May 2018

GDPR: ALMOST HERE! / WHAT’S YOUR BLEISURE? / MARKET: CHICAGO / BOOK: FIND YOUR WHY / DESTINATION: BRAZIL

REAL ESTATE

IN THE 21st CENTURY

Magazine of Worldwide ERC®

SEEKING A

NEW BLEND OF SKILLS

INTERNATIONAL MOVE PRICING

PARADIGM SHIFT

MOBILITY GLOBAL TALENT MOBILITY IMPACT4.0

WorldwideERC.org | Mobility 99

B razil is a beautiful, lively country with something for everyone. With the largest population in Latin America and ranking fifth in the world in area, Brazil is a federal republic with an estimated 208 million inhabitants—and it is still growing rapidly, especially in urban areas. The majority of people live in the south-central area, which includes the

industrial cities of São Paulo, Rio de Janeiro, and Belo Horizonte. São Paulo, capital of São Paulo State, is the biggest city in South America, the fourth-biggest city in the world by population, and a center of culture, research, education, arts, and events.

Some historians believe that Portuguese explorer Pedro Álvares Cabral made landfall on what is now present-day Brazil in 1500. The area was originally called Ilha de Vera Cruz (Island of the True Cross), later Terra de Santa Cruz (Land of the Holy Cross), and only later Brazil. Over the centuries, people from all over the world—including Europe, Japan, Africa, and the Middle East—have settled in Brazil, add-ing to its highly diverse multiethnic and multicultural environment.

Brazil has 26 states and the Federal District, where the capital, Brasilia, is located. The country is divided into five regions: North, Northeast, Midwest, Southeast, and South. The official language is Portuguese, and the currency is the real. Brazil is famous for its nature, exuberant vegetation, and beautiful beaches in regions such as Amazonas, Pantanal, Northeast, and South.

Brazil is a country rich with culture from diverse peoples and is influenced greatly by its connections to the historical Portuguese Empire. Many of its best-known festivals and events, such as Carnival and Bumba Meu Boi, have their roots in colorful celebrations that have originated all over the world. Carnival is the most famous holiday in Brazil and has become an event of huge proportions. It typically occurs during February or early March, before the liturgical season of Lent, and it involves a public celebration combining some elements of circus, masks, and public street parties. The most famous street parties happen in Salvador, Recife, Olinda, Rio de Janeiro, and São Paulo.

DESTINATION PROFILE:

The diverse and friendly giant of South AmericaBy Samar Jeradi, GMS

BRAZIL

mar

chel

lo74

/ Sh

utte

rsto

ck.c

om

100 Mobility | May 2018

DESTINATION PROFILE: BRAZIL

Visas / ImmigrationBrazil’s population includes 0.3 percent immi-grants. This is considered low compared with other underdeveloped countries, which have an average of 1.7 percent. Brazil has 700,000 immigrants among a population of 208 million, and has the greatest number of Syrian refugees in Latin American (around 3,000). Sixty-five percent of the immigrants are concentrated in Southeast, due to the big cities located there and the infrastructure.

A new immigration law, Law 13,445, which took effect in November, is aligned with Brazil’s Federal Constitution of 1988 as well as with human rights agreements signed by Brazil. It had been antici-pated for many years, and there was a lot of anxi-ety surrounding it. The new immigration law looks at foreigners from a human rights perspective and not as subjects of national security as previously.

In December, the Labor Ministry published reg-ulations regarding some types of visas. Regulations about other types of visas, as well as some immigra-tion procedures under the Justice Ministry, are still pending but are expected soon.

Changes the new law brought include:• New activities classified within the visitor visa

(tourism, business, transit, artistic and sports activities).

• Exclusion of the permanent visa category and replacement with a residence permit.

• Possibility to exchange the visitor visa for a resi-dence permit while the foreigner is in Brazil.

• Family reunion without any limitation of age.• New Brazilian identification document—RNM

(Immigrant Civil Identification and Registration).• Faster process analyzing time than previously.

EconomyThe Brazilian economy has formally been in recession since the second quarter of 2014 due to a political crisis and failed government economic policies. Recent projec-tions by the World Bank foresee a small but optimistic growth in the Brazilian economy for 2018 and 2019. One of the signals of economic change was the announce-ment of 2.95 percent inflation for 2017—lower than the 3 percent goal set by the government. There is much insecurity about the economy in 2018, mainly because a presidential election will be held in October.

The current government has started taking political and economic actions to improve the economy, such as establishing a public spend-ing limit, modernizing labor laws, creating incentives for domestic consumption, updating immigration laws to attract foreign investment, reducing interest rates, and adopting other mea-sures aimed at reducing inflation. These actions are intended to restore growth to the country as well as confidence among foreign investors.

WorldwideERC.org | Mobility 101

HousingIn Brazil there are no multilisting services, and therefore in order to find properties one must rely on multiple real estate agents. A property can be listed with several agents or exclusively with one agent, depending on the landlord. Internet ads are not trustworthy. Most properties listed on the internet are not up to date, most of the real estate agents on the internet are not licensed, and the ads in most cases do not have accurate information.

Since 2015, the economic and political crisis has had an effect on pricing and availability in the property market in Brazil, especially high-level properties. The number of expats leaving the country increased significantly, and so did the number of empty properties for rent. For this reason market offers increased, giving expats a greater opportunity to negotiate the rental price and improvements as landlords started being more flexible.

