A true world contender in the 'most heavenly place' arena stands Brazil. There is no other country on earth that has such a diverse land with an idyllic climate. Nicci Perides reports

Country overview

Population
198,739,269

Currency
Real (BRL)

Capital city
Brasilia

Major cities
Rio de Janiero, Manaus, Natal, Sao Paulo, Salvador, Recife

Language
Portuguese

Climate
Mostly tropical, but temperate in south

Location
Eastern South America, bordering the Atlantic Ocean

Economy

Inflation rate (consumer prices): 5.8 percent (2008 est.)

GDP (official exchange rate): $1.665 trillion (2008 est.) 

GDP (purchasing power parity): $1.99 trillion (2008 est.)

GDP (real) growth rate: 5.2 percent (2008 est.)

Brazil’s economy is the largest in South America and ranks 11th in the world. Relying heavily on agriculture, mining, manufacturing and the service sector, Brazil enjoys a thriving economic south but a poorer northeast. Having said that though, the Northeast is fast becoming a haven for international property investors.

Since 2004 Brazil has see a sustained economic growth with its major exports being coffee, cars, soya beans, iron, ore, steel, electrics and ethanol. Brazil is a full member of the G20 Industrial nations and G20 Developing nations. With a suspected boom in eco fuel hoping to cross the globe, Brazil stands to make an excellent profit in this sector. In 2008 they gained an Investment Grade Rating, which will open it up to foreign investment further.

However, significant economic problems remain, in particular Brazil’s inefficient and unwieldy public bureaucracy and related high levels of public debt as well as the ongoing challenge of reducing high levels of unemployment.

Whether it’s the sexy, sassy tones of the carnival city or the jungle beat of Manaus. Perhaps you prefer miles upon miles of the northeast’s simply stunning coastline or the hauntingly beautiful villages nestled into the jungle bordering the mighty Amazon. Whatever your flavour, Brazil can certainly cook up a treat.

The country has seen a boom in tourism in the last few decades and hot on its heel is the property market. International investors are raving about its northeast coast, whilst Rio, Brasilia and Sao Paulo grow at a steady rate. The country is right on the cutting edge, with predictions of becoming an economic power house in the future. Firstly, its the 2014 Fifa World Cup, its the discovery of oil off its shoreline and the potential for Eco fuel crops, that’s making Brazil the most anticipated emerging market of the 21st century.

So whether its the weather or lifestyle that is hypnotising you into the Brazilian way of thinking – the decision to join one of the worlds most exciting new countries will never have you giving it second thought.

Property facts
Main property markets

Brazil is a very diverse country with the majority of its major property markets located on or near the coast. Rio de Janiero has always been a firm favourite due to it being a major industrial and tourist town. However, it doesn’t offer the same investment potential in an emerging market as some of its contenders. Sao Paulo is currently enjoying a property boom with many of Brazil’s businesses relocating to this area, but as with Rio and Brazil’s other cities, it doesn’t offer that all important guaranteed return.

The beautiful Northeast region with its miles upon miles of coastline is a firm favourite already with the locals for buying their holiday homes; it was just a matter of time before the rest of the world caught on. The Northwest, although traditionally the poorest area of Brazil, has so much to offer in terms of real estate. With its ideal location, being only a flight time of 8-10 hours from the UK, European investors and developers are literally flocking to the region. This area has been gifted with receiving an international property investment and development programme and now exquisite luxury apartments, homes and hotels are being erected. This area also benefits in having the best climate in Brazil, with an average daily temperature of 27 degrees. Rumours are also rife of potential low cost airlines servicing Fortaleza from Europe.

Restrictions
There are no restrictions for foreign buyers in Brazil. However, international buyers do need to obtain a Catastro de Pessoa Fisica (CPF) number before purchasing. This is a tax registration number similar to our National Insurance number. The CPF can be obtained via the Brazilian Embassy. Generally foreign investors have the same rights as Brazilian nationals when it comes to owning property even if they are non- resident.

