-
A STRONG FINANCIAL OPENING
Over the last few years Brazil has opened its economy up to foreign capital and investment. It is striving to promote exterior trade by doing away with import duties and political barriers and slowly eliminating the current obstacles which make it difficult for businesses to be set up on foreign capital within its territory. During the first six months of 2011, forty national policies and twenty four international agreements related to investments were approved. Amongst the most relevant measures included is the partial elimination of capital duty. As from the 3rd of December 2010 any transactions which involve the creation of corporations, capital increase, shareholders’ contributions and certain reauthorization of payments by foreign companies to Spain will no longer be subject to this tax.
-
STATE PROMOTION AND INVOLVEMENT
Over the last few years, the federal government has promoted continued and significant adjustments in its policies in relation to external capital, with the aim of stimulating new direct investment in various sectors of the Brazilian economy. The Brazilian government offers equal conditions for national or foreign investment, the investments can be carried out freely through affiliates or joint ventures, and capital can also be easily repatriated.
-
INTERNATIONAL COOPERATION
Brazil and Spain have signed various treaties to avoid the double taxation of Spanish investors in the country. The two countries maintain a very close relationship which is due in part to the numerous high profile visits conducted by representatives of them both, be they of a commercial or political nature.
-
TAX BENEFITS
Brazil has made significant tax benefits available to investors in the form of tax exemptions when reinvesting the capital. Instead of deducting from profits, these can be registered as initial capital, increasing the calculation basis, for tax reasons, of any future consignments or reinvestment of profits. If the capital invested can be justified as a general asset, there are also reductions in tax fees.
-
IDEAL LAND PRICES
In the Rio Grande Do Norte state, the month of February saw the third lowest average cost per metre squared of construction in the country, and the second lowest in the northeast. The value, calculated in reais, is 694,64, around 306 Euros. This data has been provided by the Brazilian Geography and Statistics Institute (IBGE). The cost per metre squared and the quality of construction is regulated by the government´s construction chamber (Cámara de Construcción del Gobierno), via the CUB, ‘Costo Unitario Básico’.
-
SUSTAINED GROWTH OF DEMAND
With a population of 192 million inhabitants, approximately 7000km of coastline and an estimated growth of 20% per year in the residential property market, Brazil is an emerging destination where profits have grown significantly over the last few years. The thriving demand of the middle class and the active "Mia Casa Mia Vida" plan, together with the opening up of bank credit, make the property market a business with great prospects in the long term within the construction sector.
-
HIGH BIRTH RATE
On average women in Brazil gave birth to 1.5 children per woman between 2002 and 2006, which means that the population could probably reach 207 million people in 2020, according to estimates. 60% of the Brazilian population is active and young. It is the 109th country with the highest birth rate in the world.
-
THE DEVELOPMENT OF THE MIDDLE CLASS
Brazil is currently the seventh strongest economy in the world and its current prosperity resulted in an increase in employment of 6.94% in twelve months. The Employment ministry’s report stated that the 2.86 million new jobs was a historic record, and it has significantly strengthened the country’s middle class. Brazil will overtake the United Kingdom in 2012 as the sixth most powerful economy in the world, according to the World Bank. One of its strengths is its ‘great financial solvency’ during this worldwide financial crisis.