The Planning Process In Brazil

By Author: Stephen Naish
Total Articles: 1
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When making an investment in land in North East Brazil there are many factors to consider. Is the land near an expanding city? What is the population growth in the area and in which direction is it heading geographically? Is your proposed purchase in a historically poor and underprivileged area? Or is it in a high demographic and desirable area? Where is the major airport positioned? Is there good motorway access? Are there good beaches nearby?

But the most fundamental aspect to consider is what planning permission does the land have? There are many terms used to describe the planning permission that a parcel of land may have. Common terms are zoned, outline planning, master-planned, urban and rural.

The exact condition of the planning permission on the land is one of the main indicators of value, as a square mete of rural scrubland is virtually worthless, whereas a square metre of rural scrubland that has outline consent for construction in place is more valuable and marketable.

Property development in Brazil is heavily regulated with the Brazilian Institute of Environment and Renewable Natural Resources ...
... (IBAMA) the premier federal agency with responsibility to propose and publish rules and standards of environmental quality, zoning and the appraisal of environmental impact assessments.

Each individual state has it's own environmental agency, Sudema in Paraiba, Semace in Ceara and Idema in Rio Grande do Norte.

In order for a development company to obtain planning permission to construct they first need to make an application to the local Town Hall. This is the first licence called an "Anuência". It is an authorization from the Town Hall that confirms that the project conforms with the town legislation.

The Brazilian Constitution of October, 5th of 1988, article 225, IV, states that in every development that may cause an environmental impact or risk, the developer is obligated to make an environmental study, that can be simple or complex, dependent upon the State environmental requirements.

In fact this article means that an environmental agency is involved in almost all cases of development and the developer will be required to obtain three licences from the state environment agency.

The second licence which will be required by a state environmental agency is the  "Licença Prévia". This is a preliminary authorization from the agency for the planning of the project, approving the location, conception, environmental viability, studies and conditions to be met in the next stages of implementation. At this stage a request for an Environmental Impact Assessment may be made, if one has not already been carried out.

The third licence required is the "Licença de Instalação". This authorizes the installation or construction of the project according to the specifications of the plans submitted, environmental studies, programs and approved proposals, including environmental control measures and other conditions.

The final licence required by the environmental agency, the Fourth Licence, is the "Licença de Operação" which authorizes the development to be operated, after the verification and compliance with the proceeding licences.

The final licence required from the Town Hall is the "HABITE-SE" which is authorization from the Town Hall confirming that the construction is in accordance with the planning applications.

As can be seen the planning process is exhaustive in Brazil and protects the environment and the purchaser.

This article was written by Stephen Naish, development consultant to Brazil Property Administration, a Brazilian real estate consultancy based in Joao Pessoa, Paraiba. Brazil Property Administration can provide consultancy services with regard to real estate investment, land acquisition, land appraisal and acquisition and project management. Please visit Brazil Property Administration for more information.