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Imagine 573km of sun-drenched coastline. Imagine white dunes, lines of coconut trees, an ocean of warm water. Imagine a temperature never below 24º C (75 F.), with 3000 hours of sunshine a year.  Imagine constant brises cooling the sunny day and lifting sails to windsurf and kite surf competitions. We are talking about the State of Ceará, home of the city of Fortaleza. Located in the Northeast region of Brazil, Ceará is full of enchantment and hospitable people. Many foreigners, from all over the world, are just now discovering Fortaleza and the State of Ceará.  Along with the permanent warm climate, Mother Nature protected Ceará against rainstorms, earthquakes, hurricanes and other natural disasters – or the ones created by man including terrorism or wars. The location is very favorable to US and European visitors: in less than 7 hours, on direct flights, the continents are linked.

Beach in Fortaleza

As said before, even the Brazilians show a great appreciation on receptivity of locals (Cearenses), a people with great sense of humor, home of the biggest comedians of the country.

GROWTH OF FOREIGN INVESTMENT
As to the growth of foreign investment, currently itis a reality that cannot be denied. According to a national survey, published in the national periodical of the biggest circulation (Veja Magazine – 1,200,000 units weekly, of 11.5.2005) in every ten properties sold , three of them are being purchased foreigners.

That means that, at this very moment, thirty percent of our properties, especially beachfront properties, are in the eye - or in the hands - of overseas investors. 
This growing demand can be seen just by looking at the large number of enterprises being built or in the verge of starting construction.
The real estate market is beginning to boom and the options of investments are innumerous: apartments, residential services, flats, hotels, lofts, lands and condos. Here it is possible to purchase beachfront lots from 15 meters (45 feet) to several kilometers of coastline.
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Investment Condos Ocean Front Condos Lots / Land for sale Pre construction Condos Either for living or for making a living, Ceará is growing fast in the heart of visitors.

COST OF LIVING
In Fortaleza, medical care – as almost all services – are available at a very low cost. There are innumerous well-known plastic surgeons, dermatologists, ophthalmologists, dentists and doctors, working in modern hospitals at low cost when compared to US and Europe.

In other aspects, lawyers, architects, engineers, are accessible and affordable to assist the development of enterprises. The local Universities provide annually a large number of professionals with high level of professionalism.
Note that the number of professionals directed towards the international market is still small, but competent and capable of attending the exponential growth of investments.

The work force is also very low cost. You can have a full time housekeeper at your home for less the US$ 300.00 per month.
There are dozens of reasons which make Ceará the chosen destiny for Brazilians on vacations.
At the current moment the attentions are being drawn to Fortaleza and it’s neighboring beaches due to the low cost of properties and the potential return on investments.

Very important to point out is the amazing cuisine of Fortaleza and the entire state. There is abundance of seafood from lobster, to all kinds of fish, crabs, shrimp, escargot, filet mignon “Churrasco” (the famous Brazilian BBQ), tasty meals are easily found at a very good price. To have an idea, 1 Kg (2.2 pounds) of fresh shrimp at the local market can be bought for US$ 5.00. A lunch at a nice restaurant comes out for no more than US$ 4.
These are just some examples of the possibility to multiply the value of the tourists currency, by changing it to the Brazilian Real and using it to buy low cost services, meals and assets.

SPORTING ACTIVITIES
Focusing on the sporting activities available, Fortaleza and the other cities of the State provide breathtaking experiences in all sorts of fields.
Since Brazil is known by the football (soccer), Ceará is well represented by two teams that fill the stadiums during the regular seasons, showing a good quality play.

Although soccer occupies the center of the Brazilian hearts, we offer much more possibilities of sports.
In water and wind sports, Fortaleza is becoming the world’ number one location for kite surf, surf, wind surf, and water skiing sports. 
Constant, fast and predictable wind currents are allowing thousands of enthusiasts of these sports to get the best from the practice. World competitions are being held constantly in many beaches that provide perfect conditions to the competitors.
To hang gliding, trekking and climbing enthusiasts, inlands cities, distant 300 km from Fortaleza, provide great possibilities to have fun and improve the techniques in a tropical climate.

For off-road fans, innumerous competitions and sites to practice exist along the beautiful coastline.
As to golf players, there are several projects of golf courses for construction being developed. In the near future, golf courses will be available.

OPPORTUNITIES AND GROWTH POTENTIAL 
When it comes to investing in real estate, there are still many beachfront properties ready to be developed for the growing number of visitors from around the world, enchanted by Ceará’s coastline.

