First, allow me to introduce myself as well as tell a little of my situation. My name is Ralph and I'm a 41 year old American that has been living in northeast Brazil for close to a decade. I'm a partner in a development company along with three English partners that has built one project here in the northeast of Brazil and we're in the process of building the second.

I originally came to Brazil over a decade ago after meeting my current ex-brazilian wife in Cancun, Mexico, and fell in love with the place. I've been living in Aracaju, Sergipe for nearly a decade and convinced my current partners to invest in Brazil four years ago. It has been a roller-coaster ride to say the least, but I have certainly gained a Ph.D. about investing in Brazil covering every aspect I can think of. We have purchased lands here in Brazil, beachfront(which are even more beurocratic than others which aren't), we have constructed a project, we have negotiated to buy businesses, and have brokered the sale of a business. I'm extremely well-informed on the legalities and the "caminho", or path that one must take when investing in Brazil to make a "safe" investment.

The first and most important thing I would like to point out to foreign investors in Brazil, and the place where I have seen those get into the most trouble is the following.....

You NEVER make any type of payment for a Brazilian property to any person or entity that is NOT located inside Brazil!

Now, the English property agents just HATE to hear the above. But nothing could be truer. First of all, when one purchases in Brazil, that person or investor, must send his funds to Brazil. Either directly to the seller, builder, etc., OR, send it to himself, normally via his brazilian business that he can open up. The reasons for this are two-fold at a minimum.

First: Currently a $50,000 dollar (american) investment is required in Brazil to qualify for an "investors visa". This visa will allow you to live in Brazil is one so desires. It definitely eliminates the hassle of worrying about how long one is going to stay, leaving the country and coming back, going to the Federal Police to renew your visa, etc, etc. One certainly cannot qualify for this visa if one doesn't have record of investing monies in brazil. And if one pays an agent located outside of Brazil then Banco Central has NO RECORD of the actual investor sending monies to Brazil.

Second: This is by far the most important reason. If the investor doesn't send his monies to Brazil him/herself, either to his brazilian business making his investment via it, or directly to the builder, seller, etc., liquidating the funds via your contract of buy and sell, then Banco Central (The federal reserve) absolutely has NO RECORD of you ever sending money to brazil! So, if/when it comes time to sell, and you want to reinvest your money in Spain, or Germany, or England, or the U.S., or wherever outside of Brazil......how do you get your money out?!

Banco Central is NOT going to allow one to send 100,000 reais or more, or even less, out of Brazil when they have NO RECORD of you sending money to the country! This is what property agents neglect to tell investors in England about investing in brazil! One reason why is because they're wanting to get their hands on the monies FIRST. Most are taking ridiculous commisssions and in some cases have completely fled with monies leaving the customers "holding the bag", so to speak.

I could literally write a book on the topic of investing, and living, in Brazil. It's been quite an education for me, not a cheap one I might add. But today, I can truthfully say, that I'm 100% aware of how one must go about investing in Brazil. It's not easy. There are many hoops one must jump through. Unfortunately Brazil is an EXTREMELY beaurocratic country.

So, for those foreign investors looking to invest in Brazil.....BEWARE!! When you see a property agent and he's asking you to give him a downpayment or any type of payment there in England, or whatever other country besides Brazil.....DON'T DO IT!