High cost of living in SP and how to economize

Thanks..Good list of suggestions...Keep writing

Great article, thanks a lot..

Another serious concern about grocery shopping is the fact that there are no less than six (6) different taxes built into the shelf price for all the things you buy. They are not listed separately, rather they are hidden in the price. On average you pay 22.5%, some products are less than that others considerably higher, up to 57% or more. You really should do an internet search of the tax rates that apply to all the various items. You may want to consider changing many of your buying habits to cut down on the tax load. No more sinful stuff or comfort foods..... they really get hit hard with taxes. Chocolate costs more here in Brazil where we grow the stuff than it does in the USA where it is imported, just because of the high tax load.

Here are some of the sobering figures:

Chocolate drink powder 38.6%, sugar 32.33%, water 37.88%, mineral water 43.91%, rice 17.4%, potatoes 11.22%, cookies 37.30%, cachaça  81,87%, coffee 19.98%, shrimp 33.29%, beef 17.47%, chicken eggs 20.59%,turkey & ham 29.32%, chocolate 38.6%, wheat flour 17.34%, beans 17.24%, yeast 38.48%, milk 18.65%, milk powder 28.17%, butter 36.01%, tomato sauce 26.05%, vegetable oil 26.05%, French bread rolls 16.86%, fish 34.48%, juice/drink mixes 36.30%, soft drinks (can) 45.80% (bottle) 43.91%, juice (ready to drink) 36.21%, wine 54.73%, whisky 61.22%.

But wait! If you think that you’ve had enough and you are just going to eat out from now on… don’t forget that the tax built into restaurant meals is 32.31% so you can’t win no matter how hard you try.

Cheers,
William James Woodward - Brazil Animator, Expat-blog

As Brazil Animator I often get asked about the cost of shipping personal belongings to Brazil from abroad. My advice is always the same so I am adding it to this C.O.L. posting.

The cost of shipping household furnishings is prohibitively high, so unless your employer here in Brazil will pay the costs or the furniture you have consists of rare antiques or items that have great sentimental value and thus can't be replaced - FORGET THE IDEA COMPLETELY. You will probably be able to replace much of what you left behind with brand new furnishings here for what the shipping costs would be.

One must also consider that many electrical items such as household appliances and electronics may not even work here, or require expensive modifications in order to make them work. Depending on where you live in Brazil you will find that you will have either 110v or 220v service. Most items will require either an adaptor plug or having a new power plug installed by an electrician or technician. Some items will require either step-up or step-down tranformers depending on voltage. Depending on your country of origin televisions may not even function here because of the type of signal system.

Another factor involved is the legal liability for using electrical, gas or other items that are shipped to Brazil. These will not bear the INMETRO seal proving that the product has been tested and meets Brazilian safety standards. While your appliances obviously will bear a similar seal issued by your home country, it is NOT recognized here and you could end up with a whole pile of headaches and legal problems should something you've brought into the country malfunction and injure someone or cause a fire for example.

Many things such as desktop computers, notebooks, netbooks, tablets and cellular phones will work here and it is worthwhile bringing them with you. You should however be aware of the legal issues involved by them not having the INMETRO seal and be willing to accept the risks involved.

The most economic way to bring personal belongings with you to Brazil by far is to pack up the 'must have' things that you simply cannot replace or do without into several sturdy boxes and bring them as excess baggage on the aircraft you fly here in. The big advantage here is that it arrives were you arrive, when you arrive and the excess baggage charges are quite low. (Check your airline).

Cheers,
William James Woodward - Expat-blog

Hi,
William thanks, very interesting information you have.
You can add to this, save money on own purchases.

EXAMPLE:
salary around R$7000 - R$8000 per month.
- Renting an apartment: R$1000 per month
- Condominium fees, "can be almost equal to the rent": R$1000 per month
(property taxes, rental insurance)
- Grocery Shopping and Eating Out:  R$500 per month per person
- clothes
- cosmetics
- petrol, car
- pleasure (cinema, theater, restaurant, clubs)
- trips, holidays
- doctor, dentist, optometrist
- services: it, clining, car service, hairdresser, etc.
- etc.

