Purchasing Real Estate
in Brazil
Brazilian property law is notary-driven, title-registry-based and riddled with traps for buyers who skip due diligence. Understanding how the system works before you sign anything is not optional.
Get in TouchTitle only exists at the registry: In Brazil, ownership of real estate is acquired not by signing a deed but by registering it at the competent Real Estate Registry. A signed deed that is never registered transfers no title.
Due diligence is extensive: A Brazilian property purchase requires checking the title chain, the seller’s personal liabilities and court record, environmental status, tax debts, condominium arrears and planning position. Each requires a separate certificate from a different authority.
Transaction costs are significant: ITBI transfer tax (2–3%), notary and registry fees, and capital gains tax on the seller can add 4–6% to the purchase price. Budget accordingly before agreeing a figure.
Foreigners can buy freely in urban areas: Non-residents may purchase urban property in Brazil without restriction. Rural land and border-zone properties are subject to specific limitations under Law 5,709/1971.
Union land requires extra care: Coastal, riverfront and certain urban properties are built on land belonging to the Federal Government (terrenos de marinha). Buyers acquire only usage rights, not freehold, and a 5% laudêmio fee is payable on sale.
Off-plan carries specific risks: Purchases from developers (incorporadoras) are governed by Law 4,591/1964. The patrimônio de afetação regime protects buyers if the developer becomes insolvent, but only if it has been formally adopted.
Brazil is open to property buyers. The legal framework rewards those who understand it.
The Brazilian real estate market is one of the largest in Latin America and is open, in principle, to both Brazilian and non-Brazilian buyers. Property rights are grounded in the Civil Code (Law 10,406/2002), the Public Registries Act (Law 6,015/1973) and a series of specific statutes governing off-plan development, rural land and Federal Government property.
Unlike many civil law systems where the signed contract itself transfers title, Brazil operates a constitutive registration system: ownership of real property is only legally transferred when the deed is registered at the competent Real Estate Registry (property registry office). Until registration occurs, no change of ownership has taken place in law, regardless of what any contract or payment receipt says.
The practical consequence is that Brazilian property law places heavy emphasis on the integrity of the title chain at the registry and on pre-contract due diligence. A buyer who fails to investigate the seller’s personal liabilities may acquire a property that is subsequently attached by a creditor or reversed in insolvency proceedings. The Brazilian courts have significant powers to unwind transactions for this reason.
This guide covers the key steps in a residential or commercial property acquisition in Brazil, the applicable taxes and fees, the restrictions that apply to specific categories of property and buyer, and the most common mistakes. For guidance on structuring a property-holding company in Brazil or the tax implications of cross-border property investment, see our guide on setting up a company in Brazil.
In Brazil, ownership of real property is only acquired upon registration of the public deed at the Real Estate Registry. A signed promissory sale agreement, a paid deposit or an exchange of keys does not transfer title. Buyers who rely on possession without completing registration are not protected against the seller’s creditors or against a subsequent sale of the same property to a third party who does register.
The three pillars of the Brazilian property system
Every transaction passes through each of these institutions. Understanding their role is the starting point for any Brazilian property purchase.
Real Estate Registry
Each property in Brazil has a unique registration number (matrícula) held at the local registry office (Real Estate Registry) for the municipality where the property is located. The title history extract contains the full title history: description, area, owners past and present, charges, mortgages and court orders. It is the definitive record of title. Any buyer’s first step is to obtain a certified extract of the title history directly from the relevant registry.
Public Notary’s Office
All real estate transactions above a statutory minimum value must be completed by means of a public deed (escritura pública) executed before a notary (tabelião). The notary’s role is to verify the parties’ identity and capacity, confirm the property details, ensure that all taxes have been paid and formalise the transaction document. The notary does not advise the parties. Legal advice from a Brazilian lawyer must be obtained separately before the deed is executed.
