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If you are a United States citizen looking to invest in Brazilian real estate, you have the same rights as Brazilian nationals generally. However, for some properties, there are restrictions. Foreigners are not allowed to purchase rural land in Brazil for investments. Rural areas in Brazil are considered protected, and the government does not allow these areas to be purchased by people or corporations that are not Brazilian. However, some caveats do apply to the law.

Foreign individuals who have applied for and were granted residency in Brazil may acquire rural land. Similarly, businesses with a branch legally set up in Brazil are also eligible to purchase rural real estate. However, there are some restrictions on the size, scope, and location of the rural land that can be purchased in these situations. The restrictions are as follows:

  • Resident foreigners are allowed to acquire up to three rural modules without permission. In Brazil, a module is defined as the minimum size needed for a family to thrive and live. Depending on the region, modules vary in size. Under the restrictions put on foreigners for rural land, any individual or company with residency may own up to three without special permission from the government.
  • Resident foreigners can acquire no more than fifty modules each. After the first three modules, resident foreigners must gain permission from the Ministry of Agricultural Development. They can then purchase up to fifty modules of rural land, but are denied to acquire more modules after that amount.
  • Foreigners may own no more than 25% of the rural area in any city. In each city, there might be a large or a small area that is rural. Of this rural area, foreigners may not own more than 25% of the land. If that percentage is reached, the rural land in that area will be denied from all foreign buyers.
  • Foreigners of the same nationality may not own more than 10% of the rural area in any city. Of the 25% of rural land allotted to foreign real estate investors, no more than 10% of that amount can belong to people of the same nationality. If people from the United States own a lot of rural land in your area of interest, you might be turned away because of your nationality.

The Advantages of Gaining Residency

If you are a foreigner looking to invest in Brazilian rural real estate, it would benefit you to gain residency in the country. Otherwise, you will not be able to purchase any land in these areas. With residency you are still restricted, but at least you can work with the land afforded. Brazilian real estate has become a popular option for investors, and by investing in rural land, you can tap into the resources that Brazil has become so famous for. If your investment would be best suited in a rural location, you should consider contacting a Brazilian attorney to help you gain Brazilian residency before taking the next steps in your real estate investment.

Phone: 212-300-7174

Email: info@oliveiralawyers.com