The Brazilian Resident Investor Program for Foreigners

[Jose C. Santiago, Esq.]

Brazil's National Immigration Council (NIC) issued Resolution 60/04 on October 6, 2004, which supersedes Resolution 28 of November 25, 1998, with respect to the issuance of permanent visas to alien investors in Brazil. With this newer rule, the amount of an investment needed for obtaining a permanent residency in Brazil was lowered to US$50,000 and this has become the easiest and fastest way of getting residency in Brazil.

You can obtain a permanent residency in Brazil, by investing the minimum amount of US$50K in, for example, a piece of real estate, such as a rental apartment or condo-hotel unit (flat) or even by opening a small business, such as a restaurant.
Under this new Resolution, a permanent visa allows a foreigner to live and work in Brazil with the purpose of investing his or her own foreign funds in productive activities or investing in existing activities in Brazil.

Under the new rules, a permanent visa can be obtained by a foreigner when the following conditions are met:

 a minimum investment of US$50,000, from individual resources in productive activities;
 the investment can be made into his or her newly opened company or in an already existing business.

The procedure is pretty easy for a foreigner; the documentation needed is basically a Power of Attorney, copy of passport, and proof of address in native country.

This is how it works: usually, a corporation is opened for the applicant (in his name - as the owner) and subsequently a bank account will be opened. Afterwards, a registration takes with Banco Central do Brasil and the minimum amount of US$50,000 is authorized to be wired from the investor's account abroad to his new corporate account. It is worth mentioning that when you transfer the money from your bank through the Central Bank of Brazil (Banco Central) to your own bank account in Brazil, that the money remains yours and stays with you at your disposal at all times and under your sole control.

Once this has been completed, Banco Central do Brasil will issue a certificate. With that certificate your visa application will be filed in Brazil, approved, issued and sent to any Brazilian Consulate abroad, as per your request, so your passport can be stamped.

Compared to other Central America Residency Investor Programs, there is no comparison. Central American countries like Costa Rica charge US$50,000 to obtain a second residency, but the investment goes to government tree planting projects that you have no control over and it is doubtful that you will ever receive a penny of profit. Consider it a donation.

Freedom to choose your investment, you can choose your own investment. It could vary a lot, from real estate to new businesses. Most foreigners, usually those who are already purchasing real estate, take advantage. But here are some direct examples:

 Holiday apartment. It might be an excellent idea for you to invest your money, where you could spend your vacations and lease it out while you are not there;
 Flats in São Paulo. Low prices, equity, non-management needs, and monthly income make these a great investment opportunity.

There are many reasons to choose the Investment Program path, some of the reasons for this are:

1. The ability for applicant to work in their own business.
2. Minimum amount of time required per year to be here.
3. The fact that the program is encouraged and pre-approved by the government.
4. Unrestricted. Applicant and family members may apply and work at any endeavor.
5. Includes entire family including spouse and children up to 18 years.
6. Brazilian Citizenship and Passport possible in only 4 year's time.
7. Favorable Tax and Extradition laws.
8. No personal appearance in Brazil is required for processing. You will pick up the Permanent Visa at the Brazilian embassy or consulate in your home country and then you will enter Brazil with the "Resident Investor Status".
9. It is good for 5 years and takes 60 days for a permanent visa to be issued.
10. You do NOT have to remain in Brazil during your residency. You can visit for as little as a few days every two years.
11. If you are single, a Brazilian Citizenship and Passport is possible after only one year of marriage to a Brazilian citizen.
12. A Resident Investor has almost all rights of a Brazilian Citizen except political. You can not vote or get politically involved.

In conclusion, there is no other program that offers a faster and better cost/benefit ratio for a foreigner than the US$50K Investment Residency Program.

Should you need additional information, please feel free to contact me.

[JOELINO]

I am a US Citizen and have contracted to purchase a condo in Brazil last year. I have already paid over $120.000 and have about $35,000 left. The condo should be finished in about 2-3 months. Is it too late to apply for the resident investor program?
Also I am married to a Brazilian Citizen. She is on the contract as well.

[debzor]

Originally Posted by JOELINO

I am a US Citizen and have contracted to purchase a condo in Brazil last year. I have already paid over $120.000 and have about $35,000 left. The condo should be finished in about 2-3 months. Is it too late to apply for the resident investor program?
Also I am married to a Brazilian Citizen. She is on the contract as well.

If you are genuinely married to a genuine Brazilian citizen, then you should have no problem whatsoever in getting permanent visa status, without the need for any investment.

The investor visa cannot be granted retrospectively for a previous 'non-business' investment, without a transfer of ownership of the asset.

[JOELINO]

Originally Posted by debzor

If you are genuinely married to a genuine Brazilian citizen, then you should have no problem whatsoever in getting permanent visa status, without the need for any investment.

The investor visa cannot be granted retrospectively for a previous 'non-business' investment, without a transfer of ownership of the asset.

Thanks for the info. I have been married for 11 years to a Brazilian Citizen. She is a US Resident. I will look into getting the permanent status as you suggested. How do I begin? Do I need a lawyer?

[RalphJ]

Originally Posted by JOELINO

Thanks for the info. I have been married for 11 years to a Brazilian Citizen. She is a US Resident. I will look into getting the permanent status as you suggested. How do I begin? Do I need a lawyer?

