Transferring Money US to Brazil to Buy Apartment

Cafe 1992
My husband and I bought our apartment "à vista" In May 2018, less than two years ago, and had no nightmare scenarios at all; in fact, the transaction was super easy.  Here's how we did it.

We made sure that we had a personal relationship with the management staff at Banco do Brasil, where we bank -- the back office people, not just the tellers.  This is a high-touch society, and nothing beats face-to-face contact.  I was already making a regular monthly funds transfer from my US account to my BB account for living expenses, so I had established a record with the Federal Police and the Central Bank as someone who makes regular, legit transfers, and the office staff knew my husband and me as good customers who were easy to deal with.

When we picked out an apartment and agreed on a price with the seller, we sat down with one of the assistant managers at the bank, told her how much we were going to transfer and when we wanted to close, and asked how long it would take to process the transfer when the time came.  She took down all of the information that would have to be communicated to the Federal Police and the Central Bank (I assume that this communication took place in the background), and she told me that it would be the same as my usual transfers, about two days at that time (the bank has improved its processes, and it's even faster now.).

On Monday, May 14, we and our attorney met with the seller, and confirmed that the paperwork was all in order.  That day, I requested that my US bank transfer the entire purchase price, plus some extra for taxes and fees, and for the renovations we had planned, and swung by Banco do Brasil to tell them that the funds were on the way.  We agreed to come to the bank on Wednesday the 16th with the seller to complete the transaction.

We and the seller met with our banker on Wednesday morning, she went into the BB system and released the funds, and immediately transferred the purchase price from my account to the seller's BB account.  We thanked the banker, then we and the seller went to the cartório and completed the purchase.  Completing the tax registration with the municipality took a few days more, but the time between initiating the transfer and passing papers was two days.

The banks are required by the Central Bank to use market exchange rates;  in my experience, they're close to what you'll see quoted in WSJ or FT, not quite as good as TransferWise, but reasonable.  You'll need to pay IOF, the tax on financial transactions, which at that time was 0.38%.  There was also a bank fee for delivering wire, R$275 in this case.  Any further questions, feel free to ask.  Good luck!

I too bought an condo, but I went via wiring direct to my attorney and real estate company. They took care of any fees and taxes, since I was new and did not know the system.

USDBRL has certainly swung in your favor now!

Have you done your FX operation yet?

I'm back in Brasil for 10 years and always doing it. Make sure that you have to transfer the money from US of your personal account and use Bank of Brasil in Brasil to receive your money. I had problems with all the other banks like Itau , Bradesco, Caixa economica. Open your account in the Bank Of Brasil that knows how to manage wire transfer from US. There is some branch that dont know how to mage wire transfer, 

If the money in US is from an account that is in your name you will not have any problem

Do you have any idea how much you paid? I.e. what was the spread Banco do Brasil charged you? And how much in other 'bank fees' (tarifa bancária ou despesas)?

My guess it's around 7% or 8%. A rip-off. 

Banco do Brasil, and all of the other big retail banks (Bradesco, Santander...) are complete rip-offs when it comes to these kinds of services. Ciaxa is the highest charging around 10%.

For transfers of small amounts (less than $5000) from your personal US account to your personal account in Brazil, the quickest, easiest way with the fairest price is TransferWise.

I am thinking of buying an apt also. So far the best way to transfer money is transferwise.com they give you the actual live exchange rate plus a fee. There is a daily max.

Agree with sudden series of wires. It took me about a year to get my bank and BoB comfortable. I went to BoB (not my bank) and sat down with back office and discussed any issues. 2 days later went to Bradesco and all was fine and transfers were in account next day.
I believe only allowed $4,000 U$D per month into BR, So best to wire direct to Atty/agent handling your purchase because a "surprise" will create issues with Central Bank.

I wired the entire amount to myself without any problems, but I sat down with the management staff at the bank (BB) the week before, and told them exactly how much was coming and what the closing schedule was.

But that was almost two years ago, and one thing that Brazilian bank regulation does NOT become with the passage of time is looser.

Following up on this post. I ended up having to submit evidence to the bank (Bradesco) in order to prove how I earned the money (via previous tax returns). One this worth noting is to check with the Treasury Dept (if applicable) at your company. If your company has salaries deposited at a certain bank, it is likely they would perform a lot of their FX transactions with them as well. As an employee, you may be eligible get the commercial rate rather than the typical spread charged.

Great information here thanks.
Bank of Brazil and bradesco are mentioned the most.  They are the favourites?
Building a relationship with the bank. Does this depend on how much money you have in the bank?
Short experience I’ve had with Itau was I need R$ 250000 to be a preferred customer.

All banks will require financial information on foreigners. Also, the first 2 January's they asked again, After that no issues.
Right now had to establish a face-to-face. Many are closing branches and lines are long just for ATM's.
I was HSBC and Bradesco took over, Had a little issue at first, but went to BB and spoke with them, BB sent a msg to Bradesco that I am good.

