what Makes Brazil So Attractive?
Over the past decade Brazil’s stable and steadily growing economy has significantly raised the country’s clout in the international marketplace. Few people know that Brazil is the world's 6th largest economy and that it is Latin America’s largest and wealthiest country.
Brazil is not only a manufacturing giant with huge exports of products from heavy industry (steel, vehicles) and light industry (textiles, leather goods), but also an increasingly important destination for outsourcing of software development and call centers.
Brazil’s economy never suffered the same downturn as most developed countries. While much of the world is still mired in slow growth and recession, Brazil’s economic output keeps growing at a steady pace.
The economy is expected to grow a record 7.3 percent in 2010, boosted by strong domestic demand and investments in the private sector. Unemployment in Brazil only rose slightly during the global downturn, and the unemployment rate has been steadily declining since 2008, reaching 7.2% by June 2010. Foreign investment has also remained strong over the past decade encouraged by the fiscal discipline shown by the Brazilian government.
Thanks to these stable economic indicators Brazil had a record US$34 billion in direct foreign investment in 2007 and ranks among the most attractive countries for foreign direct investment—a clear sign that foreign companies have confidence in Brazil’s economic future and seek to expand their economic activities in Brazil. In addition, in 2008 Standard & Poor's, a Wall Street company that conducts financial research and analysis on stocks and bonds, upgraded Brazil's debt to investment grade for the very first time.
This improved rating makes Brazil an even more attractive destination for foreign investment and foreign lending and is another indicator that Brazil will play a growing role in international financial markets.
Foreign direct investment not only brings capital but also know-how and new technologies, which require experts and specialists from abroad–a great opportunity for foreign engineers, technicians, and specialists to find work in Brazil.
Economic Diversity
Brazil is an important trading partner for North America, but the relations between the U.S. and Brazil are not just limited to trade, natural resources, and biofuels.
There are active collaborations between U.S and Brazilian universities, institutions, and companies on research projects, as well as between cultural, religious and non-profit organizations.
So, in addition to job opportunities with multinational corporations there are also opportunities for research and teaching positions at institutions of higher education.
The U.S. is currently the second largest investor in Brazil after China.
As more American companies and organizations operate in Brazil or collaborate with Brazilian businesses and institutions, there is also a growing demand for a workforce with experience in international business practices, which Brazilian employees often do not have. So while on one hand Brazil’s growing globalization leads to many overseas work opportunities for Brazilians, there are also a growing number of professional job opportunities for foreigners in Brazil.
In addition to a strong manufacturing, mining and petroleum sector, Brazil also has a diverse and well-developed services industry. Information and Communication Technology is the fastest-growing and largest sector, followed by banking, energy, and commerce. With Brazil’s finance sector playing a larger role globally than ever before, there is a demand for financial specialists with global and international business experience, especially since many financial firms operating in Brazil are multinational corporations.
Economic Outlook and Trends
The economic outlook for Brazil is very positive. The economy is expected to continue growing, although a little slower than the 7.2% forecast for 2010. Inflation is expected to be low, and unemployment will most likely decline further.
Brazil’s finances are also expected to improve further with large foreign currency reserves, a large budget surplus and a large trade surplus. Credit to businesses is also expected to expand further, giving Brazilian companies the financial tools they need for expansion and innovation. Under the current stable conditions, Brazil’s businesses are expected to continue to grow and expand, creating new jobs both in the manufacturing and fast-growing services sectors.
What this means for foreign employees with temporary work permits is that they are likely to keep their employment for the duration of their work contract, and that they may even be offered a contract extension should the positive economic conditions persist over the next few years.
Brazil and the Global Market
According to the Global Competitiveness Report published annually by the World Economic Forum, Brazil continues to improve its ranking, from 72nd position in 2007-2008 to 64th positions in 2008-2009 and 58th position in 2010-2011.
This is in part due to better managed public finances and small policy changes that help Brazilian businesses become more competitive on a global scale.
The ability to absorb new technologies, Brazil’s own innovative domestic business climate, and increasingly sophisticated financial markets has also contributed to the improved ranking. Another positive factor is Brazil’s large and growing domestic market, which is already the tenth largest in the world.
In addition, the quality of math and science education remains low: Brazil ranks 117th out of 134 surveyed countries. President Lula began an ambitious education reform program in 2007, but it will be years before a significant improvement will be noticeable among high school graduates.
Although the lack of a well-educated work force will dampen Brazil’s near-term growth potential, the ongoing demand for educated personnel offers opportunities for skilled foreign professionals interested in working in Brazil. As more American and multinational companies and organizations operate in Brazil, there is growth in the demand for American and international employees.
Having professional skills that are in great demand and that are not commonly found are the best way to get a job offer from a company in Brazil.
The most common jobs available to foreigners are upper management positions at multinational companies and a number of other fields that require special skills that are hard to find in Brazil, such as computer science and information technology.
Brazil also has a shortage of scientists and engineers (Brazil ranks 57th in availability of scientists and engineers in the Global Competitiveness Report), which provides additional work opportunities for foreign experts.
