Sorry to hear about your problems with keeping a bank account open in Brazil. You can relativly easy get and keep a checking or savings account with Banco Santander and BBV. Drop me an e-mail and I will get you in contact with a BBV Branch Manager who can help you.
Regards-
Boris
P.S. Banco do Brasil is horrible and getting steadily worse. I´d spent 5 hours in one of their branches last Monday trying to resolve a simple issue.
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Like some others I am having trouble opening a bank account although I have my CPF number - can you help by suggesting a bank where I can still open one. Evidently the rules changed recently ??
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My wife and two children have dual citizenship and we own a home in Salvador, BA.
I procured my CPF card last trip. I could not open a bank account, although a Bradesco employee told me I could open an account w/ the CPF and a utility bill in my name.
One problem is that you get different responses from one banking company to another and even from one branch of the same bank to another branch.
Any ideas?
Tom
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Your wife can open a bank account. If you apply for permanent status, you could use the application process number to get on the account as well. Otherwise, you will not be able to open an account for yourself or to participate in any other Brazilian bank account.
There is a huge problem with opening bank account by a non-resident foreigner. There is even bigger problem with getting reliable and consistent information.
Regards,
Boris
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There will be no tax consequences for the person sending the money, but the funds can be treated as income with consequential income tax witholdings for the person who is receiving the moneys, unless you make a donation.
You can legally donate any amount in Brazil. The donation income tax on funds is 4%. The lowest tax bracket in Brazil is 15%, so the tax benefit of donation transfer is more then obvious. I recommend that you consult Brazilian accountant and/or attorney in order to get more specific answers and guide you through the actual procedures.
Regards,
Boris
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I have a European client who is in the process of buying a house here in Costa Verde. We have produced all the neccessary papers and was set to sign the contract this afternoon. The money to buy the house has arrived but is held by Banco Central and we supplied both a copy of the original property scritura,the clients CPF number etc. but they are now demanding that the client has an RNE identification document before releasing the money to his newly established poupanca bank account with Caixa Federal.
As far as I know it is not required or indeed possible for a foreigner with a CPF and just the normal tourist visa to obtain an RNE document as he is only using the house fore holidays. This is now getting very frustrating after all the pre-work done and perhaps you could offer some advice as there must be hundreds of foreigners buying houses in Brazil for holiday purposes.
Appreciate your quick reply...
Regards
Tore
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Please read my previous posting today before this one.
Having been refused to open a bank account by two banks we finally managed to
open a 'poupanca' (savings) account with Caixa Federal for my house buying customer from Europe. Our client then instructed his bank to transfer the funds to his new bank account. He had previously given a 'procuraçon' or letter of attourney to my wife to make all payments in connection with the purchase of the property. Having first had to 'chase' the money to the Banco Central clearing house we finally got information that the money had arrived and had to send them by fax a copy of the procuraçon, copy of our clients passport, his new CPF number and the 'proposta' (intention to buy statement signed by seller and buyer)
The day after we were advised by the Banco Central that his new bank account was illegal and the bank manager instructed to close it as our customer did not have an RNA (identification document) as a person living in Brazil permanently.
Our client at this point was on his holiday in another country and not easy to reach. He was horrified to hear the news and it ruined his family´s holiday. He is now trying to send an instruction to the bank in his home town to send a new release confirmation to Banco Central paying the ammount directly into my wife´s account for execution but is not sure if his bank will accept a fax instruction.
All this should not be neccessary as he has already given my wife full powers
to act on his behalf and she should theorethically be able to take the ammount out in cash directly from the Banco Central upon presentation of her
procuraçon?
The bottom line is : FROM NOW ON, FOREIGNERS CAN NOT HAVE A BRAZILIAN BANK
ACCOUNT UNLESS THEY HAVE AN RNA DOCUMENT AND ARE LIVING HERE ON A PERMANENT VISA. MONIES RECEIVED FROM ABROAD CAN ONLY BE PAID OUT THROUGH A BANK ACCOUNT. This means you have to find someone you trust absolutely and is
prepared to take the possible risk of later beeing taxed on the money.
THE END OF FOREIGN INVESTMENTS !! BRAZIL WILL REMAIN THE LAND OF THE FUTURE.
No wonder we have wars in this world with this kind of ignorance or stubbornness going on.
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You could´ve saved a lot of trouble for yourself and your client if you´d simply talked to me before embarking on this venture.
I am sorry to hear about your problems, but they by no means signify the end of foreign investment down here.
One very important lesson of living and doing business in Brazil is to learn the local ways and now to work around them. It is totally futile to fight the red tape and some rather absurd and illogical ways that abound.
