Expert: Ken Rapoza Cruz - 8/26/2009

Question
QUESTION: I am a us citizen thinking of moving to Criciuma Brazil next year.  I have several friends there and spent two months last year visiting.  I am 31 years, single male.  I had a great time and consider residing there to be a unique opportunity both socially (I love the women) and business wise.  My friends and their families are wealthy and powerful even by us standards, most speak english.  I can stay in their enormous home as long as it takes to get adjusted and learn Portuguese.  

My friend is about to open a new club in town.  I am going to invest some money with him and help work the club when I arrive next year.  It will be a contract between us and on paper he will be full owner.  This will get me around the work visa problem as I will take cash from the club.  There are no issues of trust between me and the partner, we are like family.

My question is this, will it always be this way.  The first year is no concern to me, but as time goes on how can I own a business in Brazil ? Do I haft to mary some chick to get rights in the country ?

Next question, I make about $5 K a month in oil royalties. As you know with this economy it does not spend like it once did.  Part of my logic here is I can live a more lavish lifestyle there with the same amount of money.  Very nice condo, lots of fun, lots of cash etc. If the club does not throw a bunch of money my way year one, is $5 K a month and $40 K in pocket enough to be a bad ass ? From my time there it would seem that amount would spend there like $12 to $15 K a month here. (Austin TX)   Is that correct?

ANSWER: Hi Texas:
I dont know that town. You sure you are spelling it right? Is it in Bahia? Well, first things first...if you have close friends who are wealthy and powerful and you can live with them and they can house you and feed you; good for you.  And if one of them is opening a bar or a nightclub and you are a partner on  paper -- well, I dont know your friends, but okay. Of course, you should expect the worst on that end. Such as: the club fails and you both lose money, or the club fails and he takes all the money -- even tho it is at a loss -- and you get zilch. You get into an argument and see how fragile your friendship is and living there becomes uncomfortable; or you simply outgrow the situation and it is time to move on. All of these things are strong possibilities.

Regarding money...$5,000 a month is very good. I earn that on a full time freakin job and that puts me in a rich area in Sao Paulo and I have three other mouths to feed. Wife has to work though on that pay; but you will be alone, so better for you. The money will go far if you dont pretend youre a movie star and spend it all like an idiot.

$5,000 a month and $40,000 cash is enough to live large. Yes. You should keep some in reserve, though, in case you really need to find a place of your own. That will surely complicate things.  I dont know that town, so maybe it is a backwater. Sao Paulo, where i live,is strict. You dont have a CPF, or rental insurance, or pay taxes...you will have a very hard time renting. I have a workers permit here, a permanent visa cuz I am married, and I had to get my bro in law to co sign my apt loan. He had to put up money (as the co-signer, like in the US). You need to have a good friend willing to do that. Or you have to pay for rental insurance. Wait? You dont have a job? You dont pay taxes? You dont exist in the eyes of the government? Sorry, cant give you rental insurance. Sure, you have rich and powerful friends...they will have to make it happen for you. They can. Or maybe they cannot. It's not going to be like crossing the road to get to the other side, in other words.

The visa -- you can try to apply for an immigration visa once in the country, but this is tricky. If your friends own a business, they can sponsor you as their investment partner and you can get a business visa eventually. I would not marry, even a hottie, for a visa. Not unless you want to give her all of your oil royalties when youre 40 because you two divorced.



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

QUESTION: Thanks for the response, Criciuma is in Santa Catarina southern Brazil.  It has around 200k population and three hours by car to Florianopolis.  I also spent a week there and loved it.  I know what you mean about the club, in some way I almost expect to louse money.  But its not a great deal of cash and I think it may be worth the loss to gain the experience.  My 27 year old friend and his family are really connected in this town.  They can take care of all condo leases and issues that arise. It may sound crazy but I will want to move out of their three story million dollar home with two maids as soon as possible.  I like to have my own place.  This leads me to two more questions.  

I use rosette stone software and plan to take a beginner class at UT in the fall.  This will only give me a start to the task ahead of learning Portuguese.  After one month there not even trying to learn I could understand some things that where said.  I could not say virtually anything other than, you look nice today (some girl) or can I have a redbull vodka.  The speed of the language seems daunting.  I hope to only stay with my friends for three months, then I want a condo nearby.  If I do nothing but study my ass off for that time, where will I be?  I wont have a job so I can use everything. The software, personal teacher in home, class, even talking to the maids during the day.  When can I at least sound like a child and understand most of what is going on?

Second, there is a chance however small, that the club does well.  My good looking friend really is a big deal in this town.  People will visit the disco him and his American friend own.  In a sense I will walk into the city a rock star.  I say this because that is exactly how my brother and I where treated when we traveled there.  People thought we where from Hollywood, partly because we look it but I don't get the red carpet in Texas.  Shit!, our group picture at some high end social diner ended up on the front page of some small paper.  The club may have some chances because of the people involved.  

How can I get protection if that happens.  I need to be legal owner in Brazil to look after my interest.  Are there such things as iron clad prenups for Brazil marriage? Because its no problem over here.  Then I could have an arranged marriage of sorts.  Then I could own things and we all know she just gets a parting gift when its over.  Sorry if these questions seem weird, I realize your a family man.  These are the things I must think about and I like your third party opinion.  I don't know your first language but you wright english like American, which is more than I can say for my friend.  I don't get many details without a phone call.

Thanks  

Answer
Six months is a good adjustment period. Dont move out. Stayin the mansion during that time period so you have the sounds and the words surrounding you all day. Three months is not enough. Youll be like a Mexican in Corpus Cristi who, after a year there, still cant speak a lick of English.

The Hollywood treatment will wear off.  Work it for all its worth.

I am sure there are prenups for Brazilian marriages. I wouldnt get married just for staying in Brazil. Believe me, it's not worth it; even with the Rice-a-Roni parting gift. Get that out of your head. If you are an investor in Brazil, you might be able to get an investors visa, though you will have to put up a lot of money, close to quarter million, I believe. Get your rich friends to sponsor you as their business partner in the night club; you can get a biz visa that way and stay there for a year on that, perhaps.

Im from Boston. American.