Unfortunately, Brazil does not have an occupational shortage lists (occupations that are in high demand) as many other countries do.
Instead, the merit of a work permit for a foreigner is assessed by the labor department and the immigration authorities on an individual basis as needed, which is a quite bureaucratic and time-consuming process.
Employment Opportunities in Brazil
Before considering some of the employment opportunities for foreigners in Brazil, you should know that every foreigner intending to work legally in Brazil needs a work visa.
Work visas for foreigners are not easily obtained and depend on a signed work contract by a company operating in Brazil or an offer of employment.
If you work for a multinational company and are being transferred to Brazil, the visa process is somewhat easier. You cannot apply for a work visa in Brazil--without exception. You must always return home to start the visa application process.
To obtain a work visa, you must submit all the required documents (including the employment contract or job offer) and a work visa application to a Brazilian consulate in your home country. Your application for a work visa then needs to be approved by the Ministry of Labor and authorized by the Ministry of External Relations.
Your best chance of finding a job in Brazil is by contacting multinational companies in your home country to find out if they have any job openings in Brazil. If you are lucky, the company you are working for might have a branch in Brazil.
Fortunately, there are many such multinational companies with branches in Brazil, including many bank branch offices. In this case, it is relatively easy to work in Brazil, since work visa applications for intra-company transfers are not scrutinized in the same way as general work visa applicants.
National Resitry of Foreigners
Once your work visa has been approved by the Brazilian Labor department and has been issued to you by the Brazilian consulate, you can make the necessary travel arrangements.
After your arrival in Brazil, you need to apply for several documents before you can start working. All foreigners with a visa granting temporary residence (such as a work visa, student visa, or Working Holiday Visa) are required to register with the federal police within 30 days of their arrival, for finger printing and to get their alien registration card (RNE-Registro Nacional de Estrangeiro).
You will need an application form, your passport, passport-size photographs, proof of payment of the processing fee, and several other documents.
It is best to enquire at the Brazilian consulate for a detailed list of required items.
The RNE is your official Brazilian identification card, which you are required to carry at all times. You are allowed to carry a notarized copy and keep the original in a safe place.
Brazilian labor and Social Security Booklet(CTPS)
After you have registered with the Federal Police and have received your Alien Registration card (RNE-see above), you can apply for a Labor and Social Security booklet (Carteira de Trabalho e Previdência Social - CTPS) with the Ministry of Labor and Employment (Ministério do Trabalho e Emprego) or at a regional employment agency (delegacia regional do trabalho).
This document, commonly known as carteira assinada (which means "signed work card," since it is signed by the employer) is a record of your employment history and provides details about your employment contract. This document also entitles you to a number of benefits, such as a 13th monthly salary paid in December, as well as paid vacation, and 120 days of maternity leave for women.
Other benefits may include meal coupons and transportation or fuel subsidies.
Foreign professionals in Brazil can expect to receive several other benefits such as health insurance, a company car, private pension plan, bonuses, and profit sharing. To apply for the work card you need your work visa, passport, and two passport-size photographs.
Tax Identification card
If you will be working and paying taxes in Brazil, you also need to get a tax identification card, called CPF (Cadastro de Pessoas Físicas–Register of Individual Taxpayers).
The CPF is not only used to withhold taxes, but is also necessary to open a bank account, finance a purchase or take out a loan.
You can apply for the CPF at a Brazilian consulate or at the Federal Tax Office (Receita Federal) in Brazil. Brazil has different tax rates for foreigners, based on the length of their stay in Brazil
For tax purposes you are considered a Brazilian resident, if you stay in Brazil for more than six months.
The income tax for residents in Brazil, national and foreign alike is based on a progressive rate, depending on income, anywhere from zero to 15 to 27.5 %. Foreign employees who spend less than six months in Brazil are not considered residents, and their income tax rate is a flat 25%.
Brazil has also signed double taxation treaties with a number of countries, to assure that foreign workers in Brazil are not taxed on their income both in Brazil and in their home country.
Check with the tax department of your home country to find out the details.
Foreigners are also subject to withholdings for social security (Previdência Social), even though most of them will never take advantage of the services. The employee portion of the social security tax ranges from 7.65%-11% and is withheld by the employer. Brazil has reciprocal social security agreements with several countries, and it is worth finding out if your country is among them.
Unfortunately, the U.S. has currently no double taxation treaty or social security agreement with Brazil.
Driver's License
To legally drive a car in Brazil you need a valid driver’s license, the vehicle registration (certificado de registro de veículo), a receipt proving the payment of the highway tax (imposto sobre a propriedade de veículos automotores, IPVA), which is issued by the traffic department (DETRAN) of the state where you live, and proof of compulsory insurance (seguro obrigatório, DPVAT).
To drive in Brazil for a short period, you can use an international or inter-American driving permit, issued by an automobile association in your country.
For the international permit to be valid you need to carry your regular driver’s license with you as well. If you have temporary residency status (through a work or student visa), you need to get a Brazilian driver’s license at the local DETRAN (Traffic Department), if you want to drive in Brazil. It is not required to take a driving test.
All you need is your valid license from your home country, your alien registration card (RNE) and your passport.