Golsucks,

About "building a relationship with a bank".  No, that doesn't necessarily depend on how much money you have in the bank, although being a regular customer certainly helps.  It's more about getting to know the backoffice staff when you open your account, and when you need questions answered, like the best way to handle your funds transfers, what types of accounts and services the bank offers, etc.  Brazil runs on interpersonal relationships; if the managers at your branch know you as a pleasant, courteous person, you stop being "that foreigner" and become "Sr. Golsucks, our client.  And a lot of the obstacles to banking in Brazil sudden shrink or disappear.

Thank you

I am selling my house here in Minneapolis, MN and moving to Brasil.

What is the easiest and quickest way to transfer $100,000 from my US bank account to my Bank of Brasil bank account?

I think you have several options. First when it goes over 50,000 Reals it’s reported to government. Second you’ll have to show documents where the money came from. They will make you pay taxes on it minimum 15% up front and 3% transfer fee. That not counting the discount in value of the exchange and fees. Here the other way but it will take time. I have Charles Schwab checking account when you take money from ATM they pay most of the fees for the debit card. You can move your money this way here the trick. You can take out more than 1,000 Reals at a time. Since you are moving over 500,000 Reals. If you were to take out 40,000 a day you could deposit it each day in your Brazilian bank no problem. You will also have the ability of getting close to the exchange rate on the debit card. So if you want to move the money not all at once and keep the value of the dollar you have that option. So you avoid high fees lower exchange rate and you can consult with a account if you need to pay taxes or when. Just a thought I know how to work the ATM to get out more that 1,000 at a time.

I didn’t see the money being transferred was for a purchase. I agree if you are using it for a purchase like we did for a car purchase went easy taxes were paid in the purchase. I was just looking into buying a apartment in São Paulo and they said there would be a 15% tax on the money transferred . Brazil doesn’t  have a tax agreement with the US. So your US taxes aren’t  credited to Brazil taxes. Brazil like the US your taxed on any money you make if you are a resident. So if your not a resident then not sure how this works.

I also have schwab and have been pulling out their max limit per day which is 5000 BRL. I asked for an increase to $5000 per day but they refused.  Trying to pull out 450,000BRL as I bought a home in Cotia.

I was able to pull out 20, 000 or more you just have to call them Charles Schwab for that day to increase your limit. Each day you want to do this they allow you that increase for that day. I pulled 80,000 in 4 days. Could have pulled 40,000 but didn’t trust the ATM machines one actually ran out . This is why when I do this go to Mall or grocery store they have multiple ATMs. The Banks have strict limits or run out of money.

Thank you to all.

Next question.  I only have a tourist visa, a CPF, and an account at BoB.  What I am seeking is a way to stay permanently.  Is that a Permanent Resident visa?  How to request and obtain?

I am going through the Chicago consulate and I cannot find anything on this visa.

How did you all get that 'Green Card' status to stay with no restrictions?  It is so confusing.  The Chicago Consulate website is terrible and confusing. 

Could anyone instruct me on what to do?  I plan to leave in 3 months and do not want to be forced to leave.  I am married to a Brazilan naturalized citizen.  We even went to the Federal Police, and nothing the person said helped, and in the end she said to just go back to the US and use the Consulate.  But, as I stated, it is even more confusing.

Any guidance would be appreciated

The way I got permanent resident was I Married my Brazilian wife. She then help me apply for permanent resident at Federal Police. If your wife has relatives in Brazil they may help. I did this in a small town not one of the big cities. It went very easy took 4 months. Check to see what documents you need to present. I would recommend doing this in small town. Never used the Consultant.

Mossman,

Since November 2017 there is no longer a "Permanent Visa", in the sense of a visa that a Brazilian Consulate will issue you that entitles you to live permanently in Brazil, and requires to Federal Police to issue you a permanent ID.  The system now is that the Consulate will issue you a Temporary Visa in the VITEM series, which allows you to enter Brazil.  The number of the VITEM visa is connected to your reason for wanting to live in Brazil.  The VITEM XI, for example, is for "family reunion", for foreigners who are married to Brazilians, in civil unions with Brazilians, have Brazilian children, or are the permanent dependents of Brazilians or permanent residents.  This was the biggest category of the old VIPER, the Permanent Visa, so it's the one most associated with it.

The holder of a VITEM XI, or another VITEM that implies residency, or even a VIVIS visitor visa, if s/he satisfies the requirements to become a resident, has up to a year to apply to the Federal Police for Authorization of Residency.  Each qualification category requires a particular set of documents to prove the applicant's status, and the Federal Police have a certain amount of discretion on what to accept.