There is no substitute for intelligent guidance provided by an experienced person. Why do you insist on repeating other people´s mistakes?
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Rather than criticising me for not using the experts when a national bank had already approved and opened an account for my client, why not make some constructive suggestions to resolve this problem?
Tore
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I am not criticising you. I am merely pointing that you´ve chosen the hard way of not getting things done in Brazil.
There is nothing that can be suggested by me or other people at this point. You are in the hands of Banco Central.
This is not a new situation, it has happenned before. There are still people out there who´ve suffered similar set back in 2002 (their accounts had been closed as per new regulations by Banco Central at various private banks) and who are still waiting to get their funds back. It´s been futile to try to open up a bank account since then. A few people who got through due to some personal connection or lack of professionalism/knowledge of regulations at some bank, had their accounts shot down exactly as in your case.
Now, I wish I had a chance to tell you all this before.
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Thank you Boris for the information.
I suppose I have´nt been here long enough to make use of the Brazilian jeito.
Having gone right to the top in Caixa Federal they still refuse to let my customer use the account they set up for him a few days ago on the grounds that the amount was too large and that he did not have a permanent status with an RNE. They have now closed the account and the monies returned to Europe. My customer will now use my wife´s account (brazilian) to transfer
the monies as she is also his procurador for the purchase of his house.
It still proves my earlier point that no foreigner without permanent status can open a bank account in Brazil and must resort to using a brazilian residents or business account if for example he wishes to buy property here.
This will very much limit foreign investment here as only few people have trustworthy contacts here to deposit large amounts of monied with.
I am sure Banco Central will also seriously question the validity of the money transfer and will require detailed information before clearing the funds.
I don´t know what tricks,, jeito or otherwise your experts will suggest other than carrying the money on your body when you arrive which is also a very risky business and could be liable to confiscation with the security and restrictions imposed on airport customs lately.
I would be happy to hear your suggestions...
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Re: FOREIGNERS CAN NOT HAVE BANK ACCOUNT IN BRAZIL
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August 5 2005, 9:16 PM
What you are doing is still illegal and even in your revised scheme it is highly unlikely that the central bank will approve the release of funds to your wife's account - that is, if you share with them the true "legitimate" purpose of the funds. But if your scheme somehow works, your wife will be hit with a huge tax bill - at the highest personal income tax bracket, 27.5% for the full amount of the incoming funds. Will your commission cover that?
Why shouldn't Brazil require permanent resident status to open a bank account. It is a necessary safeguard against international money laundering. It ensures that residents will pay tax on incoming funds. I note that most European countries and the USA require this, so why shouldn't Brazil?
Look for the regulations to get much tougher given today's political climate.
I agree with Boris, as an advisor/realtor you were demonstrated GROSS INCOMPETENCE and your client has grounds for a lawsuit. Your encouraging him to commit an illegal act and then further funnelling money illegally to your wife's account will likely land you with troubles with the authorities regardless.
This regulation will have ZERO effect on future foreign investment. First, take note that this botched transaction does not even qualify as foreign investment. However, a productive investment in commerce or industry would, and would qualify an investor for an investor visa, with the ability to open up the much-sought-after bank account.
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Why do you think that the transfer of funds to a physical person´s account in Brazil is illegal? Provided, of course, that the source of the funds is legitimate as well as the destination and purpose documented.
It would be up to the Receita Federal to define the tax status of the wire, but I doubt that you can get a straight answer from them. At least, I couldn´t.
The Leão would have up to five years to claim taxes, I would try to talk to a very good tax attorney who might be able to provide the guidance.
Why are you so bitter about Tore´s business venture? I am pretty sure that if there were some rational and practical ways of transfering funds for purchase of Real Estate by foreigners without permanent residential status available who´d use them vs. going through hell with the present situation...
This message has been edited by Bluster2000 from IP address 200.216.166.120 on Aug 6, 2005 7:49 AM
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I agree with your posts that this person should have done the most basic of homework before dispensing advice to an unwitting foreigner. No bitterness here, that would come from the poor client...and looks like later the poor wife! Indeed I hope the client is able to effect the purchase either on his own or by using someone who is qualified!
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I think perhaps you should leave the caipirinhas alone, they do not enhance your personality. Gracia Deus my client did not seek advice from you.
You are obviously not well informed..
1. It is perfectly legal for any foreigner to buy and own property in Brazil
as long as he has a CPF and can satisfy the authorities he intends to stay in Brazil for extended periods in accordance with his visa entitlement.
