Sending Money to Brazil, Questions abt Taxes

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Viviexpat Member

Member since 27 May 2021

ViviexpatMember16 June 2021 21:15:53

Hello,

1) When USD$1 (or more) = 5 Reais is there a way that we can maximize this difference and transfer a bunch to a personal Brazilian account? What are the implications of doing that? Double taxation?
I don't believe that the dollar will always stay this high so I was thinking if there was a way to always send money to a Brazilian account.

1-B) Hypothetically, let's say I want to transfer R$ 50.000 to a personal brazilian account but I have no current job. What would be the tax implications with the Receita Federal and what's the best way to save $$$ on that?

2) Hypothetically speaking if I quit my job in US and have no income but have life's savings and move to Brazil. Then I decide to open a Brazilian bank account to pay for bills (water, electricity, internet).
Will the receita federal tax my money saved up?

3) How can I find a good tax accountant that understand these things?

4) When sending monthly money to a family member in Brazil can that be viewed as gift? how do taxes work in this regard?

5) For American foreigners who live in Brazil and earn US income (maybe online), is the taxation higher or lower than when you lived in US?

Thank you y'all.

abthree Brazil expert

Member since 28 December 2017

abthreeBrazil expert17 June 2021 14:28:50

5983

It's usually a bad idea for amateurs to try to time the foreign exchange markets.聽 The Dollar isn't high, it's low, and it's been weakening against the Real for several months now.聽 Yesterday its value dropped below R$5.00 for the first time in over a year. It bounced back a little by the end of trading, but it's not really rallying.聽聽Reais are expensive now, and it's a bad time to buy any more than are needed for immediate use.

Texanbrazil Brazil Advisor

Member since 10 February 2018

TexanbrazilBrazil Advisor17 June 2021 14:49:15

2744

abthree is correct.
Comparing the US Dollar to Real we have had a good ride, but with the Fed preparing in raising interest (which is one factor at the present) and CPI rising the dollar will decline.
Also, consider inflation in Brazil. Food, gas, gasoline and now electricity (will increase 20%) the reais does not go far.
I only transfer what I will need, plus a little cushion, since it will not give me any interest in sitting in a bank in Brazil. Presently we can only bring in $4,000 per month unless you clear moving more with the central bank.
As to taxes, everyone has different situations. US and Brazil have no treaty and who knows what the future will bring.

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