Can foreigners buy real estate (or any other assets) in Brazil YES
The simple answer is yes. There is absolutely no restriction on purchasing property in Brazil, whether the purchaser is a Brazilian or foreigner. Likewise the purchaser does not even need to live in Brazil. Obviously there are some requirements that must be met with regard to documents necessary.
Essentially all you really need is your CPF (Cadastro de Pessoas Fisicas) and to obtain this you will need the following documents:
A valid passport OR your RNE (Registro Nacional Estrangeiro)
Birth Certificate (long form bearing names of both parents) which must be legalized by the Brazilian Consulate in the country of issue accompanied by an official translation thereof.
There are a number of taxes and fees that will apply to the purchase of real property and several documents that you will require so please take note.
ITBI (Impostos sobre transmissão de bens imobiliários) these on average will be about 2.5% of the sale price of the property.
Deed fees (taxa de escritura) R$400 R$3,400 for property with a value between R$10,000 R$175,000
Land Registry Office fees these are charged by the Registry (Cartório de Registro de Imóveis) and they are exactly the same amounts/property values as charged for the deed fees.
Laudêmio da Marinho a federal tax imposed on beach properties within 80m of the shoreline on average 5% of the value of the property.
Laudêmio Municipal is a municipal tax that may in some cases be applied in certain areas and on average is about 2.5% of the value of the property.
Then too are the taxes and fees that relate to the transfer of funds from abroad in order to make the purchase and an additional charge for the bank draft (cheque administrative) to pay the original owner (you should use this form of payment in order to protect yourself and prove payment).
Documents that your property should have:
At the time of purchase you will want the seller to provide a Certidão Negativo from the Registry which guarantees there are no liens or other attachments.
If building your own structure ALVARA which is a building permit issued by the city/municipality.
It is imperative that your property (whether you buy an existing home or build) possess a Certidão de Habit-se pronounced HABITZ. This document certifies that the construction is registered with the city/municipality and is in a regular situation. This is of real importance when selling or re-selling since bank financing cannot be arranged without it. You would be unlikely to find a buyer who is willing or able to pay on a cash only basis for property in Brazil. Do not assume that since the property is registered with the city and subject to IPTU (property taxes) that this is an indication that the property is regular.
While any good realtor (Corretor de Imóveis) is well aware of the process and all the documents, fees, taxes, etc., you may still want to arrange for a lawyer who deals with property transactions to look everything over to make sure everything is in order.