“For those who believed that Brazil would forever be the country of the future, I have a piece of bad news. The future has finally arrived.” For years, the largest and most industrialized nation in Latin America has been known as the country of tomorrow. That slogan is out of date.
Under the guidance of former finance minister and president, Fernando Henrique Cardoso, this tenth largest economy in the world, once known for its high tariffs and even higher inflation, has entered a period of steady growth, the fruit of a newly-stable political and commercial environment. Current president Luiz Inácio Lula da Silva has prioritized development of many industries, including tourism related projects.
In combination with the upturn in its economy, Brazil ’s demonstrated preference for foreign products and strong direct investment presence bode well for expanded sales of equipment and services in future years."
Foreigners can own property without any problem
Foreigners can own property in Brazil without any effort. All you need is a tax registration number (CPF: CADASTRO de Pessoa Fisica) which you can apply for via the embassy in your home country, yourself at the Recita Federal, or via your agent in Brazil . This can be done online if you understand Portuguese. If you ask, we can send details of doing this in English.
The money has to be brought in via an international wire transfer to the Banco de Brasil. Yet, the Brazilian authorities do not care where the money comes from.
There are a few exceptions to this rule. Foreigners can not normally own the first 30m of 'marine zone' by the sea (the zone 30m from the high tide line on a beach). Yet this can easily be solved using a 'Brazilian' company (which can be owned 100% by the foreigner).
When you sell the property, the proceeds can be exported freely. =================================================================
Stay 180 days per year on a tourism visum
You can normally stay in Brazil for 90 days on a tourism visum. Once in Brazil , you can extend this for another 90 days at the Federal police station. In total, you can stay 182 days of the year in Brazil without needing to become resident. =================================================================
How to get a 'permanent visum'
Many foreigners stay the whole year without any problem, leaving from time to time for a short visit home or outside the country. Yet this is not 100% future-proof. Customs official do note in your passport (and in a database) when you enter and exit the country. As long as you're well behaved they normally tolerate longer stays, but your situation is vulnerable.
To obtain permanent residence in Brazil, the 3 easiest ways are:
1) Invest US$ 200,000 (now reduced to US$ 50,000 for certain approved projects that can provide employment for locals) in a business that will contribute to the Brazilian economy (e.g. a small hotel or pousada) and provide jobs for Brazilian nationals. We can help you with this if you like.
2) If you're over 50, prove a permanent monthly income of US$ 2,000 or more, and that's it!
3) If you're single, marry a Brazilian national. Your marriage should be real; in most cases the police do check this.
OBS: To qualify, all money has to come in via the Bank of Brazil and be declared via the Banco Central!
You must submit a police report (certidão negativo ) from your home country.
It is not easy to get a permanent residence based on a job. Most Brazilian companies do not want to go through all the hassle of employing a foreigner. Your only realistic chance is getting a job from a major multinational that really wants to send expats to Brazil .
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Big city violence in a peaceful country
Brazilians are remarkably peaceful, Christian people, and in spite of the huge inequalities between rich and poor they are not a violent people at all. Compare this to most South or Central American countries and the differences are striking.
But obviously, like in most multi-million mega-cities, there is violence in some areas of town where fights between drug gangs and police are taking place. And petty crime is common in the top tourist spots like Copacabana in Rio , where the combination of night-life, drunk tourists and prostitutes creates lots of opportunities for pick-pockets.
However, apart from such well-known trouble spots, in most of the country (especially in the interior, the northeast, except Recife, or coastal villages and resorts), there is no violence or danger to speak of. =================================================================
Don't miss the Brazilian real estate boom!
Brazilian real estate market set to explode
Brazil didn't realize its huge tourism potential until only a few years ago - but now has understood it can create an enormous influx of capital and has started to exploit its touristic potential.
And what a potential! Just reflect on what makes destinations interesting for tourism, and you'll realize that Brazil literally has it all - sunshine, nature, culture, access, and infrastructure.
First of all, sunshine. With almost 8000 km of coastline, stretching from just above the equator to milder climates further south, Brazil has lots of sunshine, all year long.
Its beaches, usually white sands lined by palm trees, and often with stunning views over some islands just outside the coast, only compete with the beauty of the tropical rainforests.
