1 CAN FOREIGNERS ACQUIRE OR LEASE LAND IN

1 CAN FOREIGNERS ACQUIRE OR LEASE LAND IN
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1 - Can foreigners acquire or lease land in Brazil?

Yes. Both individuals and corporations can do it,
legal provisions complied.

2 - Who is considered a foreigner in Brazil for
matters concerning land acquisition/leasing?

Foreign individuals
- not naturalized even if married to a Brazilian
citizen under communion of property and with a
Brazilian children;

P.S: The Portuguese Reciprocity Certificate holder is
not a foreigner for the purpose of acquisition and
leasing of land in Brazil.

Foreign Corporations
- Foreign corporations, that is, one whose capital is
totally from foreign origin, headquartered abroad and
authorized to operate in Brazil;
- Brazilian corporations whose majority of capital is
controlled by foreigners, whether they are individuals
or corporations, residing or headquartered in Brazil
or abroad.

3 - Are there any restrictions on the amount of land
to be acquired by foreigners in Brazil?

Yes. Constraints are of two orders:

Regarding the nature of foreign person:
- Individuals can acquire up to 50 MEI (Indefinite
Exploitation Module), which is equivalent to areas
ranging from 250 to 5,000 hectares, according to the
MEI`s value in each municipality. (See the meaning of
MEI on question 6).
- Corporations can acquire up to 100 MEI, which is
equivalent to areas ranging from 500 to 10,000
hectares, according to the MEI`s value in each
municipality.

Regarding municipality and nationality:
- According to Federal Law 5709/1971, the total sum of
land areas acquired by foreigners in a municipality
may not exceed 25% of its territory;
- Foreigners of the same nationality can not own more
than 10% of the total area of a municipality.

P.S: Foreigners married with Brazilian citizens under
communion of property or with a Brazilian son/daughter
are not subject to these limits, being however subject
to other legal constraints.

P.S: the amount in hectares of each MEI can be found
on
www.incra.gov.br/index.php/estrutura-fundiaria/regular
izacao-fundiaria/aquisicaode-terras-por-estrangeiros/f
ile/1114-modulo-de-exploracao-indefinida-mei
See question 6 for what MEI mean.

4 - Is it possible to acquire land in Brazil beyond
those limits?

Yes. But only upon approval by the Brazilian National
Congress.

5 - Can foreigners lease land in Brazil?

Yes. The leasing, according to Article 23, Paragraph 1
of Law 8629 of 25/02/1993, is subject to the same
conditions applicable to the acquisition of rural land
by foreigners.

6 - What does MEI mean?

The Indefinite Exploitation Module (MEI) is a unit of
measure, expressed in hectares, used to establish the
limit of acquisition and leasing of land by foreigners
in the Brazilian municipalities. The size of each MEI
ranges from 5 to 100 hectares depending on the
municipality. It is defined by INCRA (National
Institute of Colonization and Agrarian Reform)
considering the territorial dimension, geographical
location and economic exploitation of each
municipality.

7 - What are the main requirements for the acquisition
and leasing of land by foreigners in Brazil?

For individuals
a) Being a permanent resident in Brazil and enrolled
in the National Registry of Foreigners - RNE under
permanent status;
b) Providing an exploitation project (only for areas
above 20 MEI). See question 9 for exploitation
project.

For corporations
c) Registration at the Board of Trade in the Brazilian
State where it is headquartered - in the case of a
Brazilian corporation controlled by foreigners,
whether they are natural or legal persons, residing or
headquartered abroad;
d) Official authorization to operate in Brazil, in the
case of a foreign legal entity, that is, one which its
capital is fully controlled by foreigners;
e) Clear provision in its bylaws regarding activities
on agriculture, livestock, forestry, tourism, industry
or colonization;
f) Providing an exploitation project whatever the size
of the area to be acquired or leased.

8 - How to start your application for authorization to
purchase or lease land in Brazil.

The foreigner, whether an individual or a corporation,
must file an authorization application for acquiring
or leasing at the INCRA`s Superintendence in the state
where the rural estate is located.

The application form can be found on:

For individuals
http://www.incra.gov.br/index.php/estrutura-fundiaria/
regularizacao-fundiaria/aquisicaode-terras-por-estrang
eiros/file/1106-requerimento-pessoa-natural-estrangeir
a

For corporations
http://www.incra.gov.br/index.php/estrutura-fundiaria/
regularizacao-fundiaria/aquisicaode-terras-por-estrang
eiros/file/1107-requerimento-pessoa-juridica-estrangei
ra

9 - What is an exploitation project?

The exploitation project is a requirement for the
approval of land acquisition by foreigners in Brazil
(see question 10 as the case may be). In that document
the applicant for acquiring or leasing must specify
the following information:
- Justification of proportionality between the amount
of land to be acquired and size of the project;
- Physical and financial schedule of investment and
implementation;
- Possible use of official credit to finance all or
part of the venture;
- Logistical feasibility of its implementation and, in
the case of an industrial project, demonstration of
the compatibility between the land location and the
type of industry to be installed;
- Demonstration of compliance with the criteria for
Ecological and Economic Zoning of Brazil (ZEE). The
ZEE establishes which crops are best suited
economically to each area of the country, considering
measures and standards of environmental protection and
biodiversity.

Find further information about ZEE on:
http://www.planalto.gov.br/ccivil_03/leis/L6938.htm
http://www.planalto.gov.br/ccivil_03/DNN/2001/Dnn9465.
htm#art11
http://www.planalto.gov.br/ccivil_03/decreto/2002/d429
7.htm

One must apply the exploitation project to INCRA that
later on sends it other departments to assess,
depending on the nature of the project (Ministry of
Development, Industry and Foreign Trade - MDIC;
Ministry of Tourism - MTur; Ministry of Agrarian
Development - MDA). All projects also must be assessed
by the Ministry of Agriculture, Livestock and Food
Supply - MAPA. The final authorization depends on
INCRA`s decision.

10 - In which cases authorization request and
presentation of an exploitation project for
acquisition and leasing of land by foreigners in
Brazil is required?

Authorization request and presentation of an
exploitation project are subject to the nature of the
foreign person and the size of the area of property:

For individuals
Land with an area equivalent of up to 3 MEI: the
applicant must only declare not to own another rural
estate in Brazil. Therefore, foreigners can not
acquire several estates with areas below 3 MEI each in
order to be exempted from INCRA`s authorization;
Land measuring between 3 and 20 MEI: INCRA`s
authorization is required, but applicants are exempted
from applying an exploitation project.
Land measuring more than 20 MEI: INCRA`s authorization
and exploitation project are required;
Land measuring more than 50 MEI: besides INCRA`s
authorization and an exploitation project, an
authorization by the Brazilian National Congress is
also required.

For corporations
INCRA`s authorization and an exploitation project are
required regardless of the estate`s size;
For land measuring more than 100 MEI: besides INCRA`s
authorization and an exploitation project, an
authorization by the Brazilian National Congress is
also required

P.S: When it comes to an estate located in a border
territory or area deemed essential to national
security, it is mandatory a prior consent by the
Executive Secretariat of the National Defense Council.

11 - Do legal restrictions apply to the case of lawful
succession?

All prerogatives are guaranteed to the Brazilian
legitimate successors as long as they reside in
Brazil


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