Based on the contending views that have emerged from members, particularly with regards to the current state of the cost of living in Brazil, two general statements can be made in order to describe their standpoint.
The first one pertains to the view that the prices depend on the location of the property. Living in Brazil’s tourist hotspots such as Pipa, Natal, and Fortaleza can be quite expensive. This is since these areas primarily cater to the tourist market. In addition, these areas are regularly visited by tourists. Plus, its resources are always in demand or in use, making it apparent that these areas follow the law of supply and demand.
The high rates for air fares, car rentals, hotel accommodations, and dining expenses are actually reflective of these demands. Hence, these areas really generate relatively higher expenses as compared to other less known tourist hotspots in South America, which seem also reflective of Brazil’s popularity with tourists along with its position as an established tourist destination. Therefore, if one should decide to live in a tourist area, then a buyer should also pay like a tourist.
Secondly, Brazil is seen as an inexpensive destination for those who are planning for a short stay or just for the holidays. This is opposed to those who choose to relocate in the country and earn their living there. Thus, since Brazil has one of the world’s lowest paying salaries along with the fact that the most basic needs in the region are also quite expensive albeit at local rates, one should really work hard to earn a decent living in Brazil. This is especially true if you wish to survive in Brazil. For instance, a couple living in relative comfort and having two school-aged children, a house of their own, a housekeeper, and a gardener, their expenses would mount up to approximately R$ 10860. However, if it is converted into Euros or Pounds, the monthly expense would only sum up to a little over 4,000 or 3,000, respectively.
Therefore, living expenses in Brazil vary greatly on where and how one intends to live in this country. Thus, in the thread, what remain noticeable are the contradicting views given by most members about their ideas that the cost of living in Brazil is inexpensive.
Thus, Brazil is not included in the list of countries that a foreigner can move into in the hopes of making a better life solely based on financial gains. Foreigners who come to Brazil to relocate may find it difficult to secure a job that pays salaries comparable to the wage rates in their own countries. Unless they are skilled foreign professionals being transferred to this country with expatriate contracts, these people will be forced to find a source of income. Thus, it is a known fact that Brazil offers one of the world’s lowest salary wages and has a high unemployment rate.
Hence, there are many bureaucratic procedures that a foreigner needs to comply with, especially if the purpose were to secure employment and to live in Brazil. Unless one is married to a local or possesses a special skill, securing a resident’s permit (vista permanente), which contains a foreigner’s registration number, can be very difficult to acquire. In addition, a tax registration number (CPF) and a work permit (carteira de trabalho) should be acquired in order to work and live in Brazil. Furthermore, one has to contend with the low salary wage, which usually fails to merit the responsibilities that come with the position. Since the minimum wage in Brazil is R$240. Because the salary is often calculated as a multiple of the mentioned wage, many people cannot get by with their salaries and are forced to find different jobs. This even includes professionals.
Aside from this, companies also face heavy overheads under the Brazilian labor laws. They are obliged to provide their employees with health insurance, travel allowances, holiday payments, and food baskets, which would generally double the value of their actual salary. These companies are also heavily taxed and are quite unable to access credits. This is since the Brazilian interest rates are quite high.
A foreign national that has a heavily demanded product or service may opt to work alone. Although setting up a company may be expensive and extremely bureaucratic, such an endeavor is a good alternative. In fact, Brazil has one of the world’s highest rates of self-employed people. Plus, Brazilian companies are used to dealing with such entrepreneurs. They often offer tailored services and even save their client companies from the cost of employing extra labor.
Thus, the streets of Brazil are certainly not paved with gold but one can live a life of relative comfort and contentment if one strives hard and works for it.
Learn more about the property markets in Latin America in the Brazil forum.