Crime And Police In Brazil

Here you will find a summary of the crime situation in Brazil and learn a little about the areas in which it will be safest to purchase your property.

As in many countries, crime in the poor inner city areas of Sao Paulo and Rio de Janeiro can be a problem in Brazil but these areas are often well patrolled by police.
While crime is often of an organized nature, street crime does exist and you are well advised to exercise extra caution when in these areas. However if you own a property in the surrounding countryside and villages as well as in the prime property investment areas of the north east, life will be peaceful and generally crime-free

Healthcare In Brazil

Brazil's healthcare system is generally considered to be adequate in most areas, while certain precautions should taken to ensure you have a trouble-free stay. Find out more below.

Comprehensive medical and travel insurance is strongly recommended before travelling to Brazil. Many Brazilians prefer to take out a private health insurance plan and there are plenty available, including BUPA.
You should contact your GP for advice on recommended vaccinations which depend upon which areas of Brazil you intend to visit. Malaria is a risk in some northern parts of Brazil and you are advised to minimise exposure to mosquito bites by covering up and using repellents. Commonly recommended vaccinations for Brazil:

Hepatitis A	Recommended for everyone
Yellow Fever	Recommended for all areas in the states of Acre, Amapa, Amazones, Goias, Maranhao, Mato Grosso, Mato Grosso do Sol, Minas Gerais, Para, Rondonia, Roraima, and Tocantins, and parts of the states of Bahia, Parana, Piaui, Rio Grande do Sul, and Sao Paulo. Required if you are arriving from a yellow-fever infected area of Africa or the Americas.
Hepatitis B	For those who may have intimate contact with local residents, especially when visiting for more than 6 months
Rabies	For those who may have direct contact with animals and may not have access to medical care
Routine Vaccinations	All travellers should be up-to-date on tetanus-diphtheria, measles-mumps-rubella, polio, and chicken pox vaccinations

Tap water is heavily treated in most cities giving it a rather chemical taste but it is safe to drink, provided it has been passed through a charcoal filter system. It is best to check with the hotel or restaurant management before drinking tap water. Tap water in remote areas can be unsafe even if filtered so you are advised to stick to bottled mineral water, which is widely available.
Medical/dental care in Brazil is generally considered to be good, especially in capital cities. The INSS (National Institute for Social Security) is the national social security system and all workers and their employers make compulsory contributions to the system, giving them the right to medical services and eventually a pension.
The healthcare service varies in efficiency according to city and district and you will hear reports of long queues and other stories of prompt treatment. Municipal hospitals are widely available, which provide free treatment including emergency services to everyone.
With the more stable economy, medical plans have improved, and private pension plans are now available. One major difference when comparing to other healthcare systems is that you do not always have to go through your GP to receive a specialist consultation.
For further information on health, check the British Department of Health's website at: www.dh.gov.uk

Area Guide To Brazil

Located on the eastern part of South America and bordering the Atlantic Ocean, Brazil is the fifth largest country in the world in terms of population (186 million in 2005) as well as in land area (8,546,510 km2).

From the Amazon basin in the north and west to the Brazilian Highlands in the southeast, the topography of Brazil is diverse. The Amazon River carries more water to the ocean than any other river system in the world. It is navigable for its entire 2,000 mile strip within Brazil. The river basin, housing the rain forest, receives more than eighty inches (about 200 cm) of rain per year.
The Brazilian highlands generally average less than 4,000 feet (1,220 meters) with the highest point in Brazil being Pico de Neblina at 9,888 feet (3,014 meters). The highest regions lie in the southeast and stoop down escarpments to the Atlantic coast. There is little seismic or volcanic activity due to Brazil's position near to the centre of the South American Plate.
Almost all of Brazil is humid and has either a tropical or subtropical climate. Brazil's rainy season occurs during the summer months while eastern Brazil suffers from regular periods of drought.
The land mass of Brazil encompasses so much of South America that it shares borders with all South American nations except Ecuador and Chile. Brazil is divided into 26 states and a Federal District. The capital city of Brazil is Brasilia, a carefully planned city built in the late 1950s in the Mato Grasso plateau.
Sao Paulo and Rio de Janeiro, two of the world's fifteen largest cities can be found in Brazil and they are located only about 250 miles (400 km) apart. Rio de Janeiro's status suffered when it was replaced by Brasilia as the capital in 1960, a position Rio de Janeiro had held since 1763. However, Rio de Janeiro is still the undisputed cultural capital of Brazil and is a major international transport hub. Sao Paulo is growing at an incredible rate. The population currently stands at around 22 million.
Portuguese colonization began in northeastern Brazil in 1500 after Pedro Alvarez Cabral's accidental landing, after which Portugal established plantations in Brazil and brought slaves there from Africa. In 1808 Portuguese royalty went to live in Rio de Janeiro after being ousted by Napoleon's invasion. In 1822, Brazil proclaimed its independence, while it remains the only Portuguese-speaking nation in South America.
In 1964 a military coup d'état gave Brazil a military government for more than twenty years and since 1989 Brazil has had a democratically elected civil leader.

