Brazil to restrict foreign land ownership

Property investors looking to buy land in Brazil are likely to face a tightening of restrictions relating to foreign ownership.

The government in the country is drawing up a series of tough new measures which will prevent overseas buyers from purchasing agricultural land because of food security issues.

According to ministry spokesperson Denise Mantovani, ten million acres of land in Brazil was registered to foreigners by 2008.

She explained that although the current law prevents the sale of land to non-Brazilian residents, it is often ignored.

"Foreigners often bypass that rule by setting up companies in Brazil, which are controlled abroad, to purchase land. This is a foreign company and this is what we want to control," said Ms Mantovani.

"We are going to draw up an amendment that will make it clear that foreigners can invest in any sector except land."

The news may be of interest to individuals looking to buy property in Mato Grosso, with agriculture playing a large part of the region's economy.

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