Boris,

Several years ago you helped me to open an account in Brazil and fortunately It was not closed as a result of the bank mergers, and I am still able to use it. Currently I am in the process of purchasing some land in Recreio near the canal and a condo near Recreio shopping. At some point I would like to get permanent status in order to live there full time. I am 35 years old so I can't technically retire there and I would rather avoid getting married for an RNE number, though I haven't completely ruled it out. I was told that the requirements for business investment visas has been reduced and that it is much easier to qualify for now. Knowing what I know about the rules in Brazil I am assuming that the investment needs to be made and the business open before I can apply for permanency?

I would appreciate any advice

thanks,

Jason

Hi Jason,

Below is the information you are looking for, Boris can then ad or complement my posting, but basically what you need to know is below. Should you need further information, please send me an email. Good luck!

Brazil’s National Immigration Council (“NIC”) issued Resolution 60/04 on October 6, 2004, which supersedes Resolution 28 of November 25, 1998, with respect to the issuance of permanent visas to alien investors in Brazil. With this newer rule, the amount of an investment needed for obtaining a permanent residency in Brazil was lowered to $50,000 USD and this has become the easiest and fastest way of getting residency in Brazil.

You can obtain a permanent residency in Brazil, by investing the minimum amount of US$50K in, for example, a piece of real estate, such as a rental apartment or condo-hotel unit (Flat) or even by opening a small business, such as a restaurant or lodge.

Under this new Resolution, a permanent visa allows a foreigner to live and work in Brazil with the purpose of investing his or her own foreign funds in productive activities or investing in existing activities in Brazil.

Under the new rules, a permanent visa can be obtained by a foreigner when the following conditions are met:

• a minimum investment of $ 50,000, from individual resources in productive activities;

• the investment can be made into his or her newly opened company or in an already existing business;

The procedure is quite easy for the petitioner; the documentation needed is basically a Power of Attorney, copy of passport, and proof of address in native country.
This is how it works: usually, a corporation is opened for the applicant (in his name – as the owner) and subsequently a corporate bank account will be opened. Afterwards, a registration takes with Banco Central do Brasil and the minimum amount of $50,000 is authorized to be wired from the investor’s account abroad to his new corporate account. It is worth mentioning that when you transfer the money from your bank through the Central Bank of Brazil (Banco Central) to your own bank account in Brazil, that the money remains yours and stays with you at your disposal at all times and under your sole control.

Once this has been completed, Banco Central do Brasil will issue a certificate. With that certificate your visa application will be filed, approved, issued and sent to any Brazilian Consulate abroad, as per your request, so your passport can be stamped.
Compared to other Central America Residency Investor Programs, there is no comparison. Central American countries like Costa Rica charge $50,000 USD to obtain a second residency, but the investment goes to government tree planting projects that you have no control over and it is doubtful that you will ever receive a penny of profit. Consider it a donation.

Freedom to Choose your Investment, you can choose your own investment. It could vary a lot, from real estate to new businesses. Most foreigners, usually those who are already purchasing real estate, take advantage of it. But here are some other inexpensive direct examples:
• Import/Export Company of goods or services.
• Small Lodges / Restaurants.
• Holiday apartments. It might be an excellent idea for you to invest your money, where you could spend your vacations and lease it out while you are not there.
• Flats in Sao Paulo. Low prices, equity, non-management needs, and monthly income make these a great investment opportunity.

There are many reasons to choose the Investment Program path, some of the reasons for this are:

1. Small amount of money needed to obtain a permanent visa.
2. Diverse possibilities of investment.
3. 100% control of your money.
4. Benefits of having a bank account in Brazil, such as bank investment and bill payments.
5. The ability for applicant to work in their own business.
6. Minimum amount of time required per year to be here.
7. The fact that the program is encouraged and pre-approved by the government.
8. Unrestricted. Applicant and family members may apply and work at any endeavor.
9. Includes entire family including spouse and children up to 18 years.
10. Brazilian Citizenship and Passport possible in only 4 year’s time.
11. Favorable Tax and Extradition laws.
12. No personal appearance in Brazil is required for processing. You will pick up the Permanent Visa at the Brazilian embassy or consulate in your home country and then you will enter Brazil with the "Resident Investor Status".
13. It is good for 5 years and takes 60 days for a permanent visa to be issued.
14. You do NOT have to remain in Brazil during your residency. You can visit for as little as a few days every two years.
15. If you are single, a Brazilian Citizenship and Passport is possible after only one year of marriage to a Brazilian citizen.
16. A Resident Investor has almost all rights of a Brazilian Citizen except political. You can not vote or get politically involved.

