Countries › Brazil › Guide › 11. Real estate and land › Foreign ownership and leasing of rural land in Brazil: module limits, INCRA authorization, municipal caps and the pending reform bill

Foreign ownership and leasing of rural land in Brazil: module limits, INCRA authorization, municipal caps and the pending reform bill

Last verified: 2026-10-27 · Status: Changing

Brazil's Constitution lets Congress limit foreign acquisition and leasing of rural land, and Lei nº 5.709 of 1971 does so: foreign individuals resident in Brazil, foreign companies authorized to operate here and Brazilian companies majority held from abroad face area caps, INCRA authorization or ministry project approval, and municipal ceilings. The same limits apply to rural leases, and acquisitions beyond the limits, or by a foreign company of more than 100 modules, need Congress. A bill to rewrite the regime (PL nº 2.963/2019) has been waiting in the Chamber of Deputies since 2024, so today the 1971 rules still govern every deal.

USD figures use the Banco Central do Brasil PTAX selling rate of R$5.3346 per US dollar for 27 October 2026. Conversions are for orientation only.

Key facts

Maximum rural area a foreign individual may acquire	50 módulos de exploração indefinidaLei nº 5.709/1971 art. 3, as of 2026-10-27 · in force
Rural area a foreign individual may acquire without authorization (one property)	3 módulos de exploração indefinidaDecreto nº 74.965/1974 art. 7 §§ 1 and 3, as of 2026-10-27 · in force
Cap on foreign owned rural land per municipality	25 % of municipal areaLei nº 5.709/1971 art. 12, as of 2026-10-27 · in force
Cap for owners of a single nationality, as share of the foreign quarter	40 %Lei nº 5.709/1971 art. 12 § 1, as of 2026-10-27 · in force
Area above which a foreign company's rural purchase or lease needs Congress	100 módulos de exploração indefinidaLei nº 8.629/1993 art. 23 § 2, as of 2026-10-27 · in force
Validity of INCRA authorization for signing the deed	30 daysDecreto nº 74.965/1974 art. 10, as of 2026-10-27 · in force
Bill to replace the foreign rural land regime	PL nº 2.963/2019, awaiting special committee in the Chamber PL nº 2.963/2019, as of 2024-04-25 · pending

The rule

1. The Constitution requires a law to regulate and limit the acquisition or lease of rural property by foreign individuals or companies and to set the cases that need authorization from the National Congress.
Cost to do it: No direct cost; the limits below flow from this provision.Constituição Federal of 5 October 1988, Art. 190, 1988-10-05 official text · verified 2026-10-27

2. Who counts as foreign. A foreigner resident in Brazil and a foreign company authorized to operate in Brazil may acquire rural property only under Lei nº 5.709, and the same regime applies to a Brazilian company in which foreign individuals or companies resident or seated abroad hold, in any capacity, the majority of the capital. A foreign individual may acquire at most 50 módulos de exploração indefinida (MEI, an INCRA area unit that varies by region), continuous or not; up to 3 MEI the purchase is free of authorization.
Cost to do it: No statutory fee; a public deed is always required (art. 8), with notary and registry fees under state tables.Lei nº 5.709 of 7 October 1971, Art. 1 caput and § 1; art. 3 caput and § 1, 1971-10-07 official text · verified 2026-10-27

3. Individuals: when authorization is needed. Between 3 and 50 MEI, a purchase by a foreign individual needs INCRA authorization. Buying more than one property, even each of up to 3 MEI, also needs authorization, and above 20 MEI the authorization depends on approval of an exploitation project. Once INCRA grants authorization, it is valid for 30 days, within which the public deed must be signed, and the deed must then be registered within 15 days. The deed must state the buyer's identity document, proof of residence in Brazil and the authorization.
Cost to do it: No fee is set in the decree; the cost is time and the project preparation above 20 MEI. Missing the 30 day window means asking again.Decreto nº 74.965 of 26 November 1974 (regulation of Lei nº 5.709), Art. 7 §§ 1 to 4; art. 10 caput and sole paragraph, 1974-11-26 official text · verified 2026-10-27

4. Companies: project approval. A foreign company, or a Brazilian company treated as foreign, may acquire rural property only for agricultural, livestock, industrial or colonization projects tied to its corporate purpose, approved by the Ministry of Agriculture after hearing the competent body (INCRA for colonization; regional development agencies for farming; the industry ministry for industrial and tourism projects). The application must prove the municipality's total area, the rural area already held by foreigners there by nationality, prior national security assent where applicable and the company's registration.
Cost to do it: Professional cost of preparing the project and the certificates on foreign held area from the registry.Lei nº 5.709 of 1971 art. 5; Decreto nº 74.965 of 1974 arts. 11 and 12, Lei nº 5.709 art. 5 caput and § 1; Decreto nº 74.965 art. 11 caput and §§ 1 and 2, art. 12, 1974-11-26 official text · verified 2026-10-27

