Getting Money In and Out of Brazil

The process of getting monies in and out of Brazil is relatively straightforward if you follow the correct procedures. We know of a few property investors who tried to bypass these rules and ended up in great difficulties. In this article, we will look at the processes involved when sending money to purchase property in Brazil and the repatriation of monies received from the sale of your property. In addition, we will look at the best way to receive your rental income.

Sending Money to Purchase Property in Brazil

When you decide to purchase your property in Brazil, funds should be sent from your own bank, lawyers or currency brokers account to the sellers account via the Central Bank of Brazil (Banco do Brasil). The Central Bank of Brazil records your funds entering into Brazil and in order to release the funds, the seller will need to present the sale and purchase contract to the bank.

Lawyers and currency brokers operate a special bank account that enables them to send money on your behalf in your name and this is acceptable by the Central Bank of Brazil.

We strongly recommend you only use this official route, or you may have problems transferring funds out of Brazil when you sell your property in the future.

Repatriation of Rental Income

You have successfully purchased your investment property in Brazil and have got some fantastic tenants. Now you want to gain access to your rental income. You cannot open a bank account in Brazil unless you have a residency visa or a business there. Therefore, we recommend the appointment of a rental management company to collect the rent on your behalf or to buy into developments that will be ran as fully managed resorts. The management company will collect rent, account for taxes, help with maintenance and transfer your rental income to your bank account.

Rental income will be taxed at source (in Brazil) by the Brazilian government at approximately 15%. Most countries worldwide will allow tax relief to be claimed against this transaction.

You can transfer rental income at anytime, but in general, this is done on quarterly or half-yearly basis. These payments will need to be transferred into an account in the name of the person who owns the property, again via the Central Bank of Brazil.

Repatriation of Capital Gains

There are generally no limitations to returning funds overseas if they were originally registered with the Central Bank of Brazil at the time of purchase. In most cases, the lawyer handling the sale will arrange the transfer of funds.

Summary

Once you follow the correct channels, you should not have any problems getting your money in and out of Brazil. Brazil actively encourages overseas investment and has one of the most sophisticated banking systems in the world. We would recommend that you read our Purchase Process section to get further details about investing in Brazil securely and successfully.

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Categories: Property Invest / Repatriation of Profits

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