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ok, i thought that i would throw this one out for opinions and input (anyones). i was wondering about  property, sales and income taxes rates and insurance. i know that this may be a complex question, but overall, in ratio to america would it be simuliar or more of a difference in one way or another. say for instance a single family home purchased for R$100,000 somewhere in one of rio's barrios (on average). would it be difficult or expensive to buy certain coverages such as flood, mudslide or earthquake? upon selling a home could there be a capital gains tax as high as in the u.s.? inheritance tax?
if cash is paid for a home, normally how long would it take for the transaction to be closed?
w/cars, is auto insurance mandatory and do they have a form of e- check?
quite a few broad questions. any reply is greatly appreciated. tia

Total Posts: 53 | Joined Jan. 2003 | Posted on: 5:27 pm on Feb. 14, 2003 | IP

For starters, there hs been no major earthquakes in Brazil (a few tremors here and there, but thatīs about it).  It doesnīt mean though that you canīt buy insurance earthquake coverage...  What insurance company would (in their right mind) deny you coverage that is very likely to never become a liability

Property insurance is a rather new phenomenon in Brazil, but it is steadily becoming more and more popular.  There are plenty of companies that  are active in the business.  Most of the major Banks offer property insurance as part of their service packages.

When buying property, you are obliged to pay ITBI which is set at municipal level and is in most cases 2% of the venal (on the books) property value.  This rule applies to all property ownership transfers `inter vivosī ie sale, donation...

In cases when a property is being transferred as part of an estate (cause mortis), State version of the ITBI applies and it is set (in most cases) at 4% of the venal value (valor venal)

Capital gains is about 20% and applies if you re-sell your property in less then five years.  

Closing on a property can take as little as a few weeks, and as long as a couple of years depending on a variety of situations.

Canīt help you with the car insurance, but to my knowledge it is not obligatory and there are plenty of un-insured and under-insured vehicles out there.

Please, do not hold me responsible for the above provided information.  It is the result of independent research and shouldnīt be taken as a legal advice.

Total Posts: 19 | Joined Jan. 2003 | Posted on: 4:55 am on Feb. 16, 2003 | IP

Junior Member
Just as a clarification with relation to car insurance:
In Brazil exists a car insurance called DPVAT.The DPVAT is the Mandatory Insurance for Bodily injuries caused by Auto Vehicles of Terrestrial Ways.  As the name already says, it is mandatory, all vehicles owners are required to pay one.  It is important to stand out: if the insurance is not paid, the vehicle will not be duly permitted and will be subject to apprehension by the fiscalization.  The DPVAT insurance is intended for the covering of medical and hospital emergencies expenditures, death and permanent injury, in the cases of traffic accidents.  This insurance was created by the Law n.š 6,194 of 1974, with the objective to support the victims of  all accidents involving vehicles in the domestic territory.  Its administration competes to the Accord DPVAT, that belongs to the National Federation of Private Insurances and Capitalization (FENASEG).

Fernando B.

Total Posts: 55 | Joined Dec. 2002 | Posted on: 12:35 pm on Feb. 17, 2003 | IP

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