uh Captain? I have been dealing with property and realtors and prefeituras here in Brasil for 4 years. it's very common to sell a property that you don't own. I would make absolutely sure this person is the real owner (if that's ever really possible here) and then I would say forget it anyway. my estimation is that property here is in a mega-bubble and as soon as the world economy flatlines, it will come crashing down. watch the currency rates. whenever the US news is good, the exchange rate goes down... counter-intuitive but people here are so afraid that the financial system here is such a sham, that if the US sneezes, Brazil's currency falters. the converse is also true. inflation is becoming a bigger problem here too. just be extremely careful, that's all.

Originally posted by jacare One area can be a problem. The seller is responsible for the capital gains tax. If he doesn't pay then it falls to the buyer.

Could you or someone clarify this? You mean the RF will put a NEW tax lien on the property that's no longer the seller's and make the buyer responsible that the seller ran off with the money? That seems unjust if it is the plain truth. There must be something more to it, can you explain please?

The longer I contemplate these reportings the more I think I will in the future avoid residency in any country. I will not take US citizenship to which I am long eligible. I might take citizenship in some obscure tax haven country and then just live in 2-3 different places in the world.

- Spring in the USA (3 months)
- Winter and Spring in Brazil 3 months
- a Month in Europe, a Month in India, etc.
- Summer in Brazil.

What's a good EU country without any draconian reporting requirements?

Capital gains realized by individuals on a sale of real property, are subject to Brazilian tax at a rate of 15%. The taxable gain is computed by deducting the acquisition costs from the gross selling price.
Capital gains earned by nonresidents who reside in countries that do not tax the relevant income or whose income tax rate is less than 20% are taxed in Brazil at a special rate. As of January 2004, capital gains earned by these individuals are subject to a withholding tax rate of 25%.
However, gains are tax-exempt if you have owned the real estate for 20 or more years, or if the real estate is the sole estate you own, and you have owned it for at least 5 years and the sale price is not over, approximately, BRL 582,750 (US$ 259,000).
Capital gains derived by individual residents from the transfer of any property or rights are taxed at a flat rate of 15%, which is final. Capital gains derived from the sale of property or rights where the sales price does not exceed BRL20,000 (US$8,889) are not taxable.
However gains derived from sales of real estate acquired by the seller before 1970 are tax-exempt for Brazilian residents. Real estate acquired by the seller between 1970 and 1988 benefits from a progressive capital gains tax reduction.

What about the five year and under 582,000 reais rule?