How sell property in Brazil and transfer funds to US legally?

I inherited a small apartment that I would like to sell.  The property is located in Brazil and I live in the US.  I am a citizen of US and Brazil.  How do I go about selling and transferring the funds.  I have a joint account in Brazil and an account in the US.  I would rather not walk with a suitcase full of cash and bring it personally in a plane.

Thanks in advance!

Hi there,
If the property is already registered on your name (after the probate procedure), you can sell it (you need to be physically present or have someone with a proxy to sign the deed). After that, you have to either set an account in Brazil and then afterwards transfer the proceeds of the sale or negotiate that the buyer sends the money directly  to the US. Sometimes this transfer part is difficult because of banking regulations, but normally it is feasible. The banks most of the times will need to be lectured on the regulations by an attorney. They are normally fearful that Central Bank is going to be punished, so they refuse doing even some basic operations to avoid any  and all risks.


Besides capital gain in Brasil of 15% over property value, do the banks charge a percentage to transfer over?  Do Brazil and US have a tax treaty finally?  I am just trying to figure out if it is worth doing it based on the % of money lost.  I saw your message also, if the amount pans out I will follow up with you.


Bank will charge foreign exchange fees and any wire transfer fees by Either US or the BR bank, sometimes both depending on the T&C of the bank accounts.
As to tax treaty; income from BR will be paid in BR. Income from US funds are taxed in US.
Cap Gains would be brazil since in Brazil

That above from TexanBrazil is correct!

I would suggest get a good accountant here in Brazil. It’s very difficult to transfer money in and out of Brazil. They love documents even when you shows it to one group you will be ask at least two or three time to do it again. The accountant will know the tax laws and best possible way to move the money. There are many expat could be easier to sell  to them who have there money in the US. Just a suggestion  show the city and location if near a beach may help get interest. Right now property is cheap here.

You are paying your Estate Inheritance Tax levvied by the State your property is at, and assuming you did not make a purchase transaction with your deceased relatives prior to the Estate Distribution process, and I stand to be corrected,  yet I do not believe you are due to  pay   Capital Gains Tax.  Capital Gains Tax is  only  excised at the difference on what you paid at the adquisition from what you sold the property.  Ihherited Estate does not count towards this form of Taxation. 

And then you are paying for wire transfer fees and you will get nailed on the Currency Exchange,  to have the money wire to the US.  Still it beats carrying cash in bags to have it seized by customs or worse,  being mugged.  These are not significant deductions and you should not dwell on this. 

Now, Uncle Sam  loves your new found money, so my advise is to put it all in tax deferred investment products, before the Good Ole lays the fingers in your windfall, if you elect to bring the money to the US...

Here are some alternatives to play legal while avoiding giving up a chunk of your inheritance to the Tax Man...

1.Put money in a tax-deferred annuity ( most retail banks have this product, it pays moderately, above you might have earn on a CD or Savings Account ) , or;

2.Fund tax-deferred accounts like an IRA or employer-sponsored retirement plan such as a 401(k), 457 or 403(b) plan.

3. Accumulate money inside a whole life insurance policy, or fund Roth IRAs, Health Savings Accounts, or by using certain types of government bonds such as Series EE Bonds or I-Bonds.

These investments do take effect only at the withdrawl. So while tied up to these investments you get to accrue interest over interest. At redemption time you will  pay
your taxes, but in the very least you vested a decent increase on your initial  Brazil to 'US cash transfer.

You are best served by seeking the help of a certified financial adviser if you choose to bring the money in the US.   

Either in the US or Brazil, the Tax Man  will fork the money over unless you are properly advised on legit  tax avoidance schemes. 

Given the actual state of affairs in the US  ( 21 USD Trillions on the hook on due interest payments on US Goverment Backed Bonds, plus USD 200 Trillion unfunded liabilities ), running annual shortfalls in the excess of half a Billion Dollars,  and the recent offset in Corporate Taxes thus shifting the burden to the middle class, I would not buy into US Treasury Bonds  rated as AAA, not to mention their  return rates are anemic.   

If for any good argument, watch these interviews from Harry Markopolos ( 1 and 2 ),

Short, simple and sweet, if you find a similar and legit deferred tax product in Brazil, keep it here.

Thank you all for your very good advice!  I will be visiting in the next few months and will try and see what I can do!

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