There are, however a few restrictions on owning property in general such as:

• All land 33m from high tide is traditionally owned by the Brazilian government

• Any land on or near areas of national security

• Rural land (protected) – you can only purchase rural land if you choose to move to Brazil within three years from the date of purchase. If a company is buying this land, it has to be used for agricultural or industrial use in connection with the companies business.

• If the land is situated near a border with another country

Forms of ownership
There are a few types of ownership available to foreign buyers, including joint, sole or through a legal partnership, when one or more companies join to own a property that can be of benefit for tax reasons.

How safe is it?
Brazil is a well-developed country with good laws in place to protect both buyers and sellers. Always be sure that the vendor solely owns the property you purchase and that no one has any third party rights to your land. In Brazil, mainly in the rural areas, people permanently living on land and using it productively can claim land that is not being productively used. For example, a homeless farmer that has been occupying wasteland and using it as a means of income can then win the right to the land, not the deeds however.

The land registry system is very simple in Brazil and all records are available in local notary offices for the public to view at any point.

Always make sure you have a bilingual lawyer acting solely on your behalf who conducts thorough checks prior to any papers being signed.
   
Mortgages
One of the major drawbacks in the Brazilian property market is the lack of finance options available to foreign buyers. There are very few deals to be had and the ones that are available tend to have very unattractive interest rates. The best mortgage rates tend to be obtained in your home country.

The buying process
Buying in a country that is so far from your home can seem quite a daunting process, not to mention the costs of travelling back and forth just to look at a property. However, although the Internet is a very popular way to research your location it cannot be a substitute for actually physically being there. 

Brazil is an up and coming country that is poised to set the world alight in coming years, but it isn’t without a corrupt undertone. All you need to be is smart in the way you approach your purchase and never take short cuts, as although it may save the pennies now, it could potentially come back in years with a nasty sting. That is why I cannot stress enough the importance of actual viewings, or physically meeting with your estate agent. Always employ the services of a bilingual lawyer, who is familiar with both the Brazilin and English markets. Take your time to choose an area. Check, double check, and then check all legal papers again.

Choosing an area
This must be one of the most important areas of buying abroad. The key question to ask yourself is why you are buying. If it’s purely for investment then the location will be somewhat different to relocation. If it’s a holiday home, then rental factors may come into play also.

The internet does provide an excellent basis to begin your search. The information available is plentiful, and it makes finding local schools or lifestyle factors (golf courses/beaches etc) fairly easy. Once you have decided on a few areas, now is the time to jump on a plane and just meander around your chosen locations. This will help give you a true feel for a place.

Viewings
Once you have contacted a few estate agents and have selected properties from their lists then now is the time for viewings. Your estate agent will drive you around and introduce you to the vendor.

Remember the first viewing is about the feeling; the next is about the logistics. Always choose a reputable estate agent and he/she should only be showing you properties that they know are legally sound, ie. that the vendor really does own the rights and is free from debt to sell the property.

Legal representation
A public notary will oversee all matters of the sale, from registering the land to checking all paper work. They will also conduct any relevant searches and ensure all taxes are made on time. Always remember though, a notary will be acting on neither the vendors nor the buyers interests. This is why it essential to recruit the services of a personal lawyer who is acting solely on your (the buyers) behalf. The lawyer should ideally be bi-lingual and knowledgeable in both English and Brazilian property law.

The sale
The estate agent will help handle any negotiating, do make sure you are familiar with the current exchange rate. Once an offer has been accepted a verbal agreement is made. It is not legally binding at this stage. However, in Brazil they do expect you to keep to your word, gazumping isn’t a common practise here.

The next stage is to get surveys and any legal checks completed. Although it isn’t a legal requirement to obtain a survey it is, none the less, a sensible option and if you are obtaining an English mortgage, your finance company will insist on seeing these papers anyway. 

Once these checks have been completed you will be required to sign a private contract. This is now legally binding. The contract will be in Portuguese and therefore it is vital to get it professionally translated so you understand exactly what you are signing.

