Canadian buying property in Brazil

Hi, I am in the process of getting an investors VISA to buy property in Brazil and I found this website really useful.

These links below provide very detailed up to date accounts of all the things you have to consider and how to obtain then:

How to Buy Real Estate Properties in Brazil
https://oliveiralawyers.com/services/re … quisition/

How to Send Money to Buy a Property in Brazil
https://oliveiralawyers.com/services/re … ey-brazil/

Drafting and Authenticating a Power of Attorney for Use in Brazil - should you wait a lawyer to handle the process on your behalf
https://oliveiralawyers.com/services/ot … se-brazil/

I hope that helps.

All the best - Chris

Golsucks wrote:

Looking for information regarding buying property here in Brazil.
I have a resident visa here and I am a tax resident in canada
Further to this; I want to borrow the money in canada to buy the house here.
Any recommendations? Suggestions?

Dear Golsucks,

Arriving Expats should be especially careful in dipping toes into the real estate market in this continent.

N.B.:

1.  Brazil is having a disastrous time with covid.  El presidente, an acolyte of a twice-impeached (alleged) criminal, has mishandled things by promoting useless drugs and botching the vaccination phase.  CNN is reporting that the health system of Brazil is on the verge of collapse.  These factors add risk to property acquisition in Brazil.

2.  Expats should live in a locality within Brazil or another South American country for at least 12 months before considering buying, covid era or not.  You learn a tremendous amount by living locally for a year, some of which would dissuade one from buying too soon.

3.  Buying is relatively easy.  If necessary, reselling often is not, as properties can languish in a slow market for years.

4.  If you move away while your property remains unsold, property management can be a b*tch.

5.  Acquisition can take a long time, delaying the visa process and potentially jeopardizing your rights to remain in-country.  (This apparently may not affect poster Golsucks, who told us he already has a residency visa.)

6.  OP Golsucks may wish to consult fiduciaries in Canada and Brazil to get professional advice about borrowing money in Canada to buy property in Brazil.  A Canadian lender may frown on the concept of lending on a South American property as the collateral implications are not bank-friendly in such a scenario.  If Golsucks takes a second mortgage on his property in Canada, which funds can be used for any purpose, that makes it more likely the bank would approve a loan.  However, Golsucks would be taking on extra risk since property values in Brazil going forward are likely to be less stable than values in placid Canada.

cccmedia

Golsucks wrote:

I will call my bank of course but want to talk knowledgeably about the subject. Their first reaction will be “Eu nao sei “

The Portuguese phrase Eu não sei....

What a Gringo may think it means ..  You don't say!

What it really means .. I don't know.

***

Eu não sei....

This was exactly the response we received from our local Bank of Brasil regarding SWIFT transfers and it meant exactly "I don't know.."

Furthermore, that was expected to be the end of it, as of I don't know how to do my job is a final resolution for a banking problem.

Get schooled up on this process, it can seem like a nightmare. Budget for currency exchange rate swings of 1.5 to 2 per cent per day, along with the foreign exchange transfer tax on each deposit.

Best regards,

James

like your other option is to go through a local broker which can be equally a nightmare. But even if your not at the propery or no one is residing in it for a period of time, and you get a squatter, then your in for a world of trouble lol

It is really an IBAN transaction in Brazil and other nations. SWIFT is still used, but some in Brazil will be puzzled when you mention SWIFT. Anything not in U$D will be an international SWIFT/BIC code

Good to see ya back Mike

Cdn banks won't  give you a dime to buy property abroad. Asked awhile ago. Most exchanges won't  let you send large amouts...ie wise, money mart etc. XE will let you transfer upto 500k usd. Ive been talking to james chapman n using Cambio to send my money to get a better rate n keep it all legal. I also got a good lawyer to up all the rest.

    Cdn banks won't  give you a dime to buy property abroad.        -@Cserebogar

I know this is an old thread, but, I suspect you meant to say the following..............CAD banks will not give you a mortgage on foreign property..........as opposed to what is quoted above.

My bank will easily lend me any amount to buy anything I want, anywhere I want, as long as I can cash flow the debt service, and they are satisfied with the CAD domiciled security offered for the loan.

We thought about mortgaging one of our properties here in Canada to buy RE in Brasil. The bank had no problem with that, but, we decided against it for many reasons, mainly due to our intent to become non-residents.

@Gasparzinho777, I don't understand the downside of borrowing in CDN and buying in BRA w.r.t non-residency.

I am happy that I got rid of my home in Vancouver. As a CDN non-resident, there would have been extra non-resident taxes and other penalties aimed at discouraging non-resident ownership (by the City of Vancouver).  Is this the drawback that you are referring or something else?

Sorry, I am confused.

   My bank will easily lend me any amount to buy anything I want, anywhere I want, as long as I can cash flow the debt service, and they are satisfied with the CAD domiciled security offered...                                                                                                         -@Gasparzinho 777

.

.

.

The Internet's most prominent advocate for borrowing your way

to untold wealth is not Gasparzinho 777, but rather the famous author

and "Rich Dad" YouTube celebrity Robert Kiyosaki.

I don't doubt that Kiyosaki personally has accumulated thousands of

properties worth billions of dollars in a portfolio based on his ability to

borrow money and then scale up his borrowing based on his holdings.

However, I don't think this is the way for an investor with

limited experience dealing with debt ..  to make his or her way forward

with success.

In my last decade in the USA, having read Rich Dad and other

real-estate books, I bought a multi-family rental property in

Connecticut with 10 percent down payment, accumulating

close to $800,000 US  in secured debt along the way.

