As a measure of this success, the World Tourism Organisation has stated that during the decade of 1995 to 2005, tourism in Brazil grew three times above the global average, showing a growth of 170%. Not only this but the World Travel and Tourism Council (WTTC) has shown that in recent years, the country’s tourism prospects have continued to go from strength to strength, with 2008 finding Brazil rise to 13^th in the world with regards to the revenue its tourism generates. With the investment in the tourism industry realising firm results for this South American country, the fifth largest in the world, Brazillian President Luiz Inácio Lula da Silva has recently been keen to confirm that this remains the focus for Brazil’s future economic growth, saying at the recent ninth Global Travel and Tourism Summit in Florianópolis,

“We are not working in tourism as it is beautiful or it helps in the election. We intend to help the tourism industry as we see it as an extraordinary industry for cultural development and economic development”.

This continued development points to a bright future for Brazil, with the country’s Ministry of Tourism launching, amongst other projects, “Brazil Now” a scheme focussed on promoting lower taxes for tour operators flying into Brazil from both US and European destinations, proving that the focus remains on growing the numbers visiting the country as well as in turn the income this will generate for the already stable economy.

Brazil’s economy has been fortunate to be less affected by the global economic downturn than many other countries, with Brazilian Central Bank President Henrique Meirelles pointing to the forwardthinking of the government as reason for this,

“We are already seeing signs that point to an economic recovery by 2010… Brazil’s government took timely measures to combat the crisis. Brazil’s economy is solid because of this effort.” This forwardthinking explains, therefore, the reason why recent figures released by the WTTC predict an average annual growth rate of 4.5% for the Brazilian economy from 2010 to 2019, showing that it is predicted that they will recover quickly and successfully from the downturn. And early figures for 2009 adhere to this, with the National Civil Aviation Agency (ANAC) confirming that April saw an increase of 3.5% in the numbers departing internationally from Brazilian airports compared to the same period in the previous year.

This strength of Brazil’s economy is already being recognised by shrewd investors who have moved swiftly to buy Brazil property into this continued growth. Mike Greene a CEO from Peterborough, South Lincolnshire is one such investor who has bought property in Brazil through emerging market specialists Experience International, having recognised its growth potential:

“From the research I have done… it was highlighted that along with India and China, Brazil is one of the fastest growing economies in the world and has been largely unaffected by the credit crunch.” Mike, however, is just one investor who has realised the financial benefits of buying into a growing economy and tourist destination such as Brazil. Increasing numbers are seeing the potential of affordable property and land for sale in Brazil, where rental income is set to increase in the coming years, even currently showing relative stability during the downturn (the Royal Institution of Chartered Surveyors recently released a survey that showed Brazil’s rents to be one of only a few globally that have yet to report a decrease).

Steve Worboys, Director of Experience International, sees a rewarding future for those who invest in Brazil,

“Not only are the coming years on track to yield the benefits of the Brazilian government’s commitment to continued investment in their tourist industry but with the FIFA World Cup also being held in Brazil in 2014, and set to attract over 500,000 visitors from overseas, rental opportunities will abound and those buying land and real estate in the country should reap the rewards.”

Caponga Beach is one project in the state of Ceará, just half an hour from the capital city of Fortaleza, flagged as one of Brazil’s prime tourist destinations and just 1km from a beautiful white sandy beach. This is an area of Fortaleza real estate is being substantially developed to bring increasing numbers of tourists to the region and Caponga Beach represents an exciting investment opportunity for those looking to make a secure return on their money.

The project covers around 80 acres and has an already completed infrastructure and facilities such as a clubhouse, communal pool and tennis courts in the planning. Investors can choose from a number of different investment opportunities: they can purchase a plot of land and flip it in three years; purchase a plot and build a villa(s) to sell in two years or to keep on as a longer-term investment; buy a block of up to 16 plots and build properties that can then be sold on; or purchase a block, arrange planning and build options and then sell on as a project.

So how foreigners buy property in Brazil

RULES OF THE GAME.

You need a Brazilian ID called a CPF. To get a CPF you need a birth certificate translated into Portuguese by a certified translator and legalized by the Brazilian consulate in your home country.

