How to use FGTS to invest in a property

brazil fgts

There are several situations in which the FGTS can be withdrawn, such as dismissal for cause, retirement, among others. There are situations where the worker can withdraw the fund, even when working. In this case, one of the most common situations is to purchase a property. It is important to be very careful when using it for this purpose, as there are some rules for the process.

The first point is that the FGTS cannot be used for investment such as the purchase of a commercial property, that is, it can only be used for the purchase of a house. Another point, linked to this, is that you will need to own the property to use the FGTS. Thus, the idea of ​​withdrawing the fund to buy a property for a third party is waived.

On the other hand, the fund can be added to the fund of a third party, as long as everyone involved is listed as the owner of the house.

Rules for use

  • Whoever intends to use FGTS cannot have active financing in the SFH (Housing Finance System), anywhere in Brazil.
  • Work or reside in the municipality (or metropolitan region) where the property to be purchased is located.
  • When deciding which municipality to reside in (if you work and live in different municipalities), you cannot own any residential property in the municipality.
  • The property is intended for the worker’s home, so it must be residential and urban.
  • The maximum value of the property must be R $ 950 thousand (DF, MG, RJ and SP) and R $ 850 thousand in the other states.
  • The person who is going to use the FGTS to finance any property, must have, at least, three years of formal contract, not needing to be continuous years.
  • It is not allowed to use the fund when the property has already been financed (even if by someone else) in the last three years.
  • It is also not allowed to use it to settle overdue installments of a mortgage, through a bank.


Necessary documents

  • Personal documents, such as, RG, CPF, work card, proof of residence and birth certificate, or if you are married, of marriage.
  • Property documents, such as Registration Certificate and copy of IPTU. Said certificate must be requested at the respective CRI (Real Estate Registry Office).
  • Floor plan, or sketch, with the measures of the property.