Thinking of investing in Brazilian real estate? Whether you’re a Brazilian national or an international investor, understanding the business models behind property development is key to making a safe and profitable decision.

In coastal hotspots like Florianópolis, Balneário Camboriú, Itapema, and Porto Belo, you’ll often hear terms like Incorporação, SPE, and SPC. All three are legal frameworks that shape how real estate projects are structured, priced, and delivered.

Let’s break them down so you can make smarter investment decisions.

What Is “Incorporação”?

The Incorporação model is Brazil’s traditional real estate development framework, regulated by Lei nº 4.591/1964.

In this model, the developer:

• Owns the land or has rights over it

• Funds and manages construction

• Sells units at market value, adding a profit margin

• May partner with banks to offer financing options

Key Features:

• Buyers pay a fixed price for a future or completed unit

• Less complexity, fewer decisions for the buyer

• Ideal for those wanting a turnkey property

Price:

Typically 30–50% higher than Preço de Custo, as it includes:

• Profit margin

• Developer risk coverage

• Financing costs

• Marketing and commissions

What Is “Preço de Custo” via SPE?

Preço de Custo means “cost price.” In this structure, buyers are not just customers—they become investors or co-owners in the development through an SPE (Sociedade de Propósito Específico).

What is an SPE?

A Special Purpose Entity created solely to develop and manage one real estate project. All buyers/investors become partners (quotistas), sharing:

• Ownership of the land and project

• Construction costs

• Administrative fees

There is no fixed price or profit margin charged by a developer. Instead, you pay your share of the real construction costs.

Price:

On average, 15%–30% cheaper than traditional incorporation. The earlier you enter the project, the better the cost advantage.

Key Characteristics:

• Transparent accounting (“open books”)

• Requires capital contribution over time (linked to construction progress)

• Developer acts as project manager, not profit-driven seller

What Is “SPC” – Sociedade de Propósito Comum?

SPC is a variation of the Preço de Custo model, but with a simpler legal structure than SPE.

Instead of forming a new company (as with SPE), the buyers create a contractual association with shared responsibilities. The SPC model is more flexible and faster to set up, often used in smaller or boutique projects.

Key Differences from SPE:

• No legal entity (company) is formed

• Governed by a private contract between participants

• More agile for small to medium-sized developments

• Shared risk and costs remain, as in SPE

Common Use:

Used frequently in Florianópolis, especially in Campeche, Pantanal, and Lagoa da Conceição, where smaller-scale residential buildings (4–12 units) are developed collaboratively.

Comparison Table

Pros and Cons Summary

Real-World Example: Campeche, Florianópolis

Let’s say a 2-bedroom apartment in a traditional Incorporação project in Campeche costs R$950,000.

A similar unit in a Preço de Custo project (SPE or SPC) could cost:

• R$700,000 during early stages

• With projected market value after delivery of R$950,000–R$1,000,000

For the investor, this means:

• Capital appreciation of 30%+

• Higher return if they sell or rent after delivery

Risks to Watch

• Construction delays or cost overruns are always a possibility in Preço de Custo models

• Inexperienced project managers can misallocate resources

• In SPC models, lack of formal structure can lead to legal disputes if not well managed

• Always ensure contracts are reviewed by a trusted lawyer familiar with Brazilian property law

Final Thoughts for Investors

The Brazilian real estate market—especially in Santa Catarina—offers attractive opportunities for those who understand its legal and financial models.

• Incorporação is safer and passive

• SPE and SPC (Preço de Custo) offer better value and higher returns, with shared risks

If you’re an international investor, working with a bilingual consultant who understands both the legal and cultural landscape is essential.

Want Help Choosing the Right Investment?

Contact James Rocks, a real estate consultant based in Florianópolis and Balneário Camboriú. With years of experience assisting international buyers and investors, James can guide you through both Preço de Custo and Incorporaçãoopportunities across Santa Catarina.

📧 james@rocksinvestments.com
🌐 www.rocksinvestments.com
📍 Based in Florianópolis, Santa Catarina