With a population of approximately 216 million, Brazil is South America’s largest country. It’s renowned for its vibrant culture, stunning beaches and vast rainforests teeming with diverse wildlife. Portuguese is the official language, and English is not widely spoken outside major urban areas. For Americans, Brazil offers a relatively low cost of living and, in some cases, it’s possible to live comfortably on Social Security income alone. If you’re considering retiring in Brazil, a financial advisor can help you plan strategically, including preparing for international tax implications and other financial considerations.
Cost of Living and Housing in Brazil
According to Numbeo, a cost-of-living database, the cost of living, including rent, is 190% higher in the U.S. than it is in Brazil.
The most popular destination for retirees in Brazil is Rio de Janeiro. If you were to rent a one-bedroom apartment in central Rio de Janeiro, you could expect to pay about $430 per month. If you chose to get a three-bedroom apartment in the same area, you could expect to pay about $870 per month. By contrast, in central New York City, a one-bedroom apartment costs about $3,900 per month, and a three-bedroom apartment goes for about $8,500 per month.
However, if you didn’t want to live in the city center, housing in Rio is still significantly cheaper than in the U.S. A one-bedroom outside of the city center costs about $320 per month, and a three-bedroom costs about $540 per month. In contrast, a one-bedroom outside of central New York City costs about $2,800 per month, and a three-bedroom in the same area costs about $5,200 per month.
How to Retire in Brazil – Visas and Residence Permit
Americans looking to retire in Brazil can do so by applying for a retirement visa. To qualify, you must be at least 60 years old and receive a pension income of at least $2,000 per month.
The application process should begin four to eight weeks before your planned arrival in Brazil. You’ll need to apply through a Brazilian consulate or embassy and submit several personal documents, including a copy of your birth certificate.
You can find more information on the website of the Brazilian Consulate General.
How to Retire in Brazil – Healthcare
Brazil runs a universal healthcare system that is administered by cities and states and funded by local, state and federal taxes. Healthcare, including primary, outpatient specialty, mental health and hospital care, as well as prescription drug coverage, is available to anyone who is legally in Brazil, including people living there on retiree visas.
Although universal and free, wait times to access care can be very long. And the quality of care is not highly regarded: The World Health Organization ranks the nation’s healthcare system as 125 out of 191 nations.
Private hospitals can be found in all major cities, however, and are significantly less expensive than in the U.S. For example, private health insurance costs up to $250 per person and covers physicals, medicine and hospitalization.
How to Retire in Brazil – Taxes
All Brazilian residents are required to pay taxes. Income taxes on global income are taxed at a progressive rate that maxes out at 27.5%. In the U.S., depending on how much you earn, you may pay up to 37% of taxes. However, pensions are often taxed differently.
Sales tax in Brazil is up to 17%. This is compared with the U.S. tax rate of 7.25%, so sales taxes are significantly higher in Brazil.
All American citizens must file taxes each year. It can be helpful to work with a tax professional or financial advisor to ensure that your pension earnings are not taxed in both the U.S. and Brazil.
How to Retire in Brazil – Safety
From petty theft to violent crime, Brazil has a problem with personal safety, especially in the country’s larger cities such as Rio de Janeiro.
It’s important to exercise extreme caution in December and January. During the holiday season, Brazil experiences crime increases because of Brazil’s prison furloughs. This is when prisoners are allowed to leave during the holidays.
So, when visiting or living in Brazil, it is wise to travel with a partner. This is especially true at night. It’s also wise to avoid high-risk areas. Brazil’s neighbors, including Venezuela, Bolivia, Colombia and Guyana, are known for having high crime rates. These crimes do cross borders and include illegal drug trade and personal crime. Therefore, it is advised that people avoid border areas.
Bottom Line
Brazil is a beautiful country full of people ready to welcome American retirees. It’s ranked as the 36th happiest country in the world, according to the World Happiness Report. It’s much less expensive than the U.S., which helps explain why it’s a popular place for foreign retirees. Violent crime is a problem in the largest cities. It’s a good idea to visit the nation several times before making a final decision to settle down.
Tips to Help You Afford Retirement
- A financial advisor can help you understand the finer points of relocating, including the tax implications. SmartAsset’s free tool matches you with up to three financial advisors who serve your area. You can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
- Because Brazil is so inexpensive, you can retire comfortably on a little more than the average Social Security benefit. You can estimate your benefit amount with this Social Security calculator.
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