ANNOUNCEMENT 23 Aug 2010In August 2010, the government of Brazil announced changed rules for foreign investors.
NUMBER OF INTERVENTIONS
Interpretation Law 5.709 from 1971 by the Attorny General. Published in the Official Gazette on 23 August 2010. Available at http://www.in.gov.br/
On 23 August 2010, the government of Brazil has formalized a restriction to the sale of rural land to foreigner investors and Brazilian companies in which foreign investors hold more than 50 percent.
The new regime sets the maximum amount of land to be purchased to 50 "Undefined Exploration Modules". Undefined Exploration Modules are a unit of account set in hectares that varies betwenn 5 and 10 ha depending on the region the property is located in. The property need not be continuous.
Property may only be acquired for agricultural, industrial or development purchases that is in line with the central business as specified in the statutes of the foreign investor.
Property purchases of less than three Undefined Exploration Units have been excempt from the stated regulation.