Brazil also has more than one third of the world's fresh water reserves - and that is visible in the thousands of rivers and waterfalls, suitable for bathing or rafting...
The Carnaval of Rio and Salvador , the famous 3 km wide waterfalls of Iguaçu, the Amazon, the Pantanal, and now the Sertão of our northeast, the Brazilian music add attractions of a level and range that can simply not be found in most destinations of the Caribbean .
And of course, the Brazilians themselves are one of the country's greatest assets - their happy, friendly, welcoming and Christian culture makes any visitor feel at home!
All major operators have realized this now, and five-star resorts like Costa do Sauipe near Salvador feature resorts by Marriott's, Sofitel Renaissance, and Breezes.
It is also quite meaningful that The Club Med has only 3 resorts in South America - all 3 of them in Brazil - and two of them are in the south of Bahia , near Salvador and Porto Seguro.
Tour operators are also massively adding Brazil to their offer; and an extensive scheme of charter flights covers Natal , Fortaleza , Salvador , and many other destinations.
To find out more, read the facts about investing in Brazil or have a look at investment properties for sale in Brazil . Contact our Associação ABTC-Brasil or our operating company Andetur Brasil Ltda.!
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Real estate investments by hotels in Brazil
Right now, several international hotel groups are investing billions of dollars in new hotels and resorts in Brazil ; specifically in Bahia and the Northeast.
Bahia
In Bahia , several investments are under way in the "Linha Verde" or Green Line - a 200 km stretch of coast north of Salvador airport.
Following the example of the (now 6 year old) project of Costa do Sauipe, Spanish group Iberostar is planning a similar resort just 2km from Praia do Forte, with over 1500 rooms and apartments and an investment of some $250-300 million. The project includes a 27 hole golf course and 120 plots of 5000 sqm.
In Imbassai, between Costa do Sauipe and Praia do Forte, Portuguese group Reta Atlantica is building Reserva Imbassai, a resort with 850 rooms, and a residential project with 489 homes for sale; a declared investment of about $50-70 million.
Also in Reserva Imbassai, Jamaican group Breezes, already present in Costa de Sauipe, has announced it will build one of their 'Starfish' clubs, with 252 apartments.
Closer to Salvador , another Portuguese group, Vila Galé, already operating 2 hotels in Brazil ( Salvador and Fortaleza ), is building hotel Gale Mares, with 516 rooms and an investment of some $30 million. In Genipabu, group Espirito Santo will build the $20 million Trivoli resort, with 250 apartments, 84 residential lots and 80 "villages" (small townhouses).
South of Salvador, in Canavieiras, the SuperClubs group is opening its first 'Hedonism' resort outside of Jamaica in 2007.
The leading boutique resort Txai in Itacaré is reportedly planning a second resort in Bahia ; either in Costa do Sauipe or Trancoso.
The family Borges, founders of the most prestigious resorts near Angra dos Reis, is working on a small boutique hotel near Itacaré.
Recife
The same SuperClubs group is opening it's new 'Breezes' resort near Porto de Galinhas, with 250 rooms and bungalows as well as a water theme park.
Natal
Reportedly, some Italian investors are considering building a golf course north of Natal ; while south of Natal , Swedish investors with experience in Marbella , Spain , are discussing a mega-project with Governor Wilma de Faria.
Fortaleza
West of Fortaleza, in the beautiful dunes of Cumbuca, SuperClubs will open a 'Breezes' resort by 2006.
Vila Galé reportedly has plans for an $160 million project in Cauipe (Caucaia); a 5* resort with 300 rooms on 500 ha and a residential area with 380 plots and 200 apartments.
East of Fortaleza, a joint venture of local food group Dias Branco and Portuguese investors, has announced the 'Aquiraz Riviera Golf and Beach Villas': a $270 million project on 2.8 million square meters; including 714 rooms in 4 hotels, 350 bungalows and a golf course with equestrian centre.
Further away, in Beberibe, Grupo Oasis Atlantico reportedly will build 2 hotels with 250 rooms each; followed by a small residential village, on a plot of 140 hectares.
(There are other, less concrete, plans for a 'hotel city' that would represent an $800 million investment in Praia da Baleia on 3800 ha, of which 93% is green area).
The Amazon
A special mention is deserved for the Amazon. A joint venture that includes the Spanish Iberostar group has launched a 75-suite ship that will cruise the Amazon River from Manaus ; at prices ranging from $1000 to $4000 per person.
