TRUTHS & MYTHS ABOUT BUYING PROPERTY IN BRAZIL

What Foreign Buyers Should Know Before Investing

Buying property in another country can seem complicated, especially when the information available online is contradictory.

Brazil is no exception. Foreign buyers will quickly encounter terms such as CPF, CNPJ, CRECI, matrícula, ITBI and INCC, together with very different explanations of what is supposedly required.

The good news? Buying urban property in Brazil as a foreigner is perfectly possible and, with the right guidance, relatively straightforward. So let’s separate some common myths from the facts.

MYTH #1

“Foreigners can only buy property from a company with a CNPJ.”

❌ MYTH

Foreigners can purchase urban property in Brazil from individual owners as well as companies and developers, subject to the applicable documentation and rules.

Banco Central do Brasil specifically explains how non-residents can pay for property purchased in Brazil, including sending funds in favour of the property seller through the appropriate banking and foreign-exchange channels.

There is no general rule requiring the seller of an urban property to be a company.

TRUTH: What matters is whether the property, seller, documentation and payment structure are legally correct, not simply whether the seller has a CPF or CNPJ.

MYTH #2

“A foreign buyer cannot transfer money to a private seller.”

❌ MYTH

This is another misconception easily checked against official information.

Banco Central expressly describes payment from a non-resident in favour of the property seller, including transfers originating abroad and payments using funds held in Brazil.

Naturally, international transfers must comply with banking, foreign-exchange and source-of-funds requirements.

TRUTH: There are different legal ways to structure the payment. There is no universal rule requiring every purchase to pass through a real-estate intermediary.

MYTH #3

“You need a Brazilian bank account before you can buy property.”

❌ NOT NECESSARILY

Having a Brazilian bank account can make certain things easier, but it isn’t an absolute prerequisite for every purchase.

Banco Central provides mechanisms allowing non-residents to transfer funds for property acquisitions in Brazil.

TRUTH: The best payment structure depends on the transaction, the buyer and the banks involved.

MYTH #4

“You must buy from a company to qualify for Brazilian residency.”

❌ MYTH

Brazil does offer a residence route for qualifying foreign real-estate investors.

Under Resolução Normativa nº 36/2018, the general qualifying investment is R$1 million in urban real estate.

For investments in Brazil’s North and Northeast, including Ceará, the threshold may be reduced by up to 30, potentially to R$ 700,000.

The regulation focuses on the investment, the property and evidence of the international transfer of funds. It does not establish a general requirement that the property must be purchased from a company with a CNPJ.

TRUTH: A qualifying property investment can provide a pathway to Brazilian residence, but the immigration requirements must also be fulfilled.

MYTH #5

“ Purchasing a property for R$700,000 in Ceará automatically gives you residency.”

⚠️ ALMOST, BUT THERE’S MORE TO IT

Ceará has an important advantage.

Because it is located in Brazil’s Northeast, a qualifying real-estate investment may benefit from the reduced investment threshold under RN 36.

But purchasing the property doesn’t automatically produce a residence permit.

The investor still needs to satisfy the immigration requirements and submit the necessary documentation.

TRUTH: Real estate can be a route to Brazilian residence. Think of the property investment as the qualifying basis for the application — not the residence permit itself.

MYTH #6

“15–20% annual rental returns are normal.”

⚠️ UNLIKELY, BUT POSSIBLE! PLEASE ALWAYS CHECK THE CALCULATION!

Some Brazilian properties can generate very attractive rental returns, particularly in strong short-term rental markets.

But whenever you see a projected yield, check whether it is gross or net.

A proper calculation should consider expenses such as condominium fees, IPTU, management, booking-platform commissions, maintenance, utilities, taxes and vacancy.

TRUTH: Brazil can offer excellent rental opportunities. But two apartments in the same neighbourhood can produce very different returns.

Always ask to see the assumptions behind the projection.

MYTH #7

“If a property increased strongly in recent years, it will continue at the same rate.”

⚠️ NOT NECESSARILY

Brazil has markets with significant appreciation potential.

But historical growth and future appreciation are two different things.

Location, infrastructure, supply, demand, tourism, construction costs and the original purchase price all influence future performance.

TRUTH: Historical data is useful for analysing an investment. It isn’t a guarantee of what happens next.

MYTH #8

“Interest-free instalments mean the price never changes.”

❌ MYTH

This is particularly important when buying property under construction. A developer may genuinely offer instalments without interest, while the balance is still contractually adjusted by an index such as INCC. That is common in Brazilian development contracts.

So ask two separate questions:

Is there interest?

Is the balance indexed?

They are not the same thing.

So, is buying property in Brazil complicated?

Not necessarily. For most foreign buyers, the process becomes much easier once the basic structure is understood:

CPF → property selection → due diligence → contract → payment → escritura/appropriate title → registration.

The exact procedure varies according to whether you’re purchasing a resale property, land or a new development.

And that’s precisely where an experienced local professional adds value.

Not by making Brazil appear more complicated than it is.

But by making the process simpler.

One Simple Rule: Verify the Information

There is an enormous amount of information about Brazilian property online, particularly now that more international buyers are discovering the market.

Whenever you encounter an unusual claim, simply check where it comes from. For banking and international transfers, consult Banco Central do Brasil. For immigration, consult the Ministry of Justice. For CPF and federal tax matters, consult Receita Federal. For the property itself, examine the documentation from the relevant Registro de Imóveis. And work with properly registered professionals. Good advice should be easy to explain and possible to verify.

Brazil Is More Accessible Than Many Foreign Buyers Think

Foreigners can own property in Brazil!

They can purchase from private owners or developers. They can legally bring money into Brazil to purchase property. They don’t necessarily need to be Brazilian residents first. And qualifying real-estate investments can even provide a pathway to residence.

So the message shouldn’t be: “Buying property in Brazil is dangerous.” Quite the opposite. Brazil is open to foreign property buyers. The important thing is simply understanding how the system works.

After 17 years working in Brazilian real estate and 20 years living in Brazil, that’s exactly what I want my international clients to have: clear information, local knowledge and a straightforward buying process.

Hanna Zborowska
CRECI 6933

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