How to Invest Abroad Living in Brazil: A Guide for Brazilians

How to invest abroad while living in Brazil is a common question for many Brazilians who seek to diversify their investments and increase their wealth internationally. With globalization and easy access to digital financial platforms, investing in assets outside Brazil has never been more accessible.

However, this process may seem challenging for those just starting out. In this article, we will discuss the main ways of investing abroad, highlighting the most advantageous options for those who live in Brazil and want to expand their investments globally.

Why Invest Overseas?

Investing abroad is a strategic way to diversify your investments and protect your assets against local risks, such as economic instability, changes in fiscal policies, and inflation.

In addition, by investing in international markets, you have the opportunity to take advantage of the growth of more developed economies or emerging markets that have high rates of return.

1. Risk Diversification

By investing abroad, you reduce the risk exposure of a single economy, such as Brazil's. Diversifying geographically can protect your portfolio if the domestic market experiences periods of volatility.

Mitigating local risks: The real estate market or Brazilian equities may be affected by economic crises in Brazil, while assets abroad may perform differently.
Access to more stable markets: More stable economies, such as the United States or Europe, offer a secure alternative, especially for those seeking greater financial security.

2. Access to High-Growth Sectors and Markets

Investing outside Brazil also allows you to take advantage of high-growth sectors that may not be as accessible in Brazil, such as technology, renewable energy, and more developed financial markets.

Technology and innovation: Countries such as the United States, China, and other emerging markets offer good opportunities in innovative sectors, such as technology.
Sector diversification: The real estate market in the US, for example, can offer stability and passive income, while stock markets can generate faster profits with technology companies.

How to Invest Abroad Living in Brazil?

Now that you understand the benefits of investing abroad, let's discuss the most popular and feasible ways to do this while living in Brazil.

1. Investing in Foreign Shares and Real Estate Funds

One of the simplest ways to invest abroad while living in Brazil is through international equities and real estate funds (REITs). You can access these options through brokerage firms that operate both in Brazil and abroad.

Some Brazilian brokerage firms offer platforms for buying company shares in the United States, Europe, or other markets.

International brokerage firms: Platforms such as XP Investimentos, ModalMais, and Clear offer access to international exchanges such as the NYSE (New York Stock Exchange) and NASDAQ.
Real Estate Funds (REITs): REITs are real estate funds that invest in commercial or residential properties in the United States. They are affordable for Brazilian investors, providing passive income in dollars.

2. Investing in Debt Bonds and Fixed Income Funds

If you are looking for safer investments, you may consider buying bonds (debt securities issued by governments or companies) abroad.

Government bonds from countries such as the United States or the United Kingdom offer security and stable returns, making them ideal for those seeking capital preservation and constant profitability.

American Treasury Bonds: Bonds such as the Treasury Bond offer security and returns tied to the American economy.
International Fixed Income Funds: Some investment funds in Brazil offer access to international fixed income funds, which invest in debt securities from various countries.

3. Investing in Cryptocurrencies

Cryptocurrencies offer a relatively easy way to invest abroad. While cryptocurrency markets are more volatile, they allow you to have access to global digital assets without needing an international broker.

The popularity of cryptocurrencies, such as Bitcoin, Ethereum, and others, has grown significantly, and many Brazilian platforms offer the possibility of investing in them.

Brazilian platforms: Exchanges such as Mercado Bitcoin, Foxbit, and BitcoinTrade offer buying and selling of cryptocurrencies, allowing you to have exposure to digital assets globally.
Decentralized investment: The DeFi (decentralized finance) market has also attracted Brazilian investors seeking direct access to global investments with fewer intermediaries.

4. Investing in Real Estate Abroad

Investing in real estate abroad is another attractive option, especially for those who want to generate passive income in hard currency (such as the dollar). Some real estate crowdfunding platforms allow you to invest in international real estate projects with low initial investments, making it easier to access global markets.

Real estate crowdfunding: Platforms like Fundrise and RealtyMogul allow you to invest in real estate in the United States with affordable starting values. These investments can generate passive income through the rental and valuation of the property.
Commercial and residential real estate: Some companies offer the possibility of buying real estate directly or through digital platforms, allowing you to participate in the real estate market in countries such as the USA, Portugal and Spain.

5. Open an Account with International Brokers

Brazilian investors can also choose to open accounts with international brokerage firms to access global markets in a more direct and diversified way.

Companies like Interactive Brokers, TD Ameritrade, and Charles Schwab offer robust platforms for Brazilians, allowing you to buy stocks, funds, ETFs, and more.

Commission and fees: When choosing an international broker, it's important to consider brokerage fees, currency conversion, and other costs involved.
Full market access: International brokerage firms offer full access to markets in the United States, Europe, Asia, and others, allowing you to invest in the shares of major global companies.

Cautions When Investing Overseas

While investing abroad while living in Brazil is a great way to diversify your portfolio, there are some precautions you should take:

1. Taxes and Tax Reporting

Investing abroad implies tax obligations. Brazil requires all citizens to declare income from international sources in the Income Tax, and failure to declare may result in fines.

Additionally, depending on the type of investment, you may need to pay taxes on capital gains and dividends received.

Declaration of international investments: Be sure to declare your investments and income from international assets on the Income Tax Return.
Dividend taxes: Some countries charge taxes on dividends and capital gains, so it's important to understand local tax laws.

2. Exchange Rate and Conversion Costs

Investing in assets abroad implies exchange rates. The conversion of reais to dollars or euros may impact the final amount of your investment. Additionally, some brokers and platforms may charge currency conversion fees.

Conversion cost: Be aware of the currency conversion cost and the fluctuation of the exchange rate, especially if you are investing in assets that pay dividends or are profitable in foreign currency.

3. Foreign Exchange Risks

When investing abroad, you are exposed to currency risk. If the value of the foreign currency falls against the real, it could affect the return on your investment, especially if it is in long-term assets.

Exchange fluctuation: The value of the real against the dollar, euro, or other hard currency may affect the amount of your return, so it's important to monitor the exchange rate.