Foreign Investor and capital repatriation



New Member
Reading old topics in this forum is amusing.
Till 2-3 years ago, you guys loved to post links here to articles of sites like The Economist, Financial Times, NYT and so on.
Brazil this or that, big booms, economy getting sky high, all perfect news
for your selling business.
But this kind of good news dried up. The Brazilian dream is over.
The only (fake) good news now are articles produced by yourselves or colleague real estate agents.

Like this one.
It’s the site of <snip>A guy like you, who came to Brazil a few years ago, trying to make a living as a real estate guru.
He has small office at Cavaleiros / Macae.
What kind of knowledge of Brazil can you expect?
What kind of honest information can you expect from a seller?
All his articles, he presents as if they are his articles or studies, written by him.
They are all copied from other sites, without mentioning the sourse (also real estate sellers sites, mostly).
But just insignificant pre-fab news, just for his / your interests as sellers.

I think the last thing a REAL INVESTOR should believe in is the euphoric stories of the sales man. If it's a fridge, a car or real estate.

That’s why I wonder why, now things are getting bad in Brazil, the bubble can burst any moment, we should not rely on economical magazines and newspapers any more, like a few years ago ?
Now they are lying.
Real good economical news about Brazil has dried up, it's hard to find.
The actual news about Brazil, better shut up and hide it.
Your show must go on.
Returning to the word ethics.
How about your ethics?

When you mention someone making up stories, but one look at the document linked above tells you that the sources are mostly government departments not magazine articles, so you are lying yet again.

What an ****hole you are.


Senior Member <br /><img src="http://img.propertyc

When I first invested in Brazil, the USD equivalent of what you brought into Brazil was registered at the BdB.

And that was the amount you were allowed to export again, regardless of the exchange rates of the BRL, EUR or DKK against eachother and against the USD.

Has that rule changed?


Can someone give me the tax rules for a foreign (non Brazilian resident) investor into a Brazilian company in Brazil ?

If the foreign investor invest in a local company and wants a couple of years later to repatriate his money ? How easy is it to do it ? What are the tax rules ?

During his investments, the investor will receive also dividends from the Brazilian company. Are there any withholding taxes for those ?

Please don't tell me to go the an accountant or to a lawyer ? I know that and it is what I will when the time will come. I would like to have your first opinion on it.

On internet, I have read that there is a 0% taxes on dividend and 15% on capital gains. Is this still correct ?

Thank you for your help and happy new year to all,



Never compare Brazil to other countries.
It's not only the mortgage that counts.
I think you know BraSil (with an "S") good enough. Especialy the last 2 or 3 years.
Everything they owe they still have to pay (are paying).
The governments forced the Brazilains to drown in debts.
Cars in 72 mothly payments, fridges, televisions, vacations/holydays, even the cost of the weekly supermarket they pay a month or so later.
With all their CreditCard they lost control.

An average Brazilian family is using almost half of their monthly income (last year 2012 it was about 43%) to pay their debts.

Now the economy has come to a standstill and inflation is rising badly.
The only way to get things better is to raise the interest rates again (anti inflation) and weaken the US$ (pro production/industry/export).
But this will hit hard the country, the "consumers".
Default in debt payment wills explode .
Brazilians are used to stop the payment of their debts, it's normal.
One of the first things they like to stop (like in the 80-s) is the mortgage.
They stay were they are, it will take years to get them out of there houses.
They prefer keep on paying their cars or fridges, a bank can take these things back in a few weeks.

History is repeating.

braSil is not for beginners (A.C.J.)


When RE prices raise 100% in 2 or 3 years it's considered normal.
When prices drop 50% (back to normal) it's a crash ?

From 2003-2007 Brazilian stocks were the foreign investors darling.
A guaranteed 40-50% raise a year.

Then in 2008 the Bovepa index dropped -51% in only 10 months.
For Brazil it wasn't a crash, it was a "correction".
It always happens.
In 1968 the IBovespa dropped -36% in 2 months
In 1972, -45%
In june 1989 -36% (in 1 month).
1990 -56% in 2 months.

A housing bubble doesn't explode that fast, but -50% in the next 2 years or so, looks normal. Depends on the place.
The bubble is here, no doubt.
Why so many people are trying to sell property for months, years, and they don't find any buyer ?

Political economist Erik Wibbels's work shows that busts for developing countries, particularly Latin American ones, are twice as deep and twice as long as down business cycles in developed countries. In other words, twice as much wealth is destroyed, on average, when a developing country goes into recession than when a developed country does. Adding to the pain, developing countries’ deeper recessions last twice as long too.
Likewise, statistician Morten Jerven’s research reveals that many developing countries regarded as stalled actually have dramatic boom-bust cycles where the busts are so deep that they destroy the growth from the preceding boom.


Senior Member <br /><img src="http://img.propertyc
MCMV Minha Casa Minha Vida nightmare

UK-Brazil Investment Partnership Report of

Brazil isn't mortgaged up to the hilt like the UK or US or Spain or Australia, etc., no 100,110 or even 120% LTV mortgages here. Don't forget that all the MCMV mortgages are insured as well.

Otherwise that article makes no sense, how can you have a housing bubble where property is overvalued by 50% but the bubble will deflate slowly. If it deflates slowly then it is a correction, and corrections do not cause prices to drop by 50%, that is a crash.



Senior Member <br /><img src="http://img.propertyc
MCMV Minha Casa Minha Vida nightmare

I had read your comments, and then remembered I wanted to enter something else about MCMV.
I should have entered this separately.
Instead I habitually used the reply to button.
My mistake.
I wasn't really referring to anything you had written.

What you are talking about is developers not being paid by Caixa Econômica Federal on time for various reasons.

What I was talking about was the individual mortgages taken out by the end buyers of these projects being insured.