This content originally appeared on HackerNoon and was authored by Ilia Ilinskii
Brazil is the biggest economy in Latin America and together with Mexico it has 57% of nominal GDP in the region. And this is the long-term trend for the future - according to PWC report “The world in 2050” Brazil will be the 5th country in the world with GDP at PPPs after US, China, India and Indonesia.
\ Moreover, Brazil has a prospective fintech market and, in comparison with other Latin American jurisdictions, low barriers to setting up a company or issuing crypto ETFs. Recently, BlackRock launched an Ethereum ETF in Brazil and listed it on the biggest local stock exchange, B3.
\ Brazil also offers flexible conditions for immigrants, including living conditions and a fast naturalization procedure. In this article, I describe existing options for crypto nomads to relocate to Brazil, including living conditions and crypto regulations in the country.
\
How move to Brazil?
\ Although some authors call Brazil “bureaucratic” like other South American areas, it has a flexible immigration system. If you want to move there you have a wide range of options for digital nomads, which include:
\ -Digital Nomad Visa
-Student visa
-Working visa
-Family visa
-Investor visa
-Refugee status
\ The basic options for digital nomads are a nomad visa and an investment visa. These options are pretty affordable. To get a residence permit of digital nomad you need to prove your monthly income of $1,500+ or put $18,000 in your bank account and this gives you a residence permit. Brazil is one of the few with such a visa in Latin America, which was launched recently in 2022. The number of rejections with properly executed documents is minimal.
\ For an investor visa, an applicant should create a company with a capital of 500,000 BRL (about $100,000) or purchase a property from 1,000,000 BRL (about $200,000). An investor gets a permanent residence permit and can apply for Brazilian citizenship within 3 years. There are some exemptions for the required amount of real estate purchase in North-West provinces of Brazil - it may start from $100,000. Also, the minimal required investment in innovative businesses starts at $30,000.
\ Brazil has a developed education system for student visa applicants with 98 public universities, and 8 of the 20 best Latam universities are located in the country. The only obstacle is that most programs of study are in Portuguese, although you can also find a proper university with Spanish or English programs.
Living Conditions and Costs
Brazil is the largest country in Latam and has 26 states, from Roraima and Amazonas on the north to Rio Grande de Sul on the South. The cost of living will vary depending on your income and preferences. Probably the most popular place among expats is Florianopolis. It’s safe and has beautiful nature and a climate.
\ Other expats prefer 2 largest cities in the country - Rio de Janeiro and Sao Paulo. Also on the coast there some other cities which attract immigrants - Recife, Vitoria, Salvador, Porto Allegre, Curitiba and some others. The capital of Brazil is a citiy Brasilia located close to the center of its territory and there is also a group of immigrants living there.
\ Сosts of living in Brazil are quite affordable - depending on the place and district you choose, rent can cost from $300 up to $2000. For a single person, the minimum monthly cost of living may start at $1000. It is much cheaper than living in developed countries in Europe and the US. At the same time, compared to other Latin American countries such as Peru, Colombia, and Argentina, Brazil is somewhat more expensive. Also by this indicator, it loses to the affordable for nomadic countries of Asia, such as Vietnam and Thailand.
\ If we talk about the difficulties faced by nomads in Brazil - there is quite a high crime rate in some areas, and there is a possibility of becoming a victim of theft or robbery. To avoid this, it is enough to choose a safer area of residence and not to appear in dangerous districts at night, also move on car.
\ Another issue to be warned about is the language barrier—outside of the tourist spots, almost nobody speaks English. So you have to communicate with locals via Google Translate or in Spanish/Portuguese. Last but not least, Brazil is a country with magnificent landscapes and reliefs - there are jungles, hills, plains, mountains, deserts and of course the sea.
How to get a Brazilian passport?
The standard naturalization procedure in Brazil is possible for those who have lived there for at least four years. However, obtaining citizenship is faster for investors or relatives of Brazilian citizens (spouses or parents)—it’s enough to live for three years.
