Property in Brazil

Brazil is carving out its place

Investor surveys consistently place Brazil in the top five of most exciting emerging international property hotspots. It seems that Brazil has finally woken up to the potential benefits of attracting investors increasingly tired of an oversaturated European property market, undaunted by novelty and keen to try something a little more adventurous. Record low levels of inflation, coupled with an economic drive aimed at securing the interest of increasing numbers of visitors, themselves spurred on by cheaper flights, has led to a surge in interest by those keen to take advantage of what are undoubtedly excellent prospects for capital return. It is worth noting that foreign tourism between 2002-2005 increased by a massive 48% as a result of the country’s determined efforts to maintain fiscal harmony and increase local investment.

As the largest country in South America, the 8.5 million km² of Brazil (República Federativa do Brasil), spans a vast area, touching every other South American country except Chile and Ecuador, and is the only Portuguese-speaking country in the Americas. Divided into 26 states and a Federal District, the country’s capital is Brasilia, a carefully planned city built in the late 1950s in the Mato Grasso plateau. As a former Portuguese colony, Brazil is most definitely a multiracial country, composed of Asian, African, European and Amerindian cultural influences. As a result, the country is known for its friendliness and unique vibrancy, not least for its music and carnival atmosphere, with 96% of tourists questioned last year stating that they would return to the country. Brazil’s 180 million people include the largest Roman Catholic population in the world, as well as over 1 million multi-millionaires, many of whom are taking advantage of the property boom, predominantly centred on the north east of the country.

Getting to Brazil is getting easier and easier, with low cost airlines catching the Brazilian bug and offering cheap and cheerful flights by the bucketload. BA and the main Brazilian carriers Varig and Gol fly to either São Paulo (Guarulhos/Cumbica) or Rio de Janeiro (Tom Jobim/Galeão) on a daily basis but it is of course possible to get there via all of Europe’s main cities using other national carriers. Other airports in Brazil include Recife, Natal, Fortaleza, Belém and Manaus. For international flights, the departure tax is US$36, often included in the ticket cost. Taxis are widely available from the two main airports and are the most convenient options, with fares to São Paulo typically costing R$55-R$60 and R$40-R$45 to Rio de Janeiro. Airport buses also run to and from the airports to key city points and main hotels.

Travelling within Brazil necessarily comes with a warning and it is important to acknowledge that, whilst Brazil’s unsavoury reputation for lawlessness is frequently exaggerated, foreigners are particularly at risk if they do not take similar simple precautions that they would take when traveling anywhere abroad. One prime example of this is not to use the bus services within the major towns. Taxis are a great alternative, fitted with fare meters, although it should be noted that drivers often do not know much about even the major cities, other than their central zones.

There is no rail service in Brazil but there are good long-distance express bus services between São Paulo and Rio de Janeiro and to other large towns. Seats can be booked in advance and this option is relatively cheap if the distances involved are not too great.

By far and away, the best option for getting around Brazil is to fly. Flights between major cities are frequent but they are expensive. You will need proof of identity on all forms of intercity transport.

Car hire is possible in the larger towns and of course from the main airports. Ensure that you have a valid international license with you and that it is valid for Brazil (not all are). Bear in mind that parking is often tricky and that you may have to employ an impromptu guard to make sure your car stays safe.

Passports and Visas

United States, Canada and Australia nationals need a visa to visit Brazil. British nationals and most EU passport holders do not need a visa for a stay of three months or less. Other nationals should check before making any travel arrangements. Passports should be valid for at least three months after the date of your arrival in Brazil. If it will expire within three months of your departure from Brazil get a new one before travelling.

Electricity

There is, rather confusingly, no standard electricity voltage system in Brazil, so it is good to check before you travel. It varies throughout the country between 110 volts and 220 volts and all are on 60Hz (the UK is 50Hz) which can affect some electrical equipment. São Paulo is generally 110 volts and 220 volts. Brasilia is 220 volts; Rio de Janeiro is mainly 110 volts. Lamp sockets are screw-ins and plugs are two-pin round or flat.

The currency in Brazil is called the Real/ Reais(symbol R$), a system only adopted in 1994 following a variety of changes to the national economy which saw the currency name and value change all-too frequently. R$1 = 100 centavos and notes are in denominations of R$100, 50, 10, 5, 2 and 1. Coins are in denominations of R$1, and 50, 25, 10, 5, and 1 centavos.

Many Brazil banks have ATMs enabling you to withdraw foreign currency during your stay in Brazil and most banks have English speaking staff on hand, especially in the foreign exchange section. Although Brazil is predominantly a cash economy, the use of debit and credit cards is on the increase. Cheques and credit cards are mainly used by foreigners.

The Brazilian economy is in good shape after taking quite a battering over the last couple of years. High inflation throughout 2001 and 2002, together with the well-publicised difficulties of countries like Argentina, led investors to shun emerging markets, Brazil included. However, investor confidence has risen substantially as the Lula government has shown its determination to continue the much needed reform process, actively encouraging foreign investment, particularly in the property sector.

Tipping

Payment for services in Brazil is reassuringly simple: you get a service, you pay for it. Tipping in Brazil is typically not expected. Obviously, if someone provides an especially good or special service, you might consider a bit extra. However, a Brazilian would typically not. Taxi fares are rounded up to the next Real so as not to have to bother with coins, a 10% service charge is commonly included in all restaurant bills.

