The right to property is a right established in the Brazil Federal Constitution and it is a fundamental right, inserted in the art. 5 of the Brazilian Constitution. The referred right establishes that “all are equal before the law, with no distinction of any nature, ensuring Brazilians and foreigners residents of the country the inviolability of the right to life, freedom, equality, safety and property.”
As observed, the Constitution ensured equality between all people, both Brazilians and foreigners. That way, when it comes to the right to life, freedom, equality, safety and property, there is no distinction between Brazilians and foreigners.
When it comes to constitutional guarantee, foreigners can acquire properties in the Brazilian territory, whether they are movable or immovable. The present material will address the real estate acquisition by foreigners in Brazil.
As mentioned before, every foreigner can acquire properties in Brazil and can do so even if they do not reside in the Brazilian territory or do not have a fixed address. It is important to note, as well, that there are no limits when it comes to the number of properties a foreigner can acquire nor properties’ costs.
For a foreigner’s right to real estate to be exercised, a foreigner will need to meet certain requirements, such as: to have a National Registration of a Natural Person (CPF) and to have a National Immigration Registry (RNM) or a valid passport. Only foreigners with the aforementioned documents may sign a public deed of purchase and sale, and apply for real estate registration.
When it comes to urban property, foreigners will only have one restriction, they will not be able to acquire the property or land located within 100 (one hundred) meters along the sea coast, unless authorized by the President of the Republic or by the Minister of Finance, except if the property is an autonomous unite in a condominium, such as an apartment building located on navy land. This prohibition is established in Decree-Law No. 9.760/46, in its art. 205.
When it comes to rural property, foreigners will face more specific restrictions and shall observe the rules laid down in the Law No. 5.709/1971, that deals specifically with rural property acquisition by a resident foreigner in the country or foreigner legal entity authorized to operate in Brazil.
To exemplify, art. 3rd in the Law mentioned above establishes that a foreigner may only acquire rural property whose area does not exceed 50 (fifty) defined exploration modules, which is equivalent to 150 (one hundred and fifty) acres (a rural module is equivalent to 3 acres, as defined by INCRA under the terms of Law no. 4,504/64, known as the Land Statute). However, if the property does not exceed 3 (three) modules, the acquisition will be free and independent of any license.
In 2018, the Federal Government, through the National Immigration Council, a body linked to the Ministry of Justice and Public Security, issued Normative Resolution No. 36, whose purpose is to discipline the granting of residence permits as a result of real estate investment in Brazil.
As established by the aforementioned Resolution, the granting of a residence permit for real estate investment is conditional on the acquisition of urban real estate in an amount equal to or greater than R$ 1,000,000.00 (one million reais), which may be properties already built or under construction. In the case of properties located in the North and Northeast regions of the country, the minimum investment amount is now R$ 700,000.00 (seven hundred thousand reais).
The Resolution also establishes that the foreigner may prove the above-mentioned real estate investment by acquiring more than one property as owner, provided that the sum of all properties corresponds to the minimum amounts referred to (R$ 700,000.00 for properties located in the North and Northeast regions and R$ 1,000,000.00 for properties located in other regions of the country).
Initially, the authorization for residence granted to foreigners due to real estate investments in Brazil will have a period of 4 (four) years. After a period of 4 (four) years has elapsed, a residence permit may be granted to the foreigner for an indefinite period, upon proof of maintenance of the investment, presentation of the National Migration Registry Card and criminal record certificates, or document equivalent, issued by the competent judicial authority where the foreigner resided during the temporary residence permit.
Despite the constitutional guarantee to property in Brazil for foreigners, the implementation of that right requires a lot of attention, since, due to the principles of sovereignty and national security, it is a bureaucratic process. Therefore, it is important that the interested party avails himself of specialized legal advice so that the real estate acquisition procedure takes place properly, without mishaps, and so that the process for authorization to reside in the country takes place in the same way.