In conclusion, nowadays, there is no other program that offers a faster and better cost/benefit ratio for a foreigner than the $50K Investment Residency Program.

Thanks for the info. This seems like the way to go. I may be in touch in the future.

- Jason

Jason,

There is little I could add to Jose´s post. Beware of the costs and headaches of opening and running a company in Brazil.

Regards,
Boris

I was told that I could not open a company in my name in brazil without permanency.
I understand the costs of registration of the business and retaining an accountant and I know that there is nothing about this process that is simple or direct and that sometimes things cost "a little extra".
Do I need to have a Brazilian business partner to start a new business as a rental company for an apartment that is in my name or only a Brazilian with power of attorney to assist in establishing the company remotely?
Are there tax advantages to buying the apartment before applying for permanency?

Thanks again.

Jason

Hi Jason,

No, whoever told you that is misinformed, you can open a BRA company being a foreigner, regardless of your visa status. What you will need is a partner, which could be a foreign company and/or someone else. What you need is a brazilian administrador (registered agent), which could be your attorney or CPA.

There are no tax advantages for buying an apartment before applying for residency, as a matter of fact, you should take advantage of bringing the funds for this purchase and get your permanent residency through the $ you are bringing and through the investment visa.

Good luck!

I have two questions:

1 - you stated that an apartment rental business can qualify as a business for purposes of obtaining this visa. However, if you use it for personal use while you're in Brazil, at what point does it stop being a business and become a residence.

2 - my understanding is that to incorporate in Brazil is a much longer process than incorporating in the US (which can be done overnight). how long should one expect this process to take, and to cost.

Boris, Jose or anyone else who cares to comment,

How would someone go about trying to establish permanent investor status if he already owns an apartment in Brazil?

Hello JP,

Jose would probably be able better to explain the details, but I am pretty sure that the apartment already owned can´t be used to satisfy the requirements for the the investment visa.

I am a little weary about using residential real estate for this purposes. I know that it is possible to concact a schema where it can be done, but I am not confident that it'd work in the long run.

Regards,
Boris

Hi JP, basically, cannot take advantage of the purchase money you used to purchase your current apartament, as the transfer must have been registered with Banco Central do Brasil for the especific scope of direct investment.
I hope I answered your question.
Good luck.

Hi Jose & Boris

Thanks again for all of the helpful information that you have provided in the past.

What is the process for registering the investment with Banco Central, are the forms to fill out?

Assuming that I am able to get permanencia, can I import personal belongings and furnishings without a big tax?

Thanks again,

Jason

Hello Jason,

I am not sure about the exact process, our lawyers take care of it. All I know is that the company receiving the investemnt has to be registered with the Banco Central, the investor also has to have an investment registration number, and then the actual investment can be registered.

As far as I know, it is all done on-line.

If you get permanent visa, you can bring personal belongings an furnishings without any taxes. As far as the exact rules and specifics, it is better to check with the Aduana and a dispachante specializing in relocation.

how long is permanent good for? do you need to invest again after 5 years?

The visa is good for 5 years and you may renew it or apply for citizenship.

Good luck!

Hell Boris

I have been keeping an eye on the RNE or permanencia criteria through this board and I must say the information you provide is very insightful and helpful.

My question is:

If a foreigner applies for and receives a permanent investor visa in Brazil how does the Brazilian Government look at earned income overseas?

I would guess with a permanencia one would be required to file a Brazilian tax return correct? If so, would one be required to show his US Tax return to the Brazilian Government as well and would the Brazilian Government tax you on income earned outside of Brazil? Keep up the good work!!

Jonny

Hello Johnny,

As far as I know, Foreign residents in Brazil are supposed to be taxed on world-wide income. Now, the reality, of course, is very different.

For details, I would recommend contacting Deloitte or any of the other remaining "Big" ones that have operations in Brazil. Do not count on getting correct information from local CPAs or Brazilian Government officials.

Good luck,
B

I have a question related to shipping of personal effects on an investment visa .

My visa application was completed last year, from the UK. However as well as my personal effects from the UK I also have some household effects I want to ship from the US - so this would be two separate shipments, one from UK and one from the US? Is this permitted under the terms of the visa, and can anyone offer any assistance in clearing this in BR customs?