segunda-feira, 1 de julho de 2013

How much land may a foreigner purchase from the Amazon forest?

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A smart and intrepid young man plans to purchase a large estate in Brazil, in order to pursue his objectives. Please read my comments on his plans, and on the limitations Brazil might impose on it. 


Dear Adler,

I read you previous post on the restriction imposed on foreigners regarding rural land acquisition in Brazil

However, foreigners (like me) have long bought rural land in Brazil! 

The primary restriction is on the purchase of extremely large (multi square miles, ) properties. 

Look it up!



Hello Charles,  

I most certainly know that foreigners can purchase small properties. But the properties that are interesting for business, usually the very large ones, can't be purchased by foreigners directly, only through the incorporation of a Brazilian company.

Recently, the government has tried to prohibit companies owned by foreigner to purchase 
land. The decision I have shared has ruled such prohibition as unconstitutional.





Few companies or individuals- other than huge agrobiz and/or land speculators (sometimes the same thing)- would be interested in the many hundred thousand hectare properties (10000 m2/hectare) foreign purchase of which the law is designed to regulate and (possibly, but not necessarily) restrict.

 Surely 99% of all foreign rural land purchases never had nor now have the slightest restriction. Except, perhaps, those promoted by somewhat over  eager lawyers. 




Dear Charles,

Being very clear: the law allows for the purchase of up to 3 "modules of land" by a foreigner. 
Such modules vary in size from city to city. In some cities in the São Paulo State, 3 modules would be about 15 hectares. Not too small, but no so big.  

In other cities in the extreme North of Brazil, 3 modules would be as much as 210 hectares. 
Undoubtedly big, but still a much smaller than the large properties used for soy or sugar cane, which can easily reach 10 thousand hectares.

The biggest farms in Brazil have more than 200 thousand hectares.  

There is no comprehensive and reliable data comparing the purchase of land by foreign individuals x the purchase of land by Brazilian companies with foreign capital. However, since  the size of the properties that may be freely purchased is not so big, I would not bet on the 99% figure you have presented.   

15 hectares might be sufficient for an individual looking for retirement, or planning to grow a  small crop. But is not a suitable size for many kinds of large scale plantations: eucalyptus, for  instance.  



Um comentário:

  1. As far as I know and experienced, foreigners can only buy rural land (with restrictions by modules) if they have an RNE (registro nacional de estrangeiros), call it a permanent visa in Brazil


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