Secretary of Union Assets (SPU)
A significant portion of Brazilian coastal and riverfront land is owned by the Federal Government and administered by the Secretary of Union Assets (SPU). Properties on this land are held under a usage rights regime: the buyer acquires the right of use (domínio útil) but not the underlying freehold. A laudêmio fee of 5% of the property value is payable to the SPU on each sale. This applies to many beachfront, island and riverfront properties throughout Brazil.
What you can buy and how title is held
Brazilian law recognises several distinct forms of property right. The type of title determines the buyer’s rights, the restrictions that apply and the costs of transfer.
Freehold (plena propriedade)
Full ownership of both the land and any buildings on it. This is the most common form of title for urban residential and commercial property in Brazil and the form most buyers will encounter when purchasing in cities such as São Paulo, Rio de Janeiro, Curitiba or Porto Alegre. The owner has the right to use, enjoy and dispose of the property freely within the limits of the law and of any applicable planning rules.
Usage rights (domínio útil)
A right of use over Federal Government land (coastal lots, terrenos de marinha, and other Union land). The buyer acquires the right to use and sell the property but the underlying land remains Federal property. Annual payments (foro) and a transfer fee (laudêmio) are owed to the SPU. The SPU also holds a right of first refusal on any sale. Many beachfront and historic centre properties in coastal cities fall into this category.
Off-plan apartment (incorporação imobiliária)
Purchases from developers before or during construction are governed by Law 4,591/1964. The buyer signs a contrato de promessa de compra e venda with the developer and receives the individual unit’s title registration only after the building is completed and the habite-se (occupancy certificate) has been issued and registered.
Rural property
Acquisition of rural property is subject to specific restrictions, particularly for non-Brazilian buyers and for companies with foreign capital. Law 5,709/1971 imposes area limits and requires prior approval from INCRA (the National Institute for Agrarian Reform) and, in some cases, the National Congress. Rural properties must also be registered with INCRA and have a rural cadastre number (NIRF) for tax purposes.
Commercial property
Offices, warehouses, retail units and industrial properties are acquired by the same process as residential property. Commercial properties are often held through a corporate vehicle, both for liability management and for tax efficiency. ITBI transfer tax applies on the same basis. Properties within buildings are governed by the Condominium Act (Law 4,591/1964), and buyers should review condominium minutes and financial statements as part of due diligence.
Bare ownership and usufruct (nua-propriedade and usufruto)
Brazilian law allows ownership and the right of use to be separated. A seller may transfer bare ownership while retaining a usufruct for life. This structure is used frequently in estate planning and in transfers between family members. Buyers acquiring bare ownership should understand that they cannot take possession or let the property until the usufruct is extinguished. ITBI and capital gains rules apply to each element separately.
From offer to registered title: the six stages
Obtain and review the title history extract
Request a certified current extract (certidão de inteiro teor) of the title history from the Real Estate Registry for the relevant municipality. The title history extract will show: the property’s legal description and area; the history of all previous owners; any registered mortgages, charges, easements or court orders; and whether the land belongs to the Union. This is the single most important document in the transaction. Any encumbrance registered on the title history extract follows the property and binds the buyer.
Obtain seller clearance certificates (certidões negativas)
Due diligence in a Brazilian property transaction is broader than the title check. The buyer must investigate the seller as well as the property. Courts can reverse a property sale if the seller was insolvent at the time of the transaction or if there were undisclosed judicial proceedings. Essential certificates include: federal and state tax clearance; federal and labour court litigation searches; the seller’s CPF or CNPJ status; municipal IPTU clearance; and, for properties in buildings, condominium fee clearance from the building administrator. See the due diligence checklist below for the full list.
Execute the promissory sale agreement (compromisso de compra e venda)
It is common to formalise the agreed terms in a promissory sale agreement before the final deed is executed, particularly where a period is needed to arrange financing, complete due diligence or await regulatory approval. This agreement can be registered on the title history extract, which gives it erga omnes effect (binding on third parties) and protects the buyer against a subsequent sale to another party. The agreement should specify the price, payment terms, completion date, conditions precedent and what happens if either party defaults. Deposits are customarily 10–20% of the price.
