Restrictions on the ownership of Brazilian rural real estate property by foreigners
Historical background Since 1971, the acquisition of rural estate properties by foreigners in Brazil is ruled by Federal Law No 5.709/71, and its regulatory Decree No 74.965/74 (‘Law 5.709’).According to such legislation, the acquisition of rural property by a foreign individual domiciled in the country (‘foreign individual’) and a foreign company authorised to act in Brazil (‘branch’) is not prohibited but merely limited to certain caps described in the law. The restrictions also applied to Brazilian…
Brazilian Farmland – Is it a buy?
In recent years, Brazil has solidified its role as a global agricultural powerhouse. It has become the world’s largest exporter of soybeans, coffee, and sugar, as well as the second largest overall food producer on the planet. Over the past 15 years, Brazil has increased agricultural production by 156 percent with overall Gross Domestic Product (GDP) from agriculture reaching an all-time high in the first quarter of 2017.1 The agricultural sector as a whole accounts for nearly 6 percent of Brazil’s total…
Is Brazilian Farmland a Buy ?
In recent years, Brazil has solidified its role as a global agricultural powerhouse. It has become the world’s largest exporter of soybeans, coffee, and sugar, as well as the second largest overall food producer on the planet. Over the past 15 years, Brazil has increased agricultural production by 156 percent with overall Gross Domestic Product (GDP) from agriculture reaching an all-time high in the first quarter of 2017.1 The agricultural sector as a whole accounts for nearly 6 percent of Brazil’s total…
Investors in Brazil feel tied on land issue
When Simon Veldt’s father and his fellow Dutch immigrant farmers set up the Holambra II co-operative near Paranapanema in southeastern Brazil, the area was known as “Hunger Valley”. The co-operative, launched in the 1960s, built irrigation systems, introduced agricultural techniques and invested in equipment, changing the face of a district that had been populated by poor farmers subsisting on a few cattle and some corn and beans. “There was no electricity, there was nothing,” says Mr Veldt, president…
Should you invest in Brazil?
I’ve just spent a very pleasant fortnight in Brazil. It’s a wonderful country. But should we be investing there? The first thing that struck me about Brazil its sheer abundance. It’s the fifth-biggest country in the world. It has 20% of the world’s freshwater supply and just 3% of its population. (China has over 20% of the world’s population and about 6% of its freshwater). It has the highest number of species of primates, amphibians and plants in the world and the most diverse…
