Development & Construction in Brazil

Investing in Brazilian real estate may mean investing in vacant land. Especially in the northeast of Brazil, buildings are scarce, but the area is perfect for developing projects. Brazil has experienced accelerated economic growth over the past decade or so, and cities are expanding to keep up with the development of the economy. While certain regions used to be uncharted and dangerous in some cases, they are slowly becoming great locations for locals looking to get away from the hustle and bustle of the city. Investing in this vacant land is a good idea for foreigners interested in real estate, but it also means building the structures by themselves. Before investing in vacant land in Brazil, you should first understand the different licenses you’ll need for development.

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The Brazilian Institute of Environment and Renewable Natural Resources (IBAMA) regulates property development on Brazilian soil. This agency is meant to protect Brazil’s natural environment. To begin development, you’ll need four separate licenses, which can be obtained by following these steps:

• Step 1: Apply to Town Hall – In the first step toward receiving planning permission to develop on vacant land, you’ll need to visit the town hall in the area in which you are developing. If you cannot physically be in Brazil for this step, you can have a third party representative do it for you. This first license is called the “Anuencia”, and it is meant to show that the project is in accordance to the Brazilian law standards.

• Step 2: Request an Environmental Assessment – The second license needed to start development is called the “Licença Previa”, and it proves that your project is approved. The location, concept, environmental stability, and conditions will be considered in the Environmental Assessment.

• Step 3: Submit Final Building Plans for Authorization: The third license required is called the “Licença de Instalação”, and it is the final approval of your project before it begins. It indicates if your projects’ plans are in line with environmental protection and sustainability.

• Step 4: Receive Permission to Start Building – The fourth and last license you need to begin developing on vacant land is called the “Licença de Operação”. It confirms that construction plans meet all requirements and are going to be carried out as planned.

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Developing in Brazil as an Investment

While purchasing real estate for investment is easier in Brazil than in many other countries, purchasing vacant land and developing afterwards is more complex than purchasing an existing building. Brazil is rich in natural resources, so the government is careful to protect the environment. As long as you can build a facility while causing minimal harm to the nature surrounding it, vacant land can be a profitable investment in Brazil. Once your development has been constructed, Brazilians looking for a home that doubles as a tropical getaway will be interested and willing to pay top dollar for the property. The economy is stable in Brazil right now, so luxury properties that take advantage of the natural surroundings are desirable. Before purchasing vacant land in Brazil, you should consider speaking with a professional so that you understand the commitment and licensing needed.

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info@oliveiralawyers.com
+55-11-4349-1915
Brazil +1-212-300-7174 USA
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Become a Pro in Brazil Real Estate!

To learn all about purchasing real estate in Brazil, check our How to Buy Properties in Brazil guide.

Learn about the advantages of buying real estate in Brazil in our Why Buying Real Estate in Brazil guide. Find opportunities and decide where to buy using our Know Where to Buy Real Estate in Brazil guide.

Attorney Consultation
info@oliveiralawyers.com
+55-11-4349-1915
Brazil +1-212-300-7174 USA
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