| Provider | Amount Received | Fee | Exchange Rate | Speed | ||
|---|---|---|---|---|---|---|
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Currency Solutions | GBP £1,313.14 | BRL73.34 | 0.1313 | 1-3 days | more... |
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Moneycorp | GBP £1,322.43 | No Fee | 0.1322 | 1-3 days | more... |
GDP growth may have slowed in recent years, but investor interest in Brazil remains healthy (albeit easing), with the country still attracting around US$72bn in foreign direct investment (FDI) in 2019, supporting robust flows of money transfer to Brazil. Nevertheless, with growth having slowed and expected to remain subdued, investors, whether private or institutional, may look increasingly to realise gains made in recent years, and transfer money from Brazil accordingly. Whether you are importing, investing in the UK, repatriating income or profits, or funding overseas study, it can be very slow and bureaucratic to send money from Brazil to the UK – or indeed anywhere – can be extremely difficult and expensive, despite there officially being few restrictions on foreign exchange transfers.
For foreign-exchange purchases of up to US$10,000 per transaction the central bank, Banco Central do Brasil (Bacen) does not even require notification. With foreign exchange process having opened up in recent years, individuals and companies can theoretically buy and sell reais and transfer reais abroad, but it may be necessary to justify the legality and economic reasons for larger transfers, on top of reporting the transfer to the bank.
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Profits can be remitted abroad with restriction and do not incur corporate income tax, and dividends can be paid to non-residents. The bureaucracy, however, can be onerous, with proof needed of the investment’s registration and proof of the transaction that generated the profit. Bacen monitors closely loans from a foreign to a domestic company to ensure that outward debt service payments are not used to hide larger external transfers. The central bank will prevents lending at rates it regards as too high, while all foreign loans (including supplier credits for more than 180 days) must be registered in order to permit repayment remittances. Given that Brazil and the UK have no double taxation treaty, transactions involving the transfer money from Brazil to UK by companies sending interest or profits will be subject to 15% withholding tax.
With the number of expats moving to Brazil rising, and the country having enjoyed impressive GDP and income per head growth, the number of foreigners buying property has grown, whether for personal occupancy, vacation, or investment. There are no restrictions on foreigners buying property, all property sales are titled, and foreign investors enjoy the same investment and possession rights as Brazilians. If taking income from the property, foreigners are subject to the same tax as residents, but non-residents from the US will be hit with a 15% capital gains tax if the property is sold. That said, (and assuming all paperwork is in order) investment capital brought into Brazil can be transferred out of the country.
The UK is not one of the key overseas investment destinations for Brazilian investors, and while volumes have grown for much of the last decade, they saw a significant drop in 2018 to US$900m, from a peak of US$3.6bn in 2016. The UK’s share of FDI is 1.9% of the total, while Brazil accounts for 0.07% of FDI in the UK. Retail and wholesale trade is the largest source of FDI in the UK from Brazil, followed by financial services and professional and technical services.
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All the providers listed are regulated by the relevant authority (e.g. the FCA in the UK, FinCEN in the US, ASIC in Australia) and have been vetted by FXcompared.
FXcompared.com is an fx money comparison site for international money transfer and to compare rates from currency brokers for sending money abroad. The website and the information provided is for informational purposes only and does not constitute an offer, solicitation or advice on any financial service or transaction. None of the information presented is intended to form the basis for any investment decision, and no specific recommendations are intended. FXC Group Ltd and FX Compared Ltd does not provide any guarantees of any data from third parties listed on this website. FX compared Ltd expressly disclaims any and all responsibility for any direct or consequential loss or damage of any kind whatsoever arising directly or indirectly from (i) any error, omission or inaccuracy in any such information or (ii) any action resulting therefrom.
