Didn't send money into Brazil

[growler]

Like many people I bought a property in Brazil but the money didn't come into the country because the seller didn't have a permanent visa so didn't have a bank acct.
I know now that the correct thing to have done was to send it through the central Bank however I wonder if there is anyone who has personal experience and/or knowledge of this situation. I am not planning to leave Brazil at the moment but it could be a possibility in the future and I would then need the money in the UK.

I recently changed accts to a guy who seems very "on the ball" and he has said the money should have come into Brazil but the fact it hasn't isn't a major problem in itself. He said I would have a problem in that I would have to pay CGT (probably 20%) on the profits (which I expected anyway)

Can anyone help here pse?

I also have a second question, something that was touched on in the "sticky" on "Basics."
It was said that CGT was usually charged at 15% but with reductions could be reduced generally to about 6 or 7%. How is this done? I gather improvements to the property is deductable but is there anything else?

[brazilianlawyer]

For a transaction between foreigner that do not have permanent visa, it is no need to the money to come to Brazil, however the seller must pay in Brazil 15% of the profit that he had when selling the land.

It is important that the buyer makes the public deed with the correct amount paid.

About the CGT reductions, it is possible when you incorporate a REAL ESTATE INCORPORATION company, so after you build you can sell and pay less for the net profit.

If you need any further information, we are avaliable to assist you.

Regards,

Diego Sales

Originally Posted by growler

Like many people I bought a property in Brazil but the money didn't come into the country because the seller didn't have a permanent visa so didn't have a bank acct.
I know now that the correct thing to have done was to send it through the central Bank however I wonder if there is anyone who has personal experience and/or knowledge of this situation. I am not planning to leave Brazil at the moment but it could be a possibility in the future and I would then need the money in the UK.

I recently changed accts to a guy who seems very "on the ball" and he has said the money should have come into Brazil but the fact it hasn't isn't a major problem in itself. He said I would have a problem in that I would have to pay CGT (probably 20%) on the profits (which I expected anyway)

Can anyone help here pse?

I also have a second question, something that was touched on in the "sticky" on "Basics."
It was said that CGT was usually charged at 15% but with reductions could be reduced generally to about 6 or 7%. How is this done? I gather improvements to the property is deductable but is there anything else?

[jeduardo]

It was said that CGT was usually charged at 15% but with reductions could be reduced generally to about 6 or 7%. How is this done? I gather improvements to the property is deductable but is there anything else?

CGT base rate is 15%. However when you fill out the form there are several automatic deductions that reduce the effective rate to 6-7%.
Download "Ganhos de Capital 2009" from this link and plug in the numbers to see the end result of how much you would owe for a particular scenario.
Programa de Apurao dos Ganhos de Capital - GCAP2009

[growler]

Thanks for the replies. I will certainly check out the link.