SEVEN INTERESTING FACTS ABOUT BRAZILIAN EMPLOYMENT LAW

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benefits, Brazil, employees, FGTS, jobs, labor laws, work rules

How easy is it to terminate an employee’s employment contract in Brazil? When are employees entitled to paid annual leave? Does Brazilian law permit positive action? HR professionals working for global organisations with interests in Brazil can find the answers to these questions and more in the new guide to employment law in Brazil that has been added to XpertHR International.

We have set out below seven interesting features ….. (continue to article)

BR GOV: Court Orders Demolition of Luxury Hotel

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Brazil, Campos do Jordao, hotel

While having coffee this morning and reading The Estado de São Paulo (Estadão) newspaper I had one of those "this can’t be" moments when I read an article about a court ruling declaring the demolition and removal of all material of a luxury hotel in Campos do Jordão, SP.

Seems a luxury hotel, The Blue Mountain Hotel and Spa, broke 21 laws when it was built. It has been open and functioning normally for a year. It has a helipad and room rates can hit R$6,000 (US$ 3,750) per day.

The local state prosecutor claims 21 irregularities in the construction of the hotel some of which are:

• destruction of native forest
• inappropriate location on top of a mountain near natural springs
• destruction of habitat of endangered animals
• building of a water reservoir without State authorization
• not consulting IBAMA the Federal Environmental Agency

The obvious question is how did local authorities allow this hotel to be built in the first place.

Next question. Will they actually demolish this luxury hotel? I seriously doubt it, but that is one of the great things about living here; you never know for sure how the novella will end.

• click here to go to Blue Mountain Hotel and Spa
• click here for Campos do Jordão information
• click here to go to article (pt)

DOING BUSINESS: The rocky road to Rio: What shippers need to know about doing business in Brazil – DC Velocity (via Brazil Global)

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Brazil, DOING BUSINESS, logistics, sector, transportation

Links to an article about the transportation sector in Brazil, but informative for anyone considering doing business in Brazil.

Brazil one of the world’s few economic bright spots—and a very attractive market for manufacturers, retailers, and the businesses that serve them. That’s why companies from around the globe are moving into Brazil in a big way. But like the manufacturers that rushed into China more than a decade ago, they’re discovering … Read More

via Brazil Global

DOING BUSINESS: The Cost of Doing Business in Rio

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Brazil, business, cost, Rio, Taxes

The Rio Times

By Amy Skalmusky, Contributing Reporter

RIO DE JANEIRO, BRAZIL – It’s no secret that some items cost significantly more to buy in Brazil then they do in the U.S. or Europe. In some cases it’s even less expensive to fly home to buy items to bring back, then purchase here. There are many global trade issues at play, and the recent stand-off over cotton is an example of how government subsidization, import tariffs and taxes play a major role in the price the end consumer pays at the checkout counter.

• Click here for the full article

ECONOMY: World Bank – Brazil Ranking

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Brazil, DOING BUSINESS, economy, ranking, World Bank

I was hoping to see Brazil improve, but instead it has decreased in ranking.  There is much hype about Brazil these days, but they are fundamental problems (infrastructure, tax code, labor laws) that need to be resolved if Brazil is to continue to develop.

• World Bank Brazil Ranking

DOING BUSINESS: Brazil Means Business

Click here for presentation

DOING BUSINESS IN BRAZIL: World Bank Report

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Brazil, business, doing, ranking, World Bank

Informative report produced by the World Bank ranking Brazil in different business areas.  Maybe the B in BRIC should be bRIC. World Bank Report

Brazil – Doing Business in Brazil

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Brazil, doing business in brazil, World Bank