It's not necessary to have a lawyer. I didn't have one and it took me around a year and a half to get my permanent residency. Although most people I know do hire a lawyer that specializes in this field. It's going to take some time, a year and a half if not considered a long wait period. I currently have a portuguese friend who has invested considerably here in Brazil and he applied for his visa 20 months ago and has yet to receive it.

[debzor]

Originally Posted by JOELINO

Thanks for the info. I have been married for 11 years to a Brazilian Citizen. She is a US Resident. I will look into getting the permanent status as you suggested. How do I begin? Do I need a lawyer?

Permanent residence can be granted to foreign nationals if they have been married to a Brazilian citizen for at least 5 years. You appear to satisfy those requirements!

It is not necessary to hire a lawyer in these cases - it is quite possible for you to do all the work yourself. However if you need assitance try Home, who are a Brazil immigration consultancy but they will charge a fee.

To start with contact the Brazil Consulate General in your own country, or use the consultancy firm above.

Good luck!

[debzor]

Originally Posted by RalphJ

It's not necessary to have a lawyer. I didn't have one and it took me around a year and a half to get my permanent residency. Although most people I know do hire a lawyer that specializes in this field. It's going to take some time, a year and a half if not considered a long wait period. I currently have a portuguese friend who has invested considerably here in Brazil and he applied for his visa 20 months ago and has yet to receive it.

Ralph, I am a little confused by your comments: I agree it is not always necessary to retain an attorney if you qualify for a visa by marriage. But for the investor programme? Perhaps this might explain your experience of lengthy delays.

All the successful investor visa applicants I have come across (including, of course, myself!), were in possession of their visas within 3 months, start to finish, and all used attorneys to set up the companies and carry out the process.

Or have I misunderstood your post?

[RalphJ]

Originally Posted by debzor

Ralph, I am a little confused by your comments: I agree it is not always necessary to retain an attorney if you qualify for a visa by marriage. But for the investor programme? Perhaps this might explain your experience of lengthy delays.

All the successful investor visa applicants I have come across (including, of course, myself!), were in possession of their visas within 3 months, start to finish, and all used attorneys to set up the companies and carry out the process.

Or have I misunderstood your post?

Well, I commented on his situation of being married to a Brazilian citizen. As he wouldn't want to apply for an investors visa if he's married to a brazilian. As I'm sure you know there are some qualifications that investors have to meet every 5 years to retain their visas that would be completely unnecessary for him. And also, if/when he has a child with his wife he'll have a permanent brazilian visa for life, even if he and his wife get a divorce.

[PAUL-brasil]

Originally Posted by Jose C. Santiago, Esq.

This is how it works: usually, a corporation is opened for the applicant (in his name - as the owner) and subsequently a bank account will be opened. Afterwards, a registration takes with Banco Central do Brasil and the minimum amount of US$50,000 is authorized to be wired from the investor's account abroad to his new corporate account. It is worth mentioning that when you transfer the money from your bank through the Central Bank of Brazil (Banco Central) to your own bank account in Brazil, that the money remains yours and stays with you at your disposal at all times and under your sole control.

7. Favorable Tax and Extradition laws.

Should you need additional information, please feel free to contact me.

Hi Jose,
I think it is worth adding about the new bank acc the money stays with you at sole control, I dont believe this to be correct so please clarify more, You need a Brazilian resident to act as your business administrator to open your business and account at least until your Visa is complete and you are in Brazil, this naturally gives the admistrators powers to your account and money, so it is very important that you restrict the powers of the admistrator for your bank acc through your lawyer i.e DEFINATLY specify in a contract that the adminstrator cannot sign cheques above a small amount and limit this to a time period until your visa is complete and ready in Brazil.

Favourable tax? Income tax 15% after about R$1300 a month and 27.5% after about R$2600 a month, cant remember the exact figures. Yes of cause they are easy ways to to minimise your tax through a business just like in the UK but by letters of the Law we speak here how is tax favourable? Tax is more in the UK yes but atleast better services for what you pay for if you get my point.

Cheers
Paul

[michaelbush]

Originally Posted by PAUL-brasil

Hi Jose,
I think it is worth adding about the new bank acc the money stays with you at sole control, I dont believe this to be correct so please clarify more, You need a Brazilian resident to act as your business administrator to open your business and account at least until your Visa is complete and you are in Brazil, this naturally gives the admistrators powers to your account and money, so it is very important that you restrict the powers of the admistrator for your bank acc through your lawyer i.e DEFINATLY specify in a contract that the adminstrator cannot sign cheques above a small amount and limit this to a time period until your visa is complete and ready in Brazil.

Favourable tax? Income tax 15% after about R$1300 a month and 27.5% after about R$2600 a month, cant remember the exact figures. Yes of cause they are easy ways to to minimise your tax through a business just like in the UK but by letters of the Law we speak here how is tax favourable? Tax is more in the UK yes but atleast better services for what you pay for if you get my point.

Cheers
Paul

From personal bad experience with my business partner/administrator (see GoodGuys and Bad Guys thread) be very very careful who you allow to administrate your company, and how. As regards tax a company can opt for a scheme that charges taxes on the sales revenue (I think 3 taxes in all totalling around 6.5%), and the remainder is free to be distributed to the shareholders, and can be repatriated as well. We need a Brazilian tax expert to go through what are the best options for different scenarios, given that most people opt for a company as the easiest route to residency, and then that company has little or no trade. Where the trade is say a hotel or restaurant the best option may be totally different to a business which owns land and will develop it and sell the properties. ANY TAX EXPERTS THERE?