How to Live and Work in Brazil-Legally

Saturday, December 19, 2009

Dear Reader,

Our Overseas Residency series, with the latest information on residency requirements in some of the countries we know are popular with many of you as second-home destinations, is now in its third week.

We've written about Belize, and a residency program that is under threat. The Qualified Retired Persons (QRP) program currently offers a range of benefits, including exemption from capital gains tax and import taxes on household goods.

The QRP program is under review, and may be significantly limited or even eliminated in the New Year.

Then it was on to Costa Rica, where there was no uncertainty. The new immigration law comes into effect on March 1, 2010, and one main difference is the amount of income needed for residency (not surprisingly, the amount required will increase).

Today's residency update is from Brazil. There are two main types of visa that are of interest here, the retiree visa and the business visa. The retiree visa is renewable every 5 years, and requires a minimum monthly income from an approved pension source of $2000 a month.

The immigration regulations for business visas changed in February this year, increasing the amount of investment needed. You also have to file a business plan showing what the business will do in Brazil. When renewing the visa after three years, you will have to prove that you followed this business plan, so you should make sure that it is feasible.

Read attorney Rui Farias' summary of these two main categories of residency in Brazil below, and the changes to the business visa. Rui specializes in property transactions, immigration and taxes. If you have any questions, feel free to contact him at (JavaScript must be enabled to view this email address).

Margaret Summerfield

HOW TO LIVE AND WORK IN BRAZIL-LEGALLY

Retiree Visa: This is for retired people with a minimum age of sixty years old, and their dependents.

You must have an income of at least $2,000 per month from an approved pension or government source. This covers the applicant and two dependents.

You'll need to provide the following:

1. Two visa application forms per applicant
2. Two passport photos
3. Copy of the passport pages of identification
4. Birth certificate
5. Marriage certificate (if applicable)
6. A clean police record from your home country
7. Proof of residence in the consular jurisdiction (a utility bill, for example)
8. Certificate issued by an official institution stating that the applicant is retired
9. Documented proof of monthly income of at least $2000 a month issued by pension provider
10. Statement issued by an official organization certifying that pension funds can be transferred to Brazil on a monthly basis. You can only transfer the money monthly.

The retiree visa is issued for five years, after which it must be renewed. Please note that some consular offices request additional documentation.

In February 2009, a new regulation was approved, changing the requirements demanded from individual investors obtaining a business visa for working and living in Brazil.

This business visa is a key aspect for investors interested in living in Brazil and working here actively. For anyone seeking business opportunities in Brazil, in order to work here legally, become an administrator in a Brazilian corporation, or execute any other actions where Brazilian residence status is demanded, this visa is essential--as well as being advantageous to the new business once it is up and running.

The new regulation created stricter and more detailed demands, in order to offer non-residents the opportunity to invest... and use the investment as a legal way to reside in Brazil.

The four main changes are as follows:

The value of the required investment is now R$ 150,000 (one hundred and fifty thousand reals). Previously, the requirement was an investment of a minimum of US$50,000 (fifty thousand American Dollars). Under the current regulations, if the R$150,000 is sent in a foreign currency, not reals, after the conversion of the funds into reals, and deduction of bank fees, the sum will have to correspond to at least R$150,000.

An investment plan must be presented along with the visa application. Previously, you did not have to present an investment plan with the visa application based on an investment of over US$ 50, 000. Under the new regulations, you must have an investment plan, indicating your planned business activity in Brazil.

The visa will be valid for 3 (three) years, once approved. Under the previous regulations, visas were valid for 5 (five) years, needing renewal at the end of this period. Now, all documents required for renewal will have to be presented before the 3 (three) year time limit is reached. The requirements are:

1. Payment for the renewal of the Foreigner Resident Card (Cédula de Identidade do Estrangeiro - CIE),
2. The original Foreigner Resident Card,
3. Validated copy of the incorporation documents of the Brazilian corporation,
4. Tax declaration of the previous year, with the confirmation that it was filed,
5. A copy of the last payment of the FGTS tax and copy of the RAIS (Annual Information of Social Information), in regards to the last two years of company activity, confirming that the number of employees has been reached as predicted in the investment plan.

The renewal of the visa will have to show evidence that the original investment plan presented was followed, particularly the number of employees hired.

The majority of the previous visa application rules were maintained, the main changes being the four listed above. The main objective of this specific type of visa is to encourage the use of foreign capital, invested in productive activities in Brazil.

The investment still needs to be done via a Brazilian company and registered at the Central Bank as a foreign direct investment to qualify for the visa.

For any questions or clarifications, feel free to contact me.

Rui Farias, Attorney, Fortaleza
E-mail: (JavaScript must be enabled to view this email address), website: www.albuquerque.adv.br.

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Posted Under:

brazil, residency

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