Selling property in Brazil while living abroad: how it works

Before negotiating, review the property's registration record, called matrícula, at the competent real estate registry. It shows who the registered owner is, whether there are mortgages, liens or court restrictions, and whether the building is properly recorded. Problems such as an owner who has died, an unrecorded construction or a divorce not registered must be solved before the sale.

1. 01Updated matrícula from the real estate registry.
2. 02Property tax and condominium fees paid up to date.
3. 03Sellers' clearance certificates from courts and tax authorities.
4. 04In coastal cities such as Santos, checking whether the land belongs to the Federal Government, which requires a specific authorization for the transfer.

1. 01Power of attorney at a Brazilian consulate, valid directly in Brazil.
2. 02Power of attorney before a local notary, with an apostille and a sworn translation into Portuguese when needed.
3. 03Electronic deed through Brazil's e-Notariado platform, with videoconference and digital signature, when the requirements are met.

A power of attorney for a sale must contain specific powers to sell that property, sign the deed, receive the price and grant release. If the seller is married, the spouse usually needs to consent as well, depending on the property regime.

The parties usually sign a purchase agreement setting the price, payment terms, deadlines and conditions, followed by the public deed before a notary. The transfer of ownership only happens when the deed is registered at the real estate registry, which also requires payment of the municipal transfer tax by the buyer.

The gain on the sale of property in Brazil is subject to income tax. When the seller is not a Brazilian tax resident, the law makes the buyer, or the buyer's attorney-in-fact when the buyer also lives abroad, responsible for withholding and paying the tax. This must be addressed in the contract, so that the amount is withheld at closing and properly reported.

The rates, reductions and the calculation of the gain depend on the seller's situation and should be reviewed with an accountant in Brazil, as well as with a tax adviser in the country where the seller lives, since the sale may also need to be reported there.

The proceeds can be sent abroad through authorized financial institutions, with documents proving the origin of the funds, such as the deed and proof of tax payment. Having a bank account in Brazil and a valid CPF makes this step easier.

1. 01Irregular CPF of the seller or the spouse, which can block the deed.
2. 02A divorce or death not registered in the property records.
3. 03Generic powers of attorney that are refused by the notary.
4. 04Missing apostille or sworn translation.
5. 05Tax withholding not provided for in the contract.

1. 01Review of property records and seller documents: usually the first weeks.
2. 02Negotiation and signing of the purchase agreement.
3. 03Preparation of the power of attorney or digital certificate for the electronic deed.
4. 04Notarial deed and payment of the price, with tax withholding.
5. 05Registration of the deed at the real estate registry.
6. 06Transfer of the proceeds abroad.

The timeline depends mainly on how organized the property records are and on how quickly documents can be signed abroad, including consular appointments.

When the buyer uses bank financing, the bank analyzes the property and the seller's documents and has its own requirements and deadlines. The bank may also have specific rules for sellers represented by an attorney-in-fact or living abroad. This should be considered when setting the contract deadlines, to avoid a closing date that cannot be met.

Under Brazilian law, a married person usually needs the spouse's consent to sell real estate, except under the regime of total separation of property. If the marriage took place abroad, the applicable property regime and the way the marriage was recorded in Brazil must be checked. A divorce that was never registered in Brazil can also block the sale, because the records still show the seller as married.

Do I need to travel to Brazil to sell? Usually not. The sale can be completed through a power of attorney or an electronic deed by videoconference.

Can I sell if the property is still in my late parents' names? Not directly. The probate must be completed first, or at least the inheritance rights must be properly assigned.

Who chooses the notary? The parties choose, within the rules on territorial competence that apply to electronic deeds involving real estate.

Can the buyer also live abroad? Yes. In that case, the buyer's attorney-in-fact in Brazil becomes responsible for withholding the tax on the seller's gain.

What if the property is rented? A sale does not automatically end the lease. The tenant may have a right of first refusal and the lease terms must be reviewed before the sale.

Selling property in Brazil from abroad is common and usually does not require travel. Clean property records, correctly prepared documents, a clear contract on tax withholding and a plan for transferring the funds are what make the sale safe and predictable.