Your Questions Answered 
Q. Will the property be freehold?
- Investing in property in Brazil is as safe and easy as in any modern country like the USA or Europe. There are no restrictions for foreigners buying property in Natal and ownership is solid and secure. You own 100 % of land and property and as such ownership of the property is freehold.
- Is my money safe? – Is there any kind of guarantee?
- We are proud to be the first property company in Brazil who has a Brazilian bank guarantee in place (Banco de Rio de Janeiro), which means any money paid is fully insured. This is guaranteed by the bank, ensuring that the construction of the property will be finished. This bank guarantee eliminates any financial risk to the investor. When the client transfers the funds into Brazil, they are registered at the Central Bank of Brazil. We have to present the contract to the bank in order to release the funds. This guarantees that the Brazilian Government has recorded your investment into the country.
Q. What are the payment terms?
- 1000€ reservation fee
30% on contract within 30 days
20% when foundation is laid
20% at completion of roof
30% on completion
- What purchasing costs can I expect?
- You can expect to pay approx. 7.5% in purchasing expenses when buying property in Natal
ITIV (similar to VAT): 3%
Title Deed (cost for the Notary office): 1.25%
Registration of the deeds: 0.75%
Administrative expenses: 1%
Legal fees: approx. 1.5%
This number can vary slightly depending on the location.
- How do I reserve a property?
- Fill in the property reservation form; the reservation fee is 1000€ per property reserved.
- What’s the next step?
- For a foreign investor to own property in Brazil the only requirement is that they have a CPF number. The number can be obtained within a couple of days (by a local Brazilian lawyer) and is a legal requirement, as it enables the investor to be uniquely identified for taxation and title purposes. The lawyer will assist you in obtaining this and the whole process can be done without visiting the country, providing that power of attorney is given to the lawyer. Next, the property purchase and sales agreement is drawn up which details the full conditions of the sale and also acts as a receipt for the deposit paid. At this stage the client pays 30% of the purchase price.
- Do I need a lawyer?
- We recommend that you use a lawyer. We can introduce you to an independent lawyer based in Natal with multi-lingual staff. It is important that the lawyer is local, since the laws differ between the different municipalities. The lawyer can also assist you in applying for the CPF number and can sign the final title deed on your behalf in case you are not present for the signing.
- Can I get a mortgage on a Brazilian property?
- Currently foreigners can not get a Brazilian mortgage. If needed, it is better to organize finance from one’s home country. However, it is widely thought that in the coming years along with lower interest rates, mortgages will be widely available in Brazil which of course as well will have an impact on the property market.
- What about Tax on profits?
- Income earned from property in Brazil is taxable whether the investor is resident or non-resident in Brazil. Non-residents are usually subject to a capital gains tax rate of 15% on any gains they make on properties in Brazil but both these taxation facts are subject to alteration depending on any double taxation treaties in place between Brazil and the investor’s country of residence.
- What running cost can I expect?
- The estimated monthly community fee at Porto dos Corais is between 50-100 euros depending on the size of the property. We have arrived at this number by researching other similar developments in Brazil and this figure should be very close to the actual amount. The annual real estate tax is approx. 0.6%, but this tax is based on a value inferior to the value of the property, i.e. the tax is minimal.
- What about rental potential?
- Natal is one the fastest growing “long haul” holiday destination in the world. The area has a wide market appeal and is already attracting tourists from Spain, Portugal, Italy, France, Holland, Sweden, Norway, Denmark, Finland, Germany, USA, Japan, Switzerland, England (Thomson started January 2006), Argentina & recently Eastern European countries and last but not least, the large domestic tourism market of 180 million consumers.
The rental market is almost all year round and with the massive investments in resorts and golf courses on the coastline of Natal (10 golf courses within 30 minutes of Maracajaú, one right behind the project) the quality of the tourism offer will greatly improve, and as a consequence the rental market (along with increased rental prices) will grow rapidly.
The first project that was completed in Maracajaú is already working with tour operators and generating annual rental returns around 10%. Due to the extremely affordable property prices today, the potential for high rental yields are very good in the long term.
The opening of the new airport in June 2010 with estimated 5 million tourist arrivals per year, with Porto dos Corais reachable in 25 minutes, gives us further confidence in the potential for high future rental incomes.
- Is Brazil a safe country?
- One of the urban myths that surround Brazil is the question of safety and security. In fact, Brazil is no more dangerous than the main cities in Europe or North America.
Most of the bad press about violence in Brazil, relates to the gangs operating in the slums in Rio and Sao Paulo, which are both several hours away by plane. Even in these mega cities, most of the crime is between the gangs and crime against tourists is extremely rare. Being sensible and streetwise is the key to trouble free and enjoyable stay anywhere in the world, including Brazil.
The northeast is well known for being a very safe and relaxed area and is 4 hours by plane from São Paulo. In addition, Natal is officially considered the safest state capital in Brazil. In Maracajaú, the locals sleep with their doors unlocked.
- What service will there be On-Site in Porto Dos Corais?
- Porto dos Corais will be able to offer its property owners:
Reception area with key service
Airport Transfer
Cleaning
The costs for these extra services are yet to be confirmed. As labor costs are very low in Brazil, we expect these to be low.
Q. What’s the climate like?
A. Due to the fact Natal is only 5 degrees from the equator the seasonal variations are considerably small. Most of the year the daily temperature is around 30 degrees and the night temperature rarely falls below 24 degrees. The annual average temperature is approx 27 degrees.
In Natal, April to June is considered as the “rainy season” and during this period it rains intensely for a few hours after which the sun comes out again. Even during this time, the night temperature never drops below 24 degrees. The rest of the year is very sunny and the climate is dry and there is always a refreshing tropical breeze from the sea which makes the temperature feel even more pleasant.
The sea water temperature is equally warm and is approx. 26 degrees all year. Further, Brazil does not suffer from any tropical storms, hurricanes or earthquakes. No wonder Brazilians say that the country was created by God!
Q. What can I expect to pay for food & drinks?
A. A few examples:
• Dinner for two in a good restaurant: approx. 8 euros
• A beer (600 ml): 75 cents
• Caipirinha (the famous Brazilian cocktail with lime, cachaça &crushed ice: 1 Euro
• Chicken & prawn skewer on the beach: 40 cents |
