Canadian thinking about moving to Rio

Hi thinkingaboutmovingtor,

Welcome to Expat.com!

Thank you for this introduction.

I wish you get lots of new contact here.

All the best,
Christine
Expat.com team

Hello "Moving to Rio",

I am a fellow Vancouverite who has been living in Brazil for ten years now. Since you have already visited the country a few times the adaptation to a long term move won't be too difficult. You will find many practical tips and information in my post "A Gringo's Survival Guide to Brazil".

The public healthcare system here in Brazil is in absolute chaos, especially in Rio. Since you will be working for a Canadian multinational this should not be a problem for you. It is almost a certainty that you will have an excellent private healthcare plan through your employer. Other things will not be quite so easy to sort out.

Coming from one of the least bureaucratic countries in the world you will probably find it extremely frustrating to deal with the pervasive bureaucracy here in Brazil. You will need lots and lots of patience or they'll be taking you back to "Lotusland" in a straightjacket. Everything from renting apartments to visas to opening a bank account is swamped with red tape. Be prepared!

A recent study shows that Rio is the second most expensive city to live in the Americas, following closely behind New York. Hopefully you will be earning a salary that will be sufficient to warrant the move.

There is also an extremely heavy tax burden here. Not only do you pay income tax on your earnings, but also there are a great number of built-in and often hidden taxes on everything you purchase, financial transactions and as if this isn't enough you will probably end up paying the property taxes (IPTU) on any rental accommodations you arrange. This is one practice I found absolutely repugnant, paying taxes for somebody else who is already making a healthy income off MY back.

Personal security will always be a very big concern, especially in Rio. Despite all the very public efforts on the part of the government to reduce crime in Rio, it is mostly cosmetic and geared only to keeping both the World Cup and Olympic Games. The way things have turned out looks great on the surface, but all those drug-lords have gone SOMEWHERE. They operate out of other favelas or in other cities in Rio and still rule with an iron fist. Don't let the news reports give you a false sense of security. My wife is from a city in the northern part of the state of Rio de Janeiro and we are planning to move there from São Paulo sometime next year. I still have many serious concerns about the move for this very reason.

Finally, don't let the tugging heartstrings get out of control. Think with your head and not just with your heart. One thing to remember... here in Brazil EVERYBODY loves you when you're spending money (especially if it is being spent on them), however once the money runs out or stops flowing freely nobody wants to know you. Clearly this is a sweeping statement, and does not apply to everybody, but you can be sure that it is true for a great number of people. I know because I've been in that leaky boat before.

Good luck with you planning, keep in touch.

Regards,
William James (Jim) Woodward

Thanks for the reply.

I'm a long way from making a decision, but I wanted to start by looking at issues such as the ones you mention.

Regarding the "tugging heartstrings", don't worry, your point was taken in the spirit in which it was meant. It's a very valid point and it is something that I can't help but think about since we don't know each other that well yet.

If I end up with my brasileira, we will probably be in Copacabana. It's a big change from the burbs of Metro Vancouver, but I enjoy it there. Barra da Tijuca is a little too much like home.

Maybe I've been lulled into a false sense of security, but I find Rio to be much safer now than it was when I used to travel there, even walking around pretty late at night. Other than a kid eyeing my phone when I was eating at a quiosque on Copacabana one afternoon, I haven't felt the threatened in the least since I've been there.

I'm unclear about taxation by Brazil on assets in Canada such as property or other investments. Does Brazil impose a tax on foreign income such as rental or investment income (a la USA)? Can I leave money in accounts in Canada and spend it in Brazil using a Canadian credit card or is that considered tax evasion? If I bring cash or other personal belongings into Brazil, do I pay tax on them?

I own property in Vancouver, but I can't help but wonder with the market in Rio if it would make sense to invest there to "get on the elevator".

Anyway, thanks again for the reply. It will be interesting to see where this goes.

You can keep money in your accounts in Canada and use your credit card without any worries. As I understand it you must be out of Canada for 2 years before you are able to REQUEST that Canada Revenue Agency consider you as a non-resident for income tax purposes. That means you continue to file income tax returns in Canada. You will not be taxed in Brazil on any Canadian income or assets. You will have to declare your WORLD INCOME on you Canadian T1 General, however if you pay taxes on any income here in Brazil CRA will not tax your Brazilian income, they just want to know about it.

I have some questions.

If you enter Brazil on a temporary work visa, how does customs treat the personal belongings that you bring into the country? Do you pay duty on them? Do they keep a record of what you bring in and what you leave with?

How is that different if you move into Brazil indefinitely?

Also, can anyone recommend an ISP that offers service in the Copacabana area? What is a typical rate for internet service?