Purchasing an Apartment in Rio de Janeiro
You have visited Rio de Janeiro several times and loved every minute. You begin thinking, why not buy an apartment in Rio de Janeiro as an investment, and rent it out as the property value appreciates or eventually use it as a retirement home? You’re in luck; foreigners are free to purchase apartments in Brazil without restrictions provided the prescribed legal process is completed.
Therefore, if planning to purchase an apartment in Rio de Janeiro, it is absolutely necessary to use a property agent. In Brazil, they are members of a professional organization and should be able to produce an identification card with their ‘CRECI’ number, demonstrating their qualifications and right to practice. It may also be advisable to hire a lawyer, but check costs before doing so to avoid paying Gringo fees.
Not surprisingly, to purchase an apartment in Rio de Janeiro’s most affluent suburbs near the famous Ipanema, Copacabana and Leblon beaches will be very costly. Typically, studio or one bedroom apartments start at around R$200,000 (R$= Reais), with the average at R$350,000, even R$600,000 depending on location. However, it is where the highest rents can be charged. By forgoing the beaches, at least the above, purchasing an apartment in Rio de Janeiro becomes much less expensive with one bedroom/studio apartments often priced around R$150,000 or less, in quite acceptable areas. Consider Leme (still a beach, many retirees), Santa Terese (bohemian spirit), Flamenco (safety and access to nightlife), Jardim Botânico (botanical gardens), and Glória (beauty and unique Carioca flavor) to mention a few. Naturally, prices are negotiable.
If you are serious, go to your Brazilian Consulate for a certified translation of your birth certificate into Portuguese. Then, having arrived in Brazil (do not buy anything sight unseen) and found the property you wish to purchase, apply for a Brazilian ID (CPF). Your Brazilian property agent will take over from there. The overall cost of taxes and fees should be no more than 6-7% of the purchase price but you will also need at least a R$10,000 deposit.
After the title has been transferred, as the now proud owner of an apartment in Rio de Janeiro, you are responsible for a yearly tax of 0.6% of the property value and, if not a resident of Brazil, you must arrange for a person(s) to oversee the property in your absence. There are many companies who provide these services at fairly low rates. Enjoy Rio, again and again!
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