Tax in Brazil for Financial Operations Abroad – Offshore World

Tax in Brazil on Financial Transactions (IOF), on international travel and the use of cards issued abroad

The purchase abroad was one of the interests of Brazilians in 2013, spending 23 million dollars abroad, however, the latest news may cause this value to be reduced in 2014 anyway with the considerable increase in the Tax on Financial Operations (IOF) is necessary to be careful when making payments during international travel.

The IOF rose from 0.38% to 6.38% for operations carried out abroad with the use of prepaid cards, debit cards and purchases with traveler’s checks. This tax has the same value already applied for the use of credit cards. For example, when you make a purchase of R $ 1 thousand abroad, you will have to pay R $ 63.80 of taxes.

The tax rate of 0.38% is maintained only for the purchase of foreign currency in the foreign exchange market in Brazil. It is worth noting that if you travel abroad with cash if the amount of expenditure of $ R 10 thousand or its equivalent in another currency will be necessary to declare.

Prepaid cards and debit cards issued abroad

An effective way in terms of cost and time to go shopping abroad, money remittances or investment income, is through the use of an international prepaid card.

Who has a foreign bank account and make real withdrawals in Brazil is not subject to the IOF. This tax will only be charged in the case of exchange transactions when the currency is converted.

Learn more benefits of a foreign account

Account abroad is an indispensable part of international diversification. An offshore account is synonymous with security for your assets, being out of the country, there is no risk of being frozen or confiscated by the government.

Having a foreign bank account is an excellent strategy to plant a seed abroad. In addition to diversifying your assets and minimizing political risk, you will also have access to services and products that are often not offered by local banks, for example, absolute bank secrecy, investment in some products that do not exist in national banks and anonymous numbered accounts.

With a corporate account, you will automatically have greater asset protection and privacy. Therefore, it is important to open an offshore company account and on behalf of the company.

Through an authorized agent, you can have a company abroad without having to go personally to the chosen jurisdiction to be incorporating your legal structure. And the costs are much lower than you think!

In less than five working days (depending on the jurisdiction chosen), it is possible that your company is ready, of course, it is necessary to make the payment, send the documents and wait for the process of the same by the authorized agent and jurisdiction.

Many jurisdictions specializing in the incorporation of offshore companies facilitate the entire process of opening a company because this infrastructure is the largest product that these jurisdictions have to offer, since it is an important source of income for these countries. All you need to do is fill out the forms and provide proof of due diligence required by the jurisdiction. Do not wait any longer and contact experts.

We wish you a good weekend,

Until next time!