Information Required When Travelling to Brazil

Visas:	Foreigners are allowed 3 month visas, or 180 days total per year in Brazil. If you want to apply for a permanent visa, one of the following conditions must be met: You are married to a Brazilian. You have a child with a Brazilian. You invest 250.000 US dollar or Euro in Brazil. You have reached the age of retirement (50 years) with a pension. There are various other visas required if you are to work in Brazil.
Vaccinations:	Hepatitis A, Diptheria, Yellow Fever, up-to-date Tetanus and Polio.
Time Zone:	Brazil is the 4 hours behind GMT time.
Electricity:	Most states use 127 volts but there is no real standard voltage in Brazil.
Weights and Measures:	Metric system.
Tel. Dialling Code:	00 + 55 +	0014 (Brasil Telecom) 0015 (Telefonica) 0021 (Embratel) 0023 (Intelig) 0031 (Telemar)

Facts About Brazil

Knowledge of the country you plan to invest in is important before purchasing property there. Below, we have gathered some information on Brazil for potential investors.

 

Research and Facts about Brazil

(from CIA World Factbook)

Information Required When Travelling to Brazil:

Country Name:	Brazil
Location:	Eastern South America, bordering the Atlantic Ocean
Area:	8,511,965 sq km
land:	8,456,510 sq km
water:	55,455 sq km
Land Boundaries:	14,691 km
Border Countries:	Argentina 1,224 km, Bolivia 3,400 km, Colombia 1,643 km, French Guiana 673 km, Guyana 1,119 km, Paraguay 1,290 km, Peru 1,513 km, Suriname 597 km, Uruguay 985 km, Venezuela 2,200 km
Coastline:	7,491 km
Climate:	mostly tropical, but temperate in south
Terrain:	mostly flat to rolling lowlands in north; some plains, hills, mountains, and narrow coastal belt
Geography:	largest country in South America; shares common boundaries with every South American country except Chile and Ecuador
Population:	188,078,227
Age Structure:
0-14 Years:	25.8% (male 24,687,656/female 23,742,998)
15-64 Years:	68.1% (male 63,548,331/female 64,617,539)
65 Years and Over:	6.1% (male 4,712,675/female 6,769,028) (2006 est.)
Average Age:
Total:	28.2 years
Male:	27.5 years
Female:	29 years (2006 est.)
Ethnic Groups:	white 53.7%, mulatto (mixed white and black) 38.5%, black 6.2%, other (includes Japanese, Arab, Amerindian) 0.9%, unspecified 0.7% (2000 census)
Religions:	Roman Catholic (nominal) 73.6%, Protestant 15.4%, Spiritualist 1.3%, Bantu/voodoo 0.3%, other 1.8%, unspecified 0.2%, none 7.4% (2000 census)
General
Languages:	Portuguese (official), Spanish, English, French
Government
Type:	federative republic
Capital:	Brasilia
Provincial:	26 states (estados, singular - estado) and 1 federal district* (distrito federal); Acre, Alagoas, Amapa, Amazonas, Bahia, Ceara, Distrito Federal*, Espirito Santo, Goias, Maranhao, Mato Grosso, Mato Grosso do Sul, Minas Gerais, Para, Paraiba, Parana, Pernambuco, Piaui, Rio de Janeiro, Rio Grande do Norte, Rio Grande do Sul, Rondonia, Roraima, Santa Catarina, Sao Paulo, Sergipe, Tocantins
Independence:	7 September 1822 (from Portugal)
Economy
Currency:	Real R$
GDP Growth Rate:	2.4% (2005 est.)
Labour Occupations:	agriculture: 20% industry: 14% services: 66% (2003 est.)
Unemployment Rate:	9.9% (2005 est.
Inflation Rate:	5.7% (2005 est.)
Agriculture Produce:	coffee, soybeans, wheat, rice, corn, sugarcane, cocoa, citrus; beef
Transportation
Railways:	total: 29,412 km (1,567 km electrified)
Roads:	total: 1,724,929 km paved: 94,871 km unpaved: 1,630,058 km (2000)
Airports:	total: 709 over 3,047 m: 8 2,438 to 3,047 m: 24 1,524 to 2,437 m: 162 914 to 1,523 m: 463 under 914 m: 52 (2005)
Ports & Harbours:	Gebig, Itaqui, Rio de Janeiro, Rio Grande, San Sebasttiao, Santos, Sepetiba Terminal, Tubarao, Vitoria
Communications
Mains Telephones:	42,382,200 (2004)
Mobile Telephones:	65.605 million (2004)
Television Stations:	138 (1997)
Internet Users:	25.9 million (2005)
Country Internet Code:	.br