Pay ITBI and obtain clearance
Before the public deed can be executed, the buyer must pay the Imposto sobre Transmissão de Bens Imóveis (ITBI), the municipal transfer tax. The rate varies by municipality but is typically 2–3% of the declared transaction value or the assessed value (valor venal), whichever is higher. The notary will require proof of ITBI payment before proceeding. For properties on Union land, the SPU’s confirmation of laudêmio payment (5% of the transaction value) is also required.
Execute the public deed (escritura pública de compra e venda)
The purchase deed must be executed as a public deed before a notary (Public Notary’s Office) for all transactions above 30 times the current minimum wage. Both buyer and seller (or their authorised representatives with a notarised power of attorney) must be present. The notary verifies the parties’ identity, capacity and marital regime, confirms that the ITBI has been paid, reads the deed aloud, obtains signatures and records the deed in the notary’s register. Notary fees are regulated by each state’s court of justice and are calculated as a percentage of the transaction value.
Register the deed at the property registry (Real Estate Registry)
The executed deed must be presented to the Real Estate Registry for registration. This is the step at which ownership actually transfers in Brazilian law. Until this registration is completed, the buyer has contractual rights against the seller but no property rights enforceable against third parties. Registration fees are also state-regulated. After registration, a new extract of the title history should be obtained to confirm that the buyer is now recorded as the registered owner and that no new encumbrances have appeared between execution and registration.
What a property purchase actually costs in Brazil
The figures below are indicative. ITBI rates vary by municipality, notary and registry fees vary by state, and capital gains tax depends on the seller’s circumstances. Buyers should obtain a transaction-specific cost estimate before agreeing a price.
| Item | Rate | Who pays | Notes |
|---|---|---|---|
| ITBI (transfer tax) | 2–3% of transaction value | Buyer | Municipal tax. Rate varies by municipality. São Paulo: 3%. Rio de Janeiro: 2%. Calculated on the declared value or the assessed value (valor venal), whichever is higher. Payable before deed execution. |
| Laudêmio (Union land transfer fee) | 5% of transaction value | Seller (customarily) | Applies only to properties on Federal Government land (coastal lots, terrenos de marinha). Payable to the SPU before the deed can proceed. SPU also holds a right of first refusal, which must be formally waived. |
| Notary fees (escritura pública) | ~0.5–1% of transaction value | Buyer | State-regulated. Exact amount set by the state court’s fee table (regimento de custas) for the relevant state. Includes drafting, execution and registration of the deed in the notary’s register. |
| Registry fees (registro) | ~0.3–0.5% of transaction value | Buyer | State-regulated. Separate fee charged by the Real Estate Registry for registering the transfer on the title history extract. |
| Capital gains tax (IRPF) | 15–22.5% on gain | Seller | Progressive rates apply to the seller’s gain: 15% up to BRL 5 million; 17.5% to BRL 10 million; 20% to BRL 30 million; 22.5% above BRL 30 million. Exemptions apply for the sale of the seller’s sole residential property (value up to BRL 440,000) and where proceeds are reinvested in another residential property within 180 days. Non-resident sellers pay a flat withholding rate of 15% or 25% depending on jurisdiction of tax residency. |
| ITCMD (inheritance and gift tax) | Up to 8% (state-dependent) | Donee / heir | State tax on transfers by gift or inheritance. Rate and calculation base vary by state. Some states apply progressive rates. Applies to property transfers made as gifts or on death rather than by sale. |
| IPTU (annual municipal property tax) | 0.5–1.5% of assessed value per year | Owner | Ongoing annual municipal tax. Rate and assessed value vary by municipality and property type. Outstanding IPTU constitutes a charge on the property and will appear on the clearance certificate. Buyers should confirm that all IPTU is current before proceeding. |
| Indicative buyer’s transaction cost | ~3–5% of purchase price | Buyer | ITBI + notary fees + registry fees. Does not include professional fees, financing costs or laudêmio (if applicable). |
Why Brazilian property due diligence goes beyond the title
Under the Brazilian Civil Code, a creditor may challenge (ação pauliana) a property sale made by a debtor if the seller was insolvent at the time of the transaction and the buyer knew or should have known of the insolvency. A successful challenge reverses the sale. The buyer loses the property and is left with an unsecured claim against the insolvent seller. This risk is the primary reason that seller due diligence, beyond the title itself, is essential in Brazil.
