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Fearing Foreign Invasion Brazil Tightens Rules for Alien Land Buyers

Farm in the Brazilian Amazon Worldwide prosperity in recent years has led to a boom – and speculation – in real estate and farming land over the world and in special in South America, among the Mercosur member countries. Brazil, Argentina, Uruguay and Paraguay have seen land prices soar pushed by foreign buyers and now governments are reacting tightening restrictions on land ownership.

The first determined to address the issue head on seems to be the Brazilian government, which is looking into ways of ensuring domestic control over the country's competitive farms and resource-rich Amazon.

"Foreigners have fueled a real-estate boom, buying farmland along Brazil's expanding agricultural frontier and second homes along the northeastern coast," say government officials.

Many have circumvented current restrictions for foreign individuals and companies by using Brazilian firms as a front but that practice is set to end according to Rolf Hackbart, president of Incra, the Brazilian agency in charge of land reform and property titles.

The objective is to limit land acquisition by foreign capital acting through Brazilian companies and "this is not a question of xenophobia, but every country needs to be the owner of its territory," says Hackbart.

The new rules look to impose the same restrictions already existing for foreign companies purchasing land directly. They are currently allowed to buy 100 MEIs (Módulos de Exploração Indefinida – Undefined Exploration Modules), a unit of land that varies in size from one municipality to another. In Salvador, capital of Bahia state, for example, a MEI has 5 hectares (12 acres) while in Amapá the size is 70 hectares (173 acres).

In May, President Luiz Inácio Lula da Silva had said that "we need to be careful so that we do not allow people from other countries to buy all of Brazil's lands to produce sugarcane."

Brazilians nationalists as well as officials in the Armed Forces have been complaining about the presence of foreigners in the Amazon.

"From well-intentioned activists to speculators from the timber sector, everybody is selling land in the Amazon – all you have to do is take a look on the Internet," said Hackbart.

"Foreigners buy the best lands and increase the prices, paying hard cash," he added. "This increases the price of land reform"

On its Internet FAQ page the Incra answers which are the requirements foreigners must fulfill to acquire rural property in Brazil:

1) The property must be registered in the SNCR (Sistema Nacional de Cadastro Rural – National System of Rural Registry);

2) Foreigners must be permanent residents of Brazil and have a foreigner's identity card;

3) In case of companies, they will have to show proof they have authorization to operate in the country:;

4) Foreigners cannot buy more than 70% of areas set aside for private communities;

5) They will need Incra's authorization to acquire the property when the desired area is:

a) Equal or smaller than three Undefined Exploration Modules (MEI);

b) Bigger than 20 MEIs, with their project of development duly approved by Incra.

Acquisitions of area superior to 100 MEIs for legal entities and 50 MEIs for individuals will depend on special National Congress authorization.

Mercopress/Bzz

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  • Show Comments (17)

  • sindy

    nooo
    it is a lizzard
    🙁

  • João da Silva

    [quote] and sender nations should be prosecuted for their failure to stop this most serious crime………… [/quote]

    And the leaders of such nations should be tried at the World Court at the Hague for causing such mass exodus, after their amassed welath is confiscated.

  • u.s.observer

    no respect !!!
    fed up with countries such as brazil and mexico,, and other third world anti-american disrespectfull hell holes…..the majority of americans over whelmingly want to end the international criminal business of smuggling,trafficking of people to the u.s.a……….illegal aliens are a burden to the u.s.a.,,, and sender nations should be prosecuted for their failure to stop this most serious crime…………

  • João da Silva

    Ch.c
    [quote]But dont worry for “my” farm. One of our investor is a brazilian sugar baron….nicknamed Mr Sugar !
    [/quote]

    May the God save Mr.Sugar from his Lawyers who work free for him. I have seen this movie before.It is so sad that good ole Brazilians are being taken for sucker rides by unscruplous elements.

  • João da Silva

    Ch.c
    [quote]And to Joao :
    – I know quite well that Brazilians enjoy stealing what doesnt belng them !
    [/quote]

    I know, I know………….. My brother-in-law is an example 🙁

  • ch.c.

    “Paraguay have seen land prices soar pushed by foreign buyers ”
    And guess who are the largest foreign buyers !
    B R A Z I L I A N S…….TO INVEST THEIR CORRUPTION AND TAX EVASION MONEY !!!!!!!
    True

    😉 😉 😉 😉 😉 😉 😉 😉 😉 😉 😉

  • ch.c.

    To U.S.Observer…. !!!!!
    And ship them back in ships…like sheeps !!!!
    😉 😀 😉

    Brazilians were begging to sell undeveloped land to foreigners…..just to steal the land….when developed !

    Normal, after all they are Brazilians !

    Lesson Nbr 1 : NEVER EVER TRUST A BRAZILIAN IN WHATEVER DEAL YOU DO WITH THEM….EVEN WHEN IN WRITING !!!!!!

