Brazilian ‘Gold’ Visa, Inspired by Portugal, Records Little Demand

RIO DE JANEIRO, BRAZIL – The possibility of living in another country based on the purchase of a property moves billions per year in parts of Europe and the United States, but this reality is very far from the national market.

A year after its launch, the so-called Brazilian ‘gold’ visa has not yet taken off.

The initiative features a distinct name and demands, but it was inspired by Portugal’s “gold visa”. However, when taking stock of this first year, the Brazilian results could not be more distant from the Portuguese.

From October last year to this year, Brazil granted nine residence permits to foreigners who bought properties.

In Portugal, the number of permits, most of which are granted to property buyers, amounted to nearly 500 between October 2012, when the program began there, and the following year.

In Brazil, foreigners buy real estate in the country and can apply for a residence permit. The minimum investment in ready-made or under construction properties is R$700,000 (US$175,000), for the North and Northeast States and R$1 million for the other regions.

Both residential and commercial properties can be purchased, as long as they are located in urban areas – farms, ranches or other rural properties are not eligible. With the Brazilian real depreciated against the dollar, the deal has become more attractive to foreigners.

Crawling

According to real estate agents, the delay in the program’s results is ascribed to communication issues. “Not even I, as president of the São Paulo Regional Council of Real Estate Brokers, have received any notice about the program or seen any activity around it,” says José Augusto Vieira Neto.

He says the government needs to rethink the focus it is placing on the program if it wants better results next year. “Brazil can be very attractive to a type of qualified resident. If the economy moves slowly, why not make the most of what the country has to offer?”

After a first year of poor results, Bolsonaro’s government expects that the demand for residence permits in Brazil through the program will increase next year, should the real estate market rebounds and new ventures be launched.

The government also acknowledges that it needs to improve the communication of the Brazilian “gold” visa. In a note, the Department of Migration’s General Labor Immigration Coordination, linked to the Ministry of Justice and Public Safety, says the program will be given special attention by the government next year.

The aim is to liaise with real estate agents who exhibit at events abroad, presenting real estate ventures to foreign investors and offering visas, for instance.

Immigrants

Ecuadorian Roberto Borsic came to study business administration at a Brazilian university in 2014, through a cooperation program, unaware of what to expect of the country. Five years later, he seeks alternatives to continue living in Brazil.

“I came here midway through the World Cup. It was a very different moment, the country was in the world showcase, the economy was going well and the prospect of getting better jobs in São Paulo made me stay.”

With higher education and employment in a multinational company, he fits within the profile of immigrants targeted by the government when it launched the national version of the “gold” visa in 2018, which grants residence in exchange for purchasing a property.

Even after the recession and with the economy still recovering, he says he made the right choice. “Opportunities exist. There are issues that still need to be addressed, such as severe urban violence and lack of infrastructure, just as in other Latin countries, but investment programs in exchange for housing can increasingly attract those who want to grow in Brazil.”

At the end of last year, a State report anticipated that the government was seeking to attract a more qualified type of immigrant – and, in addition, attract resources from abroad and boost the real estate market, which has been severely affected by the years of crisis.

Above all, the focus would be on attracting immigrants from Europe, North America, China and Latin neighbors with resources to invest in Brazil.

Of the nine authorizations granted until October, two were for German immigrants and two for North Americans. The other five, for Portuguese, Spanish, British, Czech and French immigrants.

In the period, 17 requests have been denied. According to the government, the majority were applications made using real estate purchased before the beginning of the program.

Retirees

In addition to the real estate purchase program, the government approved a resolution that makes it easier for retired foreigners to live in Brazil. The goal is to attract foreigners who earn over US$2,000 per month. Before this, these funds should be exclusively from retirement.

Now, this amount can also come from other sources, such as financial investments, rents or pensions.

“This pensioner usually invests in coastal areas and tourist resorts. Brazil wants this audience, now more focused in the Caribbean,” says Luiz Alberto Matos dos Santos, general coordinator of labor immigration at the Ministry of Justice and Public Safety.

Source: Infomoney