.You make a trip to Banco Do Brasil with your passport and your birth certificate to formally apply for a CPF and pay a small fee.

The next day you go to the Receita Federal to receive your assigned CPF number. Your CPF card is mailed to an address in Brazil within two months. (That’s right, you need a Brazilian address.)

It’s best to use a trustworthy broker. Not only will the a good broker help you find a property, but he or she will make sure the price is fair, as well as make certain that the property is owned by the seller, and that there are no debts on it.

The contract is prepared by the selling broker and contains: All information of the seller and All information of the buyer. Location and specifications of the real estate – The conditions of payment(s)

The contract is signed at the office of the broker. You pay a down payment (usually about 10,000 Reais, or $3,500 usd, or $ 3,000 Euros).

When payment has been made, your broker will arrange the registration of the property into your name via a Cartorio (similar to a notary). The cost for the property transfer is approximately 4%-5% of the purchase price.

Payment can be made all at once or in instalments of 12, 24, 36 or 48 months, but interest rates can be as high as 35%. If you opt to pay in instalments, there is also a currency risk. In other words, if the value of the Brazilian Real goes down, your real estate becomes cheaper, and vice versa.

There is a 1% “import” tax on transfer of funds from abroad.

After registration, you are the legal owner.

There is an annual property tax of approximately 0.6% per year of the assessed value. You will need to hire a caretaker to live on the property when you are not there.

Visas: Foreigners are allowed 3 month visas, or 180 days total per year in Brazil.

If you want to apply for a permanent visa, one of the following conditions must be met:  – You are married to a Brazilian.  – You have a child with a Brazilian.  – You invest minimum 50.000 US dollar or 40.000 Euros in Brazil.- You have reached the age of retirement (50 years) with a pension of at least 2,000 euro or US dollar per month.

Author Nicholas Marr

The Brazilian government encourages foreign investment and there are no restrictions on foreign real estate ownership with foreigners having the same rights and obligations as Brazilians themselves.

The Brazilian government allows 100% foreign freehold ownership of land and property.

It is also worth pointing out that the Brazilian government has sophisticated and well developed real estate laws which protect property owners whether they are foreign or local.

Real Estate transactions are secure as the Brazilian real estate registry shows the owner’s name and buyers can check if the sellers have any debts or liens on the property.

Purchasing a property in Brazil

To purchase a Brazil property, a CPF (Catastro de Pessoa Fisica) number is needed.

This is a registration number that you will need for any administrative action in Brazil including buying a property.

You can either apply for the CPF online through the website of the Receita Federal, or at your local Brazilian embassy.

The CPF also implies that you will have to fill in a yearly tax return form, so the authorities can follow the progress of your property (and, possibly, any income derived from it).

Private sales contract

A property can be initially purchased through a “private” sales and purchase agreement which details the full conditions of the sale and also acts as a receipt for the deposit paid.

This contract can be signed by buyers or by lawyers acting on their behalf if they have been given a power of attorney.

It is always recommended to use a lawyer when buying a property not only in Brazil but anywhere in the world.

Title deed and real estate registration

Properties are usually bought and sold using a “public sales and purchase deed” (“escritura publica de compra e venda”) which can be drawn out and signed in front of any notary, anywhere in Brazil. This document should then be registered in the real estate registry in the town where the property is located before the registry can issue the register of that property (“matricula”) which shows an extract of the selling and purchase contract and confirms the ownership of the property.

Property Taxation in Brazil

There are basically three types of property taxes in Brazil:

1. The IPTU: A local yearly property tax which usually ranges from 0.5% to 1.5% of the value of an asset, depending on the use of the property and its location.

2. The ITBI, (Imposto sobre transmissão de bens imóveis): A real estate transfer tax which totals with other costs 2 to 3 % of the value of the property and is paid to officially register the change of property ownership before a Notary Public

3. IR – Imposto de Renda: Capital gains tax on the sale of the property which usually amounts to 15% of the profit made on the sale of the property. A new law was recently introduced waiving this tax if the proceeds of a sale are reinvested in another property in Brazil within 180 days of the sale.