    Proof that I am not that wrong that Brazilians are crooks, cheaters and liars…as I have written so many times in this forum.
    Brazilians are ALWAYS jealous when others succeed !!! A well knwon fact……all over the world ! Sadly true !

  • ch.c.

    ooops…..correcting….
    – I know quite well that Brazilians enjoy stealing what doesnt belong to them !

  • ch.c.

    What a joke…these Brazilians !!!!!!
    Farm Land Prices in Brazil….TODAY….ARE FAR MORE CHEAPER THAN IN 2004 !!!!!!!

    What farm land boom prices are Brazilians talking about ?????

    Between 2004 and 2006, 2 years, farm land prices WENT DOWN BY 50 % IN MOST OF THE COUNTRY…..AND EVEN BY UP TO 70 %
    IN MATTO GROSSO !!!!!!!!
    Since then prices are up again, but still not the 2004 prices….BY FAR !!!!

    And to Joao :
    – I know quite well that Brazilians enjoy stealing what doesnt belng them !
    – Some of your land titles….ARE FAKED
    – One of your state (may be more) has more land titles…. than the size of the state ! True !

    But dont worry for “my” farm. One of our investor is a brazilian sugar baron….nicknamed Mr Sugar !
    Therefore we have not only his many lawyers available free to us, but also some “protzction” if something happens.
    Do you really believes HE will have HIS money…stolen by Brazilians ?
    😀 😉

  • João da Silva

    u.s.observer
    [quote]lets make a deal
    [/quote]

    No deal.

  • u.s.observer

    lets make a deal
    ok its a deal brazil,,,,you take back your nationals in the u.s.a.,,, who are illegally here (Illegal Aliens),,,, and we promise to not buy your country for a few reals…….TYPICAL HIPOCRITICAL TIN POTS FROM THE SOUTHERN CONTINENT……

  • Ric

    NÀƒ£o Àƒ© que vai caducar depois de cinco anos?

  • bo

    Taxes…
    [quote]Be aware of land ownership as a concept in Brazil. Twenty years ago an owner could refuse to pay property taxes and yet never be evicted, with uso capiÀƒ£o and other laws. Whereas in the USA, refuse to pay and in five years your tax bill had been turned over to the state by the county and you lost everything.

    Brazil has become more assertive in this regard. [/quote]

    IPTU. The problem that comes into play as that in MANY cases the local gov’ts are charging a rate of IPTU that is INCORRECT according to brazilian law. Although I pay my IPTU yearly, I have a current lawsuit pending regarding the % I’m being charged yearly. According to my lawyer the case will take around 5 years to resolve, but he says that at the end I will get a nice chunk of change back….and I should, I’m being charged 8 % yearly of the value of my land in IPTU!

  • forrest Brown

    so should the US do a tit for tat law for land deals made by brasilians
    i have land there and have gone through the land grabers wanting my land .

    paying my taxes only to have the local tax man show up wanting a pay off

    even if you have your recipt if it is not on the computer you did not pay they even try to say the banco brasil recipt was fals

    so put land in wifes name that takes care of 2 things

    no forin ownership , and if i kick off before her no 14 years in brasilian probate court

    looks like a way for the goverment to make money in taxes and new long term control of lands they want to own later

  • João da Silva

    Ric
    [quote]And the concept of squattersÀ‚´rights and having to pay someone the price of the improvements they built on your lot to get your lot back, and a rather wishy-washy view of ownership rights in general in Brazil would make it imperative that one really knows what one is doing before investing in property here[/quote]

    You have a point there Ric.It does not apply to only the foreigners,but also to all the honest Brazilians who do pay their property taxes. Your advice is very good one. I am one of those who pay the taxes regularly, though get nothing in return. But, I keep the “Comprovantes” just to ensure that I dont get into a hassle in the future. I dont know if you read in the News Papers about our Prez saying that the Brasilians are making much more money now than before and they can afford to pay the taxes. You as well I know that there are plenty of fat cats who dont pay the taxes including CPMF.They rather prefer to carry their money in their “Cuecas”.

  • Ric

    Colares
    Be aware of land ownership as a concept in Brazil. Twenty years ago an owner could refuse to pay property taxes and yet never be evicted, with uso capiÀƒ£o and other laws. Whereas in the USA, refuse to pay and in five years your tax bill had been turned over to the state by the county and you lost everything.

    Brazil has become more assertive in this regard.

    And the concept of squattersÀ‚´rights and having to pay someone the price of the improvements they built on your lot to get your lot back, and a rather wishy-washy view of ownership rights in general in Brazil would make it imperative that one really knows what one is doing before investing in property here. You might want to forget it. Research Jari/Ludwig first. National Bulk Carriers.

    But for actual alien property acquisitions, check out Colares.

  • João da Silva

    Ch.C
    [quote]Fearing Foreign Invasion Brazil Tightens Rules for Alien Land Buyers [/quote]

    Now I can happily invade your farmland in Bahia 😉

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