Before you buy property in Brazil

To buy a property in Brazil you must register for a CPF (Cadastro das Pessoas Fisicas). This is an easily obtainable personal ID number that will enable you to open a Brazilian bank account, to buy a property and to invest in the country's financial and capital markets. Anyone who fills in the form and submits it at any Brazilian diplomatic representative office can register.

Instruct a local, English speaking lawyer

It is recommended that you instruct an English speaking, local lawyer to assist you throughout the sale. A lawyer familiar with the local requirements can check your contract and all the legal papers - which will be written in Portuguese and English - to ensure they are clearly explained and check with the land registry that the title is correct and that the property is registered in your name.

Register your new home

For a property to be purchased the transfer certificate (i.e. the sale) must be registered at an Immovable Property Register. Your contract will not be valid, and ownership will not be granted, until you are registered.

Brazil mortgages

The mortgage market is underdeveloped in Brazil and interest rates for foreigners can be up to 35%, so it is recommended that Britons arrange their financing in the UK.

Costs involved with buying property in Brazil

A standard deposit will be 10% of the property's purchase price, but this can vary between 5% and 25%. You will also need to factor in stamp duty of between 2% and 5%, registration fees of 2% and a further 1-2% for legal fees. Fees and taxes often add up to around 7% of the purchase price.

Once you have acquired your CPF number you will become liable for income tax if you choose to rent your property out. This is usually at rate of 15% but can go up to 27.5%. When you come to sell your property you will also be liable for capital gains tax. This is calculated on the difference between the price you sell your property and the price you bought it for - the rate of tax is also 15% to 27.5%. However there are certain government incentives, such as exemption from capital gains tax if you invest your money back into property in Brazil, so it is advisable to consult a professional tax advisor.