Brazil Investment Growth

There are several reasons why Brazil has great potential as an emerging property market today. Below you will find out why Brazilian property offers you a such a promising new investment vehicle.

Investment property in Brazil is establishing itself firmly as a viable opportunity worldwide and recent years have seen an encouraging annual property price growth rate of 20% in some areas.
Since President Lula’s progressive economic policies, Brazil has fast developed into a sound economy with a fiscal and political environment conducive to growth. Today the climate for investment property in Brazil has never been more promising.
Property in Brazil is already making a name for itself amongst the world’s investors, while there has recently been much media coverage on the merits of this emerging market. Brazil’s new property developments are generally accepted to be of high quality and competitive prices mean that Brazil can boast top quality property for a fraction of the price of property of far less caliber elsewhere in the world (eg. 80,000 EUR for a luxury one bedroom beachfront apartment in 2008).With improved communications to the country and cheap direct flights now available from most European airports, Brazil is attracting growing numbers of tourists and short-term holiday rentals are generating excellent rental yields for investors. The Brazil Tourism and Culture Movement has great ambitions for Brazil and aims to transform it into one of the twenty most attractive tourist destinations of the world, attracting some 9 million visitors by 2007. This is set to have positive repercussions on an already thriving investment growth rate in Brazil.

Capital Growth Predictions

Based on solid evidence, general opinion is that as an emerging market, Brazil offers some promising growth potential to all types of investor. While some areas of north eastern Brazil around Bahia are currently attracting as much as 20% annual capital growth, and other areas are also experiencing price rises at a healthy rate, Brazil undoubtedly represents a profitable opportunity to early investors aiming to gain the greatest returns possible on their investment.

Rental Yield Predictions

Rental income from Brazil property is of great interest to investors as high rental yields are already achievable from property located in the current tourist hotspots of Brazil. It is expected that mortgage payments and bills can be covered for the year from the rental income achieved during the peak season months alone (December to February).

Brazil Economy

Brazil’s economy has experienced some excellent growth over the last three years since President Lula’s office began. Currency exchange is at a favorable level for foreign investors and inflation is encouragingly low at only 5.7%. In addition, President Lula’s policies encompass strong internal investment as well as funding from the USA to improve the economic structure and entice tourism to Brazil, while continuing to encourage large foreign businesses to establish themselves in Brazil.
Economists now predict that Brazil will be amongst the economic leaders of the future, along with Russia, India and China.

Reasons why Brazil is an intelligent property investment location:

• Year-round sunshine, with average summer temperatures of 21°C.
• Some areas in the north east of Brazil saw property price returns of 20%+ in 2005.
• Current favorable currency exchange, making it cheap for foreigners to invest.
• President Lula has brought great hope and improvements to Brazil, including a decrease in inflation to an all-time low.
• Foreign investment is actively encouraged and you can own 100% of land and property.
• Low cost of living compared with many areas of Europe. Property maintenance costs are low.
• Inflation low at 5.7%.
• Increase of thriving manufacturing industries relocated to Brazil.
• Expected to produce all of its own oil within the next year.
• Great natural beauty with fantastic scenery and 7,000km of beaches.
• According to some economists, Brazil will be amongst the economic leaders of the future, along with Russia, India and China.
• Friendly nature of the Brazilian people, along with rich culture, vibrant cities, carnivals and music.
• Low international risk of war, terrorism or SARS.

Tax Information For Brazil

An expert tax advisor will help you negotiate the tax system when investing in property in Brazil. Find out the basics below.

Tax on Rental Income

Tax is charged on worldwide income for residents of Brazil at 15%, although some foreign tax relief and credits can be allowed under specific tax treaties.
Mortgage interest is not deducted when calculating taxable rental income.