Under Law 4,591/1964, condominium fees are a propter rem obligation: they attach to the property itself, not to the current owner. A buyer who fails to obtain a condominium clearance certificate before purchase inherits all outstanding fees, fines and charges that the previous owner left unpaid. There is no cap on how far back these can run.
Thorough due diligence takes time and requires access to a range of Brazilian public databases. Allow at least 10–15 business days for a standard residential transaction and longer for commercial, rural or Union land purchases. Legal assistance from a Brazilian lawyer is strongly recommended for non-resident buyers who cannot access the relevant registries directly.
- ✓Title history extract: Current certified extract from the Real Estate Registry, confirming title chain, encumbrances and area.
- ✓SPU check: Confirm whether the property falls on Union land. If so, obtain current SPU records and foro payment history.
- ✓IPTU clearance: Municipal certificate confirming no outstanding IPTU. Also confirms the municipal cadastre description and assessed value.
- ✓Seller’s CPF/CNPJ status: Confirms the seller’s tax registration is active and regular.
- ✓Federal and state tax clearances (certidões negativas de débitos): Issued by the Federal Revenue Service and state revenue authority.
- ✓Federal court searches: Civil and criminal court searches in the seller’s name at the federal level, covering all jurisdictions where the seller has been resident.
- ✓Labour court searches (Justiça do Trabalho): Outstanding labour judgments may be enforced against the seller’s property.
- ✓Condominium clearance: Certificate from the building administrator confirming no outstanding fees, fines or assessments for properties within a condominium.
- ✓Environmental and planning status: For rural, coastal or sensitive-zone properties, confirm environmental licensing, APA status and any restrictions under the Forest Code (Law 12,651/2012).
- ✓Habite-se (occupancy certificate): For built properties, confirm the building has a valid occupancy certificate from the municipality. Properties lacking a habite-se may not be legally used or financed.
- ✓Seller’s marital regime: Where the seller is married, confirm the applicable marital property regime. Under certain regimes (comunhão universal and comunhão parcial de bens), the spouse’s consent to the sale (outorga conjugal) is mandatory.
Where the rules are stricter
Rural land: restrictions for non-Brazilians
Law 5,709/1971 restricts the acquisition of rural property by non-Brazilians and by Brazilian companies controlled by foreign capital. Key restrictions include area limits (non-resident individuals may acquire up to 50 módulos rurais; foreigners collectively may hold no more than 25% of the area of any municipality), a prohibition on acquisitions in border zones, and a requirement for INCRA approval above certain thresholds. The Brazilian Congress must authorise acquisitions above 100 módulos rurais.
Border security zone (faixa de fronteira)
A 150-kilometre strip along Brazil’s land border is designated a national security zone under Article 20 of the Federal Constitution and Law 6,634/1979. Acquisition of any property within this zone by a non-Brazilian individual or by a company with foreign capital requires prior approval from the National Defence Council (Conselho de Defesa Nacional). This zone covers significant portions of the Amazon, the Pantanal and the southern border states.
Union land (coastal lots and others)
Properties within 33 metres of the average high-tide line (linha do preamar médio) as surveyed in 1831 are classified as Federal Government land under Decree-Law 9,760/1946. The buyer of a property on Union land does not acquire the freehold but usage rights (domínio útil). Annual foro payments are owed to the SPU; laudêmio of 5% is due on each sale. The SPU has a right of first refusal on any transfer. Non-compliance with SPU obligations can result in reversion of the usage rights to the Union.
