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There are two categories of properties: urban properties and rural properties.
In general, there are no restrictions on the acquisition of urban real estate by non-resident foreigners in Brazil. On the other hand, the acquisition of rural real estate is subject to significant restrictions for non-resident foreigners.
Rurality is strategic in Brazil for several reasons. First, there is the Amazon, an immense territory that attracts the greed of many countries around the world because of its natural wealth and its importance for maintaining the world's ecological balance. There is also the very sensitive issue of indigenous reserves and the country's mineral wealth. Finally, there is the history of Brazil, closely linked to large farms, the country's social and economic base. While in the United States a major land redistribution policy was implemented in the 19th century (cf. the 1992 film “The Great Revolt”),Far and Away” com Tom Cruise e Nicole Kidman), os brasileiros, ao mesmo tempo, bloquearam o acesso à terra tanto para ex-escravos quanto para novos imigrantes. Tratava-se de preservar os privilégios de uma classe dominante fortemente rural.
Rurality is a matter of national security.
The conditions and limits for the acquisition of land and rural properties apply to 3 (three) categories of people:
- Foreign individuals residing in Brazil;
- Foreign legal entities authorized to operate in Brazil. These are legal entities that have not established a subsidiary in Brazil. They have only opened an office/establishment there.
- Brazilian legal entities controlled by non-residents.
The third category of persons must meet three cumulative conditions to be subject to restrictions on the acquisition of rural land.
- a) the foreign investor is an individual or legal entity not established in Brazil; and
- b) participate, in any capacity, in the shareholding of a Brazilian legal entity; and
- c) This participation must ensure that its holders have the power to deliberate on the decisions of the general meeting, to elect the majority of the company's bodies, to direct the company's activities and to guide the functioning of the company's bodies.
Thus, if a foreign investor creates a company in Brazil, in which he holds 100% (one hundred percent) of the share capital, but whose controlling company has obtained a residence visa in Brazil, then the company will not be subject to the acquisition restrictions imposed on foreigners, and may acquire any rural land under the same conditions as any other Brazilian.
