Buying Property in Brazil as a Foreigner — 2025 Legal Guide

What foreigners can — and cannot — buy

For urban property (apartments, houses, commercial buildings), foreign individuals and companies have essentially the same rights as Brazilians. There is no foreign-ownership cap and no special permit required for residential or commercial real estate inside city limits.

For rural land, the situation is different. Lei nº 5.709/1971 restricts foreigners from owning more than 50 módulos de exploração indefinida of rural land (the size of a "module" varies by region — typically 50-200 hectares total). Foreigners (individuals or companies controlled by foreigners) need INCRA approval for any rural acquisition.

There are also restrictions for property within 150 km of land borders (the faixa de fronteira) — these require approval from the National Defense Council (CDN) for any foreign buyer.

Step-by-step: how to buy

1. Get your CPF (Brazilian taxpayer ID). This is mandatory for any property purchase. Apply at any Brazilian embassy abroad or directly online via the Receita Federal portal. Cost: free or about USD 10 at the embassy.

2. Open a Brazilian bank account. Most banks accept non-residents but require physical presence. Bring: passport, CPF, proof of address abroad. Some banks (Itaú Personnalité, Banco do Brasil Estilo, Santander Select) have international desks.

3. Find the property and verify it. Always order a Certidão de Ônus Reais (encumbrance certificate) from the Cartório de Registro de Imóveis where the property is registered. This shows liens, mortgages, lawsuits, and the chain of title. Cost: ~BRL 50–150.

4. Sign the Promessa de Compra e Venda (preliminary contract). This locks in the deal and the price. Typically 10-20% of the price is paid as down payment (sinal).

5. Pay the ITBI tax. Property transfer tax, set by each municipality, usually 2-3% of the official value. Required before registering.

6. Sign the Escritura Pública at a Notary (Tabelionato). This is the public deed. Both parties sign in person or through legally constituted attorneys (procuração com poderes específicos).

7. Register at the Cartório de Registro de Imóveis. Until the deed is registered, you do not legally own the property in Brazil ("quem não registra não é dono" — who does not register is not the owner). Cost: 1-2% of value.

Total costs and taxes

Beyond the property price, expect: - ITBI (transfer tax): 2-3% of value, paid to the municipality - Notary deed: 1-1.5%, paid at the Tabelionato - Registry: 0.5-1.5%, paid at the Cartório de Registro de Imóveis - Annual IPTU (urban property tax): 0.3-1.5% of fiscal value per year, paid yearly - Condominium fees (if applicable): vary widely, BRL 200 to BRL 5,000+ per month

Total closing costs typically range 5-8% of the purchase price. Budget for legal fees if you hire a lawyer (recommended): 1-2% additional.

Common scams and how to avoid them

• Property without a clean title: always order the encumbrance certificate. Some sellers list properties they don't fully own.
• Construção em área de preservação (illegal builds): coastal and rural plots near rivers may be in protected zones. Verify with the municipal Plano Diretor.
• Cartas de crédito frauduasentas (fake mortgage offers): Brazilians and foreigners alike fall for this. Use only registered banks.
• Pagamento "por fora" (under-the-table payment): sometimes the seller asks to register a lower value to save tax. This is illegal (sonegação fiscal) and can cost the buyer the entire investment if discovered.
• Power of attorney abuse: if you grant procuração to someone in Brazil, make it as specific as possible (limited to one property, one transaction).

After purchase — taxes and renting out

If you intend to rent the property: - Rental income earned in Brazil is taxed at source at progressive rates (7.5% to 27.5%) — the tenant must withhold and remit if you are a non-resident - You must declare it annually via Carnê-Leão (for individuals) or as company income - Brazil has tax treaties with many countries — your home country may credit Brazilian tax against your local liability

If you sell later, capital gains tax (IRPF) of 15-22.5% applies for non-residents, with no primary-home exemption available unless you are tax-resident.

Frequently asked questions