[BUYING AND SELLING REAL ESTATE IN BRAZIL]
44
Agrarian Reform ("INCRA"), and (ii) specific rules/regulations with respect to demarcated preservation areas on such properties and cadaster thereof with the State and the federal environmental agencies. It is important to note that the description of rural properties by way of satellite geo- referenced coordinates must be certified by INCRA. This certification is a prerequisite for accurately documenting the property's details in the ownership record file, which is integral to the property regularization process. In addition, for the valid execution of a deed of sale involving rural land, not only is INCRA´s certification necessary, but registration with the relevant Real Estate Registry Office is also mandatory for properties exceeding 25 hectares in extent. It is also important to note that the registration of rural property data with the State and the Federal environmental agencies is a further requirement for the execution of deed of sale of rural land, coupled with its registration with the relevant Real Estate Registry Office. In addition to the Rural Property Registration Certificate (CCIR) before INCRA, the rural property must also be registered with the Federal Revenue, since the property must have an identification number (“CIB”) before the Rural Real Estate Registry (Cadastro de Imóveis Rurais – CAFIR) controlled by the Federal Revenue. Nowadays the National Rural Real Estate Registry (Cadastro Nacional de Imóveis Rurais -CNIR) comprises integrated data from the INCRA's National Rural Real Estate Registry (SNCR) and the Federal Revenue Service's Rural Real Estate Registry (CAFIR).
9. RESTRICTIONS
ON
REAL
PROPERTY
ACQUISITION BY FOREIGNERS Brazilian law does not impose restrictions on urban real property ownership by foreign entities or persons. However, the acquisition and leasing of rural properties by foreign individuals and entities are subject to specific restrictions aimed at controlling foreign ownership of agricultural land. These regulations, codified in Law No. 5,709/1971, stipulate that foreign entities and individuals must obtain approval from INCRA or the Congress (depending on the size of the property) before purchasing or leasing rural land. The law sets limits based on the size of the property and its geographical location, often requiring that such acquisitions align with national security and development goals. Furthermore, amendments and interpretations of the law over time have introduced additional complexities, such as distinctions between foreign individuals residing in Brazil and foreign corporations established under Brazilian law, further tightening control over how and where foreigners can invest in Brazil's rural real estate It is important to mention that there are two ongoing lawsuits in the Brazilian Supreme Court debating the application of the law and its restrictions. The outcome of this judgment, which is currently suspended, could potentially alter the scenario and how the law is applied. 10. With the edition of the INCRA’s Normative Ruling nº 88/2017, the exigence of INCRA’s pre-approval on rural real properties acquisition by foreigners was pacified, however, changes on this issue are still expected, considering that the aforementioned regulation does not
ILN Real Estate Group – Buying and Selling Real Estate Series
Made with FlippingBook Online newsletter