If you add all expenses, I think that will be R$4,000 - R$5,000per month
Then subtract 1-2% cash back is: R$40-80 - R$50-100 per month
Every year is: R$480-960 - R$600-1,200

Enough for something?

Everybody doing shopping, why not take refund from purchases?

William, I'm wrong?
Regards,

HI WOODWARD,

UR WRITING ARE VERY HANDY FOR ANYBODY WHO WISH TO
LIVE IN BRAZIL.CAN U PLEASE LET ME KNOW,WHAT IS THE
BEST WAY TO COME TO BRAZIL FOR WORK AND LIVE.

THANKS
KVPRASAD7862004@YAHOO.COM

Hello kevigaru -> I suggest you to start a new thread on the Sao Paulo forum with your questions.

PS: Please lower your caps lock when writing so as to ease the reading.

Thank you,
Aurélie

thanks very helpful

This is great info!  Thanks a lot

Tks for the invalueable information on cost of living

hi can u please tell me the cost of second hand cars in Sau Paulo??

phatima,

It depends on what you want but you can get a general idea by checking out the automobiles section in the São Paulo pages of

www.bomnegocio.com

Also, you need to be aware that you are only permitted to drive in Brazil with a translated foreign dirivers license for a maximum of 180 days (six months) beyond that point you must have a Brazilian drivers license.

Cheers,
William James Woodward - Brazil Animator, Expat-blog Team

Very helpful! Thanks!

Thanks. Very useful and helpful information.

If you're a single working person and accustomed to having a light breakfast it's probably not even worth your time, effort and money to make breakfast at home.

In almost every commercial district in Greater São Paulo you'll find street vendors who sell coffee, hot chocolate, cakes, sandwiches and other pastries in the early morning hours. They're everywhere, but predominantly near subway and train stations, major bus terminals, shopping malls. If any of you have been to Itaim Bibi or Morumbi you'll know exactly what I mean.

When I lived in São Paulo I programmed my bus connection to allow me time to grab a coffee and cake or a sandwich between buses. The vendor set up her stand at the end of the line for my first bus. The products were very inexpensive, fresh every day, delicious and wholesome too. Not only that, but if you live alone and you always frequent the same stand you get to know folks. It's always nice to see a friendly face and engage in animated small talk first thing in the morning, kind of starts your day off on the right foot.

  Cheers, 
  William James Woodward – Brazil Animator, Expat-blog Team

Hi Woodward, I am here in Brazil now and living very close of Novo Brooklyn, infact walking distance from Morumbi mall. I got a car from my company to drive. Initially I had issue in keeping lanes and sides due to India being a Right hand drive and Brazil is Left Hand drive, but within couple of hours I am back to normal, ALthough I am still very careful since I am not fully aware of all the laws and regulation in Sao Paulo, which brings me to the question or help I need - Do you have a comprehensive guide for the driving signs and rules in our blog? if yes then can you help me with sending the link of it.
If no then where and how to get this information.

Hello Raj,

You should be able to pick up a driver's handbook at any office of DETRAN (Departamento Estadual de Transito) or at a driving school in your neighborhood.

  Cheers, 
  William James Woodward – Brazil Animator, Expat-blog Team

Thanks a lot Woodward I will try and if successful will provide it too you too.

Thank you for this article.. As an American in SP, I am shocked in my first month how much things cost and how can people afford any of it. .it looks like there are ways to get around.  At this point, I have stopped converting Reais into USD and just buy the things I really need..

Hello lost,

If you're here in Brazil for any length of time you really have to start doing things just like the Brazilians do - you have to learn the fine art of haggling for prices. If you buy your fruits and veggies at a street market and not the supermarket then you can always talk the vendor down a little, usually by offering to buy something else too. You should alway pay cash and ask for at least a 10% discount for doing so, you'll almost alway get it (or come very close).

You've got to avoid the large shopping malls, they inflate the cost of everything to cover the exorbitant rents they pay. Shopping in the small shops in bairros a bit removed from the beaten path you'll always find lower prices.

