Restrictions on Buying Beachfront Property

Have you dreamed of owning your own beachfront property in Brazil? Well, you’re not alone. Brazil’s beaches lure real estate enthusiasts from the United States and around the globe not just as visitors but as investors. But before you make the move, you should know that restrictions apply to foreigners who want to purchase land within 100 meters of the Brazilian coastline.

Law 9.760/46 protects Brazil’s natural resources while preserving the country’s sovereignty over its territorial waters. Sure, the law is an obstacle for foreign investors who want prime real estate, but it also serves an important purpose in safeguarding Brazil’s environment. Like the restriction on foreigners owning rural property, the limitation on foreign ownership of coastal property contributes to Brazil’s national security interests.

Unfortunately, crafty corporate structuring might not help you here either. While the restriction applies to non-Brazilian individuals and companies, it also affects Brazilian companies directly or indirectly controlled by foreign investors. Buying the property with a wholly-owned domestic entity, for example, won’t solve the problem.

There’s some good news though. Foreigners are free to buy condo units and apartments in buildings no matter their location. This includes buildings right on the beach. So your dream of having a view really isn’t gone after all. You just can’t have your own private abode on the beach.

If you’re thinking about buying beachfront property in Brazil, make sure you can comply with the law. Despite the restrictions, with the right guidance, you can still invest in Brazil's stunning coastline.