Real vs Dollar and other currency issues

[Rio Bob]

Why go out?

Actually, I just dislike seeing people get scammed like when a guy changes his name and regularly deletes posts to eliminate evidence of his outdated (lack of) knowledge of Rio.

BTW, didn't I see you in the NYC Brazil Day parade?

HMMM, looks like we still need to work on your disposition, remember this is supposed to be a fun thing, not too heavy at all, relax man, you're the lucky one who is in Rio, enjoy it.

[Exec Talent]

get off the computer and go get laid

Why go out?

Actually, I just dislike seeing people get scammed like when a guy changes his name and regularly deletes posts to eliminate evidence of his outdated (lack of) knowledge of Rio.

BTW, didn't I see you in the NYC Brazil Day parade?

[Rio Bob]

Is that when you buy an apartment in Rio you need to put up all the money. Then there is the cost and time to remodel. Give me the same amount of money you spent and the returns would be through the roof (so to speak). You guys can talk all you want about the great investments you made in buying an apartment in Rio. You did not make a good investment.

If you want to say you own an apartment in Rio, by all means, buy one. Just don't blow smoke up everyone's ass by saying you made a good investment. You didn't.

Relax, be happy, stop being so angry, it's not good for your health. If you're in Rio you should be having fun and enjoying yourself and not posting such angry toned posts such as this. Go out and have a good time and stop playing the home game, get off the computer and go get laid, put a smile on your face and stop scaring away new members, you're losing money for Jackson and he deserves it for making such a great investment in this informative site.

[Bubba Boy]

"Brazil already has 220 thousand millionaires (2008).

Yes that is correct, it is about 0.1% of the population. In comparison about 1.0% of the population of the US are millionaires.

Another interesting stat is, there are about 4000 Brazilians with a net worth above $30 million. In the US there are about 40,000.

There are about 20 billionaires in Brazil, just under 500 in the US.

[Balluba]

I will buy the drinks next time in Fortaleza early December.

There had been an honor El Greco, and to reciprocate. Unfortunately, I am not there until closer to Christmas. If you're still there then, feel free to send a PM.
B

[El Greco]

I will buy the drinks next time in Fortaleza early December.

[Balluba]

What if you sell within 5 years?

As I understand this Sperto, not an expert, but by reading and asking; you must pay CG tax 15% of your earning. If reinvested in other projects same amount or more within 6 months, then no tax.

But everybody should consult an accountant or a lawyer, to do this legal and as there are of course paperwork to be done.


We are all the time talking about European and American buyers. Most of my neighbors are Brazilians. There are 3 doctors, one own a textile factory making sports outfit , one own a hotel, one do export of skin to Italian fashion industry, etc. I guess they are middle class or upper middle class ? I am not used to those classification from my country. And I really dont care. They are extremely nice persons, to me. One even took an english courses some evenings, just to be able to share a beer and chat a little with me at the pool :-)

Someplace I read this :
"Brazil already has 220 thousand millionaires (2008).
A report released by the Boston Consulting Group (BCG) showed that 220 thousand Brazilians have, together, $ 1.2 trillion applied in the financial market. According to the Folha de S. Paulo, to belong to that group, you must have invested at least $ 1 million. Two years ago, the Brazilians formed group of 130 thousand members with $ 1.1 trillion."

Ok, this are the very rich ones. But with this increase, more people will follow soon. Maybe not the working class, but the middle class will have more money to spend.

[Sperto]

IIf you sell after 5 years of ownership of the property and it is the only property you own in Brazil, and the property sale is under R$440,000 then it is tax free on Capital Gains.

What if you sell within 5 years?

[Exec Talent]

See my comments under Rio de Janeiro - Hotels & Apartments

[Balluba]

Yes, I try:
Capital gains on the sale of a property by individuals will be subject to Brazilian tax at a rate of 15%.

Important correction, this is form another site, and written by an accountant office in Fortaleza :

This rules is specific for private people (Not a company)

1) If you sell after 5 years of ownership of the property and it is the only property you own in Brazil, and the property sale is under R$440,000 then it is tax free on Capital Gains.

Related the sales, if you sell the property after 5 years, you will have an opportunity to reinvest for buying a new land without tax within 6 months for doing the new operation. If you only sell the land after 5 years, you will pay tax.

BUT IF YOU REINVEST THE AMOUNT WITHIN 6 MONTHS YOU WON´T PAY TAX.

This mention according the Brazilian law is related the quantity of R$ amounts more than R$ 35.000,00, because if you have the amount of sale value less than R$ 35.000,00 you will not pay any tax ( will be tax free). For this rule, the property sale could be over R$ 440k.


