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The Most Unusual Scam Methods Used in Brazil in…

Scam Methods: How Brazilian Criminals Are Getting Creative to Steal From You

I recently wrote an article about the mind-blowing tourist scam methods we can find in Europe. It contains the things I learned after visiting over 30 countries on the continent.

I thought the article would be helpful, or at least amusing, for anyone interested in how criminals can be creative here on the Old Continent.

Curiously, however, I received some harsh comments from people who thought I was unfair to Europe. Why don’t you write about scams in the US? You sound like a bitter American!

Or this one below:

Here is the truth: I cannot write about the US (in this matter) because I have never been there and I have little knowledge about the strategies used by thieves there.

But to satiate the thirst for more unusual methods used by lawbreakers, I can write about the country where I was born and lived for more than two decades: Brazil.

Because, oh boy, there are plenty of criminals there (and some decent people too, don’t take me wrong).

This could be material for an entire book, but here I separated the most absurd (but still effective) methods used by scammers, thieves, and robbers in Brazil.

We also wrote two other articles that anyone interested about Brazil and safety should read:

Trigger alert: if you were a victim of a robbery or burglary, the stories below may trigger undesired emotional responses (although they are not graphic in nature and there are no violent pictures), so you should stop reading here.

Ps: Check also our Youtube channel.

AI-Powered Fake Kidnappings

At this point, most of us are familiar with the possibilities (and menaces) opened by the rapidly advancing capabilities of artificial intelligence.

Not long ago, the entire world was lured to believe that Pope Francis was wearing a white puffer rapper-style coat because of an image produced by AI.

Scammers learned how to use AI to make their scam methods more effective too, probably inspired by occurrences in the US that shocked even the FBI.

Criminals train DeepFake tools by uploading samples of the voices of their potential victims.

They do that by using things that the victim herself uploaded on the internet: videos from Instagram reels, YouTube, TikTok, and so on. Whatever contains the victim’s voice is useful to train the Deepfake program.

Later on, they call any close relative of the victim and use the voice synthesized by the Deepfake software.

They tell this relative that he or she (the victim) suffered an accident, is lost far away from home, or even was kidnapped, lost his or her phone and is calling from a passerby, and needs a bank transfer immediately to not be in serious trouble.

Since the voice is extremely similar, relatives often fall for the scam and transfer the money to the scammer’s account.

The only way to avoid this is to doubt anyone calling from a strange number, but this may result in false negatives, meaning that when a relative really lost his phone and needs help, you will not believe him.

Curious fact: many of the gangs that execute fake kidnappings operate from jails. It is not uncommon for criminal organizations to operate entire schemes from inside penitentiaries, like in the picture below, made in the CDP So Vicente penitentiary.

CDP So Vicente penitentiary. — Prisioners operate phone centrals and develop scam methods from inside Brazilian detention centers. Source: G1.

The Selfless Photographer

Imagine that you are in places like Ibirapuera Park in São Paulo, a beach promenade in Rio, or the Pampulha area in Belo Horizonte.

These places are gorgeous, and you are also looking neat, so it is the perfect background for a new photo for your Instagram or whatever social media kids are using these days.

A selfie would look weird since you would need to cut your arm or your head would be too close to the lens, so you decide to ask a well-dressed, good-looking passerby.

He smiles back and says that is no problem; he can take a picture of you, so you give him your new iPhone.

He takes one picture, but then asks you to go a few steps back so as not to cut your legs from the picture and fit better into the scenic background.

“Smile!” he says.

Then, suddenly, he turns and runs away.

The place is crowded, and you shout for help, just in time to see him turning the corner and jumping onto a motorcycle where his partner already waits for him.

Goodbye, iPhone. Just a selfie would be a better idea.

The Fake Police Officer — A Variation of the Selfless Photographer

If, in the crime described above, the criminal passively waits in a tourist hotspot until someone asks him to take a picture, in this scam method the thieves are more active.

They dress like police officers. and ask tourists (often foreigners) to show them their documents, and later to inspect their bags to look for things like narcotics.

Once you hand them your valuables, they just run to their vehicle, and… it’s gone.

To avoid this, remember that the police often ask to see only ID documents (like your passport). If they want to inspect your bag or something like that, it is your right to ask for their badge and credentials.

ATM or Credit Card POS Skimming

Credit Card Machine or POS for article about Scam methods — ATM and Credit Card Skimming is one of the most used scam methods in Brazil. Photo by Yoco Photography on Unsplash

ATM Skimming is a common crime in Brazil, and it frequently occurs at gas stations.

Criminals install skimming devices on ATMs and credit card POS machines to steal personal information, such as credit card numbers and PINs, from unsuspecting victims.

The skimming devices are designed to look like normal card readers, making them difficult to spot.

