Brazil comprises 8.5m square km, roughly 35 times the area of the UK. The largest country in South America and the fifth largest country in the world, it comprises a federation of 26 states, each having considerable autonomy.
Brazil has borders with Argentina, Bolivia, Colombia, French Guiana, Guyana, Paraguay, Peru, Suriname, Uruguay, and Venezuela. It also has a 7,500km Atlantic seaboard.
The massive River Amazon flows through the northern half of the country (the Amazon basin covers more than half of the country) and the impressive Parana through the south.
Rio de Janeiro is on the Atlantic coast to the south, as is Sao Paulo. Brazilia, the capital, is inland.
The country has a number of climatic zones ranging from the Amazon region where the temperature averages 27 Degrees C, to the dry north east where temperatures can exceed 40 Degrees C, and the south near Uruguay where average temperatures are 17 to 19 Degrees C.
Brazil’s economy, the tenth largest in the world, grew by 3.7 per cent in 2006, up from 2.9 per cent in 2005, and is expected to grow by 4 per cent in 2007. The Foreign and Commonwealth Office says the country has a history of economic boom and bust, but that economic reforms in the 1990s have brought some stability to its finances. These reforms included the launch of a new currency (the Real) to tackle inflation, and a programme of privatisation.
‘Brazil is a rapidly emerging global player of great importance to British interests - economic, political and commercial’, according to the Foreign Office.
Most large industry is in the south and south east. The north east is the poorest region but is beginning to attract new investment. Overall Brazil is one of the most unequal societies in the world with 5 per cent of the population owning 85 per cent of its wealth.
The threat of terrorism in Brazil is rated as ‘low’ by the Foreign Office. However, ‘there are frequent violent clashes between the Police and drug gangs in the slum areas of Rio de Janeiro. ‘You should avoid these areas, remain alert and aware of local conditions at all times’, says the FO. Also ‘drug trafficking and use is widespread, with severe penalties in Brazil’.
Thefts from cars are common, and cases of car-jacking occur, sometimes with the occupants being taken and forced to withdraw money at cash machines. ‘Avoid venturing out after dark in quiet streets except under reliable local advice’, advises the FO. ‘The threat of personal attack is lower outside the cities. However, incidents can occur anywhere, even in holiday destinations that appear relatively secure’.
It also says that credit card fraud is common ‘and you should never lose sight of your cards’.
British nationals are normally admitted to Brazil without a visa as tourists or business visitors for an initial maximum stay of 90 days, although Brazilian immigration officials can exercise their right to give less than this. The Foreign Office advises visitors who wish to stay for longer to apply to the Federal Police for an extension in advance of the 90 day period. Those who overstay their visa entitlements are likely to be given 8 days notice to leave the country at their own expense and risk fines or deportation.
UK property investors may buy Brazilian property subject to some specific restrictions applying, for example, to islands and rural land. However, a pre-requisite is to obtain a Cadastro de Pessoa Fiasica - an official tax identification number issued by the Brazilian federal tax authorities and required for a range of formal transaction. Obtaining this can be longwinded and involves obtaining Portuguese translation of the applicant’s birth certificate authenticated by the Brazilian consulate in the applicant’s home country. However, some developers will assist buyers to obtain CPFs.
The property buying process is similar to others involving verification of documentation by a notary public. However, the process is assisted by a reliable national land registry containing details of title and charges. Even so, buyers are advised to appoint their own solicitors.
Mortgage finance is difficult if not impossible for overseas investor to obtain in Brazil and is expensive. Payment by installments for new properties is also likely to be an expensive form of finance.
If funds are transferred to Brazil to pay for property this should be done via the Central Bank of Brazil as otherwise there may be problems later in repatriating amounts.
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