Residence Permit through Real Estate Investment: Legal Requirements and Recommendations

Normative Resolution No. 36, dated October 9, 2018, issued by the National Immigration Council (CNIg), as amended by Normative Resolution No. 46 of August 8, 2022, establishes the criteria for granting a residence permit to foreign nationals who invest in real estate in Brazil using their own funds originating from abroad. This modality aims to attract foreign capital to foster economic development and generate employment in the country.

To be eligible for a residence permit, the investor must prove the acquisition of real estate located in an urban area with a total value equal to or greater than BRL 1,000,000.00 (one million Brazilian reais). However, for properties located in the North and Northeast regions of Brazil, this amount may be reduced by up to 30%, as provided in paragraph 1 of article 2 of the Resolution. It is important to note that the investor may prove the investment through the acquisition of more than one property, as long as the combined value meets the minimum amount required.

The initial term of the residence authorization is four (4) years. After this period, the investor may apply for permanent residence, provided that the conditions that originally justified the authorization—namely, the maintenance of the real estate investment—are still met. This requirement must be verified during the term of the temporary or permanent residence, as applicable. Additionally, the foreign national must remain physically present in Brazil for at least fourteen (14) days, whether consecutive or not, within each two (2)-year period, starting from the date of registration with the Federal Police.

It is important to note that if the condition that justified the residence permit ceases to exist, the authorization may be revoked, pursuant to Article 135, I, of Decree No. 9,199 of 2017.

Likewise, failure to comply with the required physical presence in Brazil, as mentioned above, may result in the cancellation of the residence permit.

Before formally applying for a residence permit, it is highly recommended that the investor conduct a thorough legal due diligence of the property to be acquired and its current owners. This includes verifying the legal standing of the property, its tax and fiscal status, and its ownership history.

This preventive approach aims to mitigate legal risks and ensure that the property complies with Brazilian legislation, thus providing greater security to the investor and facilitating the residence permit process.

Required Documentation for Residence Authorization

The application for a residence permit, for the purpose of obtaining a temporary visa, will be analyzed upon submission of the following documents:

For completed properties:

• Property Registration Certificate (matricula), attesting to the ownership of the real estate, free of liens or encumbrances; and
• Statement from a financial institution authorized or registered in Brazil with the Brazilian Central Bank, confirming the international transfer of funds for the acquisition of the real estate.

For properties under construction:

• Purchase and Sale Commitment Agreement of the property, duly registered with the competent Real Estate Registry Office;
• Statement from a financial institution authorized or registered in Brazil with the Brazilian Central Bank, confirming the international transfer of funds for the acquisition of the property or the payment of a down-payment as part of the agreed purchase price in the Purchase and Sale Commitment Agreement;
• Building Permit issued in accordance with Brazilian legislation;
• Evidence of the due registration of the Incorporation Statement.

 Authors:

Tatiana Guerra 
Email: tatianaguerra@felsberg.com.br

Maria Carolina Guazzelli
Email: CarolinaGuazzelli@felsberg.com.br