Looking for information about Brazil and new friends

Hi Olga,

Wow that's a lot for one go, but I'll try not to miss anything or get it out of order.

1. Most complex banking system in the civilized world, and you can't even open a checking account unless you're a Permanent Resident, or here on a VITEM-V Work Visa and your company moves mountains to get a bank to open an account. Transfers to or from abroad will require at least 4 hours in the bank dealing with 2 or more people, none of whom seem to know what they're doing and make you wonder if they've ever handled a transfer of funds before. Mountains of documents, proof of income, residency, etc., etc., etc., required. Service is frankly crappy and service charges are astronomical. There is also a tax on financial operation like transfers on top of the transfer fees. Many banks here will not even open new accounts for US citizens in order to avoid the hassles of FATCA and FBAR reporting.

2.  Foreigners can own property, but you won't be able to get financing anywhere. Most foreigners who own homes here have made a purchase with a two payment transaction - they make an initial down payment on signing the purchase agreement and pay the balance in full on closing. Lots of bureaucracy and pitfalls to buying, you really need to find a good realtor and one you can trust. Property taxes depend on the kind of property (rural or urban), assessed value of the land and buildings.

3.  If you're a US citizen and get a 10 year, multiple entry VITUR Tourist Visa, you can come and go as you please so long as you don't stay more than 180 days in a "rolling year". Stays are calculated based solely on the entry/exit stamp dates in your passport. Each time you enter Brazil they count backwards 1 year from that date and begin counting all the days you've been in the country during that time. The result is subtracted from 180 to determine just how long you can stay. The maximum unextended stay is 90 days, then you must request an extension (usually a week to 4 days before your stay expires). You can't work or study on a VITUR Tourist Visa.

4.  There are a few (very few) good immigrations lawyers in Brazil, mostly in São Paulo.

5.  Depending on where you lived (especially in large cities) a 3BR house with garden is going to run somewhere around R$3000 or more per month. You'll also have to pay the property taxes (law here allows the owners to pass them along to tenants). If you don't know any Brazilian citizens who own property to be your guarantor then you have to pay a hefty deposit or have rental insurance.    www.bomnegocio.comwww.lugarcerto.com.br  (Portuguese only websites)

6.  Yes realtors are SUPPOSED to be licensed, but Hell we have people acting as Medical Doctors, Surgeons and Dentists who aren't licensed and haven't graduated in any of those fields. Wild West would be a gross understatement.

7.  Income taxes are on an incrimental scale based on income from 7.5% up to 27.5% most people pay the higher. Worldwide income MUST be reported and the USA has no Tax Treaty with Brazil so you have no protection against double taxation. You will also have to continue to file a 1040 annually with the IRS wherever you live in the world and you'll need to report any Brazil sourced income to them too. Then there are no less than 6 hidden taxes in EVERYTHING that you purchase (including food, overall average 22%) and on services. Imported products are also subject to a 60% import tax.

8.  Don't know about Russians, but you'll find Americans, Canadian, and Europeans almost everywhere. Just remember it is an extremely vast country so you're not going to find other expats easily.

9.  Other than the fact that most large cities have buses with wheelchair lifts or low-floor buses, this country IS NOT noted for accessibility if your daughter has mobility problems you'll go crazy here trying to get around. Sidewalks are always a major headache for a zillion reasons.

10.  Moody's is constantly downgrading Brazil's rating, the economy right now is stagnant, government scandal ridden, and HSBC has just decided to pull out of Brazil (and Turkey) which will result in the loss of 70 thousand jobs, obviously the majority of those being in Brazil.

From what I've heard the expats in Ecuador are quite happy, not too many issues there and it's certainly a lot safer a country than Brazil.

Cheers,
James      Expat-blog Experts Team

Hello Olga,

You'll enjoy your stay in Brazil, l've been living down south for over 6years and my family is well settled even though
it took me years to integrate due to language problem l'm doing fine now.
The Brazilians are friendly and always ready to help. Yes foreigners can own properties in Brazil.

Take care.
Carolkenny.

.

Hi, James!