In 2006, Hilton is also launching its first lodge in Brazil , the Hilton Amazon Eco-Lodge.This will have 196 rooms, a private pier, and an ecological reserve of 18,000 ha. The investment is reported to be around $12 million.
Rio de Janeiro state
South of Angra dos Reis, the Spanish Melia group, who already operates several Melia hotels in Brazil , is building the Melia Angra dos Reis Resort and Convention center.
Sao Paulo
Interesting is that even real estate tycoon Donald Trump is now investing in Brazil . Villa Trump will be his first development, on land of 9 million sqm in Itatiba, 90 km from São Paulo . It will have an 18 hole golf course signed by Jack Nicklaus, a golf academy, luxury hotel, and spa - as well as exclusive villas for the members of the club.
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High rewards for private capital due to limited availability
Brazil 's financial institutions are burdened with an enormous debt burden from the past, and both the national bank and the commercial banks have only limited resources to fund investments in the country's industry.
Western banks collect cheap money via the savings deposits from the average consumer, and then make them available to the entrepreneurial world. Brazilian banks can not rely on this cheap source of money, and the rich minority has taken over the role of financing industry - and real estate - directly.
And obviously, as demand by far outstrips the available supply, the premium offered to capital investors is high.
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Many projects have exits in 18 to 24 months
We, as an association, generally try to invest in projects that have a relatively short time horizon and like to free our investors' money up quickly, often 12 to 18 months after the initial investment. Long term capital appreciation and/or rental income may be interesting, but we have found that quick rotation of our investments usually delivers higher returns while it limits the exposure of your capital.
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Off-plan investments in new development projects
Many developers, especially those selling condominiums, offer interesting payment schemes which present a nice opportunity for investors. Many developers allow you to buy apartments off-plan, i.e. before or during construction, when the price is still low, and with down-payments totaling no more than 30-40% of the property price.
By the time the property is finished, it will command a higher price - both because of This market price increases and the higher appeal of a completely ready house. This means that investors can 'flip around' the property around completion time to another, 'final' buyer.
Doing so, you can pocket a price increase of 15 or 20% - while you have never paid up the full amount. Depending on the down payment, and speed of construction, profits on these deals can range from 40 to 100% per year!
Even if, in a 'worst case' scenario the property can not be sold immediately on completion, the balance to be can usually be financed (often by the developer himself), typically over 6 years or so.
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Low property transfer costs
Brazil only applies a 2% transfer tax on real estate property - which keeps the transaction costs among the lowest in the world.
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Extremely advantageous exchange rates
Until early 1999, the Brazilian currency was linked 1:1 to the US $ - and most prices still reflect these old price levels. When this link However, over the past few years 1$ has stabilized around 3 real. As a result, US$ 100,000 will buy a house that would cost about US$ 300,000 in other locations.
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The Brazilian GDP hides a sizeable upper class with world-class buying power
While the Brazilian GDP is only some US$ 4000 per inhabitant, it's social inequality hides a large affluent class that has a buying power that at least rivals the European and US consumers.
In fact, wealth in Brazil is extremely badly distributed. 10% of the population owns no less than 50% of all resources, and on the other hand 50% of the population must make-do with no more than 10% of the countries resources.
If one applies these ratios to the GDP, the wealthiest 10% (some 16 million consumers, concentrated in the South: Rio , Sao Paulo , Belo Horizonte ) have a GDP per capita that is quite comparable to most of Europe or the US . And in fact, their standard of living is even higher: as the cost of living is much much lower, buys a lot more luxury than we can imagine...
Moreover, the rich keep getting richer; not surprisingly if you realize they have a labor force at their disposal whose monthly wage is just some US$ 120-250...
As a result, the Brazilian upper class (not forgetting the upper class of other South American countries, who love to holiday and invest in Brazil ) generates a strong a growing demand for holiday homes and investments by itself.
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Limited Social, Political and Economical risks
Brazil is a highly catholic, peaceful, democratic culture, quite unlike other South American countries.
In spite of huge social inequalities, and well-known corruption, there is almost no social violence.
For the past few years, Brazil has been wisely and successfully using western monetary and fiscal policy, and it has mastered the control of inflation and currency rate, in spite of astronomic international debts from the past.
