Due to a solid and promising economic climate, Brazil is amongst the fastest growing and most sought-after worldwide property locations, while returns on investment from Brazilian real estate are currently amongst the highest in the world.

Brazilian property value increases of 20% over the past few years have attracted many a shrewd investor looking for a reliable market in which to invest. These returns directly reflect the exciting growth spurt Brazil is currently undergoing, while high levels of inward investment and a stable economy are encouraging increasing numbers of property purchasers to Brazil.

Reasons why property in Brazil is a good investment

•  Year-round sunshine, with average summer temperatures of 21°C.

•  Some areas in the north east of Brazil saw property price returns of 20%+ last year.

•  Current favourable currency exchange, making it cheap for foreigners to invest.

•  President Lula has brought great hope and improvements to Brazil, including a decrease in inflation to an all-time low.

•  Foreign investment is actively encouraged and you can own 100% of land and property.

•  Cost of living a mere 20% of the cost in the UK/Europe. Property maintenance costs are low.

•  Inflation low at 5.7%.

•  Increase of thriving manufacturing industries relocated to Brazil.

•  Expected to produce all of its own oil within the next year.

•  Great natural beauty with fantastic scenery and 7,000km of beaches.

•  According to some economists, Brazil will be amongst the economic leaders of the future, along with Russia, India and China.

•  Friendly nature of the Brazilian people. Vibrant cities with carnivals and music.

•  Low international risk of war, terrorism or SARS in Brazil.

The Labor Justice Certificate assures that the company has no labor settlements pending. This procedure overlaps with other documents’ issuance; therefore, it is placed at the top.

The documentation shall include:
1. 20-year certificate (Certidão Vintenária); 2. Up-to-date Certificate (Certidão Atualizada), which might be obtained on-line at www.arisp.org.br; 3. Cadastral Certificate (Certidão de Dados e Dimensões).
The three documents are needed in order to verify the status of the property. The first two certificates are used to verify past and present owners and past and present liens on the property. The third is used as a guarantee of the boundaries of the property.

In the cities of São Paulo and Brasilia one may obtain this certificate on line at www.prefeitura.sp.gov.br. The certificate is free if obtained online, or R$ 11.85 if obtained in person.
The documentation shall include the Land-Tax Certificate (Certidão Negativa de Imposto Municipal) which reflects if any pending tax debt remains on the property, issued by city hall.

The Commercial Certificate certifies that the company was duly incorporated and provides basic information on the company, such as address, capital, officers and previous filings.

The Debt Certificate from INSS serves as a guarantee that the company has been up to date in its social security payments. If one is a certified representative of the company with a passcode, one can obtain this certificate online at www.dataprev.gov.br/servicos free of charge.

The Worker’s Fund Certificate assures that the company has kept its pension fund plan up to date with payments. This certificate can be obtained online at the site Caixa Economica (https://webp.caixa.gov.br/cidadao/Crf/FgeCfSCriteriosPesquisa.asp) free of charge.

The Federal Tax Certificate assures that the company has been paying its taxes accordingly. This certificate can be obtained online at www.receita.fazenda.gov.br/aplicacoes/ATSPO/certidao, CertInter/NICertidao.asp at no cost.

The Certificate issued by the Cartórios de protesto show debts resulting from security bonds and contracts.

These three certificates guarantee that all civil, fiscal, and commercial legal settlements have been finalized and no pending sentences or legal proceedings are linked to the seller.

The Federal Justice Certificate assures that the company has no pending federal settlements. It can now be obtained online, at no cost.

Parties file all the previous acquired documents, property-specific and vendor-specific, at the relevant General Cartório and sign the public deed at the notary. Also, parties pay the DARF (registration tax) at Caixa Economica.

The value is calculated either over the sale’s price (market value) or over the price determined by the City Hall (official value) to the real state property, whichever is higher.

This tax can also be paid online.

After the new owner has cleared all documentation and has possession of the property title, the same has to file for a name change on the relevant property at the City Hall in order to update the land taxation records (IPTU – Imposto Predial e Territorial Urbano) to the new owner’s name. File on first day, then wait and go back on fifth day to collect the new documentation.