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The prosedure of buying property in Brazil.


Sol Brasils can help you with the following:.
  1. Obtain a CPF number (CPF-card from the income tax office)
    Requirement:  Copy of Passport stamped by Notarius Publicus in your country and then by the Brasillian Embassy
  2. Make a contract at the Cartório 
  3. The seller and buyer sign the contract in three originals
  4. The Cartório stamp and sign the contract originals.
  5. Sol Brasils will check if the seller does not have any credit or any problem with the income tax or with the property
  6. Make the payment through a bank in Brazil.
  7. The seller give an original copy of the contract to the buyer.
  8. Sol Brasils prepare and pay  the official documents for the buyer:
    1. Issue all the certificates to ensure that the seller is able to sign the Escritura puplico
    2. Prefeitura (City Hall) Make sure that the seller has payed the IPTU (Property Tax) previous years.
    3. The buyer has to pay  ITIV (real estate purchase tax for transferring ownership) . This gives the buyer the right of the property.  
      The ITIV is 3 % of the evaluation from the 
      Prefeitura (City Hall). 
    4. If the property is front line to the beach, the Laudêmio tax has to be payed according to the square meter of the building on the property.
      This is a tax of the federal union (Marine Law of 1988). This is normally 2,5 - 5% of the evaluation from the Uniao (Union).
    5. Laudêmio tax for the City Hall,  2,5% of the evaluation from the Prefeitura (City Hall) (Not applicable for all cities).
    6. The Cartório will issue an Escritura Publico .
    7. If necessary the buyer and/or the seller make a Procuracao (Procuration) to give a Procurador (Procurator) the power to sign for the seller/buyer.
      New rules and regulation in Brazil from 2010: The Procuration has to be written in the buyers language (ex. Norwegian), stamped by the notary, and then stamped by the Brazilian embassy. Then it has to be translated officially to Portuguese. (2012: Typically: Embassy R$ 70, translation R$  200 and registration of the Procuracao R$ 554) 
    8. The Escritura Publico is signed by the seller and the buyer or by a Procurador (Procurator).
    9. Take the Escritura Publico to the Cartório de Registro de Imóveis, to register,sign and pay the taxes..  
      Register of Deeds
       - Notary office, register fee according to the evaluation from the Prefeitura (City Hall).
         (2010: typically R$ 4.900 for an evaluation between R$ 200.000 - R$ 350.000
       - Goverment register fee  according to  the evaluation from the Prefeitura (City Hall).  
          (2010: typically R$ 2.900 for an evaluation between R$ 200.000 - R$ 350.000
The total tax is approx. 8% (12% with Laudêmio)
Sol Brasils fee for this job  is 2% of the evaluation from the Prefeitura (City Hall).


GLOSSARY 
CPF - Cadastro de Pessoas Físicas – A Brazilian document necessary for tax and identification purposes. Obtainable at the Brazilian Consulate in your place of residence or, more quickly, once you arrive in Brazil. Note: Once you have a CPF, you will have to keep it regularized by filing either a Declaração de Imposto de Renda or Declaração de Isento each year. 

Cartório – A public notary office where official contracts are prepared and recorded. 

Cartório de Registro de Imóveis – A special type of centralized notary office where all real estate transaction documents are registered. 
Condomínio – A monthly fee that covers the cost of your apartment or housing complex infrastructure such as the doorman’s salary and the costs for lighting common areas. 

COFECI – Conselho Federal de Corretores de Imóveis – or Federal Council of Real Estate Agents. Federal agency regulating the real estate industry. Click here to access the website for COFECI. 

CRECI – Conselho Regional de Corretores de Imóveis – or Regional Council of Real Estate Agents. Regional agency regulating the real estate industry and licensing of real estate agents. 

DAJ – Documento de Arrecadação Judiciária – taxa de prestação de serviços. Document issued by government agencies for collecting officials fees – must be paid in a bank. De 
claração de Imposto de Renda – Brazilian income tax declaration. Any Brazilian or Brazilian resident with income over R$1.313,69/month must file this form yearly before April 29th. Foreign non-residents do not file this form but rather a Declaração de Isento by November 30th. Both forms can be filed online at http://www.receita.fazenda.gov.br/. Note: Non-resident property owners are taxed only on Brazilian income generated by their property but permanent residents in Brazil are taxed on their worldwide income. 

Declaração de Isento – If you are a foreign non-resident or a Brazilian resident that earned less than R$1.313,69/month – including income from rental property owned in Brazil than you should file a Declaração de Isento each year between August and November 30th. If you fail to file either a Declaração de Isento or a Declaração de Imposto de Renda, then your CPF will become irregular and you will not be able to complete certain official transactions such as transfer ownership of property. The Declaração de Isento is quite simple to fill out and can be completed online at http://www.receita.fazenda.gov.br/. 

IPTU – Imposto Predial e Territorial Urbano – or Urban Building and Land Tax. Property tax paid yearly or in 10 monthly installments to City Hall. 

ITIV – Imposto sobre a Transmissão Inter-Vivos – or real estate transfer tax. 3% of registered purchase price for transferring ownership and issuing a new title deed to the property in your name. 

Laudêmio – An antiquated system of land ownership where the land is still technically owned by an institution but the rights to use the land can be bought, sold and transferred by private individuals or businesses. In Bahia, the two most common institutions associated with laudêmio fees are the Catholic Church in Salvador (Mosteiro de São Bento) and the Brazilian navy (for properties near the beachfront). When you buy a property that has a laudêmio associated with it, you are buying the rights to use the land indefinitely, including the right to sell the property to whomever you wish or pass the rights along to your heirs. Under this system, the institution is legally required to grant full rights of use to the land in exchange for the payment of a fee upon each transfer of ownership. This fee, called a laudêmio, varies between 2.5% and 5% of the registered value of the property. The transfer of ownership can not be completed until you have a receipt that the laudêmio fee has been paid. Legally, the seller is responsible for paying the laudêmio fee but in practice, the buyer usually pays. It is best to take the laudêmio fee into account when negotiating a final price with the seller. 

Prefeitura – City Hall. 

Procuração – A formal document that gives another person the legal right to act on your behalf in specific instances (power of attorney). May be a contract prepared individually or formally in a cartório. 

RNE – Registro Nacional de Estrangeiros – or National Register of Foreign Residents in Brazil. Identification card given to foreign nationals with permanent residency visas. This document is required for opening a bank account in Brazil. back to summary





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