2. Any permanent resident in Brazil are allowed to receive monies from abroad provided he can document the origin of the monies and the purpose for its use. You may even (at some risk) bring it in cash provided you declare it to the customs on arrival and satisfy them with regards to the origin and purpose as under 1. above.
3. Accoding to Caixa Federal you do not need a permanent residency to open a bank account locally provided it is not used to transfer monied from abroad.
4. Given that point 1. above is legal, how do you otherwise propose to transfer the monies to buy the house?
I take it that you are in general against any foreigners coming here spoiling things and buying up properties you could not afford?
A little envious are we???
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If you devoted as much time to your client as you do to attacking those who want to warn others against using uninformed intermediaries, such as yourself, then:
1. Your client would have already been able to take possession of his house.
2. Your client would not be running the risk that he will lose the house because the seller will in the meantime sell the house to another buyer who understands how to effect payments.
Bottom line: you exposed your client to unnecessary risks, the real estate purchase is in jeopardy, the funds may never clear the central bank, and if they do, someone is going to be in for a huge tax bill... who will pay it?
In conclusion, I hope that readers of this site will peruse all the posts of this thread very carefully as a warning to all the real estate charlatans that are out here in Brazil.
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This bitter fellows comments speak for themselves, God only knows what´s riding him. My only mistake was to believe the manager of a major Brazilian bank that the transaction was regular and quite normal. If this was showing incompetancy then I stand corrected. If on the other hand our bitter friend has no solution to the problem either, then I think my integrity is intact.
As I have no intention to use this forum for idiosyncratis banter, this will be my last word on the matter and leave the forum members to make up their own minds.
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Make up your own minds indeed, and good luck to you all... As I have investments to manage and no time for useless chatter, consider this my last word on the subject - and most likely on this site.
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Amazingly, making up one´s mind is what we steadily recommend to anyone wishing to form any kind of relationship with Brazil beyond a tourist visit.
I do not understand why you label discussion and sharing experience "useless chatter". It may be useless for you, but for many people out there every little bit of information and advise is welcomed and of assistance.
I am sorry to see you go.
Best of luck with your investments.
Regards,
Boris
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You are very welcome. Actually, it is not about a jeito anymore. The time of the jeitinho is passing away. So, there is no more easier way of doing things while the rules are even more unclear and confusion in all aspects abounds.
The situation is not up to Caixa Federal to resolve. They don´t call the shots. I am glad to hear that the funds have been returned.
Please, be careful transferring the funds to your wife´r account. There might be some unforeseen tax and legal consequences for your wife. Make sure that you have complete documentation about the origins of the funds.
The difficulty of opening up a bank account for a foreigner is definetly a setback and would unquestionably deter some people from buying Real Estate in Brazil. There are other ways of handling the purchase. We are working with one of the leading law firms in Brazil on putting together a safe way of paying the seller directly.
If there is a will... there is a way...
You can carry any amount of cash on you when coming to Brazil. There are no limits, penalties, or fees as long as you declare the full amount. I ran the issue by a Brazilian criminal attorney and he confirmed the already available info by the Policia Federal. No doubt, that you better be capable of providing the source info for the funds as well as some documentation specifying its destination. Money-laundering is a big issue down here.
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Im trying to buy a condo in Bajja , my wife is from Rio .
Do we need an attorny for this money transaction of 100,000. It will go into a account than 4 payments out to the Developer until completed. Thanks for any info
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My wife and I are US citizen and are 3 years away from retirement. We plan on retiring in Brazil. We are going to brazil in Sept. for the purpose of finding and buying some real estate there. We are wanting to purchase a lot on which we will build our retirement home as well as some "off-plan" investment property. How do we arrange to have funds wired to Brazil in order to use for these purchases? I have read many horror stories about trying to make wire transfers to Brazil of this nature. We are meeting with an attorney when we arrive in Brazil for his advice and help. I would love to hear any advice you may have on this subject and how we might fund these purchases or wire transfer the funds to some type of account we can have in Brazil. We plan on getting a CPF upon our arrival. Much of the funds we wish to invest now reside in our Costa Rican bank account.
Warmest regards; Don
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My wife and I are US citizen and are 3 years away from retirement. We plan on retiring in Brazil. We are going to brazil in Sept. for the purpose of finding and buying some real estate there. We are wanting to purchase a lot on which we will build our retirement home as well as some "off-plan" investment property. How do we arrange to have funds wired to Brazil in order to use for these purchases? I have read many horror stories about trying to make wire transfers to Brazil of this nature. We are meeting with an attorney when we arrive in Brazil for his advice and help. I would love to hear any advice you may have on this subject and how we might fund these purchases or wire transfer the funds to some type of account we can have in Brazil. We plan on getting a CPF upon our arrival. Much of the funds we wish to invest now reside in our Costa Rican bank account.