Costs in Brazil is lower than in the Caribbean, US, Europe, Central America and Pacific.
In the last 5 years, the property value has doubled because of the evolution of the foreign investments. 
It’s important to emphasize that the conditions are still very good and the forecast is very interesting for investors with a vision of the growth to come. 
Putting in numbers, the tourist season of 2005/2006, it is expecting a growth of 28% in the number of visitor, according to survey by the local government. 
As said, Fortaleza is the number 1 location for Brazilian tourists, and the amount of US and European visitors is increasing, as it can be seen: 22 regular international flights, 11 charter flights per week, and numerous international companies are seeking to introduce regular direct flights to Fortaleza. The charter flights are coming from Holland, Sweden, Ceczheck Republic, Italy, Finland and Switzerland.
This concrete data is a true example of the growth and potential of investments.

VISAS – TOURIST AND PERMANENT
To tourists seeking to come Fortaleza, the data for tourist visa can be obtained at the local Brazilian Embassy. Depending on the country of residence, an application for visa is required for Americans, but for members of the European Community.  The tourist visa can have the maximum duration of 90 days, with the possibility of its renewal. The maximum stay per year is 180 days based on a tourist visa.

Permanent visas to live in Brazil can be easily obtained if the visitor is investing more than US$ 50,000 in a Brazilian Company. The visa has a 5 year validity, being renewed if the investor maintains this amount of investment between this period. 

There are special opportunities for retirees: if they can bring to Brazil up to US$ 2,000 per month, and a maximum of 2 dependents. Over 2 dependents, another US$ 1,000 is needed for each one. Other possibilities exist depending on the individual condition of the investor.

CAN FOREIGNER BUY PROPERTY IN BRAZIL?
A question that normally comes up before assessing the conditions for investment in Brazil is: can I invest in Brazil?
The answer to this question is a positive Yes, the foreigner not only can invest in Brazil but is encouraged by the Brazilian government to do so. Facilities in obtaining visa and treaties to avoid double taxation are clear examples of the Brazilian government’s interests.
The non-Brazilians visiting the country have equal rights as a resident, protected by the Constitution of Brazil. There are specific investments restricted to Brazilians, such as mining and communications services (to some extent), as well as other activities able to put the sovereignty in risk. 
But the investor seeking to participate in the real estate, tourism, exportation or environmental market don’t have to worry about the restrictions.

LEGAL PROCEDURE TO BUY REAL ESTATE IN BRAZIL
About legal aspects on how to buy a property, it’s very important to outline that all transactions must be made through Brazil’s Central Bank. All money sent to Brazil must come through the official banking system, is communication with Central Bank.
Also, it’s crucial to explain that when a purchase of a real estate investment is being closed, the bank in Brazil that represents the seller of the property can only credit the money to him if the contract between the parties involved in the deal is signed by both. This means that if you transfer the amount to the purchase of an asset and the seller tries to change the conditions of the deal, before the contract is signed, he will not be able to credit the value, and the money will be returned.

That is why a representation of an attorney is very important, helping the process to flow smoothly, regarding the legal aspects of the investment.
There is the possibility of the overseas investor to purchase the assets that hold interest without leaving his or her home country. With a Power of Attorney given to a lawyer or someone to whom the investor holds trusts, all the procedure can be held without any difficulties. To obtain a power of attorney in a country outside Brazil there is a procedure involving a local Notary Public and the Brazilian Consulate in the jurisdiction of you residence.
As you see, the layout of the business is not complicated, but the assistance of a specialized professional helps the process to go as planned.

TAXATION IN BRAZIL
For investors seeking to invest in real estate the main taxes involved are: IPTU, ITBI, IR.
The IPTU is the real estate property tax. It’s established locally in every city, but the amounts normally go from 0,5% to 1,5%, of the evaluation of asset, depending on the use of the property and it’s location.

As to the ITBI, it stands for real estate transfer tax, based on the value of the asset or the evaluation of it. The amount is normally 2% of the base above mentioned, having to be paid in order to officially register the change of property before a Notary Public. To the official transfer the asset there are some other costs involved, such as the signature of a public contract and the register of the contract at a Notary Public – Cartório de Registro de Imóveis (cost depends on the value of the asset as well as to the table of price of the cartório).

Finally the IR – Imposto de Renda, represents the income tax. The value depends on the amount of capital gain, since the rate goes from 15 to 25%.
Note that there is a new bill that just came up, establishing that in every 5 years a tax benefit can be used for capital gain purposes. It consists generally to the sell of an asset with capital gain, and the reinvestment of all of the value obtained towards other real estate assets until 180 days after the selling. This mechanism is will increase even more the hot real estate market.

FINAL CONSIDERATIONS
Fortaleza is ready to welcome you with its endless beaches and sunshine.  It offers perfect conditions to live and to do business in this tropical and friendly country of Brazil
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The author Rui Barros Leal Farias is a Lawyer in Fortaleza, Brazil Specialized in International, Real Estate, Tax and Commercial Law. For further information visit  www.albuquerque.adv.br or call US Phone: + 1 561 459 3754  Brazil Phone: + 55 85 3458-1755

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