Homes in Brazil are usually older and more traditional than apartments. Gated communities offer newer and more modern homes of around 100 to 300 square meters with two to three bedrooms. Apartments in Brazil tend to be more modern. A security deposit is usually not accepted, but the company is accepted by landlords as a guarantor. Utilities are not included in the rental amount, and neither are condominium fees and property taxes, so the expat should consider those extra expenses when looking for a property.

The cost of living in Brazil is high, especially in big cities such as São Paulo and Rio de Janeiro. According to the 2017 “Cost of Living in the World” report published by the EIU (Economist Intelligence Unit), Rio de Janeiro and São Paulo went up 27 and 29 positions, respectively, moving to 86th and 76th places among 132 cities.

Donatas Dabravolskas / Shutterstock.com

102 Mobility | May 2018

Schooling The international schools in Brazil follow the inter-national academic calendar. In some cities, such as São Paulo and Rio de Janeiro, it is possible to find several international schools (American, British, French, Italian, German, Spanish); other cities have only one international school, which is usually American. In addition, there are bilingual schools that are cheaper and use foreign languages as well as Portuguese in the curriculum.

Depending on the school and the age of the student, the family may face a waiting list to enroll the child. The recommended time frames to enroll are six months in advance in order to complete the application process.

Public TransportationPublic transportation in Brazil is not recommended for expats due to concerns about security and quality of service. In São Paulo and Rio de Janeiro, subway transportation is good and can be an option if used with caution. Otherwise, use of taxis or Uber is recommended.

DESTINATION PROFILE: BRAZILM

athe

us O

bst /

Shu

tters

tock

.com

Tatuapé subway station, São Paulo

WorldwideERC.org | Mobility 103

Medical MattersIn big cities such as São Paulo, Rio de Janeiro, and the main state capital cities, private hospi-tals are very good, staffed with renowned doc-tors and modern equipment. Many Brazilians, particularly in the major cities, have private medical insurance.

Most hospitals accept the insurance plans of foreigners who have international coverage. The best thing to do upon arrival in Brazil is to call the closest hospitals to make sure your international insurance plan is accepted.

When needing a doctor, be sure to call and make an appointment prior to your visit. General or family doctor visits are not the norm in Brazil; people go to specialists. Typically under interna-tional medical plans you will have to pay upfront and get reimbursed later.

SecuritySafety and security can still be a concern in Brazil, especially in big cities. Due to the large disparity of incomes in Brazil, street crime and theft are a problem. It is important to be aware of your sur-roundings, particularly at night, and refrain from carrying your passport or large sums of money, or wearing expensive jewelry. This will help reduce

vulnerability to unwanted attention, crime, and harassment. Other tips:• Keep your belongings close to you at all times. • Do not provide personal information to strangers. • Do not take public transportation during the

nighttime. • Do not use cellphones while walking on the street.

cifo

tart

/ Shu

tters

tock

.com

Hospital Israelita Albert Einstein in São Paulo

104 Mobility | May 2018

DESTINATION PROFILE: BRAZIL

FinancesExpats in Brazil are subject to the same taxes as Brazilians. The top income tax rate is 27.5 percent, and taxation law offers some deductions, subject to certain requirements. Depending on each category, the tax is deducted directly from the payroll or paid separately.

It is necessary to open a local checking account when you apply for Brazilian legal documentation to live and work in the country. A residence permit is required in order to open an account; a tourist visa is not sufficient. Banks require local documents such as the tax ID and the CRNM (Carteira de Registro Nacional Migratório). Transferring money to another country is a bureaucratic procedure and requires presentation of some documents.

Most local banks have their own ATMs that are widespread throughout major cities. Foreigners can

exchange cash or traveler’s checks at travel agencies, banks, hotels, and exchange offices—preferably recommended by a local agent. Credit cards such as Visa, Mastercard, Diners Club, and American Express are accepted in most places.

It is best to use ATMs in more protected locations, such as supermarkets or shopping centers, during daylight hours, and to be accompanied by a friend or colleague. These ATMs can also be used to pay bills, verify balances, make deposits, and order checkbooks. If your bank card is lost or stolen, call the bank and request immediate cancellation.

Since 1999 Brazil has allowed its currency to fluctuate, its value determined by the market. At the time of publication, US$1 is equivalent to approxi-mately 3.35 real, but this rate changes daily.

WorldwideERC.org | Mobility 105

Unexpected BrazilBrazil is a fascinating country, with exuberant nature, delicious food and fruits, and happy people. Being in Brazil will offer a unique experience.

Brazilian people are considered very friendly and happy. Even with the large disparity of income, the humble people tend to be more receptive and friendly to foreigners. Some good restaurants and places to visit are located in the suburbs, which may surprise expats.

Brazil is a big country, where visitors can explore several regions with typical food, dance, arts, and

nature. The differences among regions can be surprising, and visitors may feel as if they are in another country even while visiting many cities within Brazil. Be sure to try such food specialties as feijoada, churrasco, acarajé, and caipirinha, and to visit Brazil’s stupendous beaches and forests, such as Pantanal and Amazonas. M

Samar Jeradi, GMS, is LARM Brazil operations manager. She can be reached at +55 11 4193 1006 or samar.jeradi@larm.com.br.

Pantanal Wetlands

REPRINTED WITH PERMISSION FROM THE MAY 2018 ISSUE OF MOBILITY, PUBLISHED BY WORLDWIDE ERC®