WOW... thank you very much for your very detailed answer... i tell you... u made me feel better about Ecuador.. although i have no reason to be engaged in their bureaucracy, otherwise it probably is not much better... 
Things are changing here... a lot of new taxes are introduced... much like back home... discussion of President for Life is continuing... possible dictatorship is on people's minds...half of ecuadors gold was loaned to Goldman Saks .. they will never see it again... a law has just been passed that people cannot take out more than $5000 out of their accounts... so things are going "south" here... but life is relatively inexpensive still..I am hearing that wealthy ecuadorians are leaving the country...
By any chance.. do u know if there may be an easy way to get from Florianopolis to Sao Paulo ?.. a train ? a good quality safe bus? or even a major town closest to the Uruguay border ... to Sao Paulo ?
Difficult everywhere...
I suspect we shall come to visit... I would like to see Manaus... looked for hotels... omg.. on Travel sites... most were in $500 to $900 range.. a city of multimillionairs ??? .. i thought from there to go to Sao paulo and then to travel south toward Uruguay border ..
Any suggestions-travel tips ?  ( aside from not wearing jewelry:)

most grateful.

Olga

Hi from Spanish Peter, well not Spanish at all, just brattish
and welcome to Brazil, well when you get here
its a great place brazil, and where we live in Iguaba Grande in the state or Rio
I think its even better
not the pace of the city's, but very enjoyable
Reguard's Peter and Iraci

Hi again Olga,

There is really no national passenger train network in Brazil. The only viable options are domestic flights which are astronomically expensive, and unlike other countries flights having connections cost more than direct flights. Direct flights are exceptionally rare. Buses are priced reasonably and almost always depart on-time, but take considerably longer than air travel. Also Brazilian roads and drivers are notoriously bad so buses always have a greater risk of being involved in accidents than commercial aircraft.

If you intend to visit Manaus, be extremely careful while there. It is this country's northern hub for international drug trafficking and is presently gripped by a turf war between the local druglords (Família do Norte) and an organized crime faction (Primeiro Comando da Captital - PCC) from São Paulo who want to take over the territory. It has become an extremely dangerous city since I last lived there.

As far as the hotel rates you quote, they seem to be very much out of line. Exactly when did you check those prices? If it was in June - July 2014 then they were that high because of the FIFA World Cup. Hotel rates are much lower than that. Off-season rates should be somewhere in the range of R$150 (USD $50) - R$500 (USD $167) per night for all but the most luxurious hotel suites, anywhere in Brazil. Obviously they're going to be considerably higher during holidays, Carnaval, and other special events.

Cheers,
James

Hey Olga
Brazil is as varied as the rainbow. I have been here for about 2.5 years now, in Florianopolis, a small island and yet the capital of the state Santa Catarina. I recommend this place to most expats as the standard of living is better and more Europeans are settled here. If you decide to drop by message me for any help or information you need regarding this place.

Down south where are you Carol ?

As for income taxes, assuming an expat from the US is receiving pension, US Social Security and IRA distributions.

So the US ex-pat living in Brazil reports the total of his/her income to the IRS and pays Uncle Sam as if they we still living in the USA.

At the same time, they are required to report the same income to the Brazilian tax authorities and to pay the full (27.5% on the high-end) to the Brazilian government.

And that's BEFORE they transfer any money to themselves from their US bank.

So after paying Uncle Sam and Aunt Dilma, the ex-pat needs money to live on, so they transfer  let's say US$5,000 to themselves from the US bank to a Brazilian Bank account and then have to pay taxes on that $5,000 and on all the money they transfer over the year? Let's assume the couple grosses US$100,000 from pensions, Social Security and IRA's. So the report $100,000 to the IRS and pay taxes and they report the same $100,000 to Brazil and pay taxes on that amount and then transfer $50,000 to Brazil during the year to live on. Are they paying taxes in Brazil on $100,000 plus $50,000 = $150,000, in other words taxed twice on the same money?

Unfortunately, since the USA does not have a Tax Treaty with Brazil, US citizens here have absolutely not protection from double taxation. You may however qualify for a reduction of the tax payable in the USA if the income is taxed here in Brazil. Most US citizens use an international tax specialist because of all the complexities.

Cheers,
James     Expat-blog Experts Team

Hi Olga, I have to ask ! Why are you living Ecuador ? I have friends living there and they love it.They say that the scenery,food,hospitals ,cost of beach house in safe area  is all good.The government likes expats and their money.Thanka and welcome.