Expert: Ken Rapoza Cruz - 3/28/2008

Question
QUESTION: Hello. Please I would like to have an approximation of the living cost in Sao Paolo, since I will probably go there to work in a company (HR area), I am 28, Bolivian but I have never been there , so If you could help me out with an idea of how much do I need for a single flat, transportation, food, etc.

Also if you can give me an average of the salaries in Sao Paolo, for professionals in HR area. I will really appreciate your opinion.

Many thanks

ANSWER: This depends on where your office is going to be. Let's pretend your office is in Vila Olimpa. Then you'd want to try and find a place in Vila Olimpia or Novo Brooklin. Rent for a one bedroom will cost you at least R$1,000 not counting condo fees that can range from R$200 to another $1,000, and real estate taxes of around R$35 to R$100 per month.

I dont know what the average salary is for HR pros. That depends on what company you are working for. If it is a small private co, maybe R$75,000 annually, minus about 25% in federal and state taxes. If it is for a major company, probably around R$90,000 to R$100,000.

You first need to know where your office is and look for apts near there because SP is too big to commute.






---------- FOLLOW-UP ----------

QUESTION: Many thanks Ken for your quickly answer!!!

You guess the place!!! The company is located in Novo Brooklin. I am right now in the interview process an they are asking me for a salary expectation, so your information gave me a range to thing about. If I get the job I will contact you again !!

Many thanks

Answer
There is also Brooklin, which is right next door to Novo Brooklin. BOth are nice neighborhoods.  For a single woman, you will want a safe place. So figure you are going to pay R$1,000 for rent for a one or two bedroom apartment and another R$300 to R$500 for condo fee.  

You will also have to consider if you are required to pay Brazilian income taxes. Are you going to be paid in dollars are in reals? If you are being paid under Brazil tax and benefit laws, here is what you should know:

11% of yoru salary goes to pay into the Brazilian social security system, INSS

If you are earning between R$75,000 and R$100,000, your income tax will be around 25%. Seeing how you have no children, you won't have any dependents to claim for reducing that tax burden.

Around 5%, maybe a bit more, maybe a bit less, will go to pay Sao Paulo state and city taxes.

So right off the bat you have to subtract at least 35% of your salary in order to know what you can and cannot afford.  

If you re making dollars, then you should base your budget on an exchange of R$1.60. It is R$1.73 now.  Pretend it is R$1.60 and calculate accordingly.


Do you have a  CPF number? If not, and you are paid in reals, you will need one plus a Workers Card, known as "carteira de trabalho". This will require you to pay taxes under the law. If you are paid in dollars, you will not need a CPF or a carteira and therefore can lie about taxes. No CPF and you dont exist under the eyes of the fiscal authorities.

Other tax payer benefits include:

4 weeks paid vacation
13 salary (called Decimo Terceiro) -- a full month's salary extra, paid in monthly increments or in full at end of the year.
FGTS -- employee unemployment insurance benefits.


This is all going to be part of your package in Brazlian reals, BUT NOT in dollars. If you earn dollars, you have no rights to any of these tax benefits, even if you are paying your full taxes. This is for employees of Brazilian companies who have the Workers Card adn CPF only.

Keep in mind that Sao Paulo is a messy, crazy city. There are risks involved not only on security, but also there are standard of living set backs. Trust me, you dont want to commute 1 hour to work everyday by bus. You dont want to live in a crappy neighborhood. Get an apt with a doorman and 24 hour security. It doesnt have to be a luxury apartment, but get one with security. You dont want a car in Sao Paulo if you dont need one.  Use cabs. Make sure your neighborhood is within walkingn distance to a supermarket and hospital, if possible.

Good luck.