Tranfering money to Brazil !- Help

B

Bashar

New Member
i bought a property in Brazil last month when i was visiting brazil, and i'm wiring the money from personal account in the U.S keeping in mind that i want to be able to get the money out of Brazil after i sell my property in 2 years or so!I understand that i have to insure that money I'm wiring has to be register in the country via Central baco do brasil to do so.

My issue is how it can be done!? My seller telling me that only thing i have to do is to wire the fund to his bank ( Caixa Federal Economia) it a Federal Bank, and it would atuomatically register in the Central Banco do brazil! is that true?

Some other stuff i read suggested the fund has to go ONLY to "Banco Do Brasil" because it's a government bank and that would take care of everything with noticing the Central Banco do Brasil.

Your input is muchly appreciated.
Bashar.
 
debzor

debzor

New Member
There is a big difference between the Government's 'Central Bank of Brasil' and the bank 'Banco do Brasil' - they are not the same thing.

If you wire transfer bank-to-bank, then the funds must go through the 'Central Bank of Brasil' and will be registered as coming into the country. Your seller will have to present a signed contract to the bank to justify the funds, before they can be released to him. If this fails, then (in the case of the CEF),the money will be automatically returned to you in 6 months.

In any event your attorney or reale estate agent will need to prepare all the paperwork to complete the escritura publica, and this document is also registered with tax people via a monthly report that the notary has to complete. (I'm assuming that you used an attorney or CRECI licensed broker, received a CPF number, etc).

You will be able to repatriate your funds if all this has been completed, and you have paid all the taxes that will be due.
 
debzor

debzor

New Member
It is really important to use the services of a fully licensed, (and internationally experienced),English speaking CRECI real estate broker and/or attorney, when buying property here - especially if you have an eye to sell in a couple of years. Otherwise you could face problems...

For example:

1/ When you want to sell, and are facing tax bills like capital gains, does your escritura reflect the price you actually paid? If not, you will be liable for the tax on the profit from the declared price in the escritura. This could be an advantage in some instances, but you need to be well advised from the outset, or it could cost you.

2/ It seems harmless to say that you are married, single or divorced. But under Brazilian law this can have huge ramifications, especially when you want to sell. If you declare you are married when you buy, but put the investment in your own name for example, you will still need the signature of your spouse, or ex-spouse, on the docs to sell it.

3/ A power of attorney (POA) is very common here, especially to buy, or act, in your absence. But you need to return to write a new one to sell your investment in due course, and no one in their right mind should give a power to buy and sell at the outset! So factor in this cost.

I suggest unless you are lucky, well advised, or a clever, experienced and informed investor - perhaps living here - do not expect to make money within 2 years. Costs to buy and sell alone are much higher than elsewhere, then there is CGT, exchange rate fluctuations, etc. Look more towards the medium term - 5 years plus...
 
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