Brazil offers stunning landscapes, a dynamic real estate market, and growing demand for seasonal rentals and luxury housing. For foreign investors, purchasing property in Brazil can be highly profitable, but it requires an understanding of the country’s legal and tax frameworks.

This guide explains in a clear and practical way how a foreigner can buy real estate in Brazil, whether as an individual or through a Brazilian company.

Buying Property as an Individual

1. CPF Required:
Any foreigner wishing to buy property in Brazil must obtain a CPF (Brazilian individual taxpayer number). This number is essential for signing contracts, registering deeds, and declaring ownership with the tax authorities. The CPF can be obtained in Brazil or at any Brazilian Consulate in your country of residence.

2. Required Documents:
- Valid passport
- Proof of address abroad
- Notarized power of attorney if acting through a local representative

3. Bank Account Restrictions:
Non-residents may face difficulties opening a bank account in Brazil. Banks usually require:
- A residency visa
- A local address
- A valid CPF

4. Registration Process:
- Signing of the purchase agreement
- Payment of the transfer tax (ITBI)
- Registration of the deed with the relevant real estate registry

5. Tax on Rental Income:
15% income tax on rental revenues (no deductible expenses for non-residents)

6. Capital Gains:
Tax
Capital gains on property sales are taxed progressively, based on the amount of profit:

7. Capital Gains Exemption (Special Case):
There is an exemption available for individuals who sell a residential property and use the full proceeds to purchase another residential property in Brazil within 180 days. This exemption only applies to Brazilian tax residents and under specific conditions. In general, the person must not have benefited from this exemption in the last five years and must fully reinvest the amount. This benefit does not apply to legal entities.

Buying Property through a Brazilian Company

Main Advantages:

1. Company Formation (LTDA or S/A):
- Foreigners may be shareholders of Brazilian companies
- A local legal representative must be appointed
- Registration with the CNPJ (corporate taxpayer ID)

2. Tax on Rental Income:
- Under the 'Lucro Presumido' regime: effective tax rate around 11% to 14% on gross income
- Operating expenses may be deductible

3. Capital Gains Tax:
- Companies pay IRPJ and CSLL on profits from sales
- Effective rate ranges from 15% to 25%

4. Maintenance Costs:
- Mandatory accounting
- Monthly and annual tax filings

When It's Better to Buy through a Company

- Investing in multiple properties for short-term rentals
- Regularly managing rental income in Brazil
- Inability to open a personal bank account as a non-resident

Practical Advice

Title Verification:
Always request an updated title certificate to ensure the property is free of debts, liens, or legal disputes.

ITBI Calculation:
This municipal tax varies from 2% to 4% depending on the city.

Hire a Specialized Attorney:
It is strongly recommended to work with a bilingual real estate lawyer for contract review, tax guidance, and fraud prevention.

Tax Compliance:
Make sure your CPF or CNPJ is active and up-to-date with the Federal Revenue to avoid future resale issues.
 
Estimated Timeline for Acquisition:
- CPF issuance: 1 to 2 weeks
- Legal due diligence: 1 to 2 weeks
- Registration and closing: 2 to 4 weeks
 
Estimated total time:
- 30 to 60 days

Investing in real estate in Brazil can be an excellent strategy for personal use, rental income, or long-term resale. Choosing between personal or corporate ownership will depend on your profile, objectives, and local banking flexibility. With proper planning and legal guidance, the process can be safe, profitable, and transparent.

Tailored Support from Latin Exclusive

At Latin Exclusive, we are here to guide you through every stage of your real estate journey in Brazil. With nearly 20 years of experience, we offer a multilingual, multidisciplinary team of experts in legal, tax, accounting, and real estate matters — with specialized knowledge of Brazil, France, the United States, and more.

Whether you’re looking to acquire a dream property, structure your investment, optimize your tax position, or embark on a renovation or construction project, our skilled architects, engineers, and project managers are here to bring your vision to life.

Our mission: to make your investment in Brazil a smooth, secure, and inspiring experience — one fully tailored to your personal goals.