A recently published regulation issued by the Brazilian National Council of Immigration established new parameters for obtaining a residence permit in Brazil by investing in local real estate. Normative Resolution No. 36/2018 (“NR 36”) sets forth new and more specific requirements for foreign investors to dwell in Brazil through such a channel.

The permit may now be granted to foreigners whose investments in local properties present a potential generation of revenue or employment. The real estate must be in Brazilian urban areas and must be acquired by use of the investor’s own foreign financial resources. According to NR 36, application for the residence permit requires an investment of at least  BRL 1,000,000 – roughly USD 257,000. If the real estate is located on either the North or Northeast regions of Brazil, the invested amount can be reduced up to 30.

This class of residence permit at first carries a 2-year term, by the end of which the investor may apply for renewal for the same period or for a permit with an indefinite term. The investor must also have spent at least 30 continuous days in Brazil within the 2-year initial term.

Investors from any nationality can benefit from the rules set forth on the NR 36 and, in case of co-ownership, each of the foreign investors must individually invest the aforementioned minimum amount in order to apply for the residence permit.

The residence permit policy is inspired by other countries’ successful approaches, such as Portugal, among other European nations. It is expected that the new regulation will attract substantial investments in the next few years.

The summary below contains the main topics for applying for the resident permit:

-No restrictions as to the Investor’s nationality;

-Investment must be made by acquisition of real estate, constructed or under construction, located in urban areas and with potential to generate revenue or employment in Brazil;

-Minimum amount to be invested: BRL 1,000,000 (roughly USD 257,000);

-Minimum amount to be invested if property is located on the North or Northeast regions: BRL 700,000.00 (roughly USD 180,000);

-The minimum amount to be invested may be achieved by the acquisition of one or more properties (provided that value of all the properties accrue to an amount equal to or greater than the minimum amount);

-The minimum amount must come from the investor’s own funds overseas;

-In case of co-ownership, all foreign investors must individually pay in the minimum amount;

-Initial residence permit will have a 2-year term, after which the investor may apply for renewal or for a permit with an indeterminate term. To be eligible, the investor must have spent at least 30 continuous days in Brazil within the 2-year initial term.

 

Fabio Baum

fbaum@tesslaw.com

* This article should not be considered as a legal opinion, being used only for informative and debate purpose.