Cultivate friendships with the vendors you need to use most. Let them get the better of the deal from-time-to-time, it makes them feel good. Make small talk, ask about their family, their life, anything that will show you're interested in them as a person. This will score you lots of points and save you lots of bucks. People tend not to overcharge those they consider friends.

When you find a good price, an honest vendor who treats you good then treat him/her good too. Talk him up, remembering that word of mouth is his best form of advertising. Send friends to him and make sure they let him know you sent them. Somebody like this is a gold mine to you, so always go back and try never to deal with anybody else, be LOYAL.

Hope this, along with the tips in the original post will help you pare back the expenses considerably.

  Cheers, 
  William James Woodward – Brazil Animator, Expat-blog Team

Amazing advice!!

A couple of things I would like to add through opinion!!

Rent wise, although you are fixed into a 30 month contract, you can leave after 18 moths with no penalty, sometimes, if you find another tenant to replace you, you can negotiate a transfer of the deposit. Most landlords require a 'Fiador' or guarantor rather than a deposit. This can be tricky as the person must own and have finished paying their Mortgage and their property usually must be located within the city, although they may except a close city like Guarulhos for example. If you are unable to get this, Caixa Economica provide an 'ínsurance' guarantee, usually a month and a half of rent, non-refundable per year to be your guarantor.

If you are from the UK, most things may appear cheap, especially rent. My rent is 1100 rent and condo combined for a ground floor 2 bed 90m2 apt with sole access and use of the yard and BBQ in Santana 10mins from the station and opposite a school. My rent for a 40m2 ex-project/council apt in London in zone 2 set me back 800 sterling a month in rent (around 3000 reis per month), so you can see I was pleasantly surprised at this.
Gas, for a Brit, is insanely cheap! The gas bottle lasts around 3 months, and I cook twice a day, every day! Thats the equivalent of 10 pounds every 3 months. Piped in gas costs a little less, around 10-12 reis per month for similar usage.

Petrol again for Brits is much cheaper than the UK where we pay around 1.35 pounds per litre (you Americans have it easy!!!) Here in Sao Paulo it's between2.50 and 3 reis. Alcohol can provide a cheaper alternative if you have the option, however, it is only viable if the price of alcohol is 30% or more cheaper than petrol as it burns around 30% quicker than standard unleaded. Also, it is worth noting that you should monitor the mileage of a full tank!!!. Some gas stations add extra alcohol to their petrol or lower grade fuel in order to economize. This is geting better, but there are often reports of the practice continuing. Gas is always has a little alcohol in the mix anyway, but there are some seriously unscrupulous stations around so be careful. When you find a good one, stick with it and always fill up there. Also, keep an eye on the attendant, sometimes they start spilling the gas on the floor to increase the cost, so eyes open!

Also, Woodward mentioned the eggs, this is a serious point! In the U, all eggs by law are stamped with the red lion mark and are individually dated. They are also never refrigerated in the UK as this is unnecessary with the stamped quality, eggs have been good to me up to 3 months after the best before date. Here, do not even try it. Only buy eggs from large chains of markets, never buy from smaller ones. I know some places where they re package the eggs after the sell by date, up to 3 times!!! so follow Woodwards advice and crack each individually to ensure they are good.

When travelling on a budget around the city, Metro and bus can be quite good. Peak hours are a nightmare however, and you should budget at least 1.5 hours to get from a-b until you are comfortable with the timing. Costs are 3 reis per journey standard. If you get a bus within 3 hours of your metro, the cost for that journey is then 1.65 and then a subsequent bus is free, as long as it's within the 3 hours. If you use only busses, it's 3 reis for 3 journeys on the bus (maybe 4) within the 3 hour period, so you can work out ways of moving around for less, especially if you teach in company! Just be careful not to show your devices on the metro, leave your tablets and iphones away, that's how I got robbed last time, for reading a bloody kindle on the mtreo and then walking into an armed gang who were waiting for me outside the station and who specifically asked me for my brown cased tablet! I ended up losing my laptop, wallet, phone, kindle, all of my newly bought teaching materials and 6 months of hand written class notes and 2 years of digital archives and was then shot at! Be careful, eyes open, and you'll be fine!

