Buying and Selling Real Estate in Brazil as a Foreigner: A Complete Legal Guide

Brazil is one of the most attractive real estate markets in Latin America — with competitive prices, high rental yields, and growing demand in major cities like Rio de Janeiro, São Paulo, and coastal resort areas. Foreigners can legally buy and sell property in Brazil, but the process requires careful legal guidance to avoid costly mistakes.

Can foreigners buy real estate in Brazil?

Yes. Brazilian law allows foreign individuals and companies to purchase urban residential and commercial properties with virtually no restrictions. The only limitations apply to rural land and properties located in border zones, which are governed by Law 5.709/71 and require specific authorization.

Step 1 — Obtaining your CPF

The CPF (Cadastro de Pessoas Físicas) is Brazil’s individual taxpayer identification number and is mandatory for any real estate transaction. Foreigners can obtain a CPF at a Brazilian consulate abroad or at a Federal Revenue Office (Receita Federal) in Brazil. The process typically takes 2 to 5 business days and requires a valid passport.

Step 2 — Opening a Brazilian bank account

While not legally mandatory, having a Brazilian bank account greatly simplifies the purchase process — especially for paying taxes, notary fees, and installments. To open an account, you will need your passport, CPF, proof of income, and a valid visa. Some banks also accept non-resident accounts for investment purposes.

Step 3 — Due diligence and property analysis

Before signing any contract, a thorough legal due diligence is essential. This includes:

• Full review of the property’s registration record (matrícula) at the Real Estate Registry Office
• Verification of outstanding debts: IPTU (property tax), condominium fees, and mortgages
• Confirmation that the seller is the legitimate owner with no legal restrictions on selling
• Check for ongoing lawsuits involving the property or the seller
• Verification that all construction is properly registered and approved by the municipality

Skipping this step is the most common — and most expensive — mistake foreign buyers make in Brazil.

Step 4 — The purchase contract

Once due diligence is complete, the parties sign a Compromisso de Compra e Venda (Promise of Purchase and Sale). This private contract defines the price, payment terms, delivery date, and penalties for breach. It is legally binding and should always be drafted or reviewed by a qualified real estate attorney.

Step 5 — Public deed and registration

The final step is the execution of the Escritura Pública de Compra e Venda at a Notary Office (Cartório de Notas), followed by registration at the Real Estate Registry Office (Cartório de Registro de Imóveis). Only after registration is the buyer legally recognized as the new owner under Brazilian law.

What taxes apply to the purchase?

• ITBI (Tax on Transfer of Real Estate): 2% to 4% of the property value, paid by the buyer to the municipality
• Notary and registration fees: typically 1% to 2% of the property value, varying by state
• Income tax on capital gains (when selling): 15% to 22.5% on the profit, withheld at source when the seller is a non-resident

Selling property as a foreigner

Foreigners can also sell Brazilian real estate freely. Upon sale, the buyer is legally required to withhold 15% of the total sale price as income tax on behalf of the non-resident seller. Proper tax planning before the sale can significantly reduce this burden.

Repatriating funds abroad

To remit sale proceeds abroad, the original investment must have been registered with the Central Bank of Brazil at the time of purchase (RDE-IED registration). Without this registration, transferring funds out of Brazil becomes legally complex and may be blocked. This is why structuring the investment correctly from day one is critical.

Why work with a specialized real estate attorney?

Every stage of the process — from due diligence to registration and repatriation — involves Brazilian legal, tax, and regulatory requirements that differ significantly from other countries. A bilingual real estate attorney ensures full compliance, protects your investment, and guides you through each step with clarity and efficiency.