MATO GROSSO - BRAZIL’S BOOMING FEDERAL STATE.

INTRODUTION
There are many tempting reasons to settle down in Mato Grosso. On one side there is the very pleasant climate, the exotic charm as well as the wonders of nature and on the other side are the frank, lovely people. Brazil is the only country in South America, that never suffered under political turmoils, civil wars, etc. Because of it’s fertile soils, the very advantageous climate and the resulting wealth, Mato Grosso is today one of the richest federal states of Brazil. Compared with other Brazilian states, it has a very high quality of life. Living is much cheaper than in Europe and above all you can take advantage of the low taxes for agriculture in Brazil. Thanks to its new government under president Luiz Inácio da Silva, Brazil is now much more open for foreign investments and the population is very friendly to foreigners. The national language is Portuguese.

LOCATION AND STRUCTURE
Mato Grosso is situated in the center of South America. On its northern border are the federal states Amazonas and Pará, on the eastern Tocantins and Goias, on the southern Mato Grosso do Sul and on the western Rondonia and Bolivia. Mato Grosso consists of 148 districts with a total area of aprox. 950.000 km² and about 6.000.000 habitants. The capital is Cuiabá with aprox. 1.400.000 habitants. In the southwest locates the huge wild-life reserve PANTANAL. From the 16. degree of latitude northwards begins the fertile plateau (600 m - 800 m) , which slowly declines in direction to the Amazon River. Great parts of this plateau are almost totally even, have very fertile soils and are therefore suitable for all kinds of agriculture. Due to the comfortable climate this plateau offers you very peasant living conditions, with temperatures during the day at about 30° and cool nights with 16 - 20°. The average precipitation is about 1.700 mm/year. Beside that Mato Grosso is privileged by it’s wealth of water. The vegetation consists mainly of Cerrado (a kind of low, not very dense forest, without any useable wood), pasture and in the north of tropical rain forest. Due to its wealth, Mato Grosso has one of the lowest crime rates of Brazil.

ECONOMY AND TRANSIT
Mato Grosso is above all an agricultural state, it delivers corn, rice, maniok, cotton, sugar-cane, pure rubber, nuts, soy-beans and meat. In terms of mineral resources there are great resources of gold and diamonds. The highway system has been very developed in the last few years. Nearly all bigger villages or district capitals are now connected by asphalted highways. The highly evolved air traffic system is remarkable.

STATE AND POLITICS
Mato Grosso is one of 23 federal states in the Federal Republic of Brazil. It has an own parliament and a democratically elected governor.

THE FOREIGNER AND HIS STATUS
Brazil is open for all foreigners who meet one of the following conditions:
- marriage with a Brazilian citizen
- father or mother of a Brazilian born children
- employee of a Brazilian company or authority
- Investor of min. US$ 200.000,00
If the foreigner can meet one of these conditions, he will receive the „green card“ without time limit (Carteira mod.19).

TAXES
Mato Grosso’s agriculture pays relatively low taxes. The maximum rate is only 30% of the declared yield. Domestic personnel, simple service personnel and unskilled farm-workers earn about one minimum salary ( = US$ 100,00) per month. Skilled workers, such as tractor-drivers earn about US$ 250,00 per month. All the social taxes of the farm-workers are discounted from the harvest-yield at an amount of 2,5%.

HOW TO BUY A FARM?
In accordance with the newest Brazilian legislation anybody is allowed unlimited purchase of land for agricultural purposes. You only have to found a company (limited or stock corporation) with yourself as 100% shareholder. The procedure for the purchase generally will be as the following:
- signature of a precontract (Contrato Promessa de Compra e Venda)
- transfer of the stipulated down payment
- foundation of a Brazilian corporation
- drawing up of the notarized contract of sale (Escritura) in the name of this corporation
- transfer of the remaining funds to fulfill the contract
- registration of the contract of sale in the land registry office (Registro de Escritura)
- transfer of the corporation-shares at 100% to the investor

The extra costs for the land-buy are about 3,5% (2,5% transfer-taxes + about 1% for the notary)

We want to accentuate, that there will be no commission charged to the land-buyer!