Anybody Can Own Property in Brazil

?Anybody Can Own Property in Brazil

Foreigners (non-Brazilians) are permitted to own property outright in Brazil. Also, foreigners have the same property rights as Brazilians and will obtain a free & clear title to the property. It is no different than owning real estate in Europe or the U.S. Brazil is quickly becoming the world-leader in attracting foreign investment and immigration. There are literally millions of foreign nationals in Brazil who own property and businesses. There is no risk since property ownership is guaranteed by the Constitution for Brazilians and foreigners. Land ownership is in perpetuity and always includes full mineral and water rights, since these cannot be separated from the land in Brazil. Title insurance is available from a USA based title company.

OK, so you can own property in Brazil. Why would you want to?

Brazil is home to the largest rain forest on earth, the largest river on earth, and to “”Carnival”” which is like a super version of Mardi Gras.

Brazil has the sixth largest population in the world. Because of its size, there are only 15 people per sq. km, concentrated mainly along the coast and in the major cities, where two-thirds of the people now live: over 19 million in greater Sao Paulo and 10 million in greater Rio. Sao Paulo is arguably the most populous city on earth, having more than twice the population of New York City.

Few countries offer as great a variety of environments. Brazil has more land mass than any other country in South America. In terms of area, the nation is fifth in the world, exceeded only by Russia, Canada, the USA and China, occupying almost half of South America. Brazil has contrasting ecosystems such as the Amazon Forest and the Atlantic Forest with their incredibly luxuriant woodlands, the Cerrado (scrublands) and the Caatinga (arid lands), the Pantanal (marshland) with its flood plains teeming with an amazingly rich chain of animal reproduction.

Still not impressed? OK, would you be impressed if you could buy 50 acres of Brazilian Highlands for $15,000? Owner financing is available with no credit check and 10% down-payment.

Area Description

Unlike nearby Western Bahia state, SE Tocantins has seen little development. W. Bahia, with similar climatic and agronomic conditions as SE Tocantins, today (along with Matto Grosso) is the most developed agricultural area of frontier states, with highly productive farms, fertile soils (after correction) and conducive economic environment for agriculture. City of Louis Eduardo Manghales, center of farming activity of W. Bahia, is only about 120 km away from this farm. Farmers from south of Brazil, and American/Europeans discovered the area, and run very profitable farms, growing soybeans, beans, corn, rice, cotton, coffee. While climatic and agronomic prerequisites in SE Tocantins are similar with W. Bahia, uncleared land in W. Bahia is very expensive, while uncleared land in SE Tocantins is cheap and overlooked by prospective investors. Today SE Tocantins remains largely undeveloped. Ninety percent of land in my estimation is uncleared/unused. The rivers here are of exceptional natural beauty, and largely overlooked by Brazilians. Its only a matter of time before farmers and tourists discover the area and pave the way for a land boom of Matto Grosso and W. Bahia.

Description of town…..20km (12 miles) away, Rio do Conseicao (Conseption River), pop. 2000. Brand new highway was built to connect this town at the end of the line. There is very little traffic. Town has all the basic necessities: two schools, medical clinic,- school and clinic are free (Brazil has free national health care available to all residents regardless of income level); supermarket, a couple of restaurants and bars, land phone line, cell phone coverage; no landline internet though, nor is there a gas station. Satellite internet service is available in even the most remote locations in Brazil, but it is expensive. Satellite internet service costs about $100 a month. A simple home can be bought for about US$10,000. In center of town, there is a river, Manuel Alves, with a rock beach; water is shallow, clean, and fast; beautiful waterfalls are just behind the bridge. On Sundays the whole town comes to this riverfront plaza.

Dianopolis, a town of 20,000, is 40km (25 miles) from this farm. This town has everything, including modem and DSL internet access.

Farm description…..Brazilian owner made available this 7500 acre farm to be sold in smaller parcels, 50, 100, 200 acre interior parcels. Scenery is of gently undulating grassland/scrubland, with view of mesas, and of a distant W. Bahia escarpment. Scenery is not unlike that of Arizona, but with 1500mm annual precipitation. Vegetation, shrubs and sparse grasses. It seems as though, to clear this land, one would only need a pass with a disc.

