Development and Construction in Brazil

Investing in Brazilian real estate may mean investing in vacant land. Before buying, check what you can build and which approvals you will need. Owning the land does not automatically give you permission to develop it.

Reviewed by Luciano Oliveira, Esq. — October 2026

This content is only general information and does not constitute legal advice. For legal issues or decisions of any kind, the reader should retain and consult legal counsel. You should not act or rely on information on this website without first seeking the advice of an attorney.

1. Check the land before committing to a purchase

Vacant land may appeal to foreigners interested in real estate, but it also means building the structures themselves. Before investing in vacant land in Brazil, you should first understand the different licenses you’ll need for development. Have your lawyer and local architect or engineer check the site before you commit.

Start with ownership, legal access and the intended use. Check whether the land is urban or rural, what the municipality allows, and whether protected areas or vegetation limit the project. For rural land, foreign-buyer restrictions need a separate review. See our land ownership guide. ^{[1] [4]}

2. Identify the authorities and approvals

The Brazilian Institute of Environment and Renewable Natural Resources (IBAMA) handles environmental licensing for projects under federal responsibility. This agency is meant to protect Brazil’s natural environment. Other projects fall to a state or municipal environmental authority. To begin development, you’ll need to establish which approvals apply, rather than assume there are four separate licenses for every project. ^[1]

Municipal building approval and environmental licensing are different checks. The route depends on the location and type of project. Some environmental procedures combine stages or use another form of license. Confirm the current requirements with the responsible authority. ^{[2] [3]}

Start with the municipality

Apply to Town Hall — In the first step toward receiving planning permission to develop on vacant land, contact the town hall in the area where you are developing. If you cannot physically be in Brazil for this step, you can have a third-party representative do it for you, with the required authority. An “anuência” means consent; it is not a universal first license or proof that all legal requirements have been met. ^[3]

3. Understand the environmental license stages

These are the familiar three stages where that route applies. They do not replace the municipality’s building permits. ^{[2] [3]}

Request an Environmental Assessment — Licença Prévia (LP). At the planning stage, the location, concept, environmental conditions and likely impacts will be considered in the Environmental Assessment. The LP addresses whether the proposed location and design are environmentally acceptable, with conditions. It does not authorize construction. ^[2]

Submit the environmental plans for installation — Licença de Instalação (LI). The environmental installation license is called the “Licença de Instalação”. It indicates if your projects’ plans are in line with environmental protection and sustainability and authorizes installation under its conditions. Obtain the municipal building approvals too; the LI is not the final approval of every aspect of your project before it begins. ^{[2] [3]}

Receive Permission to Operate — Licença de Operação (LO). Where required, the license you need to operate the completed project is called the “Licença de Operação”. It addresses the environmental requirements for operation. It is not permission to start building and does not itself confirm that construction plans meet all requirements. ^[2]

4. Check what is needed to build and finish

Do not start work based only on a seller’s assurance. Have your professionals identify the permits and conditions that must be satisfied before clearing the site or building. São Paulo, for example, distinguishes its construction authorization (Alvará de Execução) from its completion certificate (Certificado de Conclusão). Other municipalities may use different names and procedures. ^[3]

If you plan to divide land into lots, check the separate approval and registration requirements. An urban subdivision must be registered before its lots can be sold or promised for sale. Buying a plot and building one home is not the same process as developing a subdivision. ^[4]

5. Assess the investment before buying

Purchasing vacant land and developing it afterward is more complex than purchasing an existing building. Brazil is rich in natural resources, so the government carefully protects the environment. Even if you can build a facility while causing minimal harm to the nature surrounding it, that alone does not establish that vacant land can be a profitable investment in Brazil. Once your development has been constructed, demand and resale value will still depend on the local market. Luxury properties that take advantage of the natural surroundings may be desirable, but buyers will not necessarily pay a premium. Before purchasing vacant land in Brazil, you should consider speaking with a professional so that you understand the commitment and licensing needed.

Ask for a realistic budget covering access, utilities, professional fees, approvals and construction, with room for delays. Your lawyer checks legal risks; your architect or engineer checks technical feasibility. The authority decides whether to grant the approvals.

Related guidance and professional support

To learn all about purchasing real estate in Brazil, check our How to Buy Properties in Brazil guide. For the distinction between permitted use and building work, see Zoning and Building Codes.

This page explains the process. For help with a specific project, see our Real Estate Development Consulting service.

Sources and further reading

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