The VITEMs track the categories, so I'll lay them out in those terms. Details are on the Chicago Consulate website visa pages.  Many allow temporary residence only, without work authorization:

VITEM I -- Academic research and teaching  -- temporary residence, for length of project or engagement

VITEM II -- Health treatment.  Undefined, probably temporary residence for length of treatment

VITEM III -- Humanitarian reception.  Undefined, probably intended for refugees

VITEM IV -- Study and internships -- temporary residence for length of course, no employment.

VITEM V -- Work.  For immigrants who have employment contracts approved by the Labor Ministry with a Brazilian firm.  Permits employment, begins as temporary residency, can become permanent.  Very difficult to get, absent special skills needed in Brazil.

VITEM VI -- Work Vacation.  Limited to applicants from France, Germany, and New Zealand.

VITEM VII -- Religious activity (Missionary)  Qualifications obvious and specialized!

VITEM VIII -- Voluntary work.  Temporary residence for length of assignment, can be extended.  No paid employment allowed, aside from any stipend provided by the volunteer program.

VITEM IX -- Investment.  Temporary residence, can be extended to permanent.  Requires investment of a defined amount of capital from overseas in an economic activity that creates jobs for Brazilians.  Approval from multiple ministries required.

VITEM X -- Economic, Scientific, Technological, or Cultural Activities.  Not defined, seems to have a lot of overlap with I and IV.

VITEM XI -- Family Reunion.  The big one for permanent residency.  Brazilians have a constitutional right to bring their spouses, parents, and children to Brazil, so this is the hardest one for the Federal Police to reject.

VITEM XII -- Artistic or Sports Activities.  This is a specialized VITEM V work visa, and many of the same requirements and limitations apply.

VITEM XIII -- International Agreement.  This visa allows temporary residency to citizens of certain immediate neighbors of Brazil, through an expedited process.

VITEM XIV -- Immigration Policy.  This is a catchall.  One relevant use that it's being put to now is to bring back Retirement Visas, which existed under the old system and lapsed with the 2017 reforms.  Some people here on the forum have been pioneers on this, and I hope will chime in.  The old Retirement Visa was permanent.  The new laws let the Federal Police grant temporary residency, but we're hopeful that that will develop into permanent residency.

Since you're married to a Brazilian, your best bet if you're still in the US is to obtain a VITEM XI, collect the documents required by the Federal Police on their website for family reunion, come back, and apply.  You want to get the application in asap, but with a VITEM XI, you have a year to straighten out any wrinkles that may arise. If you're already here on your tourist visa, you can still apply:  if you have all of your documents in order, then you'll probably have time.  I moved here from Chicago, and found the Consulate there very helpful.

I only picked up in re-reading your question that you're married to a Brazilian, so there's more information here than you need.  I'll leave it, though, because it might be useful to someone else.  Pixels are cheap! 

Hello.
Regarding using ATM for transfer.  I’m assuming you withdraw reals and immediately deposit it back into the machine into your Brazilian account. Correct?
Nobody ever questions you regarding this? 
Overall is this cheaper than using TransferWise,? 
BTW transfer wise there is a 10k max on transfers without having to contact the bank.

When we withdraw REALS we put into the bank that day. This way we know for sure we get our money. Hope this helps

How much does TransferWise charge let say for 2,000 US and how close are they to the value of the dollar to Reals. Thanks

Their fee for transferring US$2,000 to Brazil today is US$33.13.  Their exchange rate today is 5.46300.  I think that the fee is fixed.  The rate tracks the market, but is frozen as soon as you place the order, so you know exactly how many reais you're getting.

I generally put in the order the night before Transfer Day, and the money usually is available in my account between Noon and 1:00 PM, Brasília Time.

Thank that helps do they ask for SSI number to setup account

Hi all! I read some amazing post from you all… seems most have interesting stories about sending money from the US to Br. Was gonna ask the easiest way. Less headache and best fees.

-I found an apt I wanna buy in São Paulo
-once I purchase this apt I would be able to then apply for an investor visa.
-Which mean I usually go to Brazil as a tourist and have a CPF but no bank account there. So I can’t send the money to myself.
-I would be able to send it directly to the seller once the lawyer draws up the terms of agreement. 

So with what is mentioned here. Any ideas of the easiest way to send the amount to the seller? Especially if it is over 900K+ R$
Transfer wise has limits. Wasn’t sure if it’s per day or per month or even per year
All other major US Banks give the worst fees for sending to Brazil.

Need to roughly calculate the % on how much I’ll loose in the wire. I heard it was around 5%

Thank you so much !

05/29/21

Blake,

If you wire the funds directly to the sellers, they should be able to give their bank sufficient advance notice that the transaction will proceed smoothly, with minimal delays. 