Access…..A 12km wide sand road leads to this farm from a paved highway. To get to the farm you will need: 4×4, or…pick-up, high suspension FWD, motorbike, or horse/burro. Access to lots within the farm, a tractor or other farm vehicle will easily override the terrain/vegetation. All lots have passage easements. Riverfront lots have 8 meter passage easement, for all to enjoy. Unfortunately, you will not be able to drive or ship any of your cars, motorcycles, trucks, or farm tractors from the USA to Brazil. Brazil is a major manufacturer of motor vehicles. The world’s largest Volkswagen production facility is located in Brazil, plus many other car, truck, and tractor companies are also located in Brazil. Brazil has strict import quotas and restrictive tariffs to discourage imported motor vehicles. If you buy property in Brazil and move here, you are allowed one household move, duty free and tariff free. It would be financially beneficial for you to take advantage of this generous allowance because normally all imported goods are subject to stiff import taxes. However, you may not include any motor vehicles in the household move. It would be best to just sell your motor vehicles where they are, and buy new ones in Brazil. The importation of your new or used motor vehicles into Brazil would be prohibitively expensive and problematic.

Soil, is acid, low PH, quartzenic; sandy soil requires much less lime application than clay soil; white color on top, then several inches of gray sand with some organic matter, undersoil has a peach color. To correct fertility of this soil, two tons of limestone added to a hectare, and 800kg of fertilizer. I have observed local ranchers growing in their gardens: bananas, cassava/manioc, lemons, oranges, papayas, coconuts, cashews, mango, -without any soil correction. A wide variety of tropical fruits, nuts, spices, and other crops can be grown in this tropical area.

This soil, as is, would be well suited for rice. Rice has a high domestic price. This soil is well suited to grow castor beans (mamona) with no soil correction. Mamona have 40% oil content and are used in Brazil for oil extraction to produce commercial grade bio-diesel fuel. These beans will grow in any soil, as is!

Reforestation. Eucalyptus trees, southern pine, teak, and bamboo, – will grow in this soil as is, and are fast growing, can be cut in as little as 5 years, an acre will yield about 500 trees, can be used locally for fence posts, and beams.

Grasses/cattle. Existing natural grasses are sparse and not liked much by cows. Seeded grass, one variety I saw in Tocantins, ‘brachiaria’, grows over 6 feet tall. Otherwise, land as is, can be grazed by sheep and goats.

By state law, 35% of this land needs to be left in native state. This rule though, seems to be widely disregarded.

Property taxes – Fortunately property taxes are very low in this area. Annual property taxes on a rural property here valued at $50,000 USD would be in the vicinity of $50 USD.

Altitude, about 750 meters at higher elevation of farm, allowing for coffee plantation.

Rivers in SE Tocantins, like I never seen before, are of exceptional natural beauty. River on this farm, Manuel Alvinho. About 10m wide, 1.5m deep; current, 5km/hour; small fish. One waterfall, several rapids. Water clarity, excellent. The river banks are of pink sand, and pink sandbars with palms, making for exceptionally attractive scenery. This farm has a waterfall, about 30 feet high, and several small rapids. You have to see the pictures, or visit, to believe. There are several springs along riverfront. Some riverfront spots are of waterlogged, but firm sand. Water from higher elevations percolates slowly down into the valley, feeding the river year-round. These perpetually wet sands would make for a unique irrigated field, making for unusual plantations. Well water, depending distance from the river, from 5m to 60m deep. Highest vs. lowest elevation on farm, I estimate about 150 feet difference.

There is a ‘pion’, farm worker, who lives nearby, and he keeps an eye on this farm.

Climate. Rains a lot for 5-6 months, October to April. Rains hard for about an hour every, every other day. Then sunny. Annual precipitation about 1500mm, which about the same amount of rainfall as Florida usually receives. Dry period, May to October, rains little or not at all. Temperature, no difference winter to summer. Daytime average highs, 29C (84F); nighttime average lows, 19C (66F). This land is located in the tropics, but is in the Brazilian Highlands so it is not so terribly hot and humid here. The year round temperature in SE Tocantins is similar to the temperature in Hawaii.

You may be asking “”What is the catch?”” This is good potential farm land. This land is natural grasslands but can easily be developed into productive farmland. Only 20% of the arable land in Brazil is being cultivated at present and less than 10% in the State of Tocantins. The soil and growing conditions are very similar to Southern Florida. Local farmers currently use nearby land for grazing, growing citrus fruit and row crops including soybeans, castor beans, corn and cotton. Local people grow many of the same vegetables in their gardens that we are familiar with in the USA. There is plenty of rainfall and a long growing season.

It is a simple matter to obtain permanent resident status in Brazil. You can keep your USA citizenship and U.S. passport and still obtain permanent resident status in Brazil. Permanent residents of Brazil are allowed to hold both USA and Brazilian passports. This bonus could come in handy some day. USA passport holders are sometimes targeted by terrorists, but Brazilians are not.

Finally, if you were to buy land in Brazil and become a permanent resident in Brazil you can ship your entire household to Brazil duty free. This would make the transition more comfortable and practical.

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