| :: LEGAL & RUNNING COSTS |
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| Owning a property |
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Property tax
Property tax in Brazil is very low. The amount is 1% per year based on the taxation value by the
Municipal authorities. This taxation is usually lower than the actual value. The taxation may vary from
city to city.
Telephone and public companies
The most properties will have electricity. Not in all cases there is a phone connection. Only in the
main cities there is public water, garbage service and sewage. The price of telephone and electricity infrastructure and installations can be considerably higher for a foreigner. For public services, phone and internet, payments have to be on-time to be certain of connection.
Cost of Staff
Many middle and upper class households in Brazil have domestic staff. Most of our properties also come
with maids quarters or even separate housing for staff. With staff on your premises you have 24/7
supervision, which is an advantage when you are not living here full time. The costs of staff start at
about BRL 300 per month. With a service contract we supervise your staff and we ensure that salaries
are paid on time. Make sure that social duties are paid. Lawyers line up at the footstep on the local labour office. They try to catch up with unsatisfied staff to sue their employers. Fines and back payments are that high that this is a lucrative money maker for these lawyers. Foreign employers are an even better catch. |
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| Maintenance and Supervision |
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To maintain your property we offer all-in service contracts. The contracts may include:
- regular inspection of the property
- Supervision of subcontracted work
- Accompaniment of banking transactions and payments
- Accompaniment and authentication of necessary documents
- Supervision and execution of regular maintenance
- Accompaniment of international moving private goods |
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| Relevant issues |
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Banking
Opening a bank account is a cumbersome matter. Up to March 2004 this was possible at some bank
branches. By an amendment to the law this is now impossible for a foreign individual. Brazil Property Mart is examining if there is any other option. At this moment a bank account can only be opened by a person that has Brazilian Nationality, a work permit or a permanent visa. Also when you have opened a Brazilian company you may open a bank account. If the purchaser concludes a service-contract, local payments can run by means of our bank accounts. In this case payments can be done to Brazilians who do not have their own bank account. By this method the property owner avoids the head age of international bank transferences and exchange rates. The banking fees and service taxes which are made for this are charged to the purchase. It is simple to withdraw money in Brazil. The many cash machines allow you to access your cash with your credit card or from your current account when working in Maestro. |
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| :: Property Monthly Running Costs |
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| Condominium Facilities / Costs |
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Condominium facilities are defined on a democratic voting process, the property owners decide what services are required (the developer installs a base plan to start off - see below). If you are not able to represent yourself when voting is required, an electorate can be chosen on your behalf.
The following services are included within the condominium charge: |
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Full Time Security Guards |
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Common ground Maintenance (gardeners / handy person) |
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Electricity / water for Common Areas |
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Local state property taxes |
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Costs vary per development, and are based on: the amount of houses per development, facilities provided on each site and size of the property. Monthly service charges are between R$170 and R$ 350. |
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| :: Utilities Costs |
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| These costs are in addition to the Condominium charge and would only be relevant if you were to live in the villa, the charges are variable as dependent on usage. If you have chosen a buy to let property then the tenant covers these costs. Costs will be very minimal if you do not use the services. |
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| The below figures are based on average usage. |
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| Water |
10 Reais per month |
| Electric |
100 Reais per month |
| Bottle Gas |
15 Reais per month |
| Direct TV |
45 - 95 Reais Per month |
| Phone line Rental |
35 Reais per month |
| *Phone Calls |
35 Reais per month |
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| * Includes Internet Usage |
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| Nb. Prices quoted are approximate and based on a medium size 3 bedroom detached property. |
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