By Patrick Connelly
Many people have been asking about property ownership in Brazil, and specifically about purchasing real estate through a foreign (non-Brazilian) company. The short answer is yes, you can buy real estate this way, as opposed to using your personal name. However, the process is lengthy and complicated. That’s why we are here.
LatinWorld.com’s in-house Brazil expert, Diego Simon, is a native brasileiro with years of experience in the real estate market there. Here´s what he had to say about the subject:
“The whole process may take from a few weeks to a few months (editor’s note: what in Brazil doesn’t take a few weeks or months?). The first requirement for the process of real estate acquisition in Brazil by a foreign company is a previous authorization of the CDN (Conselho de Defesa Nacional). To acquire real estate, the foreign company needs to register at the “Secretaria da Receita Federal”, obtaining a tax number called CNPJ (Cadastro Nacional de Pessoa Jurídica).
‘The register of the company must be formalized with an inscription at the CADEMP (Cadastro de empresas da Área do DECEC), which is the Department of Exchange and Foreign Capitals (Departamento de Capitais Estrangeiros e Câmbio). The request is made at the Central Bank of Brazil (Banco Central do Brasil). To start the process, it’s necessary to have a photocopy of the company’s constitutive act, authenticated by the Brazilian Consulate at the company’s country of origin, and translated by an authorized translator in Brazil.
‘We strongly recommend the guidance of a specialized lawyer, with strong knowledge of Civil, Comercial, Tax, and International Laws in Brazil, to intermediate the buying process according to the Brazilian laws and, at the same time, preserve the interests of your company.
‘On the other hand, the acquisition of real estate under a personal name is much more straightforward. It is recommended if possible, because the only requirement is the registration for a Brazilian CPF (Cadastro de Pessoa Física).”
Here is the official law on the subject, albeit in Portuguese. “IN 568 de 08/09/2005, Art. 11 itens 5,9 e 10 da alínea “a”, combinado com os itens 1 a 6 da alínea “b” do inciso XIV do Art. 11 da Instrução Normativa do BACEN de n° 568 de 08/09/2005.”
Similarly, Cristina Adam from Kapital International had this to say:
“Your company will have to be registered as a tax payer. A property bought under a person’s name registers with CPF, and companies register with CNPJ. So the registered address can be the new property address and the documents required will be the social contract of your company and the passports of the owner(s) of the company.”
With such a complicated process, it is definitely in your best interest to find a top notch real estate attorney that understands the ins and outs of not only real estate ownership in Brazil, but also foreign company investment. This will go a long way in making this process much smoother.
photo provided be luiz at http://www.flickr.com/photos/graduale/354513902/