How to complete a São Paulo property purchase from abroad

Tax Registration and Remote Representation

To purchase real estate in São Paulo, every foreign national must hold an active *Cadastro de Pessoas Físicas* (CPF) issued by the *Receita Federal do Brasil* (RFB). This applies to both individual buyers and spouses, regardless of whether the spouse is named on the title. Applications from abroad are submitted through a Brazilian consular office via the online *e-consular* portal or executed in Brazil by a representative under a power of attorney.

To complete a real estate transaction without travelling to Brazil, a buyer must execute a *Procuração Pública* (Public Power of Attorney). Under Article 108 and Article 657 of the Brazilian Civil Code (*Código Civil*), the power of attorney must adopt the same public form required for the final conveyance. A private, unnotarised authorization letter is legally void for real property conveyances.

If the buyer executes the power of attorney outside Brazil, they must do so before a local notary public in their home country. The document must then be legalised via an Apostille under the Hague Convention of 5 October 1961. If the issuing country is not a signatory to the Hague Convention, the document must undergo consular legalisation at the local Brazilian consulate. Once in Brazil, the apostilled document must be translated into Portuguese by a sworn public translator (*Tradutor Público Juramentado*) registered with the local State Board of Trade (*Junta Comercial*) and registered at a *Cartório de Títulos e Documentos*. Alternatively, Brazilian citizens or foreign nationals holding a valid *Carteira de Registro Nacional Migratório* (CRNM) may execute a *Procuração Pública* directly at a Brazilian consulate abroad without requiring an apostille or sworn translation.

Under Article 661 of the Civil Code, the power of attorney must explicitly set out express powers to buy real estate (*poderes especiais e expressos*). The document must explicitly describe the specific property, including its address and registration number, or set clear financial limits for the purchase.

Title Verification and Registry Search

In Brazil, legal ownership of real estate is not transferred by contract or deed alone, but by registration at the competent *Cartório de Registro de Imóveis*. The city of São Paulo is divided into 18 distinct real estate registration districts (*circunscrições imobiliárias*), each governed by its own numbered registry office (e.g., *1º Oficial de Registro de Imóveis da Capital*).

To verify title independently from abroad, a buyer or their independent legal counsel must obtain an updated *Certidão de Matrícula* (Property Register Certificate) with a *Certidão de Ônus Reais e Ações Reais e Pessoalmente Reipersecutórias* (Certificate of Encumbrances and Real/Personal Actions). This document reflects the complete legal status of the land, listing past ownership transfers, active mortgages (*hipotecas*), fiduciary assignments (*alienações fiduciárias*), tax liens, and judicial attachments (*penhoras*).

These certificates can be requested online through the official national registry platform, *Registradores* (Central Registradores de Imóveis - ONR). A *Certidão de Matrícula* has a statutory legal validity of 30 days from the date of issuance. Buyers must ensure a fresh certificate is pulled immediately prior to executing contracts or transferring completion funds.

Additional background verification required prior to funds release includes:

• *Certidão Conjunta Negativa de Débitos Relativos a Tributos Federais e à Dívida Ativa da União* (Federal Tax Clearance Certificate for the seller).
• *Certidão Negativa de Débitos Tributários Imobiliários* issued by the *Prefeitura de São Paulo* to verify that municipal property taxes (*Imposto Predial e Territorial Urbano* - IPTU) are fully paid.
• *Certidão Negativa de Débitos Condominiais* issued by the building administrator (*síndico*), confirming no outstanding service fees exist.
• *Certidões dos Distribuidores Cíveis e Trabalhistas* to verify the seller is not facing insolvency, civil lawsuits, or enforcement actions that could result in the transfer being declared a fraud against creditors (*fraude à execução*).

Remittance, Currency Exchange and Central Bank Rules

Foreign capital entering Brazil to purchase real estate must enter via an authorised commercial bank or financial institution operating in the official foreign exchange market (*Mercado de Câmbio*), regulated by the *Banco Central do Brasil* (BACEN).

Funds must be transferred via an international wire transfer (SWIFT) under exchange transaction code 45558 (Direct Real Estate Investment by Non-Residents). The remittance generates an official foreign exchange contract (*Contrato de Câmbio*). Under Law No. 14.286/2021 (the Legal Framework for Foreign Exchange), foreign capital is registered automatically upon settlement of the exchange contract by the authorized bank. The buyer must retain all *Contratos de Câmbio* and banking receipts permanently, as these establish the official cost basis in Brazilian Reais (BRL) required for future repatriation of capital and capital gains tax (*Ganho de Capital*) calculations upon sale.

Direct peer-to-peer transfers, offshore settlements in foreign currency between buyer and seller, or unrecorded cash handovers circumventing BACEN channels are illegal and prevent the buyer from lawfully repatriating sale proceeds or demonstrating a legitimate tax basis.

Permissible Accounts and Payment Allocation

Completion funds must be transferred exclusively into verified, regulated accounts. Acceptable destination accounts comprise:

• The individual Brazilian bank account (*Conta Depósito de Não Residente* or standard resident account) of the named foreign buyer.
• The official, verified Brazilian bank account of the seller(s) named on the *Certidão de Matrícula*.
• An official escrow account (*Conta Escrow*) administered by a financial institution or authorized law firm governed by a formal escrow agreement.

Under no circumstances should purchase funds, deposits, or tax payments be remitted to:

• The personal bank account of a family member, relative, or friend acting under a power of attorney.
• The personal account of an individual real estate agent (*corretor de imóveis*).
• Third-party accounts not explicitly identified as sellers on the title deed.

Tax payments, specifically the *Imposto sobre Transmissão de Bens Imóveis* (ITBI), must be paid directly to the *Prefeitura de São Paulo* using an official municipal collection voucher (*Guia de Arrecadação de ITBI*) generated with the property's *Cadastro Imobiliário* (SQL number). In 2026, the standard ITBI tax rate in the municipality of São Paulo is 3% of the transaction value or the municipal reference value (*Valor Venal de Referência*), whichever is higher. Cartório statutory fees (*emolumentos*) for executing the *Escritura Pública* and registering the *Matrícula* are fixed by state law (*Lei Estadual de Custas*) and must be paid directly to the designated notary office.

Risks of Operating Through Relatives or Agents

Appointing a relative or local agent as an attorney-in-fact (*procurador*) introduces legal risks if controls are not established in the power of attorney:

1. Self-Dealing and Misappropriation: A broad, poorly drafted *procuração* may allow an agent to self-deal, mortgage the property, or divert funds. The document must explicitly prohibit self-contracting (*fechar negócio consigo mesmo*) pursuant to Article 117 of the Civil Code. 2. Misdirection of Closing Funds: A legal representative may request that funds be sent to their personal account to "simplify" local disbursements. This creates severe tax exposure for the agent with the *Receita Federal*, eliminates the buyer's foreign capital registration trace with BACEN, and exposes the funds to personal debt attachments or inheritance blockages affecting the agent. 3. Unauthorised Contract Amendments: Relatives acting without formal legal oversight may accept contractual changes, waive vendor guarantees, or sign possession handovers (*Imissão na Posse*) before due diligence is complete or encumbrances are cleared. 4. Revocation Deficits: A power of attorney remains legally active until formally revoked. To mitigate risk, all powers of attorney issued to relatives or agents must include an explicit expiration date (*prazo de validade*) and limit authority strictly to the designated transaction.