Investor · Fort Lauderdale, FL · Member since 2013 · 924 posts · 611 votes
I have a friend from Brazil who is interested in purchasing a condo here in Florida for personal use. She asked me for some specifics but truthfully I'm not sure of the rules, regulations, restrictions, IRS nonsense, etc. that a foreign investor from Brazil will face.
Can anyone point me in the right direction for an overview that would help us with this? Thank you.
Cash buyer, so that eliminates much of the hassle I would think. But I have to assume there is a bundle of additional paperwork involved. I was also told that the Brazilian govt places restrictions on their citizenry about purchasing property here.
Hi Michael Carbonare
Did you find out about the process, yet?
I'm thinking about selling to Brazilians, and I'd like to know more about it.
Regards
Emerson
If the buyer has cash it's a fairly straightforward process. If they require financing then the requirements can become a bit involved. My buyers are cash buyers so I'm not too concerned with all the hoops the lenders put foreign nationals through.
As a foreigner who has bought, and sold, a property in the US: Buying was not an issue, this part was relatively easy. I did need financing but managed to get it without much issue from my bank.
The issue is more likely to come up when eventually selling the property. FIRPTA comes to 10% of the selling price. I.e. it is not just 10% on any profits you might make, it is 10% on the total selling price. This may wipe out any possible profit you make at the end of the day. I successfully applied for an exemption from FIRPTA and did not need to pay it - one of the reasons for getting exemption is that the condo was my primary residence. If your friend plans to buy the condo and only use it on vacation or plans to rent it out to a tenant, chances are she will not be exempt from FIRPTA. This is an important consideration. Your friend should carefully consider how long she wants to hold the property for, how she intends to use it and will she be able to get an exemption from FIRPTA at the time she wishes to sell. I would recommend that she speak to a tax consultant prior to purchase so she is fully informed before making a purchase.