2) a) Regardless of when you sell or the amount of sale, if you reinvest within 6 months the full amount then this would also be tax free.
b)If you reinvest with the 6months but under the full total sale price, you may pay some CG tax but can be offset against your new investment.
a) it is correct ( you will not pay tax if you do this operation ONLY once per 5 years within 6 months for bying a new piece of land);

b) it is correct ( you will pay tax for the difference)

[Balluba]

Is that when you buy an apartment in Rio you need to put up all the money. Then there is the cost and time to remodel. Give me the same amount of money you spent and the returns would be through the roof (so to speak). You guys can talk all you want about the great investments you made in buying an apartment in Rio. You did not make a good investment.

If you want to say you own an apartment in Rio, by all means, buy one. Just don't blow smoke up everyone's ass by saying you made a good investment. You didn't.

Eehhh...
I can not speak for Rio, I do not know this market. I just gave an example from the Nordeste.

My post is written with the intention that one can also look at the bright side of the currency problems. What is the case for some, is not the case for all others. The post is not written to honor myself, or boast of good investments. My apology if it is perceived so.

If one wants to own a property in Brazil, often with a view to long-term stay or a pension, it can be wise to do that for some years in advance. Not only as an investment of money, but the possibility one then have to build up a network and make oneselves known, in a very different way than as a one-week tourist at Praia do Futuro, or Copacobana.


In the end, (for me) it is not about to win the dollars, but to live as you wants, in the country you want, with the lifestyle you adore and with the women(s) you love and desire.

B

[Balluba]

Your calculations seem to be accurate. Good for you.
But can you please explain to us what short of taxes you will have to pay and how are you gonna get that money out of the country in case you sell?

Thanks

Yes, I try:
Capital gains on the sale of a property by individuals will be subject to Brazilian tax at a rate of 15%. The tax is determined by the difference between the sale price and the acquisition cost duly reported on the annual income tax return.

Because there is a tax agreement between my country and Brazil (as in most OECD countries), there will be no double taxation. Anyway, its not a theme, as its written in my laws:
Capital gains on sale of holidayhome is tax-exempt when:
the owner has used the property as a separate holiday for at least five of the last eight years.

If one wish to take the profit out of Brazil, I would believe that one can swift them, as they where swifted into the country. Everything is fully legal.
B

[Off Road]

Is that when you buy an apartment in Rio you need to put up all the money. Then there is the cost and time to remodel. Give me the same amount of money you spent and the returns would be through the roof (so to speak). You guys can talk all you want about the great investments you made in buying an apartment in Rio. You did not make a good investment.

If you want to say you own an apartment in Rio, by all means, buy one. Just don't blow smoke up everyone's ass by saying you made a good investment. You didn't.

I am not sure he said Rio. Fortaleza might be a good investment, there will be flights there from Atlanta next year and that will probably increase USA investments.
I did not buy my apartment in Rio for an investment, and only lucked out and might make some money, in dollars, because the dollar has declined. My aparmtent might have appreciated some in 2 years, but not as well as putting the money in a brazil savings account.
Although I might make money in dollars, I live here and will not be taking the money back to the USA, so what is the point of thinking in dollars, nothing.

[Magic2000]

Is that when you buy an apartment in Rio you need to put up all the money. Then there is the cost and time to remodel. Give me the same amount of money you spent and the returns would be through the roof (so to speak). You guys can talk all you want about the great investments you made in buying an apartment in Rio. You did not make a good investment.

If you want to say you own an apartment in Rio, by all means, buy one. Just don't blow smoke up everyone's ass by saying you made a good investment. You didn't.

Hi ,

My appologies to you, I was not reading your post carefully, I understand now why you think it is not a great investment in terms of where you could put money. I do agree with you, if you take financial gearing that you can get in other countries then you could make much greater returns elsewhere.

Regards,

Magic

[Magic2000]

Is that when you buy an apartment in Rio you need to put up all the money. Then there is the cost and time to remodel. Give me the same amount of money you spent and the returns would be through the roof (so to speak). You guys can talk all you want about the great investments you made in buying an apartment in Rio. You did not make a good investment.

If you want to say you own an apartment in Rio, by all means, buy one. Just don't blow smoke up everyone's ass by saying you made a good investment. You didn't.

Hi,

With the greatest of respect I would like to know why making 100K US profit is not a good investment for this person.

I am trying to learn as much as I can about Brazil and from your comment but I would appreciate more information to understand your statement please.

Many thanks,

Magic