Finally, nature is generally benign; there is no risk of hurricanes and the abundance of water (and hydro-electric plants) is an additional asset.
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Real estate investments in Natal , RN
Tourism in Natal is on the rise - from 732,000 airport arrivals in 2003 to 921,000 in the first 8 months of 2004 only! During the same periods, the number of international tourists increased from 72,000 to 145,000.
Its international airport has a weekly average of 14 international flights (3 to 4 from Lisbon , 2 from Amsterdam , and 1 each from Milan , Madrid , Stockholm and Oslo ) as well as 25 national chartered (tourism) flights.
Almost 1.5 hours south of Natal lies Praia de Pipa, a small, charming, village with great views, pink cliffs, dunes and a beautiful river; but relatively little front-line beach property for larger hotel or residential operations.
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Safe legal ownership system with land registry and notary
Brazil has a legal ownership based on the European system i.e. a state 'land registry' keeps track of the owners of land and buildings, as well as any liens and encumbrances or debts associated with the property.
It is easy perfectly legal for foreigners to assume full ownership of land in Brazil . You will only need to apply for a 'CPF' registration number and transfer the money into Brazil via a bank account. The incoming funds should be registered with the Central Bank.
Before you buy land or a building, your lawyer or agent will check with the land registry to make sure that:
- You are buying from the legitimate owner
- The property (and any buildings on it) corresponds to the description in the land registry
- There are no debts, liens or encumbrances registered on the property
When you buy, you would typically exchange a private sales-purchase contract, paying a small deposit; and after verification you would have an official title deed, registered by a notary public in the land registry which proves your full ownership of the property. He will also check that the owner has no debts with any state, justice and labor disputes that could affect his ability to sell the property freely.
Usually, your lawyer will also obtain a set of certificates ("certidões") from the seller confirming that there are no smaller debts (to entities like the community of house owners in a condo, local city taxes, electricity companies etc.)
Most land around the big cities and the tourist areas has already been entered in the land registry. Occasionally, you may stumble on land which hasn't been registered yet. In this case, it suffices to have the latest sales transaction (before yours) registered before you proceed with the purchase.
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Low taxation on value increase, and high flexibility
The Brazilian taxes are relatively low and even for speculative investors (who buy property and flip it around in the first 5 years after purchase) taxes are only 20% of the value increase.
Yet very often buyer and seller agree to declare only part of the real value in the official sales contract, which offers additional flexibility. If you keep a property for 5 years or longer, there is no tax at all on the value increase of your property!
But there are a few creative tax planning tricks that allow for exceptionally interesting operations.
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- Under certain conditions, real estate professionals can buy and sell a property within the same fiscal year with little or no taxes. Using this rule, you can buy a property for, say, US$ 100,000 and sell it soon thereafter for US$ 500,000 - resulting in a clean US$ 400,000 profit that can be re-exported... Obviously, such operations require the highest confidentiality. If you are interested, please contact us for a private conversation about this matter.
- Low visibility for European / US taxes - Brazil is very happy to receive foreign investments and doesn't really care whether money coming from abroad has been taxed in its source country or not... As long as the money enters Brazil via an international (even offshore) bank account (which proves that it is not 'black money' earned in Brazil itself) they are happy with the investment. And they have no motivation to communicate this to any other countries. Obviously, there is no way for European or American authorities to find out you own property in Brazil - unless you tell them or are very sloppy with your paperwork. And if need be, you can also own Brazilian property via a local or off-shore company, for even further privacy.
Metas
Includes: Salvador, Fortaleza, Natal, Arraial, Trancoso, Itacaré, Marau, Taipus de Fora, Barra Grande, Serra Grande, property, realty, realestate, hotel, pousada, off-plan, land, build, develop, tourism, plot, apartment, condo, condominium, home, house, villa, beachfront, investing, invest, realtor, agent, broker
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Safe and profitable investments
Our association and management group consists of European, American and Brazilian specialists, working for investors to select the best real estate for sale in Brazil . We take care of your real estate investments, from the initial purchase all the way until the exit.
Being focused on investors, our approach is quite different. We select real estate in Brazil based on market analysis, ROI, time horizon, risks, and exit strategies.
