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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