You should not lose anything like 5% on the transfer itself.  I transferred dollars at a similar value to what you're planning in 2018, and was charged a fee for processing the transfer of a little over US$75 by Banco do Brasil, and 0.38% (thirty-eight hundredths of a percent) IOF, the Brazilian Financial Operations Tax.  The exchange was done at market rate, as required by the Brazilian Central Bank; the rate ties out to the historical ones I find on the Internet for that date.  My US bank did not charge me for the wire; If yours does, that certainly will add to the cost.

Where you do lose unavoidably is on the taxes.  Here in Manaus the transaction tax on the sale itself, the ITBI, was 2% of the purchase price.  The Escritura, the P&S and Deed, was another 2%.  The Averbação, the municipal registration, was another 2%.  I would expect São Paulo to charge as much, if not more.

Ahh thank you for all your amazing advice! Great to know this. Do you remember which bank in the US you used to send the money. I have Chase and their wire rates are aways like Lower than the currency exchange rates (example: now is 5.22 - chase fee would be 5.05 or something). Any other you recommend? Trying to find the best way to send it from US side.
Thank you !

05/29/21

Blake,

See the PM I just sent you.

Very interesting post. I've been searching everywhere for info on buying a property in Brazil but can't seem to find it. Not sure if I should create a new post or go here. Lmk if I should repost it ok?

1) is there a way to buy a property in Brazil without having a Brazilian bank acct? Maybe transfer the money directly to the seller? (US bank to sellers bank acct in Brazil)

2) in that case how to not fall victim of scam? What are the steps of buying a property and make sure that both parties are handling the transaction safe?

Here in the Usa we have something called escrow to make sure that the whole process is safe for both buyers and sellers.

Could you please explain about the process of buying a property in Brazil?

3) how to buy a property in Brazil without changing my fiscal status? I'm sure lots of foreigners buy places in Brazil and don't live there, therefore they don't have to declare taxes to Brazil of the income that they earn where they live full time.

Let's say a person has both US/BR citizenship but they live full time in US but wants to buy a home in Brazil for vacation. That shouldn't change his fiscal status in Brazil. So how could a person go about doing that?

Viviexpat, On my purchase I met with an attorney, She handled the negotiations with the real estate agent. Once the price was agreed upon the attorney set up an account that would hold the funds until closing. The attorney advised all parties and the seller advised its bank.
The funds were wired to the attorney's account and she had power of attorney. All went well.
There are many scams. I was lucky to have help. Find a trusted lawyer.
As to a vacation home. That is a different story. When I married and moved to Foz we kept the condo empty and then the children moved into it. Upon graduating and find employment elsewhere, we decided to rent. I transferred the property to my wife and the income is taxable!
Being a citizen you must have a CPF (One of the first things I had to do) and all transactions will require your CPF on the documents.

05/31/21

Viviexpat

1. Plenty of expats are successful in transferring funds to buy property without a bank account, so there's no reason you can't.  Brazil is a civil law country, so it can be misleading to try to translate common law terms like "escrow" into this system, but there are fiduciary methods to achieve similar results.  If you're going cold into an unfamiliar market, you probably should find a real estate agent, a "corretor/ora" that you feel you can trust.  They often are also attorneys,  which can be helpful.  Remember,  the general rule for employing experts applies in Brazil like anywhere else:  the expert works for the person paying him/her.  New construction usually advertises "Agents Onsite!"  They're usually friendly and informative,  and it is tempting to trust them to handle everything.   Don't forget that they're looking out for the developer's interests, not yours.

2. To avoid a scam, you need to ensure that the paperwork on the property is "clean", i.e., that all taxes and fees have been paid, that it's properly registered with the municipality, and that no third parties have any legal claims on it.  You need to confirm that the person selling the property really has the right to sell it to you.  And you need to ensure that all transfer taxes and registration fees are paid after the transaction.   If you have a good agent, s/he should guide you through all this.  If you're not working with an agent, I recommend having an attorney  NOT recommended by the seller review everything.  Consider hiring a civil engineer to inspect the property before you make any commitments, as well.   If the seller or anyone else resists an inspection, or suggests showing a different value in the paperwork than what you're actually paying,  or proposes any kind of informal or handshake agreement that doesn't go through a cartório and the municipal registration office, walk away.

3. Taxation is a different, if related question.   If you're going to be a property owner in Brazil, you should find a Brazilian accountant you can trust as a tax advisor.  Brazil and the US do not have a tax treaty, but their tax laws share a philosophy that the same income should only be taxed once, which works almost as well.  Brazil's Receita Federal recognizes a tax exemption for foreign income of citizens who are bona fide expats abroad.   If you generate income in Brazil, like rent from a property you own, you will be liable for Brazilian income tax on that; you'll be liable for US income tax, too, but you'll be able to offset the Brazilian tax you pay against your US tax liability.   Your Brazilian accountant may be able to keep you legal on your Brazilian income, while maintaining your expat exemption on your US income.