Since 2017, Brazil has a legal provision to grant visa and residency to Real Estate Investors; in other words, foreigners who buy a real estate in the country with money derived from overseas and can apply for a visa (while out of Brazil) or a residency (if the investor has been in Brazil under any immigration status).
It is the first time that buying a real estate can grant a Brazil visa to a foreigner in a more attractive way to investors.
What is the minimum Real Estate investment?
The minimum investment is equal or greater than BRL 1,000,000.00 which corresponds to approximately USD 206,000.00 in August 2023 and it must be derived from outside the country.
If the Real Estate is located in the Brazil north or northeastern area the minimum investment can be reduced to BRL 700,00.00 (USD 145,000.00).
What type of Real Estate is eligible?
The investment in real estate only qualifies for a visa or residency application if the property is in an urban area.
Properties (one or more) ready to live or under construction may also qualify.
The properties can also be subject to financing in the part that exceeds the amount of BRL 1,000,000.00.
How long can a foreigner stay in Brazil under this visa?
Under this visa or residency, the Foreigner can live and work in Brazil for 4 years. After this period, it is possible to apply for a long-term residency with no expiration.
The Foreigner could also use this visa or residency to sponsor their spouse or children’s visa to bring them to Brazil.
Once the long-term residency with no expiring date is received, Foreigner may start counting time to apply for a citizenship. If the foreigner stays in Brazil minimum of more 4 years (under this no expiring residency) and is able to communicate in Portuguese, among other requirements, they qualify for Brazil citizenship.
It is required to the Foreigner to be physically in Brazil for at least 14 days in a period of two years to maintain the investor residency active.
How is a foreigner investor taxed in Brazil under this visa?
The individual income tax in Brazil is extremely complex and comprehends many details.
A non-tax resident is subject to taxation only on income derived from Brazil such as rental or capital gain. On the other hand, Brazilian tax residents are subject to a worldwide income taxation.
Generally, the tax residence in Brazil is triggered when the investor reaches 183 days of physical presence in Brazil in a 12-month period. However, there are other situations that may trigger tax residence before the 184th day in a 12-month period is reached, e.g., engage into a local employment relationship.