Residence Permit for Real Estate Investment in Brazil
Brazil has emerged as an attractive destination for foreign investors, especially in the real estate sector. One of the incentives for this type of investment is the possibility of obtaining residence authorization in the country. This article covers the main aspects of residence authorization for real estate investment in Brazil, according to current legislation.
Residence Authorization for Real Estate Investors
Normative Resolution (NR) No. 36 of October 9, 2018, provides for the granting of residence authorization due to real estate investment in Brazil. This NR allows a foreign individual – with their own resources of external origin – to make real estate investments in Brazil.
This is a common practice used by several countries. In addition to attracting investment and boosting the economy, real estate investment generates jobs in the country. Therefore, it is a way to facilitate the entry of investors with positive benefits for the domestic market. However, there are some necessary requirements that must be met.
Requirements for Granting Residence Authorization for Real Estate Investment
A foreigner who wishes to apply for residence authorization for real estate investment must acquire or own a property in an urban area, which may be under construction or already built. Additionally, the value of this property must be equal to or greater than R$ 1,000,000.00 (one million reais).
There is an exception to this rule for properties located in the North or Northeast regions. In these cases, the investment may be up to 30% lower than the value of R$ 1,000,000.00 (one million reais). That is, R$ 700,000.00 (seven hundred thousand reais).
Another possibility allowed by the Normative Resolution is the sum of properties, meaning the total value of the properties must correspond to the indicated amount. Thus, the applicant can add up all their properties to reach the stipulated values.
The law also allows for co-ownership, provided that each owner invests at least the stipulated amount of R$ 1,000,000.00 in the property.
Required Documents for the Real Estate Investor Visa in Brazil
The Ministry of Justice analyzes the application for residence authorization in this case. The necessary documents to start the process are:
Acquisition of Built Properties:
- General Property Registry, certifying the investor’s ownership of the property, free of encumbrances or charges.
- Declaration from an authorized credit institution, registered in national territory with the Central Bank of Brazil, certifying the international transfer of capital for the acquisition of properties in the defined value.
Acquisition of Properties Under Construction:
- Purchase and Sale Agreement of the property, duly registered.
- Declaration from an authorized credit institution, registered in national territory with the Central Bank of Brazil, certifying the international transfer of capital for the acquisition of properties or for the payment as a down payment on the Purchase and Sale Agreement, in the defined value.
- Building permit issued under Brazilian legislation.
- Incorporation Memorial duly registered.
- Other documents provided in Normative Resolution No. 01 of 2017.
Additionally, it is important to note that the Ministry of Justice may conduct on-site inspections to verify the investment if deemed necessary. In this regard, the foreign applicant must remain in national territory for at least 30 days during the period granted in the residence authorization, counted from the registration with the Federal Police.
Residence Authorization Period
The initial period for residence authorization is 4 years. The immigrant may apply for an indefinite extension upon renewal, observing the requirements set forth by law. This authorization is valid and extended to spouses, parents, grandparents, grandchildren, children, and siblings.
What are the Advantages of the Real Estate Investor Visa in Brazil?
The advantages of becoming a foreign investor in Brazil may arise from the depreciation of the national currency and the decrease in the basic interest rate, which has made the real estate market extremely attractive to foreigners.
Moreover, the Association of Foreign Investors even points out that Brazil is the second-best option for investment in commercial real estate.
Final Considerations
Real estate investment in Brazil not only represents an opportunity to diversify the portfolio for foreign investors but also opens doors for legal residence in the country. Following legal procedures and meeting the established requirements is essential to ensure a smooth transition and enjoy the benefits offered by Brazilian legislation.
For more detailed information and updates on Brazilian immigration legislation, consult Normative Resolution No. 36 of 2018 and other official documents available on the website of the Ministry of Justice and Public Security.
