Brazil is the fifth largest country in the world and has a population of around 170 million people.  The climate in the North East of Brazil is excellent all year round and averages in the region of 26 degrees Celsius.  Brazilian property offers excellent value for money and the market is on the brink of a boom period.  The Natal area is being tipped as the next Algarve and prices are similar to Spain or Portugal 10 years ago.  Brazil is becoming more and more accessible, with direct flights from the UK to Natal and Salvador with charter companies Thomson, My Travel and First Choice.  Scheduled services from the UK go to Sao Paulo and Rio, in the South of the country and there are also scheduled flights via Lisbon, Portugal to all of the major coastal cities in Brazil.   The flying time from Central Europe to the North East of Brazil is around 7 hours.  The Brazilian's have a passion for life and music and the cost of living is around 20% of that in the UK.  The country has some of the most beautiful beaches in the world and offers excellent diving and adventure sports such as kite surfing.

Click HERE to read our guide to North East Brazil

Brazil is currently in the longest period of economic stability in its history.  Domestic interest rates are falling and the currency is strengthening.  As one of the BRIC countries (Brazil, Russia, India & China), the Brazilian economy is expected to become one of the leading global economies of the future.   Current capital growth on property in the North East of Brazil is around 20-30% per annum, in quality developments and this does not show any signs of slowing in the near future.   Foreign investment into Brazil is encouraged and foreigners have the same rights to property as Brazilians, with a clear title system.   Many large infrastructure projects are currently underway in the North East, including the construction of what will be the largest airport in South America (in Natal).   Many large developers (mainly Spanish) are developing along the North East coast and there are a large number of golf courses currently planned.  Prices in the North East start from around £40,000 for an ocean view apartment.   The rental market is strong in the North East and is supported by both foreign and domestic tourism.  Expected yields can be in the region of 6%-12% Net.

Taxation

Alexander Richards would always recommend that you consult a tax specialist regarding your personal circumstances, however in general, foreigners are subject to 15% capital gains tax on any investment, unless the profits are re-invested in Brazil within 6 months.  An annual property tax (IPTU) is payable to the local government and is similar to UK council tax.  The current rate in Natal for example is 0.6% of the declared property value per annum.

Financing

Mortgages are not available to foreigners in Brazil and interest rates in Brazil remain relatively high.  Therefore we recommend financing overseas through equity release or other means.  Always consult a financial advisor for advice.

Location