Edit: No idea why I mentioned the egg thing here, I was reading two topics at the same time and got all mixed up!!!

Thanks a lot wjwoodward. Very useful info and very nice aproach for all new people in SP

BR

Hi All,

You can get a good idea of the cost of living in most Brazilian cities at the following site:

http://www.custodevida.com.br/brasil/

Just type in the name of the city and state you wish to consult.

Cheers,
William James Woodward - Brazil & Canada Expert, Expat-blog Team

I want to mention that being healthy in São Paulo is cheaper than California! Healthy fresh food bought from the street fairs (or even from the large market chains) are generally cheaper. This would include dairy products, fruits, vegetables, fresh meat, and uncooked grains. You can stay fit on a well-balanced meal that you prepare everyday for much less than what it would cost in the United States. You can also go to SESC, or some of the gyms for quite a bit cheaper, and walking when taking the public transportation is usually necessary.

Also, not to ridicule Brazil or anything, but with the taxes on luxury items like TV, video games, electronics in general, and household appliances then it means a lot more house work and less time sitting around on in-home entertainment. A lifestyle in Brazil should be healthier and happier.

I want to add that William's original post was extremely helpful and informative.

Really useful article, thanks!

A little daunting at the same time though. I'm arriving in Sao Paulo in three weeks to teach English for 6 months. I've done a lot of research and understand teaching doesn't pay very well but it's what I enjoy doing.

Looking at your costs of living, will I even break even most months? I'm hoping to find a apartment share rather than rent myself to help keep costs down.

Any info you have on teaching, salaries expected etc would be great!

Thanks,
Jody

Hi Jody,

As a matter of fact, having taught for many years in São Paulo, I can tell you!

For pay scale in the traditional classroom setting you will be looking at around R$23 - R$28 per hour of class time (i.e. actual teaching time) usually they do not pay for class preparation time or correcting homework and some will pay for time spend administring tests, while others won't. Some schools will pay for bus fare to and from work, but many don't. Class cancellations (especially private classes) can be a problem, while the school may require you to remain on site if a student is a no-show you need to check with them beforehand if you'll get paid when the student misses a class without prior notice.

For "in-company" classes given either in the workplace or private residences the pay scale in São Paulo is around R$30 - 35 per hour. You will need to check with the individual school regarding their policy for payment of your transportation costs, some will include it in the pay others will pay you a separate allowance based on the number of classes, in general terms none of them will pay ALL of the actual costs involved in transportation. Some schools will at least help offset this by trying to schedule back-to-back classes in the same general area of town, it helps a bit.

Shared accommodations here in Brazil are almost unheard of, you might find another teacher at your school in the same boat though. Other than that what I would recommend to cut costs is to look for a very small apartment or kitchenet in one of the bairros (neighborhoods) more removed from the city center. You'll take longer to get to classes, but the extra time in transit will be compensated by lower rents.

Good luck and if you want more information on COL, try www.numbeo.com  type in the city and country name in the search fields and BINGO you get lots of info back.

Cheers,
William James Woodward, Expat-blog Experts Team

Hi,

I was very lucky to find a room with a friend in Vila Pompéia. I pay R$1600 a month to live in a 3 bedroom house. This includes all utilities, water, electricity and internet. I was wondering if this was a good price? How much is rent in neighborhoods like Pompéia?

Thanks so much.

Since you're talking about a house and all the utilities are covered in the rent then it's not bad for the area. The neighborhood is quite nice and much closer to the city center than other much more expensive areas. Is it already furnished? If so then I'd say it is even a bargain. While you might not save much on transportation costs you will certainly cut down your travel time, so that has value.

While it is more than you'd pay to rent a kitchenet and probably about what you'd pay to rent an unfurnished 1 bedroom apartment you would also have to factor in condominium fees and IPTU (property tax) on top of the rent, so even there you come ahead with your arrangement, more so still if it is furnished. Believe me, if you were paying condo fees, IPTU, utilities and had to buy furniture it could be a killer!

Enjoy!

