Quote:
Originally Posted by Golfingworld
SInce when is it difficult to repatriate rents/profits?
So if you own a property in Spain or anywhere in Europe or The US, Australia, ZA the first thing you can do is open a bank account..you cannot do that in Brazil without residence. That's the first hurdle. Likewise, if you rent and are not resident you have to use a third party agent or administrator ....who do not work for free. Then all external transfers have to go through the Bank of Brazil at their chosen rates. I also beleive that you need to prove that adequate funds in Forex were imported in the first place. This is before Lawyers and accountants get involved. How can you not say that Brazil is financially complex for foreigners....it is extremely difficult and awkward. Yet another illustration as to how an Agent is in denial as to the reality of doing business in Brazil and delude themself.
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GW,
The only person deluding themselves is you which is pretty obvious when you can't have a conversation without creating your usual fictions and insulting people. I own a company in Brazil, a property and have helped numerous clients buy property and manage rentals there so I am more aware than you will ever be on the complexities of doing business in Brazil.
For the sake of others lets go over your points.
1. You cannot open a bank account in Brazil easily unless you have a visa or have a company there. Therefore you need a rental management agency to collect the rent for you. So if you weren't resident in Brazil you would not be there all the time, so how would you manage your rental property? You could find someone local willing to collect the money for you in cash and hang on to it for you until you visit, but this also raises issues like paying the bills and maintenance, etc., so it is easier to hire a letting agency to do it for you. This is pretty normal practice in most countries .....
2. Good luck opening an account as a foreigner in any of Europe, USA, Australia and having money deposited into it locally on a regular basis without getting the attention of the authorities (which means tax). You seem to also not mention the rules and regulations of buying a property as a foreigner in Australia or a lot of European countries, Brazil is a lot easier plus you get 100% freehold.
I have never done any business in South Africa so I won't even comment on ZA, but from what I have read, I don't think the authorities wouldn't even know you had bought a property there let alone rented it to someone.
3. There are quite a few ways to transfer money out of Brazil, not just the central bank. I wouldn't try it with the money from a property sale, but for rental income there won't be a problem. Only a few days ago someone posted a link here about how they have loosened up foreign exchange below a certain amount.
4. I don't know where you get the idea that you have to have bought money into Brazil to get it out without problems when talking about rental income. It is rental income, so you should declare it as such and pay your tax in Brazil (16%) which you can get credits for in most countries.