Purchasing property in any overseas location requires some amount of research,
planning and preparation, and Brazil is no exception. The assistance of 
the right professionals who can guide you through to a successful property transfer
is an imperative issue. On this quick guide we hope to give you an introduction on
the real estate guidelines in Brazil.

Why Invest in Northeast Brazil - Focus on the City of Fortaleza

By Rui Barros Leal Farias - Lawyer in Fortaleza, Brazil

Text published by Escape Artist Magazine:

http://www.escapeartist.com/OREQ18/Why_Invest_in_North_East_Brazil.html


GEOGRAPHIC AND CLIMATIC REASONS TO CHOSE TO INVEST IN 
FORTALEZA AND THE STATE OF CEARA 

Imagine 573km of sun-drenched coastline. Imagine white dunes, lines of coconut 
trees, an ocean of warm water. Imagine a temperature never below 24º C (75 F.), 
with 3000 hours of sunshine a year. Imagine constant brises cooling the sunny 
day and lifting sails to windsurf and kite surf competitions. We are talking about 
the State of Ceará, home of the city of Fortaleza. Located in the Northeast region 
of Brazil, Ceará is full of enchantment and hospitable people. Many foreigners, 
from all over the world, are just now discovering Fortaleza and the State of Ceará. 
Along with the permanent warm climate, Mother Nature protected Ceará against 
rainstorms, earthquakes, hurricanes and other natural disasters – or the ones 
created by man including terrorism or wars. 
The location is very favorable to US and European visitors: in less than 7 hours, on 
direct flights, the continents are linked.

BRAZILIANS WELCOME FOREIGNERS 

It’s common knowledge among Brazilians that the citizens of Fortaleza welcome
tourists full of joy and hospitality. Either when traveling, shopping, eating, or just
getting to know the city, usually the locals respect and help visitors in the best
way possible.
The hospitality in the small cities on the coastline is even more easily felt. Their 
simple way of living and their interest in creating bonds with people from different
cultures is evident.
As said before, even the Brazilians show a great appreciation on receptivity of 
locals (Cearenses), a people with great sense of humor, home of the biggest 
comedians of the country. 

GROWTH OF FOREIGN INVESTMENT 

As to the growth of foreign investment, currently itis a reality that cannot be
denied. According to a national survey, published in the national periodical of the 
biggest circulation (Veja Magazine – 1,200,000 units weekly, of 11.5.2005) in 
every ten properties sold , three of them are being purchased foreigners.
That means that, at this very moment, thirty percent of our properties, especially 
beachfront properties, are in the eye - or in the hands - of overseas investors. 
This growing demand can be seen just by looking at the large number of 
enterprises being built or in the verge of starting construction.
The real estate market is beginning to boom and the options of investments are 
innumerous: apartments, residential services, flats, hotels, lofts, lands and 
condos. Here it is possible to purchase beachfront lots from 15 meters (45 feet) to 
several kilometers of coastline.
Either for living or for making a living, Ceará is growing fast in the heart of visitors. 

INFRASTRUCTURE AND POLITICS

The credibility of the State government is recognized by national and international 
institutions, which has allowed Ceará to receive credit for investments in 
infrastructure such as an International Airport, that links Ceará with Europe in less
than 7 hours (direct flight), United States and Latin America.
Ceará also counts with a port being able to send and to receive merchandise from 
the biggest ports in the world.
A 22,000 km well maintained road network, linking the inlands, with large potential 
to environmentally conscious investments, such as renewable energy (biodiesel, 
wind power, tide power), and the 573 km of beaches work greatly to support the 
current growth. 
Water supply is assured by means of a system that interconnects the State’s 
watersheds. 
Offer of power and communication is able to answer all demands. 
Internet services can be found in the more remote places, going along with the 
global tendency of constant communication. 

COST OF LIVING 
In Fortaleza, medical care – as almost all services – are available at a very low 
cost. There are innumerous well-known plastic surgeons, dermatologists, 
ophthalmologists, dentists and doctors, working in modern hospitals at low cost 
when compared to US and Europe.
In other aspects, lawyers, architects, engineers, are accessible and affordable to 
assist the development of enterprises. The local Universities provide annually a 
large number of professionals with high level of professionalism. 
Note that the number of professionals directed towards the international market is 
still small, but competent and capable of attending the exponential growth of 
investments. 
The work force is also very low cost. You can have a full time housekeeper at your 
home for less the US$ 300.00 per month`
There are dozens of reasons which make Ceará the chosen destiny for Brazilians
on vacations. 
At the current moment the attentions are being drawn to Fortaleza and it’s 
neighboring beaches due to the low cost of properties and the potential return on 
investments. 
These are just some examples of the possibility to multiply the value of the 
tourists currency, by changing it to the Brazilian Real and using it to buy low cost 
services, meals and assets. 

SPORTING ACTIVITIES

Focusing on the sporting activities available, Fortaleza and the other cities of the 
State provide breathtaking experiences in all sorts of fields. 
Since Brazil is known by the football (soccer), Ceará is well represented by two 
teams that fill the stadiums during the regular seasons, showing a good quality 
play. 
Although soccer occupies the center of the Brazilian hearts, we offer much more
possibilities of sports. 
In water and wind sports, Fortaleza is becoming the world’ number one location for
kite surf, surf, wind surf, and water skiing sports. 
Constant, fast and predictable wind currents are allowing thousands of enthusiasts 
of these sports to get the best from the practice. World competitions are being 
held constantly in many beaches that provide perfect conditions to the 
competitors. 
To hang gliding, trekking and climbing enthusiasts, inlands cities, distant 300 km 
from Fortaleza, provide great possibilities to have fun and improve the techniques 
in a tropical climate. 
For off-road fans, innumerous competitions and sites to practice exist along the 
beautiful coastline. 
As to golf players, there are several projects of golf courses for construction being 
developed. In the near future, golf courses will be available. 


