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Investing in real estate in Brazil can be a complex process, but doing so will probably give you a high return on investment. Many areas of Brazil are steadily growing both in population and industry, and land is cheap right now. If you’re thinking about investing in real estate in Brazil, there are many things you could do with it. You could buy the property, increase the value and then sell it for more when the housing market picks back up. You could also buy real estate and rent it out to residents, business owners or tourists. You could even buy a cheap second house and live there while prices are still so cheap. Regardless what you choose to do with your property in Brazil, you will need to first take the appropriate steps to acquiring ownership.

For the most part, acquiring ownership of land and property in Brazil is as easy for foreigners as it is for Brazilian nationals. However, some specific conditions make ownership acquisition more difficult for foreigners. If the land is located near the coast, borders, or areas deemed as national security, certain restrictions apply to foreign ownership and acquisition. Even if the foreign person or entity gains permanent residency, restrictions on the amount of acquisitions allowed exist.

Ownership and Possession Rights

When land is not specifically protected against foreign ownership, there are two distinct categories of rights. There is the right of possession and the right of ownership. The right of possession is the personal right to certain powers of ownership, such as the right to maintain the property and receive its fruits. The fruits of the property include items such as rent from tenants. The right to ownership is more serious, and it is an absolute right through the Brazilian Civil Code.

In Brazil, real estate may be acquired by a transfer of the property, which could be a result of the following conditions:

  • Sale and Purchase – In this case, the current owner of the real estate may sell it to the buyer. Both parties agree to all terms, and both are mutually benefitting from the transaction. For this type of acquisition in Brazil, the buyer must be of legal age, mentally healthy, or duly represented if he or she is not.
  • Accession – In Brazil, accession is when the land in question becomes larger and gains value by natural forces. When the land grows, the original owner of the land acquires ownership of the new layout.
  • Prescription – As previously stated, there is a difference between possession and ownership of land in Brazil. When someone has possessed the land for a certain amount of time, he or she can eventually acquire ownership, which is the concept of prescription.
  • Inheritance – As in the United States, ownership of land and real estate can be handed down in the event of a family death. The heir acquires ownership in this case.

Find out How to Invest

If you’re thinking about investing in Brazilian real estate as a citizen of another country, you’ll first need to learn which areas are available for you to legally acquire ownership. Gaining permanent residency or citizenship will give you more options, and you should speak with a Brazilian attorney about doing so. Investing in real estate in Brazil is a very smart move right now, so the complex system and process is worth getting through to reap the benefits of your investment.

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