For further information and to view some of the latest Brazil property opportunities in the northeast then please visit Experience International www.experience-international.com

Being a massive country Brazil has a wealth of natural resources and because of favourable agricultural climate and vast areas of rich fertile agricultural land; it is a global leader in the production and trade of a lot of important commodities such as ethanol, coffee, soybeans, oranges and sugarcane.

There are a growing number of investors looking for land for sale in Brazil for both agricultural and also property development and investment purposes.

The recent sharp increase in commodity prices and the integration of China, a major buyer of commodities, into the global economy have provided a further boost to the economy of Brazil and balance of trade.

Analysing long term growth, a Goldman Sachs study predicted that Brazil will be one of the top five economies in the world by 2050 and Deutsche Bank confirmed that on the long run the demographics of Brazil favour strong economic growth because of the predicted increase in the Brazil population that is in full time employment.

Fabio Kanczuk, professor of economics at the Universidade de São Paulo said that;

‘Brazil will be attracting large investments from companies interested mainly in the domestic market’

And the “Times” newspaper reported that,

‘Several leading UK city financiers recommended Brazil as it represented very good value for investors.’

These are just a few of the positive economic indicators that are driving the Brazil property market and adding to the countries attractiveness with investors interested in good financial returns in the future.

Introducing Natal Ocean Club

Natal Ocean Club on the North East coast of Brazil is one of our hottest tips for investment and one of our personal favourite investment locations. The stunning and unique location in a prime growth region of Brazil, the beautiful 5-star architectural design of award-winning David Basto.

World Renowned Architect

The properties themselves promise to impress with their exquisite design brought by world renowned architect David Bastos. Famous for his interpretation of luxury living through mixing traditional materials from Brazil with modern comforts, David delivers a collection of beach residences and villas with bright, modern and airy living spaces that will satisfy anyone’s definition of luxury.

Beachfront Location

The properties are set amongst 20 acres of tropical landscaped gardens, overlooking the ocean and sand dunes. The Prime beachfront location just 25 minutes north of Natal and only 10 minutes south of Maracajau – the site of some of the best diving in the world.

Investor Return

In addition to securing pre-operator prices investors will also benefit from a management agreement that enables owners to earn a sustainable rental income generated from the year-round occupancy.

Top Reasons Why Investors Are Buying Property In Brazil

For most people interested in buying property abroad it is either the idea of achieving high financial returns as an investor or those seeking a fantastic holiday home to relax and enjoy the cultural delights. This is especially true for people purchasing Brazil property.

Here are a few of the main reasons why many people have already purchased property in Brazil.

Rental Income: The northeast of Brazil which is the region seeing very high tourist numbers and demand for quality properties not to mention the growing amount of middle class in Brazil that require good accommodation means that the rental opportunities and high rental income is very good.

Capital Growth: Brazil has a good economy that is constantly improving and is said to become one of the strongest in the world plus the facts that demand is growing from tourists and overseas buyers and that Brazilians can now gain mortgages mean property prices are increasing and are predicted to continue to experience good capital growth for the foreseeable future.

Lifestyle: Brazil offers both a dreamy relaxed and exciting lifestyle, the fantastic sandy beaches or relaxing by the pools of the luxury resorts in the northeast is perfect for just sitting back and soaking up the sun and ambience where as the carnival, nightlife, cosmopolitan coastal cities, superb water sports and other leisure pursuits offer all the energetic activities for the most demanding sports enthusiasts and fun seekers.

Cost of Living: Brazil is extremely affordable, the price of day to day good and goods are a lot less expensive and said to be around 20% cheaper than that of the UK. The price of property, real estate & Brazil land sale is currently very low compared to other tropical destinations like the Caribbean for example.

Growth Economy: Brazil’s current macroeconomic situation is very good for long-term investments, especially in the property sector.

Good Access & Infrastructure: The new airport being built in the Northeast around 30km from Natal in the city of São Gonçalo will be the 5th largest in the world and will facilitate both passenger and cargo flights opening the region right up for The roads and local transportation are also undergoing constant improvement funded by a large public investment programme which was initiated around 10 years ago: the Tourism Development Programme in the North East, PROSETUR / NE.

Over 670 million dollars have been invested through this programme on;

- Transport
- The environment
- Infrastructures
- Tourism management bodies

The success of this has resulted in the implementation of PRODETUR / NE II with an estimated further $400m investment.

