Brazil Gives Tax Exemption to Foreign Mortgage Investors
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Brazil granted a tax exemption to foreigners who buy mortgage-backed securities or invest in funds that purchase them after sales of new debt supported by real estate loans fell almost 50 percent this year.
The tax break only applies if proceeds of the debt are used on “investment projects” and the bonds have an average maturity of at least four years, Pablo Fonseca Pereira dos Santos, deputy secretary of economic policy at the Ministry of Finance, said in an interview from Brasilia.