Jason thanks for your question. This is a concern for many investors and like you I always consider my exit strategy when buying property abroad. I have given this question to one of our agents based in Brazil. Here is your answer:
A.Absolutely. But you must do it properly and that is not difficult at all. You must first apply for and get a Brazilian tax identification number (CPF) and that takes about a half an hour at an actual cost of R$ 4.5 or a little over £ 1. Be sure to use a reputable broker or you could wind up paying hundreds if not thousands of dollars for this “service” The money, assuming that you are applying it to the purchase of property, may be sent to the Bank of Brazil in your name against a properly executed contract of purchase and sale.
B.The Euros, pounds, dollars, or what have you will converted to Real at the prevailing official rate of exchange on the day of execution of the currency exchange. You will be credited with having “registered” that much money with the central bank and therefore be entitled to remit it and any associated capital gains, if any, resulting from a future sale. There are exemptions to the capital gains tax particularly as applies to foreigners. But that’s another story for another time.
C.There are any number of variations on this most basic scheme. You may wish to establish a Brazilian holding/operating company to hold you property, or a Brazilian subsidiary of your own company. But in the end it comes down to this: as long as the money enters Brazil through the central bank and is exchanged there at the official rate on the day of exchange, it is deemed “registered,” it is eligible for repatriation, no questions asked.
Answer source: Steven Glazer from Port of the Sun you can email Steven here
Recent Comments