Some report findings: Complying with business regulations is easiest in Brasilia, followed by Manaus, and most onerous in Fortaleza. Low income is not a barrier to good regulation: São Luís in Maranhão, which has the lowest income per capita of the states in which cities were evaluated, ranks 5th among the 13 cities in the overall ease of doing business. The report also looks at how the Brazilian cities compare with other cities globally, providing another perspective on the time it takes to start a business. São Paulo ranks 149 out of 155 major cities, whereas Belo Horizonte, the Brazilian city with the fastest time to start a business, ranks 30th. When compared with a similar subnational study in Mexico, Brazilian cities perform better when it comes to the cost of registering property. But despite identical regulations across Brazil, there is a wide variation in the time it takes to transfer property. In São Luís an entrepreneur spends less than a month to register property, while in Campo Grande and Salvador the entrepreneur needs almost three months to do this. In Belo Horizonte it takes a mere two days to create and register collateral, as compared to 45 days in Brasilia. In Rio de Janeiro, an entrepreneur spends 0.2% of the loan value to register a security right, while in Fortaleza it costs 3.8% of the value of the loan – much higher than the state average of 1.7%. The tax burden is heavy in Brazil, both in terms of tax rates and administrative complexities: businesses in Rio de Janeiro have one of the highest tax burdens in the world. The city where it is easiest to enforce a contract is São Paulo, at 18 months. By contrast, in Campo Grande, contract enforcement takes over 4 years. Although this report was completed in 2006, it is still a valuable read! CLICK HERE:  Brazil – Doing Business in Brazil.

IMPORTING: Overview

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Brazil, business, IMPORTING:

Photo: Matt Hintsa

Over at The Brazil Business, they put together a posting on importing along with links for additional information.

• Importing to Brazil | The Brazil Business – Business Opportunities in Brazil.

DOING BUSINESS: Renting Retail Commercial Property.

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Brazil, commercial, DOING BUSINESS, property, renting

Rio’s Risky Commercial Real Estate

Unless you are rich, earning a living in Brazil is what will make or break any expat who makes the move.  Getting a well paid job once here is almost impossible unless you have fluent Portuguese and a Permanent Visa.  If you, instead, plan to open a business, you still face the language problem and getting a proper visa. In addition, you will need help from a Brazilian and the financial resources to open and run a business.  The article over at Rio Times lays out some of the problems you face when you try to rent a location for a business in Rio.   Other cities may present less difficulties, but the key points mentioned in the article are still relevant.

• Go to Article

TAXES: Brazilian Property Tax Made Simple | The Gringo Times

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Brazil, property, tax

Brazilian Property Tax Made Simple

By Nicholas Storey, Contributing Reporter

Brazilian investment opportunities run from beach properties to historical purchases in towns such as Ouro Preto, in Minas Gerais, photo by Brazilian Ministry of Tourism.

RIO DE JANEIRO – All land purchased in Brazil is subject to a tax known as ‘Imposto sobre a Transmissão de bens Imóveis Inter-vivos’, ITBI, (title transfer tax on goods and real estate) which is equivalent to two percent of the value of the purchase. In addition, in relation to some oceanfront properties, there is another tax called laudemeo (marine tax), which is five percent of the land value (disregarding the value of the buildings), according to a statutory valuation.

Go to Full Article: Brazilian Property Tax Made Simple | The Gringo Times .

DOING BUSINESS: World Bank – Doing Business in Brazil

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Brazil, business, doing business in brazil, ranking, World Bank

World Bank Report on Doing Business in Brazil

 

World Bank Report on Brazil

 

Lots of good information for anyone thinking about moving to Brazil to open a business.  

DOING BUSINESS: Implementation

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Brazil, earning a living, getting a job, making a living, making money, opening a business, supporting yourself, working

If and when you get by the visa and Portuguese barriers, you need to look seriously at how you will support yourself.

In my opinion, the service sector is the least difficult to break into and requires the least capital.

But remember:

- you don’t know the system
- the bureaucracy is against you at every turn
- you must have trusted friends or family to help you
- there are many well-qualified Brazilians who will be your competition
- you are mostly likely not the first person to have your ‘get rich’ idea.
- in the end, can you implement, bring a project online, make it happen?

You are starting Brazil 101….easy to fail…..to get an A is very difficult. Will repeat what Jobim said “Brazil is not for beginners!”. Therefore, get your Tourist Visa, come down for as long as you can, put yourself on a budget that would be comparable to what you think you would be able to earn in Brazil. If that shows you can’t make in Brazil based on your lifestyle, then forget moving here. Save up and come on vacations for the next 20 years!