Warmest regards; Don
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Re: How can I fund a Brazilian real estate purchase?
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August 16 2006, 5:54 PM
Hello Don,
Welcome to the Forum.
If you are over 50 y/o and have government or private pension over US$2K per month, you can qualify for a retirement visa. You can also bring up to three dependents with you.
Now, buying and developing real estate in Brazil would be more advantageous to do before getting your permanent status for the tax purposes.
Of course, the main problem would be opening of a bank account which is impossible without a permanent visa. There are many options available to deal with this situation. Firstly, you can have the funds wired direcltly to the seller (with proper contract, etc). Secondly, you can employ a company (real estate, law office or such) that could serve as a surrogate escrow account for the transaction... or you can bring cash. Surprisingly, many people end up bringing cash just to avoid wire and associated hussles. There are no taxes or fees on cash coming in. and any sum could brough in legally as long as it is declared on entry. Of course, physical security immediatly becomes a major issue.
If you opt for wiring the funds, you would have to make sure that there is a documented origin of the funds.
Boris Goldshmit
Licensed Real Estate Broker - Brazil
CRECI 35267
Lifestyles Brazil Real Estate Consulting
+55 21 2236-1819
+55 21 9149-6856
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Hello Boris; Thanks for the information! What is meant by "documented origin of funds" wired for a real estate purchase in Brazil. Is that simply the bank name and account information of the origin account of the wire transfer or is it something else? Don
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I wish it were that simple. No, the receiving bank might require that you provide documents for the transaction deposit as well as the documents that spell out the origin of the funds legal settlement, donation, salary, bonus, stock sale...
Usually this requirements are not upfront and could come as additional burden when the funds have already been wired and received (but not converted and deposited to the destination account).
--
Boris Goldshmit
Licensed Real Estate Broker - Brazil
CRECI 35267
Lifestyles Brazil Real Estate Consulting
+55 21 2236-1819
+55 21 9149-6856
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Do you think that investing in Brazil real estate is better than Costa Rica real estate? I am trying to find real estate in Brazil and Costa Rica. Thanks for your opinion.
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I agree with Boris.
I is no use getting angry on the system.
I tried to open a bank account Corrente, but was tild that I had to have a
Permanent visa. Well ok, then I asked if I could open a Poupanza.
It was no problem.
When I was finished, the bank asked to see my Visa.
I have a 2 years working Visa.
He told me that there was no problem to open any account with a working visa.
This was Citi Bank.
I have been in all the banks and they all have differant rules.
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I am married to a brazilian citizen and am in the process of my permanent residence. However I do have a CPF. The only bank I was able to open a bank account at was Itaú. They only needed a proof of address, my CPF number, marriage certificate, and a procuraçao from the Policia Federal verifying my passport information... Hope that helps!
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Thank you for the response, but just to avoid possible confusion on behalf of people who are desperatly trying to get a bank account open (without any perspective of filing for a permanent visa), the Certidão that you got from Policia Federal contained not just your passport info, but also your permanent visa application process number and most likely your RNE (which you probably didn´t get yet, I mean, the card).
Please, be careful, and do not plant seeds of false hope. That could lead to many people wasting plenty of time, effort, and funds, trying to get something that is impossible for them to acquire.
Boris Goldshmit
Licensed Real Estate Broker – Brazil
I have been reading a lot of your posts and it sounds like you can help me.
I recently purchased property in Brazil and everything went very easy. I am now selling the property and am having a lot of trouble getting the money out of Brazil. I have people that want to pay in cash but are not allowed to send the money via wire to my account. I also have other people that would like to purchase my properties with a mortgage but they can not get a mortgage for my properties because I do not have a Brazilian bank account.
I have heard that I can have a lawyer open an account for me. Do you know if this is possible or if their is any other solution? Please let me know.
Kevin
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I am not sure if I can help with this situation, but I most certainly do not mind trying.
If you have registered funds that came into the country and have been applied for the property purchase, you should have no problem wiring the principal and the proceeds out of the country. Of course, the capital gains will have to be paid and all the required paperwork (mindboggling) has to be complied with.
As far as opening a bank account is concerned, all depends on whether you have permanent visa or not. You might want to try opening and CC5 account (a lawyer can help you with that, I recommedn Jose Santiago who is a frequent poster on this board), but banks are usually more then reluctant to open this type of account for non-resident foreigners.
Regards,
Boris
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