High Tourism Growth: The number of tourists visiting Brazil has increased considerably from about 2.5 million in 1997 to over 9 million in 2007 and because of the increased exposure to international tourists and property investors as well as all the positive economic factors and natural attractions as well as the fantastic new Brazil property resorts and residential properties being built indicate that this trend will continue for the future.

Moody’s Economy.com, a renowned source of independent research and analysis, released an article in February 2008 reporting that notwithstanding global financial turbulence, Brazil remained one of the most attractive markets for foreign investors, and is expected to continue its economic growth at a rate higher than the global average.

DEMAND

The primary source of demand for Brazilian residential real estate is projected to be driven by the emerging middle and affluent classes of the domestic population. In the Northeastern resort areas, due to the additional layer of demand implied by forecasts for rapidly increasing international visitor arrival numbers, the more accessible micro-locations should experience very high occupancy rates upon completion of the Natal airport, which will act as the main access point.

These quotes reinforce the damnd for residential and tourist property in the northeast of Brazil.

please add your own comments, opinions, and experiences…..

Another cultural aspect I really enjoyed when in Brazil was watching the Capoeira shows on the street. This form of dance orginated from the slaves and involves slow and controlled movement which is thoroughly spectacular to watch. Capoeira is performed on streets in the North East of Brazil where there is a strong African influence. There are also shows as well.

• Brazil ticks all the boxes for an exciting emerging market, low property prices & good potential for capital growth and rental income.

• Exceptional value for money on property, for shopping, eating out and low cost of living approx 20% of that in the UK

• Rapidly expanding economy and substantial government and private investment focused in the area of growing tourism interest, the North East.

• Significant improvements in local transport links

• Low cost flight routes opening up. Thompson fly to Natal from Gatwick and average prices are between £180 and £400 return. Plus major new airport development in the N. E. Natal

• Large scale leisure facilities under construction

• Excellent medical facilities

• Brazil has high expected rental incomes for properties

• Booming Tourist industry: Between 2002 and 2005, the number of international passengers at Brazilian airports increased by 50%

• Exceptional capital growth: In the North East Area properties have increased by 100% in the last 36 months

• Booming economy, Brazil has the 11th strongest economy in the world and the strongest in Latin America

• Good currency exchange rate making it cheaper for foreigners to invest

• Foreign investment encouraged, you own 100% of land and property. Foreigners are permitted to own property outright in Brazil. Also, foreigners have the same property rights as Brazilians and will obtain a free & clear title to the property.

• It is no different than owning real estate in Europe or the US.

• All you will need to buy property is a CPF number (tax registration number) which you can apply for via the Brazilian embassy in your home country or here in Brazil. This number is required in order to legally identify you for title purposes.

• Brazil is quickly becoming the world-leader in attracting foreign investment and immigration. There are literally millions of foreign nationals in Brazil who own property and businesses.

A combination of strong and sustainable economic growth, low inflation, stable currency, oil self-sufficiency, increased exposure to the international markets, significant FDI and flourishing tourism have all drawn in substantial investments into Brazil’s real estate industry with the influx escalating under the prevailing favourable conditions.

This activity is further intensified by:

Cheap labor and inexpensive building material

Undervalued real estate prices in certain areas of the
country offering outstanding growth potential

Active government incentives for foreign investment which include simplified buying procedure, 100% foreign land and property ownership, a registration process that ensures a free and clear title, low taxes and fees associated with purchasing and owning property and no restrictions over the transfer of profits or capital.

Low interest rates

No visa requirements for most Europeans for visits of upto 6 months

The Brazilian real is still favorable at the moment making it cheap for foreigners investors to buy Brazilian property

A surge in the number of tourists with over 10 million short term tourists expected in 2008 ( Embratur the Brazilian Tourist Authority).

A sharp decline in US interest rates which translates into lower financing costs in emerging markets and improvement in capital appreciation prospects.

Brazil’s population is expected to grow to about 220 million by 2020; an increase of about 30 million over a short period of time.

The Ministry of Tourism invested over the last few years over R$ 1,7 billion (US$1.1 billion) in tourism related projects and infrastructure.and is planning to invest more.