Gringoes.com: Foreigners to be banned from buying land -not true

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   Recently I've had a flurry of emails from around the world by foreign investors asking if it was true that the Brazilian Government will ban land ownership by foreigners.  This is NOT true.  

What is happening is that already existing laws are being revised and some new limits are being put in place, but this only applies to the purchase of extremely large parcels of land in sensitive areas.

What follows is the opinion of the CENTURY 21 Brasil legal counsel:

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The
proposed change is a law, PL – Projeto de Lei 4440/2001, originated and
approved by Camara dos Deputados.

Now,
it is pending approval of the Senate and then it needs to be approved by the
President.

The
new law would not ban foreign ownership of agricultural land, but it would set
high restrictions on the properties inside the area known as Amazonia Legal
and areas on the borders of states located on the North and Central-West
regions.

Amazonia
Legal represents 61% of the area of Brazil and it included the states of Acre,
Amapa, Amazonas, Mato Grosso, Rondonia, Roraima, Tocantins, Para, and part of
Maranhao.

Two
laws already regulate the acquisition of rural land by foreigners: Law 5709 of
1971 (acquisition of rural properties by foreigners) and Law 6634 of 1979
(acquisition of rural areas next to the borders of Brazil by foreigners).

The
new project of law changes part of those two laws. If approved, foreigners
(person or company) will not be allowed to acquire rural areas, inside Amazonia
Legal, larger than 15 fiscal modules, unless they have been in the country
for more than 10 years. Even if the foreigner has been in the country for more
than 10 years, the limit for foreigners is 50 fiscal modules (this limit
already exists).

The
fiscal module is a unit that varies according to municipal laws.

The
new law will forbid foreigners to own land located within 150 kilometers of the
borders of Brazil in North and Central-West regions. The legislation that is
currently valid allows foreigners to own land in this area, if the National
Defense Council grants approval.

Gustavo Pascoal

Departamento Jurídico

Author	Message
CENTURY 21 Dave Newbie Joined: 28 July 2010 Location: Brazil Online Status: Offline Posts: 3	Topic: Foreigners to be banned from buying land -not true Posted: 29 July 2010 at 17:41
	Recently I've had a flurry of emails from around the world by foreign investors asking if it was true that the Brazilian Government will ban land ownership by foreigners. This is NOT true. What is happening is that already existing laws are being revised and some new limits are being put in place, but this only applies to the purchase of extremely large parcels of land in sensitive areas. What follows is the opinion of the CENTURY 21 Brasil legal counsel: < ="Content-" content="text/; charset=utf-8">< name="ProgId" content="Word.">< name="Generator" content="Microsoft Word 12">< name="Originator" content="Microsoft Word 12"><> The proposed change is a law, PL – Projeto de Lei 4440/2001, originated and approved by Camara dos Deputados. Now, it is pending approval of the Senate and then it needs to be approved by the President. The new law would not ban foreign ownership of agricultural land, but it would set high restrictions on the properties inside the area known as Amazonia Legal and areas on the borders of states located on the North and Central-West regions. Amazonia Legal represents 61% of the area of Brazil and it included the states of Acre, Amapa, Amazonas, Mato Grosso, Rondonia, Roraima, Tocantins, Para, and part of Maranhao. Two laws already regulate the acquisition of rural land by foreigners: Law 5709 of 1971 (acquisition of rural properties by foreigners) and Law 6634 of 1979 (acquisition of rural areas next to the borders of Brazil by foreigners). The new project of law changes part of those two laws. If approved, foreigners (person or company) will not be allowed to acquire rural areas, inside Amazonia Legal, larger than 15 fiscal modules, unless they have been in the country for more than 10 years. Even if the foreigner has been in the country for more than 10 years, the limit for foreigners is 50 fiscal modules (this limit already exists). The fiscal module is a unit that varies according to municipal laws. The new law will forbid foreigners to own land located within 150 kilometers of the borders of Brazil in North and Central-West regions. The legislation that is currently valid allows foreigners to own land in this area, if the National Defense Council grants approval. Gustavo Pascoal Departamento Jurídico
	David L. Moyer Executive Vice President CENTURY 21 Brasil

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