OPPORTUNITIES AND GROWTH POTENTIAL

When it comes to investing in real estate, there are still many beachfront 
properties ready to be developed for the growing number of visitors from around the 
world, enchanted by Ceará’s coastline.
Costs in Brazil is lower than in the Caribbean, US, Europe, Central America and 
Pacific. 
In the last 5 years, the property value has doubled because of the evolution of the 
foreign investments. 
It’s important to emphasize that the conditions are still very good and the forecast 
is very interesting for investors with a vision of the growth to come. 
Putting in numbers, the tourist season of 2005/2006, it is expecting a growth of 
28% in the number of visitor, according to survey by the local government. 
As said, Fortaleza is the number 1 location for Brazilian tourists, and the amount 
of US and European visitors is increasing, as it can be seen: 22 regular 
international flights, 11 charter flights per week, and numerous international 
companies are seeking to introduce regular direct flights to Fortaleza. The charter 
flights are coming from Holland, Sweden, Ceczheck Republic, Italy, Finland and 
Switzerland. 
This concrete data is a true example of the growth and potential of investments. 

VISAS – TOURIST AND PERMANENT 

To tourists seeking to come Fortaleza, the data for tourist visa can be obtained at 
the local Brazilian Embassy. Depending on the country of residence, an 
application for visa is required for Americans, but for members of the European 
Community. The tourist visa can have the maximum duration of 90 days, with the 
possibility of its renewal. The maximum stay per year is 180 days based on a 
tourist visa. 
Permanent visas to live in Brazil can be easily obtained if the visitor is investing 
more than US$ 50,000 in a Brazilian Company. The visa has a 5 year validity, 
being renewed if the investor maintains this amount of investment between this 
period. 
There are special opportunities for retirees: if they can bring to Brazil up to US$ 
2,000 per month, and a maximum of 2 dependents. Over 2 dependents, another 
US$ 1,000 is needed for each one. Other possibilities exist depending on the 
individual condition of the investor. 

CAN FOREIGNER BUY PROPERTY IN BRAZIL? 

A question that normally comes up before assessing the conditions for investment 
in Brazil is: can I invest in Brazil? 
The answer to this question is a positive Yes, the foreigner not only can invest in 
Brazil but is encouraged by the Brazilian government to do so. Facilities in 
obtaining visa and treaties to avoid double taxation are clear examples of the 
Brazilian government’s interests. 
The non-Brazilians visiting the country have equal rights as a resident, protected 
by the Constitution of Brazil. There are specific investments restricted to 
Brazilians, such as mining and communications services (to some extent), as well 
as other activities able to put the sovereignty in risk. 
But the investor seeking to participate in the real estate, tourism, exportation or 
environmental market don’t have to worry about the restrictions. 

LEGAL PROCEDURE TO BUY REAL ESTATE IN BRAZIL 

About legal aspects on how to buy a property, it’s very important to outline that all 
transactions must be made through Brazil’s Central Bank. All money sent to 
Brazil must come through the official banking system, is communication with 
Central Bank.
Also, it’s crucial to explain that when a purchase of a real estate investment is 
being closed, the bank in Brazil that represents the seller of the property can only 
credit the money to him if the contract between the parties involved in the deal is 
signed by both. This means that if you transfer the amount to the purchase of an 
asset and the seller tries to change the conditions of the deal, before the contract 
is signed, he will not be able to credit the value, and the money will be returned.
That is why a representation of an attorney is very important, helping the process 
to flow smoothly, regarding the legal aspects of the investment. 
There is the possibility of the overseas investor to purchase the assets that hold 
interest without leaving his or her home country. With a Power of Attorney given to 
a lawyer or someone to whom the investor holds trusts, all the procedure can be 
held without any difficulties. To obtain a power of attorney in a country outside 
Brazil there is a procedure involving a local Notary Public and the Brazilian 
Consulate in the jurisdiction of you residence. 
As you see, the layout of the business is not complicated, but the assistance of a 
specialized professional helps the process to go as planned. 

TAXATION IN BRAZIL 

For investors seeking to invest in real estate the main taxes involved are: IPTU, 
ITBI, IR. 
The IPTU is the real estate property tax. It’s established locally in every city, but 
the amounts normally go from 0,5% to 1,5%, of the evaluation of asset, depending 
on the use of the property and it’s location. 

As to the ITBI, it stands for real estate transfer tax, based on the value of the 
asset or the evaluation of it. The amount is normally 2% of the base above 
mentioned, having to be paid in order to officially register the change of property 
before a Notary Public. To the official transfer the asset there are some other 
costs involved, such as the signature of a public contract and the register of the 
contract at a Notary Public – Cartório de Registro de Imóveis (cost depends on the 
value of the asset as well as to the table of price of the cartório). 
Finally the IR – Imposto de Renda, represents the income tax. The value depends 
on the amount of capital gain, since the rate goes from 15 to 25%. 
Note that there is a new bill that just came up, establishing that in every 5 years a 
tax benefit can be used for capital gain purposes. It consists generally to the sell 
of an asset with capital gain, and the reinvestment of all of the value obtained 
towards other real estate assets until 180 days after the selling. This mechanism 
is will increase even more the hot real estate market. 

FINAL CONSIDERATIONS 

Fortaleza is ready to welcome you with its endless beaches and sunshine. It 
offers perfect conditions to live and to do business in this tropical and friendly 
country of Brazil