Buy Land in Brazil - Brazilian Land Reform
ADIT rubbishes Brazilian land reform
Felipe Cavalcante, the president of the association for inward investment in real estate in Brazil, ADIT, has rubbished worries that new Brazilian land regulations would lead to foreign investors seeing their title deeds torn up.
Speaking to OPP Cavalcante said “these proposals only apply to agricultural land – any changes in the future would have no impact at all on people who have already invested in real estate.”
It appears that even if the authorities wanted to reclaim land from foreign investors they would be stopped by the Brazilian constitution. Raymond Smith, Partner at Magno Smith, said “a company constituted in Brazil is regarded as a Brazilian entity regardless of the nationality of the shareholders. It would therefore be impossible to cancel sales already made as retrospective laws are anti-constitutional.”
Some investors are also welcoming the Brazilian governments plans. Richard Cash, Director of Invest in Brazil, sees the protection of agricultural land as a positive measure for the overseas property buyer market.
“This measure could help with land value growth on certain projects,” said Cash. “By reducing the amount of prime land available for sale to the market it will help make projects that are unencumbered, complete with planning and licences and under construction, a very safe investment for customers.”
According to the Brazilian Agrarian Development Ministry spokeswoman Denise Mantovani, 10 million acres of land had been registered by foreigners as of 2008 and that $2.43 billion had been invested between 2002 and 2008.
She also stated that the decision to restrict foreign ownership of land is due to rising world demand for food, water and natural resources.
Source: OPP Magazine
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