Exactly what I told him Rob, but thought I would ask here to.

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www.coqueiro-verde.com

If the money is in a business account, then your friend is going to have much difficulty! Alot depends on how the business was set up, i.e 1) for trading in 2) and which tax method is used. In most cases any money that leaves the business acc needs a Fiscal receipt. If all money is not accounted for which has left the acc then the business would be fined on top of paying taxes of the missing money. Although there are certain tax methods for certain businesses where fiscals are not often neccessary.

1 option would be to completely close down the company and tranfer all the money back. They would be bank charges envolved but no taxes, assuming that the business was set up and tranferred correctly in the first instance.

2nd option is totally thinking outside of the box, but just about staying within the laws, technically.

3rd option is totally illegal.

Regards
Paul

Rob is correct - there are implications for your friend with regard to the investor visa.

It used to be possible to simply deposit funds in a bank account here to qualify for the visa, but the authorities become wise to that, and now he will have to prove the investment has been into a 'productive activity' with full accounts after 2 years, or your friend may lose his visa.

I've really enjoyed reading this article. Thanks for the entertainment. I'm checking all this with my accountant now, who is Brazilian and very confusing, but if I do get a clear answer I'll post it here (free of charge).

Your investment with your accountant will be much appreciated by many, when made public, I am sure, especially at the price you propose!

Be sure to involve a fully qualified immigration attorney, should this apply to your circumstances, FIRST...

Hi debzor, I have a permanent residence visa for Brazil. My lawyers and accountants have been more than useful to help me integrate into the Brazilian way of life. I'm sure they will give me the right advice. I use Veirano Advogados and a local accountant, Kaidei, whom have offices in Sao Paulo and Fortaleza. When I know, I'll make a post. I'm very interested in this as it helps my customers decide on buying a property in Brazil.
Cheers
John

Update on my friends situation, by luck a British couple are buying some property here, so he is going to send the money back through their purchase. So it will be off the books, tax free and shouldn't complicate his visa.

To give a bit of background he already had a plot out here and some money (not brought in via the Banco Central) and started to build some shops on it. And then decided to apply for a visa so had to bring the $50,000 via the Banco Central to legalize his situation.

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www.coqueiro-verde.com

That may sound simple,but to sell on it will need to be registered at the notary and to release the escuitura in the other people's name they will still need to proof of purchase payment(money coming into Brasil from your friend) and (proof of money coming into Brasil from the new buyers .If only it was so easy.

This is the reply from my accountant, Kaidei Contabilidade, Fortaleza and Sao Paulo.

This rules is specific for private people (NOT COMPANY)

1) If you sell after 5 years of ownership of the property and it is the only property you own in Brazil, and the property sale is under R$440,000 then it is tax free on Capital Gains.

Related the sales, if you sell the property after 5 years, you will have an apportunity to reinvest for buying a new land without tax within 6 months for doing the new operation. If you only sell the land after 5 years, you will pay tax. BUT IF YOU REINVEST THE AMOUNT WITHIN 6 MONTHS YOU WON´T PAY TAX. This mention according the Brazilian law is related the quantity of R$ amounts more than R$ 35.000,00, because if you have the amount of sale value less than R$ 35.000,00 you will not pay any tax ( will be tax free). For this rule, the property sale could be over R$ 440k.


2) a) Regardless of when you sell or the amount of sale, if you reinvest within 6 months the full amount then this would also be tax free. b)If you reinvest with the 6months but under the full total sale price, you may pay some CG tax but can be offset against your new investment.
a) it is correct ( you will not pay tax if you do this operation ONLY once per 5 years within 6 months for bying a new piece of land);

b) it is correct ( you will pay tax for the difference)


3) You can also claim back 4% a year on de- appreciation for every year you have owned the property against any CG.
For this question, may you please give me more details for answering this question.

Hi Coxy,

This is the same as Paul Brasil mentioned.

What happens on with other properties owned,as here it is regarding single ownership in Brasil?

Regards Paradise Jericoacoara