FYI.  Maybe you did NOT see this post or the reply from my dear friend James Woodward
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Riodejaneiro23
29 February 2016 10:46:20
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Rio de Janeiro
I bought a property in Rio (all legal, and declared) in 2005 and am now moving back to the UK for good. I am considering various options, but need to know the tax implications of each and how much money I can legally repatriate to the UK. At the moment I'm considering selling up completely and leaving what I can't take back in a high paying interest account; renting out to temporadas or relocators, or a mixture including selling, buying a smaller apartment and taking some money back. Can anyone recommend a competent tax lawyer who can advise? Many thanks, Alison
PS I have permanent Brazil residency and an RNE which states validade as "indeterminada" i.e for ever!
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James
29 February 2016 12:08:36
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Hi Riodejaneiro23,
If you sell your property, you will have to declare the capital gains on your DIRPF (Declaração de Impostos de Renda Pessoa FÃsica). That will be compared to the value of the purchase you declared to the Receita Federal.
When leaving Brazil you must declare ANY amount of currency equal to or over R$10 thousand regardless of the national currency that may be. So that would mean US$2506, 85 / 2304 Euros / £1811. Over that you will be required to declare the currency, its source and justify its destination.
Regardless of the amount, it is highly dangerous to carry large sums of currency when you travel. Don't forget that Customs agents are going to count it out very publicly for all to see. That would put you at risk of being robbed.
Also a new Supreme Court regarding bank information means that your Brazilian bank must report any transactions of R$2000 or more in any month, directly to the Receita Federal. You could be required to explain that transaction at any time.
Personally, my advice (if you can afford to do so) is to keep the property, rent it out with the tenant depositing directly to your Brazilian bank account. You can use your debit card to make daily ATM withdrawals to your daily limit Mon. - Friday and once on the weekend. That would likely not exceed the R$2000 reporting limit so would keep you off the Receita Federal's radar too.
Of course you could always ask a Brazilian politician for tips, they seem to be able to move millions of dollars to offshore accounts without the slightest problem. Â
Cheers,
James
expat.com Experts Team