Income Tax

The fiscal year runs from 1st January to 31st December.
The rate runs on a three bracket scale covering 0 to 27.5%:
Monthly income: % Rate:
Lower than 12,696 BRL 0
12,696 – 25,380 BRL 15.0%
Over 25,380 BRL 27.5%

Corporate Tax

The Corporate Tax rate for resident companies is 15%, plus an additional tax of 10% on profits exceeding 240,000 BRL.
The Social Contribution Tax is another federal tax calculated on net income. This rate is 9% and levied on an annual or quarterly basis. The tax rate can therefore reach up to 34% to include social contribution and income surtax. Companies can benefit from reductions or exemptions when they are located in trade-zones.

Capital Gains Tax

The following are exempt from capital gains tax:

• Gains from the sale of an individual property, provided a similar sale has not taken place in the previous five years and the total value of the sale does not exceed a specified amount (R$ 440,000 in 2004).
• Amounts received from the sale of assets with a sales price of less than R$ 20,000 per month.
• Gains from the sale of securities on the Brazilian public stock exchange, with a sales price of less than R$ 4,143.50 per month.
• Assets sold during a period of Brazilian residency, acquired during a non-resident period.

Non-residents are normally subject to a flat rate of 15% on gains from property in Brazil.
Note: Various tax treaties could affect the tax rates described above.

VAT

The circulation of merchandise is subject to tax, as are transportation and communication services (ICMS). This is similar to value added taxes in other countries and is set at an average rate of 17%, with more specific rates for some goods (for example, 25% on luxury goods).

Inheritance/Wealth Tax

Brazil has no inheritance or wealth taxes. However, some states may impose a death transfer and a donation/gift tax. For example, the state of Sao Paulo adopted an inheritance and gift tax from 1 January 2001.

Stamp Duty

Privately owned offices called Cartórios provide notary services as well as registers of real estate deeds. These cartórios charge from a few cents for simple certified copies to thousands of Realis (R$) for property deeds.
Included in the fees charged for real estate transfers are transfer taxes which vary from 2-4% of the declared value. Cartórios are also responsible for the registration of births, marriages and deaths.

Municipal/Local Tax

Some municipalities may charge a service tax on certain businesses or real estate transfer tax (2% on transfers of real estate). An annual urban real estate tax for property owners is also applicable at approximately 0.6% of the assessed value of the property, but this will vary according to the municipality concerned.

Natural Factors In Brazil

The natural wonders of Brazil make it a stunning tourist destination. Here are some natural factors to be taken into account when considering the investment potential of Brazil.

Tropical beaches

Brazil boasts some 7,000 km of beautiful white sandy beaches and crystal blue sea, along with exotic vegetation and palm trees which continue to attract growing numbers of visitors each year.

Hot summers and mild winters

Brazil’s climate is ideal for many people. Split into four distinct climates, it can offer something for all tastes while offering year-round sunshine, with average summer temperatures of 21°C.
The four climatic regions are; the Amazon Basin, the Brazilian Plateau, the coast of the Tropics and the southern states. The Amazon basin has no real dry season and Tropical temperatures are typically a humid 27-32 °C / 80-90 °F.
The Brazilian Plateau has a distinct wet season between October and April while the northeast of the region has a much lower average rainfall (in some places less than 750 mm / 30"). The Tropical east coast, which includes Rio de Janeiro, has a hot Tropical climate making it very popular as a tourist destination. In turn, the southern states have a warm temperate climate with an average of 8-9 hours of sunshine a day in summer.

Portuguese, Spanish English and French widely spoken

Brazil is a very cosmopolitan country with investors from all over the world opting for property investment in the area. Language barriers are rarely a problem as English is widely spoken in most situations.
One bonus for many buyers is that there is a good chance of their own language being spoken while French, Spanish and English are all spoken widely in addition to native Portuguese.

Sightseeing

Brazil boasts a wealth of interesting sights for visitors to enjoy while much sightseeing is based upon the stunning natural beauty to be found here. The Amazon Rain Forest hosts thousands of rare species, flora and fauna, indigenous tribes as well as sheer wilderness. Dramatic water falls can be enjoyed at Iguaza and the Pantanal Swamps offer a plethora of wildlife and plant species to be admired by the adventurous visitor.
For a less intrepid experience, the famous Copacabana Beach, stretching three miles in front of the densely populated city of Rio de Janeiro is a must and offers an exciting and vibrant atmosphere with a lively street culture.

Accessibility

As the country is becoming increasingly popular as a place to visit, do business or purchase property in, direct charter flights to Brazil are now available from the UK (Heathrow airport) to Salvador for around £180 return.
Brazil proves to be a truly viable holiday destination. It is a promising buy-to-let investment location by virtue of its world-class transport infrastructures that are more than ready to cater for an increased influx of tourists.