It is advisable to use a broker or agent when buying property in Brazil, but ensure that you find one who is recommended to you, and check their qualifications, since there are many bogus property brokers in Brazil. The broker will help you to find a suitable property, carry out legal checks, negotiate a price and prepare the contracts. Since prices are often heavily inflated for foreign nationals, the services of a good broker can save you a lot of money. You will also benefit from using a lawyer in the preparation of the contract and to make thorough legal checks.

When you have agreed on a price for a property, you will be asked for a down payment of around 10,000 Reals, following which the property will be registered in your name, using the services of a cartorio or notary. The property transfer charge is normally around 4%-5% of the purchase price. You will also be required to pay a 1% import tax on the transfer of funds from abroad, and following registration of the property in your name you will have to pay an annual property tax of around 0.6% of the value of the property.

The balance of payment can often be made either in a single instalment or in instalments spread over 1 to 4 years.

Mortgages may be available to foreign buyers from Brazilian banks, but interest rates are extremely high.

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