Our senior partners have extensive, hands-on experience in the Brazilian markets, and several staff are fluent in English, Portuguese, French, Dutch, German, Spanish and Italian. So on one hand, you can benefit from our local contacts, know-how and presence - while on the other hand, you enjoy seamless and clear communication.
As our expertise covers most of Brazil , we can help you decide objectively which area is best for your investment. You can use our excellent network of local contacts and associated agents in the different states. Each one of them has excellent knowledge and networks in their local area.
Depending on your needs, we select the most suitable investment for you. Your briefing may include items like investment objective, portfolio and diversification (one big investment or several smaller ones?), time horizon (1 year, 3 years, 15 years?), risk/reward strategy (20% per year safely, or 100% aggressively?), personal involvement (passive investor, or active developer?), preferred exit strategy (buy and sell, build and sell, buy and rent...)
Depending on your preference, we may either just search for the investment property you need, or define the business plan, manage the full project development, and even handle the sale, rental or property management of your projects after completion.
For Club members interested in Investments, we often work on a "no cure no pay" basis - as we are very confident in the quality of our results! Please do not hesitate to contact us and discuss whether we can fulfill your needs.
INVEST IN CLUB PROJECTS:
Guest Ranch Hotel in Acari, Rio Grande do Norte - New construction approved by SEBRAE, EMBRATUR and IBAMA to be located lakeside Gargalheiras, 4 km from the city of Acari, Rio Grande do Norte. Called a 'Hotel-Fazenda', the property ajoins the existing ecological reserve RPPN Sernativo (1996). Projected value of the hotel will be R$ 1.000.000 (One million reals) when completed. Complete business plan available in both English and Portuguese. Consult!
Related project - Tour boats for ecological tours on the lake - Two boats are projected for Gargalheiras; several more for other lakes in the region. Consult!
Related project - Tour Buses and vans for the Seridó - to conduct tours for Andetur Brasil Ltda. for the government project Roteiro Seridó
These types of vans (called Sprinters or Jumpers), air-conditioned, are ideal for use in the Seridó region of Rio Grande do Norte and Paraíba. According to the seating setup, the cans can carry from 9 - 16 passengers. We can guarantee investors a minimum of 3% return per month or 36% per year on their investment. Vans would be operated under lease to the tour operator Andetur Brasil Ltda. in Natal.
Tour information (local)
OBS: The vans would also be used for day tours in the city of Natal, airport pickups, and cultural tours on the weekends to events throughout the northeast. Investment required R$ 35.000 or if in dollars - US$ 15,000. Each van is a separate investment.
Related project - Hortas and 'mandallas' - creating sustainable human habitats by following natures patterns - planting vegetables and fruits and raising simple livestock for for the community, and cultivating and processing the 'medicinal plants' native to the 'caatinga'. These projects, besides helping the local community, also are tourist attractions.
Horta, for raising 'medicinal plants'
Related project - bicycle rental and touring - is one of our smallest investments, more or less US$ 5,000, would be to setup a bicycle rental and touring operation along the coast and in the interior (sertão) of Rio Grande do Norte.
Related project - Motorcycle Tours and Rentals - an older project that we are considering reactivating. The northeast is ideal for riding motorcycles. This investment can be by purchasing individual motorcycles ** or by puchasing several to be used by the rental company. Each unit based on the Honda Bros 150 would cost approximately R$ 8,000. OBS: If you have a Brazilian CPF number, we can buy these motors via the Consórcio Nacional Honda with payments of R$ 167,00 per month titled in your name. The motor would be leased to the rental company when released by the dealer; and available for your own use when in Brazil. Otherwise, the investment is cash per unit.
Capt. Donald Reid (ret) - Director- Administrator Andetur Brasil Ltda. - Andetur Group Investments Operating the ONG ASSOCIAÇÂO ABTC-BRASIL, Andetur Brazilian Travel Club (membership) Rua Ulisses Caldas, 272 Loja 11 - Centro Comercial Ulisses Caldas - Cidade Alta Natal, RN Brasil 59025-090 Office Fone +55 (84) 3086-4366 Cell Fones +55 (84) 9952-0658 Website: http://www.andetur.com.br EMAIL andetur@andetur.com.br ICQ 8311106 - SKYPE ANDETUR - MSN: andeturbrazil@hotmail.com