Cheers,
William James Woodward, Expat-blog Experts Team

Oh great. It is furnished so I am glad it's a great deal:) Was just wondering cause it's almost the same price as my NYC rent though this is a house and my NYC apt was a tiny tiny apt.

Dear Woodward,
Amazing insights, thank you. What can you tell me about Scooters in the city? I have lived in Shanghai for the past 7 years and am relocating to Sao Paulo very soon. We get around here on electric scooters and don't need a license to drive one. Would that be the same in Sao Paulo do you think? How is the infrastructure for bikes?
Any advice appreciated!
Thanks,
Elizabeth

In Brazil there are no electric motor scooters that I know of. There are several makes of electric bicycles, but they are absurdly expensive here and their range is rather limited.

The only other option, without a motorcycle license, would be a moped/mobilete 50 cc and under that have gasoline engines.

Other than that one would require a motorcycle license, and I'm not up on the legislation here in Brazil so I can't say whether you'd be able to operate a motorcycle here with a valid foreign motorcycle license as you can with an automobile with a conventional foreign license.

Cheers,
William James Woodward, EB Experts Team

Thank you for this info.
Is biking very popular in Sao Paulo? Do they have bike lines?
~ Elizabeth

They have some and are creating more all the time, but it is extremely dangerous in SP, the motorists are crazy. Cyclists are killed almost every week.

Hello James..

Your reply was more than adequate to get a picture of live in Brazil and where I would probably stand in the social scale there.

Life in Brazil seems to be similar to life in India (my motherland) or Maldives (my present residence). 

Having understood your theory of survival there, it still seems like a sweet risk to take. If I manage to save atleast R$ 2000 monthly, it would be of good value in India.

Now my next questio is how would I start to look for jobs in Brazil and are there very stringent laws regarding work permit/visa?

Yes, it is extremely difficult for expats to obtain jobs here, since employers must prove to the Ministry of Labor that they have exhausted all efforts to place a qualified Brazilian in any job vacancy before they are allowed to hire any foreign national to fill it.

In order to qualify for a VITEM-V Work Visa you must first have a confirmed offer of a CLT work contract from a Brazilian company. Really the only expats who do not have great difficulty in securing employment here are those who have degrees in any of the STEM (science, technology, engineering, mathematics) professions.

Without some kind of degree it's very difficult and you can count on earning the Minimum Wage or thereabouts. The Minimum Wage as of Jan. 1 will be R$788 (BRL) per month, not very much indeed.

Cheers,
James            Expat-blog Experts Team

Dear sir,
Excellent I am really glad full to you. And I am Fascinated to read your writing.
Thanks a lot sir. It is really help everyone to live in sao paulo.

Thanks
Mohammad Monerul Ahasan

James,
Your information is quite helpful.   But unfortunately, quite dated.  Any chance you could do some updating?   I'm also thinking that if you're married to a Brasilian citizen, you should have fewer problems finding employment too, correct?

cfmurray wrote:

James,
Your information is quite helpful.   But unfortunately, quite dated.  Any chance you could do some updating?   I'm also thinking that if you're married to a Brasilian citizen, you should have fewer problems finding employment too, correct?

I´m sorry to say James already passed away. Sorry also to say that being married to a Brazilian citizen
does not expedite or help in anyway to obtain employment. Unless of course the employer is family. You should have a good command of Portuguese to be able to hold employment in Brazil and citizens have the preferential treatment or more chances of being picked. If no one qualifies, then your chance suddenly soared. Good luck and don´t be discouraged!

robal

Being married to a Brazilian makes you eligible to apply to the Federal Police for permanent residency in Brazil.  Once you have that, you are able to apply for a Labor Card, and can then be hired by a Brazilian employer without requiring the Labor Ministry clearance that James discussed:  that's required for foreigners seeking permission to live in Brazil for employment, but not for foreigners who have permanence thanks to a family connection.
Your Labor Card, however, will clearly state that you're a foreigner (it's even a different color, green as opposed to the blue that citizens have),  so you'll still be confronted by the preference to hire Brazilians, especially if your Portuguese is less than perfect.