\ In Brazil, citizenship can be obtained not only by right of blood but also by right of soil. And to speed up this process, it is enough to move to the country and give birth to a child. Children born in Brazil receive citizenship immediately, while their parents can apply for it one year after birth. The processing time ranges from several months to two years. So, nomads having children born in Brazil get an opportunity to speed up the process of getting citizenship within 1-2 years.
\ \n Fintech and Economy
\ Brazil is a country of contrasts, also in the field of economy. Its GDP is about half that of all Latin American countries. At the same time, it has a high level of inequality and a large number of poor people. However, the situation is gradually improving, and the new president, Lula Da Silva, has made improving the welfare of citizens one of his main tasks.
\ Local banks and fintech companies also capitalize on the economy's growth and innovating. Probably the biggest is the PIX system of fast money transfers and settlements. The system uses instant payments via QR codes, and commissions for PIX transfers are lower than they used to be.
\n Taxation
\ Among Brazil's few disadvantages for nomads, besides street crime, is the tax system. It is quite complicated, and the tax rates are comparable to those in Europe. Brazilian residents are taxed on worldwide income, and the PIT rate is progressive up to 27.5%. Most nomads with incomes above $3000 will pay it at this rate, so it is better to calculate your budget immediately.
\ Opening a business in Brazil is quite simple. You can open a company if you have already moved there and received a residence permit. However, the total rate of all corporate taxes in the country is about 35%. This includes a 15% profit tax, 9% of the social security fund, and a 10% tax increase if your company earns more than $45,000 annually.
\ In addition, there are special taxes. For example, there is a tax on foreign payments (IOF) - you pay 4,38% for all card payments abroad. However, this tax probably will be canceled in 2029. Inheritance and gift tax rate in Brazil are up to 8%, and real estate tax of about 1-1.5% of its value. However, some taxes can make crypto nomads happy—the capital gain tax is only 15-20%, and that is the tax rate on the profit from an individual's sale of crypto.
\n Crypto Regulation in Brazil
\ Recently, Brazil became the first country in the world to approve a Spot ETF on Solana. Moreover, in September, BlackRock launched an Ethereum ETF on the local stock exchange—B3. One could easily put Brazil on the same footing as Hong Kong and the US on this basis—they allow crypto ETFs there, too. Even based on this news alone, the conclusion is that this country is one of the most innovative in fintech and cryptocurrencies in the world. And it's true.
\ If we talk in general about crypto regulation in Brazil, business operations and transactions with crypto have been legal since 2019 through bylaws. In 2022, outgoing president Jair Bolsonaro signed a law passed by the parliament that introduced a licensing procedure for cryptocurrency exchanges and other VASPs in the country. The Central Bank and the local SEC CNV should be responsible for it.
\ The law is still not fully implemented. Crypto business and VASP activity are legal in the country, but some details of their operations are still not defined in the law. This includes the licensing regime for crypto entities.
\ Currently, to provide crypto services in Brazil, you need to open a company. However, licenses are required for transactions with fiat. Big local players like Mercado Pago, Mercado Bitcoin, and Ripio have fintech licenses. Also, local crypto card providers need them.
\ Regulators promise that new legal acts for virtual assets will be in place as soon as this year. But its introduction may be postponed.
Conclusion
I think it's worth seeing Brazil to see if it's the right country for you. But in general, it has both economic prospects—a growing economy and a large crypto market—and a number of pleasant advantages for living—good climate and nature, relatively low prices, and easy legalization and naturalization.
\
This content originally appeared on HackerNoon and was authored by Ilia Ilinskii
Ilia Ilinskii | Sciencx (2024-09-08T10:54:27+00:00) Brazil: Hot Spot for Nomads and Biggest Fintech Market in LatAm. Retrieved from https://www.scien.cx/2024/09/08/brazil-hot-spot-for-nomads-and-biggest-fintech-market-in-latam/
Please log in to upload a file.
There are no updates yet.
Click the Upload button above to add an update.