Print Friendly, PDF & Email

When you own a company anywhere in the world, you might feel that expanding your locations to a different country will benefit your business. Sometimes, a market can become oversaturated in one area, but the product is still popular. In that case, expansion is the perfect option. For people with businesses in the United States, Brazil offers an ideal location for such a move. Property is cheap to acquire right now for foreign corporations, and business in the country is booming as more people and companies move there. In the same vein, you could invest in property as a source of additional income for your company. Foreign corporations have the same rights as nationals for acquiring land, as long as the property is not considered rural.

Steps Involved in Brazilian Real Estate Acquisition

Once you have chosen the property your company is interested in, you’ll need to take three steps before ownership is granted. If you can’t actually be in Brazil for the process, hiring a representative to act on your company’s behalf is also acceptable. Before you begin the process, your company will first need to hire a Brazilian real estate agent. No transactions in real estate can be made without one.

Step 1: Price, Negotiation, and Offer – The first step in the process of acquiring land for a corporation is to determine the price of the property. No Brazilian real estate price is set in stone, so you should negotiate as much as possible. When you are happy with the price agreement, you can make an offer.

Step 2: Due Diligence – Performing due diligence on any property in Brazil is an important step in the process of acquiring land for a corporation. The building’s survey records, safety standings, and legality should all be investigated by a professional. The owner should also be included in the due diligence. Any taxes or debts he or she owes could fall on the new owner of the property.

Step 3: Purchase and Sale Agreements – If the property has been deemed safe and legal for purchase, your company will need to pay between 10% and 25% of the total price to guarantee its ownership. Once you pay the final fees and taxes for the property, your business will have officially acquired it.

Seek Legal Advice on the Finer Details of Real Estate Acquisition

While there are only three main steps in the process, certain nuances and special cases can arise in the process of acquiring real estate for your corporation, and dealing with them can be complicated. If you avoid taxes or certain payments, even accidentally, you could jeopardize your company in multiple ways. You could be charged with tax evasion, or your company could face debilitating fines. If you’re confused about acquiring real estate in Brazil for your corporation, you should consider speaking with an attorney. Whether you are buying property to expand your business’ reach or purchasing real estate as an investment, your choice is sound.

Phone: 212-300-7174