Legal

The legal partners for The Coral Lake & Beach Resort development are:

• Manzanares International Lawyers
• Montenegro Zanocchi

These law firms offer a national and international presence with a diverse team of experienced lawyers, offering legal advice in a wide range of languages. Through our partnership with these firms, The Coral Lake & Beach Resort is able to pass on substantial savings in legal fees relating to property transactions directly to our clients.

Foreign individuals and non-residents may invest in urban and rural properties through direct ownership from abroad, or through resident companies or partnerships. To be able to buy a property, a tax registration number from the Cadastro de Pessoa Fisica (CPF) is required.

To complete a sale, both parties must sign a public deed drafted by a notary public, and have him register the sale at the real estate registrar. Real estate registration in Brazil is well-developed and safe, and each piece of real estate can only be registered at a single registry, which keeps the entire commercial history and the physical identification of each property. Access to all information about a piece of real estate, e.g., its owners, mortgages and other burdens, is public domain. In most important cities these services are automated.

A sale can be entered into directly between seller and purchaser. But intermediation can only be carried out by accredited real estate agents or agencies. The rate at which they are remunerated through commissions (a percentage over the sale or rental value) is determined by the real estate agents legislation of each region, through the Real Estate Agents Regional Councils (CREI).

All of the necessary procedures to register a property will take around 47 days to complete.

Click here for a Breakdown of Associated Costs: Legal Representation

RENTAL INCOME

Non-residents owners who are earning a rental income from Brazilian property are taxed at a flat rate of 15%, levied on the gross rent.

Rental income earned by non-residents who reside in low-tax territories are taxed in Brazil at a special rate of 25%. Low-tax countries are defined as those countries that impose no tax on income or impose a corporate tax rate less than 20%.

CAPITAL GAINS TAX

Capital gains realized by non-residents on the of real property, are subject to Brazilian tax at a rate of 15%. The taxable gain is computed by deducting the acquisition costs and transaction costs from the gross selling price or market value of the property.

Capital gains realized by non-residents who reside in low-tax territories are taxed in Brazil at a special rate. Low-tax countries are defined as those countries that impose no tax on income or impose a corporate tax rate less than 20%. As of January 2004, capital gains earned by individuals residing in these countries are subject to 25% withholding tax.