estrangeiros querendo investir no mercado imobiliário. Cada vez mais, o Brasil está em evidência no exterior, atraindo muitos investidores com interesse em várias regiões do nosso país. A única restrição existente é a compra de imóveis rurais ou terrenos situados na faixa de 100 metros ao longo da costa marítima brasileira. Essa restrição não se aplica no caso de unidade autônoma de condomínios, como compra de apartamentos em prédio situado em terreno de marinha.
     
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