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negotiating help!

Last activity 24 April 2013 by jackieuy86

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happymitten

Hey guys!  I just got a job offer in sao paulo and am pretty set to take it (good company, interesting work, job in brasil!), although I know the salary is pretty low....

Initial offer is 5000RS/month.  Is this number unreasonable?  I've arranged to have a 3 month review to increase this number, but until then, will I be losing money while in sao paulo?  (The company will cover the first month's rent.)

How much do you think I need to survive?  I'm a single, mid-20s, and am pretty "low maintenance" overall; nonetheless, I do like to have fun and explore. 

It seems I won't have enough money for a car--are cars necessary?

Lastly, what taxes will I have to pay from the US end?  (I know there will be the brasilian tax on my salary, but anything additional from the US?)


Thanks for all the help, I really appreciate it!

James

This company is really low-balling you. Most starting positions pay in the range of R$7.000 to R$8.000 per month. Cost of living is very high in São Paulo. Only if they were paying your rent permanently would I suggest taking that offer. Ask for at least 7.


Regarding your questions about cost of living if you've already read my post "High cost of living in SP and how to economize", that says it all.

Car - unless the company provides a car (and possibly a driver) forget it. Too darned expensive, taxes up the whazoo, maintenance and parking in SP is R$15 an hour in some places. Yikes! Besides you have only 180 days to drive on a foreign licence, translated, and having gone through all the fees and bureaucracy involved in that whole process.

Public transport in São Paulo while not the greatest will get you where you want to go without breaking the bank.

As far as the US taxes, the American rules are that you're taxed on citizenship and not residence, so yes you will still have to file with the IRS each year (unless you renounce citizenship then you pay a multimillion exit tax - this is only an option for billionaires and movie stars). You pay income tax in Brazil on your Brazilian earnings. You must however declare your "world income" to the IRS. If you've had US income in any year your Brazilian income is not taxed in the US per se. However it is added to your total income so can have a dramatic effect on the tax rate you pay on your taxable US income. Most US citizens consult an Expat Tax Service before leaving home.

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

happymitten

Hey William, thanks so much for your help and your dedication to this blog!  You have no idea how much this helps.

With regards to the salary, do you think they're still really low-balling me assuming I only have 3 years work experience, in a non-relevant field?  Just want to make sure I know what I'm saying when I talk with them again.

James

I guess it really depends on the field that you will be working in if you have no previous experience. I still think you should ask for 6 to start or rent at least until such time as you get a substantial raise. I could give you a better idea if I knew what your position will be and what your previous experience consists of.

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

jackieuy86

Hi! I was in exactly the same spot last year when my company offered to give me a permanent post in our office here in Sao Paulo. And I absolutely said NO!

The cost of living here is really high even for my British and German colleagues. A quick example: I had been looking for an apartment and just got a one-bedroom unit in a middle-class and safe neighborhood for 2000RS/month not including utilities like gas, electricity and cable. Then, there's your transportation. Taxi is recommended in the first few weeks until you get more familiar with the place. Plus taxes, your 5000RS/month will not go far.

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