Off-plan and under-construction properties
Off-plan purchases are governed by Law 4,591/1964. Before purchasing, the buyer should verify: that the incorporação (development registration) has been filed at the property registry; whether the developer has adopted the patrimônio de afetação regime (which ring-fences the development’s assets from the developer’s general creditors); and the developer’s financial standing. Contracts that do not comply with Law 4,591/1964 may be voidable. Delays and developer insolvencies are not uncommon; the legal protections available to the buyer depend heavily on whether patrimônio de afetação was adopted.
Environmentally sensitive areas
Properties in or adjacent to Permanent Preservation Areas (Áreas de Preservação Permanente, APPs), Legal Reserve areas on rural properties, or within Environmental Protection Areas (APAs) are subject to significant restrictions under the Forest Code (Law 12,651/2012) and complementary environmental legislation. Buyers of such properties inherit any environmental liability, including obligations to recover degraded areas. Environmental due diligence, including a check of the Rural Environmental Registry (CAR) for rural properties, is essential.
Repatriation of sale proceeds abroad
Non-resident buyers who wish to remit the future sale proceeds of a Brazilian property abroad must ensure the original purchase was made with funds introduced through the formal foreign exchange market and registered with the Central Bank (Banco Central do Brasil). Law 14,286/2021, which came into force on 31 December 2022, updated the rules for cross-border capital flows. The documentation trail from the original remittance to the property registry to the eventual sale must be kept complete. Gaps in this trail make it difficult or impossible to remit proceeds abroad without incurring additional tax or regulatory complications.
Six mistakes that property buyers make in Brazil
Assuming possession equals ownership
Receiving the keys, paying the full price and moving in does not make the buyer the legal owner of a Brazilian property. Title passes only upon registration of the public deed at the Real Estate Registry. Buyers who delay or skip registration are exposed to the seller’s creditors and to a subsequent sale of the same property to another party who does register. Many buyers in informal transactions have lost both the property and the purchase price.
Not investigating the seller
The title history extract shows the property’s title history, not the seller’s personal financial position. A seller with undisclosed debts, ongoing insolvency proceedings or labour judgments can have the sale reversed by creditors under the ação pauliana or insolvency clawback rules. Obtaining the full suite of seller clearance certificates (certidões negativas) is not optional; it is the buyer’s principal protection against inheriting the seller’s problems.
Skipping the SPU check on coastal property
Many beachfront and waterfront properties sit on Union land. Buyers who do not check the SPU database before purchasing may discover after completion that they have acquired only usage rights rather than freehold, that annual foro payments are owed and in arrears, or that the SPU’s right of first refusal was not observed and the transfer is challengeable. The title history extract does not always flag the Union land classification clearly.
Failing to verify patrimônio de afetação in off-plan purchases
Buyers of off-plan apartments frequently assume their purchase funds are protected if the developer becomes insolvent. This protection only exists if the developer has formally adopted the patrimônio de afetação regime, which ring-fences the development’s assets. Where it has not been adopted, the buyer is an unsecured creditor in the developer’s insolvency and will typically recover only a fraction of the purchase price. This must be verified before signing the purchase agreement.
Underestimating transaction costs
ITBI (2–3%), notary fees (~0.5–1%) and registry fees (~0.3–0.5%) together add approximately 3–5% to the cost of any purchase. On Union land, the laudêmio adds a further 5% of the transaction value. Buyers who negotiate a purchase price without accounting for these costs may find themselves unable to complete at the agreed figure. These costs cannot be deferred or avoided and must be paid before or at the time of the deed.
Not documenting the foreign exchange trail for non-resident buyers
Non-residents who purchase Brazilian property with funds introduced through informal channels, or who fail to register the purchase with the Central Bank, may be unable to remit the sale proceeds abroad when they eventually sell. The Brazilian foreign exchange rules require a documented trail from the original remittance to the eventual repatriation. Gaps discovered only at the point of sale are expensive and sometimes impossible to remedy retrospectively.
