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Brazil Condos Information That Foreign Investors Will Find
When it comes to Brazil, soccer and Pele are things which automatically come to our mind. But 21st century Brazil is different nation altogether---a vibrant country that offers many things beyond football. With a booming economy under its belt, Brazil is emerging as one of the most powerful nations in South America. Stable economy and development based government programs are contributing to the growth of country's real estate. Rio and São Paulo in South of Brazil have always been preferred with global tourists; the northern cities such as Natal and the areas such as Bahia in the north eastern region of Rio Grande do Norte is gradually catching up the pace.
A large number of build as well as pre-construction Brazil condos are to be found in this North Eastern part of Brazil. Secluded beaches, warm climate and affordable prices together make the Brazil condo properties attractive for the foreign buyers. In fact, Brazil condo properties are being marketed among global investors as a great asset which has all the potential of giving you double digit returns over next five years.
It is the rapid growth of country's tourism industry that is fuelling the condo boom in Brazil. The Brazil condos are bought by the foreign investors and now used as vacation rental for earning rental yields. With tourism trades flourishing rapidly, the investors are sure to make profits in form of rental yields from their investment condos based on all these expectations, Brazil condos market is emerging as a powerful force in the region.
The government has taken up number of incentive-based programs to promote tourism. The infrastructure has also been improved dramatically in the recent years. With upgraded logistics, the country expects an annual tourist influx of 65 million. According to the government estimates, the tourism in the country is going to grow at an annual rate of 4% over next ten years. These make Brazil condos excellent invest properties for the foreign investors, who want to let their units to tourists and earn steady rental income from them.
If tourism related properties are not your choice, then you can also consider buying Brazil condos in big cities. Here also rental yields are quite high due to the commercial importance of the places. Rio De Janiero and Sao Paolo are the two most important cities, where condo investment can really be profitable. While Sao Paolo Brazil condos can give you a rental yields of 7% to 8% at an average, the small condo unit in Rio gives a rental yield slightly lower---6 to7% on average.
If you are planning to invest in Brazil condos to be used as rental property, then you should consider the tax structure prior just before buying any property. The non-residents are taxed at a flat rate of 15% on their rental incomes. For the non-residents residing in low-tax territories, this tax is as high as 25%. Capital gains tax is 15% at a flat rate and inheritance and gift taxes are levied on the value of the inheritance. The maximum tax rate is 8%.
Before investing in Brazil condos, first calculate the expected total annual yields from the property. Then calculate the total costs including tax and insurance. This estimation will help you to understand beforehand which investment condo can yield maximum profit for you.
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