07/07/2010
Section - Brazil
We are aware that there are many people with investments made in Brazilian property whom on attempting to realize profits from their investment property then find that they have difficulty getting that money back out of Brazil.
Brazil is a minefield of laws , regulations and controls which you have to know how to navigate to succesfully get money into the country and back out again. We can speak from Experience because we are Brazil resident UK expats.
The main challenge is navigating the Brazilian Banking system and getting the Central bank to say yes you can have your money back, you can send it back home or to another bank.
We find that many European citizens for example are applying for and getting Brazilian CPF numbers, these numbers are issued on a credit card sized plastic card with your name, date of birth and date of issue of the card. This card basically states that you are registered in Brazil as a resident. This will cause a problem, since as a non resident person this card does not really cover your true status in Brazil since is it is only
normally issued to Brazilians and permanent Foreign Citizens living full time in Brazil. There is your first problem.
When you go and apply to your Brazil bank to wire funds out of the country, the bank has to check your legal status
in the country and then that wire transfer application has to pass the central bank first. If the Brazilian Central bank does not authorise the wire transfer those funds go nowhere.
See the loop now ? You have funds in Brazil but not legally or full time resident but have a Brazil CPF number saying that you are resident,which actually means Cadastro Do Pessoas Physica! in English,
"Register of People Physically" resident in Brazil, one problem though, you are not resident.
The best way to invest in Brazil is to open a Brazilian company and Bank account usually with the help of a good lawyer who will not take you to the cleaners. The next step is run the company and bank account in association with a Brazilian Citizen or Foreign Citizen living in Brazil whom you can trust or your new lawyer "friend"
that way the Brazilian or foreign Citizen gives the orders for transfers out of Brazil and and can correctly document or "prove" to the Central bank why the transfer has to be made out of Brazil, this will encounter few if any problems. If you
need a good trust-worthy lawyer ( gulp, what ?) to open your Brazil company and Bank account, we do know TWO such people ! make contact with
us. :-) we promise you our legal contacts are the first class type that we know in Brazil. They deal almost exclusively with Foregn property investors and Brazil property deals. Get in touch! You wont regret it!