Hello Stuart,

Here at Fortaleza, North East Brazil, the credit crunch is not that serious yet.... there are other factors going on which are making problems ......the price of rice and beans has shot up because of the food situation world wide and farmers investing in BioFuel crops.....for the general population this is more of an issue.

I would say consumerism of the like we see in the US, UK and Europe which has been encouraged by Banks is somewhat different. The banks here didn't lend money to uncle tom cobbly and all fuelling a huge consumer boom. A large part of the population need to have better incomes as they barely manage. Incomes are rising but only slowly. lending is starting to become popular and I suppose this is why shops and trading seem to be busy...but so is crime. how the credit crunch from abroad will affect here is hard to say. Looking at the news daily at what is happening to Freddie Mack and Fanny Mae.....Some financial experts are starting to stare into the financial abyss. In modern times we do not have a similar scenario to look at with all same the current problems with high cost of oil and gas. Shipping cheap goods around the world no longer looks like a good deal. If the US Government makes wrong decisions or is powerless against huge financial problems - the knock on effects world wide could be very great. But for now the credit crunch is only just biting and I suppose will only effect tourists who cannot afford to pay the air tickets etc and make do with places that are closer to home. Investors whose currency is falling against the Reais will probably look elsewhere or wait till things become favourable. If Oil prices do not drop and become more realistic it will make air travel unrealistic....It will drive foreign tourists away and the developments which have been built around this will suffer.

I live here but have no intention of selling up.

Regards

Stuart - simple, wide ranging, all embracing, answer? NO.

Dotty - Quote me to fly to Europe (return) from here then fly to ski resort in Europe (you choose which one), hire all the gear, including suits, lift passes, etc, etc, and still claim that from here it is cheaper than Argentina? At least compare like with like, and the exchange rate makes Argentina very attractive. Anyone want to organise a last minute group?

Any slow down in Natal is probably caused by their own success. As more people invested, so prices increased, investors looked elsewhere and found better deals. However, even though I have been critical of Natal in the past, I still believe the eventual future there for investors will be 'Christmasy"!

Prices are not rising as much as expected as there are too many properties available and not enough purchasers!Not to say that won't change in the future,but you will need to get here easily and with reasonable priced air tickets to match that are frequent and do not require stop-overs with long connections.If you live here it is fine,but rushing back and forth from the UK or elsewhere to sort out something urgent in Brasil is not my idea of a safe and secure investment and very time consuming and boring.

[quote=Dotty;62190]

Dotty, a recent post from you states "...plus the added taxes to take money out 17%+...".

Admittedly I'm only just beginning to look at the possibility of investing in Brazil, but I have never heard of this "repatriation tax" before - could you elaborate by any chance?

Many thanks in advance,

Nick.

I believe you own in PN? If you own where I think you do then you would know that the latest development by the same company right next door sold out in weeks, I wonder why you forgot to mention that????

Who flies to Brazil from the UK when you have to sort out anything, that's what a lawyer is for.

[quote=ExpatNick;67513]Hi Nick,

Unless it is a new tax that only Dotty knows about or made up, she means CGT which is 15% and added to that currency exchange costs.

You can get tax credits for the CGT in most countries as well.

Regards,
Rob.

__________________

Spot on Rob,

You have more experience in sending money out of Brasil and full costs involved.[quote=robh;67540]

[quote=robh;67540]It is true that CGT is 15% but only applicable to profit made obviously, and if you have had the property or investment more than 5 years then also not applicable. If you re-invest your money with in 180 days on a single investment then also no tax is payable. There is also a percentage allowance per year which you are allowed to make in property valuation before the 15% CGT is applied.....my advice is to use a reputable accountant who will answer all your questions and hopefully save you money. Like all tax systems...Brazil is complicated but an accountant is very cheap and will guide you through the process of sending money back to where ever.
For those in the "know" advice can be given on how to reduce your CGT on a single property sale and suggested profit. An official receipt (Nota Fiscal) for refurbishment work can be aquired to show reduced profit..... example:
Purchase price R$100,000
Resale price R$150,000
Provide a NF for R$50,000 shows no profit made hence no CGT and not difficult to aquire.
Raw land is different...just pay your tax on profit.

[quote=robh;67540]It is true that CGT is 15% but only applicable to profit made obviously, and if you have had the property or investment more than 5 years then also not applicable. If you re-invest your money with in 180 days on a single investment then also no tax is payable. There is also a percentage allowance per year which you are allowed to make in property valuation before the 15% CGT is applied.....my advice is to use a reputable accountant who will answer all your questions and hopefully save you money. Like all tax systems...Brazil is complicated but an accountant is very cheap and will guide you through the process of sending money back to where ever.
For those in the "know" advice can be given on how to reduce your CGT on a single property sale and suggested profit. An official receipt (Nota Fiscal) for refurbishment work can be aquired to show reduced profit..... example:
Purchase price R$100,000
Resale price R$150,000
Provide a NF for R$50,000 shows no profit made hence no CGT and not difficult to aquire.
Raw land is different...just pay your tax on profit.

Property Brazil - Brazil property for sale near Fortaleza

Firstly ,the company that you are talking about have an excellent reputation here in Natal and have produced great projects over the yrs and continue to do so.There properties are of very high quality and sell easily for this reason,but that does not mean that every property that goes up in Brasil has the same effect!