5. Municipal ceilings. Rural land owned by foreigners may not exceed one quarter of the area of the municipality, and persons of the same nationality may not own more than 40 percent of that quarter. Purchases under 3 MEI, rights recorded and registered with INCRA before 10 March 1969, and buyers with a Brazilian child or married to a Brazilian under a community property regime are outside these ceilings. The President may authorize, by decree, purchases beyond the ceilings for priority projects. Private colonization subdivisions must reserve at least 30 percent of the area for Brazilians.
Cost to do it: Registry certificate based on the auxiliary book of foreign acquisitions, under the state fee table.Lei nº 5.709 of 1971, Art. 4; art. 12 caput and §§ 1 to 3, 1971-10-07 official text · verified 2026-10-27

6. Leases are restricted too. A foreigner resident in Brazil and a company authorized to operate in Brazil may lease rural property only in the manner of Lei nº 5.709, and all of its limits, restrictions and conditions apply to the lease. The National Congress must authorize acquisitions or leases beyond the area and percentage limits of Lei nº 5.709, and any acquisition or lease by a foreign company of more than 100 MEI.
Cost to do it: Same approval path as a purchase; above 100 MEI for a foreign company, an act of Congress.Lei nº 8.629 of 25 February 1993 (agrarian law), Art. 23 caput and §§ 1 and 2, 1993-02-25 official text · verified 2026-10-27

7. Sanction and record keeping. An acquisition that breaches the law is null; the notary and registrar answer for damages and the seller must return the price. Registries keep a special auxiliary book of rural acquisitions by foreigners and every quarter send the list of such acquisitions to the state court inspectorate and the Ministry of Agriculture.
Cost to do it: The cost of a breach is the loss of the deal: nullity, with only the price refunded.Lei nº 5.709 of 1971; Decreto nº 74.965 of 1974, Lei nº 5.709 arts. 10, 11 and 15; Decreto nº 74.965 art. 15, 1971-10-07 official text · verified 2026-10-27

8. Pending reform. Bill PL nº 2.963/2019, which would regulate art. 190 of the Constitution anew for acquisition, possession and lease of rural property by foreign individuals and companies, is in the Chamber of Deputies awaiting creation of a special committee (latest status entry 25 April 2024, when the Speaker added the Amazon and Indigenous Peoples committee to its review). Until it passes, the 1971 regime applies.
Cost to do it: None until enacted.Projeto de Lei nº 2.963/2019 (Chamber of Deputies proposição 2268070), Status entry of 25 April 2024 (Requerimento nº 1.216/2024), 2024-04-25 official text · verified 2026-10-27

Buyer	Area	Approval
Foreign individual resident in Brazil	Up to 3 MEI, one property	None beyond the public deed
Foreign individual	More than one property, or 3 to 50 MEI	INCRA authorization; project approval above 20 MEI
Foreign individual	Above 50 MEI	Not allowed unless the President raises the limit or Congress authorizes
Foreign company or Brazilian company majority held from abroad	Any area	Project tied to corporate purpose approved by the Ministry of Agriculture
Foreign company	Above 100 MEI (purchase or lease)	National Congress
Any foreign buyer	Above municipal ceilings	Presidential decree for priority projects

Approval path by buyer and area (Lei nº 5.709 arts. 1, 3, 5 and 12; Decreto nº 74.965 arts. 7 and 11; Lei nº 8.629 art. 23).

Worked example

Farm purchase through a Brazilian subsidiary. A US parent owns 100 percent of a Brazilian Ltda. that wants to buy a farm for soybean production. Because the majority of its capital is held from abroad, the Ltda. is treated as foreign (Lei nº 5.709 art. 1 § 1) and needs an agricultural project approved by the Ministry of Agriculture (Decreto nº 74.965 art. 11) and a registry certificate showing that foreign holdings in the municipality stay within one quarter of its area (Lei nº 5.709 art. 12). If the farm exceeded 100 MEI, Congress would have to authorize it (Lei nº 8.629 art. 23 § 2).
Leasing instead of buying does not avoid the rules. The same Ltda. signing a 10 year farm lease faces the same limits and approvals as a purchase (Lei nº 8.629 art. 23 § 1).

Step by step

1. Map the buyer's ownership chain: any majority held from abroad makes a Brazilian company foreign for this purpose.
2. Find the MEI size for the municipality and convert the farm area into modules.
3. Ask the registry for the certificate of rural area already held by foreigners in the municipality, by nationality.
4. Check whether the land is in the 150 km border zone or another national security area, which needs prior assent (Lei nº 5.709 art. 7; Lei nº 6.634).
5. File for INCRA authorization (individuals) or project approval (companies); sign the deed within 30 days of an individual's authorization and register within 15 days (Decreto nº 74.965 art. 10).
6. Track PL nº 2.963/2019, which could change the regime.

Common traps

Treating a Brazilian subsidiary as local. Majority foreign capital makes it foreign (Lei nº 5.709 art. 1 § 1), and a breach makes the purchase null (art. 15).
Using a lease as a workaround. Leases carry the same limits (Lei nº 8.629 art. 23 § 1).
Buying several small plots. More than one property, even each under 3 MEI, needs authorization (Decreto nº 74.965 art. 7 § 3).
Assuming the reform has passed. PL nº 2.963/2019 is still in the Chamber of Deputies.

Sources

← Title registration and due diligence in Brazil: the matrícula, registration deadlines, deed certificates and adverse possessionITBI, the municipal property transfer tax in Brazil: base, rates, the capital contribution immunity and the 2026 national rules →