Real Estate for sale in Bahia, Brazil
|Q.||Can foreigners own property in Brazil?|
Yes, foreigners have the same rights as Brazilians in terms of property ownership.
|Q.||Can I finance my property in Brazil?|
Most likely no. The interest rates are high and the requirements for securing the loan make local financing next to impossible for foreign investors. Pre-construction buildings are the exception – many contractors have special plans that let you pay off your investment over three years.
|Q.||What kind of a rental return can I expect from my investment?|
Depending on your needs and the property location, you should be able to comfortably rely on 2% to 10% of the property value per year from vacation rentals. For properties in the Barra/Ondina Carnaval circuit, you should be able to count on the higher end of this range as 2% will come from a rental for Carnaval week alone. For pre-construction buildings, 15%-30% is a conservative estimate of price increases from pre-launch to building completion. However, there are cases of 100% increases, especially in the neighborhood of Barra.
|Q.||What areas of Salvador are currently best for investing?|
It depends on your wants, needs and desires. Here is a listing of some of the more popular areas where foreigners are investing – including a short discussion of the advantages and disadvantages associated with the area.
|Q.||What will my responsibilities be as a property owner? What taxes will I be responsible for?|
You must pay the IPTU and monthly condominium fees (if applicable).
IPTU – Usually a minimal cost, for most 1 bedroom apartments it is less than US$200 per year.
Condominio fees start at around R$100/month. A one bedroom in a nice building with 24 hour doorman will be at least R$200/month. For a new building with complete infrastructure, about R$400,00/month is a good estimate for a one bedroom apartment.
You should also keep your CPF regularized by filing either a Declaração de Isento or Declaração de Imposto de Renda each year.
|Q.||What about capital gains taxes if I sell my property?|
If you sell your property within 5 years of purchase, you will be responsible for paying capital gains tax on the appreciation in the registered value of the property. If you own only one property in Brazil and sell it after 5 years, then no capital gains taxes are levied.
|Q.||What are some of the problems I can expect with purchasing and owning property in Bahia?|
It is important to remember that the pace of doing business in Bahia is much slower than in the United States or Europe – this might be good if you are on vacation, but annoying if you are in need of having something repaired. Things generally take longer to get accomplished and more ‘hassles’ seem to appear along the way. Not everyone shows up at the designated time nor do they arrive as prepared as you might be expecting. When searching for property or needing repairs for your existing property, it is best to keep patience in mind and know that all will get accomplished in the end, but maybe at a slower pace than originally expected.
At Paradise Properties Bahia, we are accustomed to the local pace of doing business in Salvador but are also familiar with how things work in the United States and Europe. We are used to filtering through and can arrange meetings and repairs with the needs of our foreign clients in mind. Whether we are assisting with your property purchase or managing your property while you are away, you can leave all of those hassles to us!
|Q.||What is the real estate market like in Salvador right now?|
Quite good. Foreign investment has really just started to flow in as a result of the incredible real estate values and a favorable exchange rate over the past few years. Brazil’s economy is getting great marks from international investors including the IMF, plus a number of multibillion dollar resorts are being built along the coast north of Salvador. Prices are rising but are still low enough to be considered good value.
Here is an example of the property value increase for a 1 bedroom beachfront apartment in the neighborhood of Barra from 2002 to 2005.
|Q.||If I buy property in Brazil, can I stay there year round?|
Visitors may stay in Brazil for 3 months on a tourist visa with a possible one time extension of 3 additional months – however visitors may not stay for more than 6 months out of any one year period. Even as a property owner, if you are on a tourist visa, you will be able to stay in Brazil for a maximum of 6 months per year.
|Q.||Am I eligible for permanent residency if I buy property and intend to live in Brazil?|
Here are the cases where individuals are eligible for a permanent residency visa for Brazil.
|Q.||Can I open a bank account as a foreigner in Brazil?|
Unless you are a permanent resident, probably not. The Brazilian banking system is quite restrictive and most banks require that you have a work visa or a permanent residency identification card (RNE) in order to open an account. For this reason, Paradise Properties Bahia is pleased to be the first in Salvador to offer a full service management plan that includes safeguarding of funds in our client bank account with periodic transfers to your bank account abroad.
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