Investing in real estate in Brazil is a lucrative opportunity for many international investors. At Alagoas, we offer two investment options, each with its own advantages and disadvantages.
1. Existing apartment
Advantages:
You own the apartment outright, meaning you can enjoy it immediately and/or generate income through renting.
Disadvantages:
- You must pay the full purchase price upfront.
- The apartment is often older (5 to 15 years), which may limit its appreciation upon resale.
2. Apartment under construction
We exclusively collaborate with reputable and reliable companies in Brazil, ensuring quality construction that adheres to scheduled timelines (1, 2, or 3 years depending on the budget). We do not have partnerships with these companies; they are selected solely based on our personal assessment of what would constitute the best investment in Alagoas.
Advantages:
- Staggered payments: you pay an initial down payment (ranging from 15 to 30%, depending on the apartment) and smaller monthly amounts until delivery.
- You pay no interest until delivery, as payments are made directly to the construction company and not through a bank.
- The building will be new, and its price will have significantly increased, sometimes even doubled, upon delivery. This is due to Alagoas experiencing a period of substantial growth.
- Currently, the value of the Real (Brazilian currency) is low, making an investment in Brazil even more attractive. Brazil is part of the BRIC countries and is constantly evolving, so it is likely that the Real will appreciate again in the years to come. As of now (7/2024), after COVID-19 and floods in southern Brazil, 1 euro is equivalent to 6 reais, but this is expected to increase again. For comparison, 10 years ago, 1 euro was worth 2 reais. This means you benefit from double appreciation: on the property value and on the Real.
Disadvantages:
You do not earn any income during the construction period; instead, you are only investing and must exercise patience until the work is completed.
See all apartments under construction
Good to know:
Generally, the earlier the construction is completed, the higher the property value, as it appreciates as the delivery date approaches. Thus, the farther the construction is, the less you pay for the property.
Opening a Reais account:
This is beneficial for monthly payments (whether for purchasing the property or for maintenance costs of your apartment) and for receiving rent if you prefer it deposited into a Brazilian account.
It is possible to open a Reais account to facilitate monthly payments or rent collection, even without a Brazilian national registry, primarily through Santander Bank. The opening of this account is included in our services.
More info about the opening of an account in Brazil
Permanent visa
Purchasing a property valued at more than 700,000 reais qualifies you for a permanent visa for yourself and your family, provided you retain the investment for 4 years without selling it.
More info about the VIPER visa
Tax implications:
Taxes on rental income or sales are paid in the country where your tax address is located, regardless of the origin of your income. For purchases, taxes are payable in Brazil and include IPTU (1% of the market value of the property), due annually in January/February, and legalization fees (approximately 4% of the property value), payable once.
More info about tax implications
Obtaining your CPF
The only two documents you need to buy property in Brazil are your passport and your CPF (Brazilian tax number). If you do not yet have a CPF, you can apply for one free of charge at the Brazilian consulate in your country.
More information on obtaining a CPF
Why invest in Alagoas?
With its impressive economic growth, growing appeal to tourists and rising property prices, Alagoas offers a favourable environment for investors.
What is Alagoas?
The Alagoas region, located in north-east Brazil, offers an idyllic tropical environment with its white sandy beaches, water activities, restaurants and diverse wildlife. From the bustling city of Maceió to the unspoilt nature of historic Penedo, you'll discover a unique blend of culture, nature and entertainment.
AND AFTERWARDS?
RENT IT OUT or SELL IT
Annual renting ensures a stable income with less logistical effort required. Secure tourist neighborhoods provide an ideal setting to attract tenants looking for a permanent residence.
Short-term rental (Airbnb, Booking, etc.) allows you to earn higher income. You can also enjoy your apartment outside of the rental periods.
👇 Below an example of our apartment.
A property purchased at the beginning of a construction project is typically resold for twice its price at the end of the construction.
An existing property increases in value every month due to the continuous growth of the Alagoas region, allowing you to make a significant capital gain upon resale.
If you choose to rent out your apartment, the short-term rental option (Airbnb, Booking, etc.) allows you to earn higher income. You can also enjoy your apartment during periods when it's not rented out.
Average annual rental yield: 15%
Ci-dessous un exemple of our apartment.
If you choose to rent out your apartment, the short-term rental option (Airbnb, Booking, etc.) allows you to earn higher income. You can also enjoy your apartment during periods when it's not rented out.
Average annual rental yield: 15%
Ci-dessous un exemple of our apartment.
Want to invest in Brazil?
Purchase, rental management, sale: we take care of everything!