A deposit will be required now. If the buyer walks away, the deposit is forfeited but if the vendor pulls out he/she will be required to reimburse twice the original deposit.

Your legal advisor will now have the permission to conduct any remaining legal checks, such as the entire history of ownership for your property (Certidao de Inteiro Teor). Your lawyer will be able to ascertain whether there are any debts on the property and that the vendor actually does, in fact, hold the rights to sell.

The next stage is completion. The notary will have drawn up the papers with any necessary amendments. Once you have thoroughly checked through and understand what you are signing, the deeds will be signed in front of the notary, with both vendor and buyer present. Usually, unless you speak fluent Portuguese the notary will insist on a translator present. You will also be required to bring forms of ID such as your passport and CPF.

Once the legal proceedings have concluded all outstanding monies, taxes and fees must be paid in full, your lawyer will assist you on transferring this. Copies of the deeds will then be sent to the land registry office – you will have to provide a proof of payment of the property transfer tax before you can register your property.

After completion the turn around of all papers is generally fairly quick and you could be moving into your new home within days.

Taxes
• Import tax: One percent
• Registration tax: Two percent of property value
• Transfer tax: Two percent of property value
• Other costs
• Registration fees               
• Notary’s fees               
• Land registry salary           
• Miscellaneous registry fees (Stamps)   
• Agents fees                       

Area guide
The Northeast
By far Brazil’s most culturally rich area. The Portuguese first settled here so there is little wonder that the towns and cities are basked in colonial history. Miles upon miles of golden white sand kissed by azure waters, coral reefs, sand dunes and pockets of lush green rainforests are set to make the Northeast a firm favourite with international buyers. An abundance of quality developments, a yearly average temperate of 27 degrees and the closest part of Brazil to the UK make this area a must see.

Prices are a lot more affordable then those of its southern neighbours. The regions cities such as Salvador and Olinda are bursting with colonial splendour that have aged and crumbled gracefully. The magical beach villages or the slow pace of its interior hideaways encapsulates the imagination and whether you party the night away or simply take in the splendour of your surroundings, the Northeast is exactly what the doctor ordered.

Cities and towns Salvador, Olinda, Fortaleza, Natal, Recife, Sao Luis

Sao Paulo and the Southeast
What Sao Paulo lacks in raw aesthetic beauty, it more then makes up in its underground interior of a bohemian spirit. Experimental theatre and controversial art, a ‘work hard play hard’ ethic in a city that’s filled with alternative forward thinkers who, although would be the first to complain about the pollution and street crime would never dream of leaving.
The influx of immigrants in the late 50s really is apparent in today’s society and makes Sao Paulo Brazil’s most culturally diverse city. Cities and towns Guaruja, Ilha Grande, Buzios

Rio de Janiero
A city that can seduce even the hardest hearts into a cascading mound of euphoria. Even the name, ‘Rio’ can bring a smile that stretches from ear to ear. There is little wonder that she leaves you with a yearning for more.

A city filled with beautiful things and even more beautiful people, she never sleeps and no matter how hard you try you will become captive to her charms. Rio is set to a backdrop of mountains that roll down into the city centre and then eventually into the clear ocean waters of the Atlantic. 45 miles of white sand beaches including Copacabana and a beautiful tropical climate attract a wealth of visitor’s year through. Rio has excellent rental potential and carnival season can see prices trebling.

Brasilia
Brazil’s futuristic dream on an inland capital city lies in the south central plateau. The modern utopia, carved out of nothing now fills the already picturesque skyline with rolling mountains, a manmade lake and sleek architectural buildings.

The city has a distinctly different aura to its neighbours but those of you who have a love of modern architecture, lively and well manicured outlook then this is the place for you.

Property has peaked somewhat in the last few years, but this city is not to be dismissed in favour of its louder and infamous rivals. Brasilia has a beat of its own that is unquestionably modern and brings a taste of the high tech from the Far East.