Brazil is famous for its sundrenched coastline and tropical climate and only the country’s south endures large seasonal changes. Brazilian winter is from June to August, with temperatures dropping in the south to between 13°C and 18°C (55°F and 64°F). In summer (December to February), temperatures in the high 30°sC (80°sF) can be expected, with a happy medium of 25°C (77°F) to be enjoyed for the rest of the year. The northeast coast is saved from the heat by its tropical breezes. Almost all of Brazil is humid and its rainy season occurs during the summer months, especially in the south.

However, in the north east, it’s hot all year long, with a shorter wet season from May to July.

Telephones

Country Dialing Code: 00 + 90 + 55.

Brazil has a fantastic communications network, including an extensive telephone system which allows you to call anywhere in the world. Public phone cards are available virtually everywhere and can be used to make national and international calls. Good Internet services are also widely available, in hotels and in the many Internet cafes all over the country.

Most people know Brazil for its music, football and reputation for being home to beautiful people having a great time, all the time! This country really is a traveller’s country: it has it all, with activities for every age group and every interest, and all to a great soundtrack. Brazil is home to some of the world’s most astounding natural beauty and stunning beaches, which lend themselves to lazy sunbathing or active exploration in the shape of watersports, hiking, horseriding, dune surfing - the list is endless. Waterfalls, rainforest, the mighty Amazon river, national parks and a growing ecotourism industry are all big draws and are actively supported by the Brazilian government, as are historical sites and museums, whether large or small. The country’s wonderful, tropical climate means that year round holidaying is totally feasible, good news indeed for the booming numbers of golfers, playing their favourite sport on the ever-increasing numbers of lush, superbly maintained courses.

Of course, shopping is always an option, with Rio and the south in particular specializing in antiques and jewellery. It is well known for its gems, especially emeralds, and silver. The north’s east specialties include laces, linen and ceramics. When you have tired of exploring the shops, Brazil’s wonderfully broad range of nightlife will keep you going, especially if you visit during Carnival! Try some capoiera (a traditional and mesmerizing dance/martial art combination) or learn to samba or lambada – you’ll be humming The Girl From Ipanema before you know it.

Brazil’s past is complex and the country’s culture has been shaped not only by the Portuguese, whose arrival in 1500 gave the country its most common religion and language, but also by the country’s original inhabitants, native Indians, the considerable African population brought in as slaves to work on sugar plantations in the 16 th century, and other settlers from Europe, the Middle East and Asia. As a result, the country is a heady cocktail of samba and folk music, vibrant colour and fashionable people, steeped in a rich heritage of sugar, coffee and gold. Brazil emerged from twenty-one years of military rule in 1985 and has had four Presidents since. Its current President, the popular Luiz Inácio Lula da Silva, is chiefly responsible for implementing tax and social reforms that are driving Brazil towards an even more confident future.

The rich diversity of Brazil’s past has led to a wonderful mix of cuisine and what you eat while in Brazil depends very much on where you are. Brazilians love to eat out and late and you will find many good quality restaurants in larger cities. On the whole, food is milder and meatier in the south of the country, spicier from Bahia northwards, where the traditional Indian influence is strong. Fish, root vegetables such as manioc (a potato-like grain), yams, and peanuts, plus palm or tropical fruits feature strongly here. The cuisine of the north east coast is distinct, having evolved from plantation cooks improvising on African, Indian and Portuguese dishes, using local ingredients. Seafood and tropical fruits feature strongly here. The dry savannahs of the central west feature large rivers whose fish feed the area, as do beef, pork and agricultural crops such as soybean, rice and corn. To the south east, the country’s industrial area, one pot dishes of meat and beans feature heavily and the influence of European and North African immigrants is strong in the region’s cuisine. The cowboy fare of the south is the country’s national cuisine, dishes made with dried and fresh grilled meats.

Expect to eat beans until you burst, as well as coconut (used in a myriad of ways), dried salted cod, lemons and rice.

The standards of healthcare in Brazil are generally adequate, varying hugely from region to region. Obviously, the larger cities such as São Paulo and Rio de Janeiro have larger, better equipped facilities. Municipal hospitals are widely available, which provide free treatment including emergency services to everyone. Many Brazilians themselves prefer to have private health care and good plans are widely available. Comprehensive medical insurance is strongly recommended as there are no reciprocal healthcare agreements between Brazil and the UK.

Tap water is often treated (although given a chemical taste) but it is probably better to stick to bottled water which is widely available. There is some risk of Malaria in country areas and all travelers should be up-to-date on their tetanus-diphtheria, measles-mumps-rubella, polio, and chicken pox vaccinations. Hepatitis A is also recommended for everyone.

Customs regulations when entering Brazil (by air) are reasonably fair, with the limit for new, unopened goods being brought into the country currently standing at US$500.00. Fines are imposed on people who greatly exceed this limit, especially if carrying new electronic equipment as such goods are more expensive in Brazil than in the US or Europe. Passing through Brazilian customs can be an amusing experience as your bags can be searched at random even when passing through the ‘Green’ channel of having nothing to declare. As you pass through, you will be asked to press a button; if the button turns the light green, you can pass through, if the light goes red, your bags will be checked.

With the right people assisting you, purchasing an overseas property can be an enjoyable and rewarding affair ... one, we at Property Club International are familiar with. If you still have questions having read this section, please don’t hesitate to contact us!

Some of the information in the information sections has been supplied by third parties, and Property Club International and its associated companies cannot be held responsible for any errors or omissions. Professional advice should always be sought at the time of purchase.