MONEY BOX
HOMES OVERSEAS ROUNDS UP THE NEWS AND VIEWS IN THE FINANCE, MORTGAGE AND LEGAL MARKETS
GET REAL
There are very few countries in the world experiencing the economic growth of Brazil and property prices are still very attractive. The Brazilian buying process is very similar to the UK and other European countries, with Brazilian law based on Portuguese law. The appointed lawyer controls and leads the process and carries out the necessary due diligence, such as checking title deeds and planning permission. Any foreigner who buys in Brazil has to obtain a CPF (Cadastro das Pessoas Fisicas) number. This is similar to a National Insurance number and ensures the buyer has a legal identity in Brazil. It is not required to reserve a property, but is needed when deeds are signed. If the buyer is married, the spouse must also apply for a CPF number. This number is obtained from any office of the Brazilian Internal Revenue Service, at any Brazilian consular office or Brazilian Embassy abroad. A lawyer would normally obtain this on behalf of their client for a fee, but foreign exchange specialists Moneycorp offers this service for free. The buyer is liable for a number of other fees and taxes (around seven to eight per cent of the purchase price) when purchasing in Brazil and these vary by state and by legal firm. Notary Fees (two to two-and- a-half per cent) are paid on completion for the registration of title deeds at the Land Registry. Also payable on completion is Transfer Tax (around three per cent). Legal fees (around one-and-a-half per cent - two per cent) are usually paid in two stages and the amount paid depends on the price of the property. The Brazilian real is a restricted currency, meaning that reals cannot be sent into Brazil unless they have been properly registered with Brazil’s Central Bank. This can make sending money to Brazil difficult and expensive. Moneycorp offers a Brazilian real service in partnership with Brazilian bank Banco Rendimento. The service fixes the Brazilian real rate of exchange throughout the transaction. It also reduces the time between transfer and receipt of funds, while guaranteeing that each trade will be registered with the Central Bank to facilitate the future repatriation of funds.
www.moneycorp.com
VIVA ESPAÑA
Buyers in Spain are in a strong position due to the number of homes available, historically low interest rates, and the opportunity to negotiate price reductions from motivated vendors. Overseas financial specialists Conti says it pays to be selective and you should look very carefully before making any decisions. There are plenty of bargains available, but the market is sporadic, so any investment should be seen as medium to long- term, while the excess supply of properties is sold. “Spain has been at the forefront of the overseas property market for a long time, so it has very strong foundations. Financial institutions there still have a healthy appetite to lend to non- residents, and you can still generally borrow up to 60 to 70 per cent of the value of the property,” said Clare Nessling, operations director at Conti. “For many people buying property in Spain is a lifestyle choice. They’re attracted by the climate, amenities and culture, rather than earning a prospective fortune on their home there. The formula of sun, sea and sangria hasn’t changed, in spite of the recession, and if people enjoy what Spain has to offer, property can be snapped up there on better terms than have been seen for years. You can still buy with confidence, if you buy wisely,” added Nessling.
www.mortgagesoverseas.com
Homes Overseas .27
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