As an owner I got some hard lessons in what new investors in

property can experience -- deadbeat tenants, bedbug infestation

in the rental property, a surprising cost of renovating apartments

that were vacated (nowhere near covered by deposits left by

the vacating tenants) and a winter blizzard that blocked all tenants

from driving to their workplaces while I was out of town, directing

their ire at my property manager who promptly quit his position.

I literally was taking so much Xanax to cope that I ended up in

a Connecticut detox facility for a week followed by an

outpatient rehab program.

Somehow I avoided declaring bankruptcy, but the road was rocky,

I lost my Connecticut residence and the rental property ..

and my credit was obliterated.

I don't think Kiyosaki's books prepared me for the nightmares

I eventually survived which caused me temporarily to

become an economic refugee and move a continent away to

retain the ability to continue a middle-class lifestyle.

cccmedia

moved to Ecuador in 2013

writing this post from Colombia, in 2024

Robert Kiyosaki as a side note is about 1.2 billion in debt and rolling on the premise if he fails the bank fails lol.

Pablo888

To become a non-resident of Canada for tax purposes you cannot own significant assets domiciled in Canada, like real estate for example, or, shares of private companies holding real estate, etc, amongst a whole list of other items of a financial, personal, social, or even an administrative nature. You must cut your ties with the country.

So, yes, that is why.

@FromLondontoBrazil Do you recommend any Brazil based Law Firms that speak goos english?

@FromLondontoBrazil How long is your process taking  start to finish?

    @FromLondontoBrazil How long is your process taking  start to finish?         -@john8670

You are asking a question to someone who last posted 3 YEARS AGO. Doubtful they'll reply.

The links posted however are valid for a bilingual Brasilian law firm. Check out his weekly YouTube Q+A videos.........

Good luck.

    @FromLondontoBrazil Do you recommend any Brazil based Law Firms that speak goos english?
   

    -@john8670

It is really important to use an attorney who is located where you want to live. I did the investor visa from the UK 16 years ago, and can recommend someone, but it depends on where you want to end up as Brazil is so vast...

    Pablo888
To become a non-resident of Canada for tax purposes you cannot own significant assets domiciled in Canada, like real estate for example, or, shares of private companies holding real estate, etc, amongst a whole list of other items of a financial, personal, social, or even an administrative nature. You must cut your ties with the country.

So, yes, that is why.
   

    -@Gasparzinho 777

@Gasparzinho777, I am clear on your reasons.

Will still get your CA retirement benefits even if you are non-resident?  If you do, then it makes sense to become non-resident as I believe that Canada taxes is not based on world income....

Is there a tax treaty between CA and BR?

Yes, you will receive your full entitlement of the CPP/OAS pension that you qualify for, but, you cannot get the GIS or any other retirement benefits. We are having ours directly deposited into our Brasilian bank account.

You also lose access to all health care, but, IMHO the Brasilian system of using SUS and private pay as you go (or an insurance plan) is 10X better, having been in both systems here in the past. The Canadian health system is totally dysfunctional and broken.

Canada taxes your worldwide income.

Brasil and Canada have a tax treaty however, so, when you leave Canada you file what is called an EXIT RETURN.......and going forward you just file in Brasil.  When you enter Brasil you file a "Declaracao do Bems" immediately which states what assets you are bringing with you, so that these are not taxed when they hit your bank account down there. Any monies you bring after 6 months of your official landed date are considered income, and taxed accordingly. Because of this tax treaty your CPP/OAS are not subject to the 25% withholding tax at source either.

You also have the option with the CRA of filling out 5 pages of forms so you can request a document back from the CRA that confirms you are a non-resident. This is totally optional, and IMHO unnecessary, unless you had a complicated personal multi-layered tax situation and/or corporate finances back in Canada that you reported on in the past which would make you a target on their radar screen.

In our case all we will have in Canada is a joint chequing account to receive a private pension we have, which will be transferred to our Brasilian accounts every month. This pension does not deposit money outside the country unfortunately, but, having a single bank account with nominal funds for this purpose, does not make me a resident either. 

Yeah, im actually at the point of wanting to forgoe my canadian portion so i stop paying taxes in canada.

ITS INSANE HOW MUCH MORE IM PAYING FOR CANADA

    Yes, you will receive your full entitlement of the CPP/OAS pension that oyu qualify for, but, you cannot get the GIS or any other retirement benefits. We are having ours directly deposited into our Brasilian bank account.
You also lose access to all health care, but, IMHO the Brasilian system of using SUS and private pay as you go (or an insurance plan) is 10X better, having been in both systems here in the past. The Canadian health system is totally dysfunctional and broken.

Canada taxes your worldwide income.

Brasil and Canada have a tax treaty however, so, when you leave Canada you file what is called an EXIT RETURN.......and going forward you just file in Brasil.

You also have the option of filling out 5 pages of forms so you can chose to receive a document back from the CRA that confirms you are a non-resident. This is totally optional, and IMHO unnecessary, unless you had a complicated personal multi-layered tax situation and/or corporate finances back in Canada that you reported on in the past.
   

    -@Gasparzinho 777

@Gasparzinho777, you obviously have done your homework and are well set. 

The reason for all my CA questions is that my sister who lives in frozen Ottawa has expressed an interest in retiring in a sunny AND warm place.  She definitely has some homework to do if she wants to retire in Brazil....

Thank you for all the good info.

ITS INSANE HOW MUCH MORE IM PAYING FOR CANADA        -@Mikeflanagan

This is one of the top 5 reasons we are bailing on the country........

yea, and its not going to be fixed anytime soon. they got hungry with taxation. now its rampant. in 30 years they could have it fixed. kind of like when current leaderships father was in control. driven to desperation and depression back then as well. like father like son