Financing, holding structures and succession
Property financing in Brazil: SFH and SFI
Brazilian property finance operates through two systems. The Sistema Financeiro da Habitação (SFH) covers loans up to a statutory ceiling (currently around BRL 1.5 million in most states, higher in São Paulo and Rio de Janeiro), typically for primary residences, and offers lower rates partly subsidised through FGTS funds. The Sistema Financeiro Imobiliário (SFI) covers higher-value and commercial transactions at market rates.
Non-resident buyers face practical difficulties in accessing Brazilian mortgage finance: most banks require a CPF (Brazilian taxpayer registration), Brazilian tax residency or a local guarantor. Cash purchases are therefore common in cross-border transactions. Where financing is available to non-residents, it typically requires a Brazilian legal entity as borrower.
Holding property through a Brazilian company
It is common to hold Brazilian real estate through a Brazilian corporate vehicle, particularly for investment properties, commercial assets or estates of higher value. A sociedade limitada (Ltda.) or a sociedade anônima (S.A.) can hold title directly. The main advantages are: consolidation of multiple properties in a single vehicle; the ability to transfer economic interest by share transfer without triggering ITBI on each transaction (though this requires careful structuring to avoid ITBI being charged at the company level); and greater flexibility in succession and estate planning.
Corporate holding also affects the capital gains tax calculation and the applicable rates. Professional tax advice should be obtained before choosing a holding structure, as the optimal structure depends on the nature of the asset, the buyer’s residency position and the intended exit strategy.
Succession and inventário
Brazilian law imposes a mandatory inheritance share (legítima) of 50% of the estate for the surviving spouse and descendants. This cannot be overridden by will. Testamentary freedom applies only to the remaining 50% (quota disponível). On the owner’s death, the property passes through a formal probate process (inventário) before it can be transferred to heirs. This process is time-consuming (it can take years in contested cases) and incurs ITCMD at up to 8% of the property’s assessed value.
Advance planning through a properly structured holding company or usufruct arrangement can significantly reduce both the time and cost of succession. This is particularly relevant for non-resident owners, for whom intestate succession in Brazil can be particularly complex.
Tax treatment of Brazilian property for non-residents
Non-resident owners of Brazilian property are subject to Brazilian income tax on rental income at a flat withholding rate of 15% (or 25% for residents of low-tax jurisdictions). The rental agent or tenant is typically responsible for withholding and remitting this tax. On sale, non-resident sellers pay capital gains tax at a flat withholding rate of 15% or 25%, withheld by the buyer before proceeds are remitted.
Brazil has a limited network of double tax treaties. Where no treaty applies, there is a risk of double taxation on rental income or capital gains. The interaction between Brazilian and the buyer’s home-country tax rules should be reviewed before purchase. See our guide on the Australia-Brazil tax treaty for the position applicable to Australian-resident buyers and owners.
Brazilian property law experience for local and international clients
Fabiano Deffenti is a Senior Partner at D&Q Lawyers and co-editor of Introduction to Brazilian Law (Wolters Kluwer). He advises on residential and commercial property transactions in Brazil, corporate structuring, cross-border investment and international matters, acting for individual buyers and sellers, family offices, and corporate investors across Australia, Brazil and internationally.
Fabiano is admitted to practise in Brazil and holds extensive experience in Brazilian and common law jurisdictions. He is also editor of LawsofBrazil, the leading English-language resource on Brazilian law.
Meet the Full TeamBuying property in Brazil?
Whether you are purchasing a residential property, a commercial asset or a rural holding, getting the due diligence and structuring right at the outset is the most effective way to protect the investment.
Pre-purchase checklist
- Current title history extract obtained and reviewed
- SPU check completed for coastal or riverfront properties
- Seller clearance certificates (certidões negativas) obtained
- IPTU and condominium arrears confirmed as nil
- Environmental and planning status confirmed
- ITBI, laudêmio and transaction cost budget prepared
- Foreign exchange documentation plan confirmed (non-residents)
- Holding structure reviewed (individual vs corporate vehicle)
- Succession and estate planning considered
Contact us to discuss your transaction. Initial enquiries are always welcome.
This page is a summary only and does not constitute legal advice. For further background on Brazilian law, visit LawsofBrazil.
