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Pretty sure you will have to declare it. If you don't need it right away it might be better to leave it in Canada and withdraw as you need.

Jim

Thanks, Jim. I'm declaring it of course. Trying to do everything legal here. The thing I want to know is if there will be income tax taken off this. Seems it's a rather gray area. Looking into it more now with a tax lawyer. If you have any other information, thanks for sharing it!

From what I have heard. If you pay taxes on it in your home country you will not be taxed on it here. I think you are wise to use an attorney

Jim

Thanks Jim. I'm checking with an attorney now. I won't pay income tax on this in Canada since there is no tax payed on personal inheritance there. Here in Brazil is where it gets tricky I guess. Anyway, thanks for your help!

I would ATM withdrawal when you need it. Unless you need it here immediately. I'm pretty sure sense you didn't pay taxes there (not needed) you will need to here. Attorney is your best option. Good luck!

I suggest a large suitcase and a pair of dark glasses ....you may also want to grow a moustache.

Those money belts work well. I carried enough cash to buy my car with it. 😂

Given the price of a Brazilian car you must have brought a LOT lol

Exchange rate was excellent at 1 USD was 4.1 Reals! I wasn't wearing sunglasses though. I bought a Mitsubishi Outlander.

There are no federal taxes here on local or international estates or inheritances.    As already stated however they are declarable on your local return, if you are a tax resident, in both the income section (exempt!) and assets listing  portion. 

Local estates/inheritances are however subject to state taxes (ITD) which vary by state, currently up to 8%.  Foreign inheritances however, as you have indicated, appear to be a gray area, as the enabling legislation was never passed at the federal level, which would give the states here the power to tax this.   

FYI there was a guest article on this topic yesterday in Valor:



Given the room for interpretation, you are wise to have legal counsel and do let us know if you decide to go ahead and pay the tax (or not), as this would help many others here.  Hope this helps by way of background.

Rich,

In addition to yesterday's Valor article, there was also a front-page article in Globo yesterday regarding the various states' taxes on LOCAL estates - and how these taxes increased last year, and are expected to increase further. 

You could check your specific state's ITD rate there.

There is also a separately- linked piece to this article, also published yesterday, which confirms what I mentioned above, that your inheritance  is federally tax-exempt but needs to be declared (if you are a tax resident). 

The link follows:



Do let us know if you ultimately decide that the state ITD tax applies or not to your foreign estate, as the guidance here is very murky!  And others here would be sure to benefit.

That's a timely article, Marcos. Thanks so much! I will investigate with a lawyer more and let you know what happens. As I understand it, there may be the possibility of paying the 4% tax here in Sao Paulo state in installments, which might be an option. I'd rather not pay anything of course, so will work for that. I'll keep you posted.

Love the money belt and dark glasses idea as well. Think I even have an old wig and long jacket somewhere. Let me dig around.

Rich

My advice. Since you are not paying in Canada why pay in Brazil. If you don't need the money currently, leave it in a bank in Canada and make ATM withdrawals as needed. I do this with my USA pensions.

Jim

I also do this with my pension

CraigF wrote:

Exchange rate was excellent at 1 USD was 4.1 Reals! I wasn't wearing sunglasses though. I bought a Mitsubishi Outlander.

Graig ..where did you get 4.10 reais on your dollar ???? Banks and money exchange in Brazil normally charge huge chunk  when you change money in to reais .

I  don't see problem bringing money here , if some one ask you just say this are your own personal savings no one needs to know is if inherited or you just had them. I  brought well over 100 k  with me  cash and just declared them on the border   Receita Federal  on the entry in to the country . I got  with me withdrawal bank slip from my bank overseas . You don't have to pay taxes on your own money

I exchanged with a Brazilian looking for dollars. Makes it easier for them when they travel to America. Right now I get 3.1 with ATM withdrawals plus my bank reimburses all ATM fees.

I exchanged some dollars here in Manaus and actually got a good rate the exchange rate then was 3.11 on the dollar then they exchanged at 3.01 to the dollar with a 10 centavos charge on the reais the math involved $60 USD = R$180 BRL at the published exchange rate  it should have been R$186.66 so they made R$6.66 on the exchange this was at PARCAM Cambio Change Exchange a local currency exchange across from Teatro Amazonas.  I don't know if the exchange large amounts though it might be difficult for them to do that by large amounts I mean like $1000 USD for example

Only if you make it "tricky". I am a retired financial advisor. Find one that you trust in Canada and follow his/her advice. This is so simple and easy. Only you are making it complicated (e.g., follow the advice of shut up and take little amounts as you need them). Brazil has no means of taxing monies inherited in Canada.  Who in the heck told you otherwise?

Try  Brasil Remittance in Toronto ()  I´ve been using their services for years, and they are trustworthy.    I think for income tax purposes it will depend on the amount,  they might be able to tell you. Ask for Angela.