Page 114 - InvestmentGuideBrasilEng

Rural Land The main requirements for the acquisition and leasing of land by foreigners in Brazil are:

Acquisition/ INDIVIDUAL CORPORATIONS

Leasing dent in Brazil and enrolled where it is headquartered - in the case of a Brazilian corporation controlled
Being a permanent resi-
Registration at the Board of Trade in the Brazilian State (Junta Comercial)
in the National Registry
of Foreigners – RNE under by foreigners, whether they are natural or legal persons, residing or head-
quartered abroad;
In the case of rural properties, only foreigners ? Foreign corporations, that is, one whose permanent status;
with authorized permanent residence status in capital is totally of foreign origin, headquartered Providing a use plan (only Official authorization to operate in Brazil, in the case of a foreign legal entity,
Brazil and an established residence (ownership of abroad and authorized to operate in Brazil; for areas above 20 MEI). that is, one in which foreigners control all capital;
an urban property by the purchaser) may make an and Brazilian corporations in which foreigners
acquisition. control the majority of the capital, whether Clear provision in its bylaws regarding activities agriculture, livestock, forest-
For purposes of rural land acquisition/leasing, they are individuals or corporations, residing or ry, tourism, industry or settlement activities;
the definition of a foreigner in Brazil is: headquartered in Brazil or abroad.
Providing a use plan, regardless of the size of the area to be acquired or leased.
? Foreign individuals who are not Although foreigners are allowed to acquire
naturalized, even if married to a Brazilian land, there are some restrictions on the amount
citizen with community property of land to be acquired:
and with Brazilian children;

In the use plan mentioned above, the appli- The use plan must be applied to the Nation-
cant for acquiring or leasing must specify the fol- al Institute of Colonization and Agrarian Reform
lowing information: - INCRA, which, depending on the nature of the
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project, may send it to other government bodies,
NATURE OF FOREIGN PERSON ? Justification of proportionality such as the Ministry of Development, Industry
Individuals Corporations between the amount of land to be and Foreign Trade - MDIC; Ministry of Tourism –
acquired and size of the project; Mtur or Ministry of Agrarian Development – MDA
Allowed to acquire up to 50 MEI (Indefinite to analyze; but, all projects must be assessed by
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Exploitation Module), which is equivalent to areas Allowed to acquire up to 100 MEI, which is equiva- ? Physical and financial schedule for the Ministry of Agriculture, Livestock and Food
ranging from 250 to 5,000 hectares, according to lent to areas ranging from 500 to 10,000 hectares, investment and implementation; Supply - MAPA. Final authorization depends on
according to the MEI’s value in each municipality
the MEI’s value in each municipality. INCRA’s decision.
? Possible use of official credit to Authorization request and presentation of a
finance all or part of the venture; use plan are subject to the nature of the foreign
person and the size of the property:
? Logistical feasibility of its implementation
MUNICIPALITY AND NATIONALITY
and, in the case of an industrial project,
The total sum of land areas acquired by foreigners in a municipality may not exceed 25% of its territory; demonstration of compatibility between the
land location and the type of plant to be built;
Foreigners of the same nationality cannot own more than 10% of the total area of a municipality.
? Demonstration of compliance with
the criteria for Ecological and Economic
Prior consent from the Executive Secretariat of the National Defense Council is necessary for real Zoning of Brazil (ZEE ). The ZEE establishes
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estate in a border territory or area deemed essential to national security. which crops are best suited economically
to each area of the country, taking into
account measures and standards of
12 This is a unit of measure, expressed in hectares, used to environmental protection and biodiversity.
establish the limit of acquisition and leasing of land by foreigners in
Brazilian municipalities. The size of each MEI ranges from 5 to 100
hectares depending on the municipality. It is defined by the Nation-
al Institute of Colonization and Agrarian Reform (INCRA) and takes 13 Find further information about ZEE on: http://www.planalto. 14 Acronym in Portuguese.
into account the size, geographical location and economic activities gov.br/ccivil_03/leis/L6938.htm / http://www.planalto.gov.br/cciv-
of each municipality. The amount in hectares of each MEI can be il_03/DNN/2001/Dnn9465.htm#art11 / http://www.planalto.gov.br/
found at www.incra.gov.br/index.php/estrutura-fundiaria/regular- ccivil_03/decreto/2002/d4297.htm
izacao-fundiaria/aquisicaode-terras-por-estrangeiros/file/1114-mod-
ulo-de-exploracao-indefinida-mei
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