Expert: Ken Rapoza Cruz - 12/10/2009

Question
QUESTION: Hi Ken, I can see that you live in Sao Paulo now so I would like to ask you some questions about your city Sao Paulo and about  Rio de Janeiro. I live in the states now and plan to move to Brazil to start a small business like a store, bar or maybe a restaurant. From what I have read about Brazil both Sao Paulo and Rio de Janeiro have a high rate of murders and other crimes.But Rio de Janeiro looks like surpassing Sao Paulo with having an even higher rate of murders and crimes.So Rio de Janeiro might be even more dangerous than Sao Paulo, am I right? Also,I have a question about the cost of living. Like food costs(eating in a fast food cafe),real estate prices(for apartments),health care costs,and etc. Which city ,Sao Paulo or Rio de Janeiro, has a more expensive cost of living? Thanks.

ANSWER: Sao Paulo is more costly for sure, and less dangerous than Rio. It depends what type of bar, or restaurant you want to open. I dont think safety and cost of living should be your immediate concern. Your immediate concern should be how do you plan on investing in this country? You need a loud of documents, or even a Brazilian partner before you can go forward. This is not the banana republic it used to be. You CAN open a restaurant, but you will not A LOT of money to do that. If you plan on opening something small, you will need Brazilian partners and you come in as an investor and then the company you create can invite you to Brazil on a business visa. If you are serious about this, you need to talk to the Brazilian consulate and fish out what type of roadblocks are going to be in your way so you can get started knocking them out one by one.


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

QUESTION: Hi,Ken well first I have never thought before or now of Brazil as a "banana republic". Yes, I did not mention in my question to you that I have already found out that I need to use the Investor visa that requires me to open/register a company in Brazil and than transfer R150.000 to the Brazilian bank which later I have to spend on my business. You have stated that Sao Paulo is more costly than Rio can you explain how much more? And as far as the safety, since you say that Sao Paulo is safer do you think that it is more dangerous than New York City or Los Angeles or not?Thanks.

Answer
DEFINITELY more dangerous that LA or NYC. It all depends where your neighborhood set up is going to be. Its still a ppoor country, so you will have more poor to deal with in Rio than in Sao Paulo. Then again, depends on the neighborhood. Do you ahve any Brazil partners?  I dont know the cost difference to opening a business in SP vs Rio because it all depends on the taxes, which I dont know becuase I dont know what business you are going into, and it all depends on location.  You should definitely hire a Brazilian team down here, or a consultancy, to do this leg work for you if you are serious about doing this.