The acquisition or lease of rural properties in Brazil by foreigners—whether individuals or legal entities—as well as by Brazilian companies controlled by foreigners, is subject to a complex set of legal restrictions. These include strict limitations on the size of the land, its geographic location (with particular attention to properties situated in border zones), and the intended use of the property. Transactions involving such properties often require prior authorization from INCRA, the Brazilian Land Reform Agency, and, in certain cases, approval from Congress.
Due to these regulatory hurdles, the market has developed alternative legal structures and investment vehicles to enable and facilitate foreign investment in rural real estate, allowing investors to participate in this sector while remaining compliant with Brazilian law.
Given this regulatory landscape, it is essential for foreign investors and Brazilian entities controlled by foreigners to strictly adhere to all applicable restrictions when acquiring or leasing rural property in Brazil. Non-compliance with these rules can result in the nullification of the transaction, leading to the loss of property rights and exposing investors to significant financial and legal risks. As a result, careful legal planning and due diligence are crucial to ensure the security and success of any investment in rural property, helping investors navigate the complexities of the Brazilian legal system and safeguard their interests.