When a victim uses the ATM or POS machine, the skimming device records their card information. Later, they clone your card and make multiple purchases using your credit card and bank data.

To avoid falling victim to ATM skimming, it is important to be vigilant when using ATMs or POS machines, especially those located at gas stations. Look for any signs of tampering or suspicious devices attached to the machine.

If you suspect that a machine has been tampered with, do not use it.

One effective method to protect yourself against ATM skimming is to purposefully enter the wrong PIN on the first attempt.

If the credit card machine or POS accepts the wrong password, it means that the machine has been skimmed. In this case, it is best to leave the place and report the incident to the police and your bank immediately.

Unusual Methods Used By (Often) Armed Criminals

The Good Samaritan

This is a common scam in Brazil, where criminals take advantage of the kindness of strangers to steal from them or rob them.

The scam involves a criminal pretending to be in distress or danger, and the victim offers to help. Once the victim stops to offer assistance, the criminal either robs the victim or distracts them while an accomplice robs them.

One variation of this scam involves a criminal pretending to be a stranded driver with a flat tire. The victim offers to help, but while the victim is changing the tire, the criminal steals their belongings from their car or distracts them while an accomplice steals their belongings.

Another variation of this scam involves a criminal pretending to be injured or sick on the street. The victim offers to help, but while they are distracted, the criminal steals their belongings or pickpockets them.

To avoid falling victim to the Good Samaritan Scam, it is best to be cautious when approached by strangers and not stop to offer assistance unless it is in a safe and public area.

Egg in Your Windshield

Egg in a Windshield (Ovo no para brisa) Scam and Assault Methods — Source: Youtube video in Portuguese about this type of crime.

You are driving on some of the avenues in cities like Rio or Sao Paulo that pass below multiple bridges.

Suddenly, after passing below one of the bridges, something hits your windshield, and a giant yellow stain similar to egg yolk partially blocks your vision.

Here is the thing:

Do not use the windshield wiper!

Do not use the windshield water fluid!

Because if you do, the egg yolk and water will form a viscous substance, such as milk, and you will need to stop as it will block your vision by about 90%.

If your vision is not totally blocked, just keep driving without using the water fluid or the windshield wiper. By doing that, you will gain distance from the criminals and can stop at a safe, illuminated place.

Some people say that this crime is a hoax, but if that is the case, it is a hoax only until some bandits use it for the first time.

Paper on Your Rear Windshield

Imagine you go to your nicely parked car, open the door, get in, lock the doors, and start the engine.

The same stuff you do all the time

But when you look in the inside rearview mirror, you see a piece of paper on the rear window that blocks your view.

So, after cursing whoever stuck a goddamn ad on your back window, you put the car in neutral, put the handbrake on, open the door, and get out of the car to remove the damn paper or whatever it is there.

When you get to the back, a robber appears out of nowhere, points a gun at you, and takes your car with the key in the ignition, the engine running (if it has a blocker, it will already be unlocked anyway), your wallet, documents, and whatever else is in the car.

So, don’t get out of the car if something is in the way of your view.

You can safely start your car by using the outside rearview mirrors and then get out at a different stop further ahead.

Recommended book: Budget Travelers, Digital Nomads & Expats: The Ultimate Guide: 50 Tips, Tricks, Hacks, and Ways to Free Stuff & Cheaper Flights

The Valet

You are having a good time with your friends or family at a restaurant or bar where you are all laughing together.

Then, all of a sudden, a person arrives, saying that he is the valet of a nearby private parking lot or garage.

He inquires as to who owns a particular car that has a certain license plate and is parked on a certain street nearby.

The valet requests that the owner of the vehicle go outside and move it so that another vehicle can more easily exit the parking space.

You, who are very helpful, go, and when you get to your car, some other men appear, and the group announces the robbery, taking away your car and your belongings.

The solution for that is to park only in authorized places where you are clearly not blocking anyone. If the fake valet appears, tell him that you don’t know who the car owner is and call the police.

What other unusual methods do criminals use in your country? Were you familiar with any of the strategies mentioned above? Tell us in the comment section!

The Expat Consultancy Safety Guides

My team wrote some guides to help you keep safe, avoid tourist scams, choose the best districts, and avoid the worst neighborhoods. Here are some of them:

Athens, Greece
Belgrade, Serbia
Berlin, Germany
Munich, Germany
Copenhagen, Denmark
Dublin, Ireland
Edinburgh, Scotland
Glasgow, Scotland
Lisbon, Portugal
Madrid, Spain (We also wrote a guide with tips on immigrating to Spain)
Manchester, England
Milan, Italy
Rome, Italy

Recommended book: Moving Out, Working Abroad, and Keeping Your Sanity

What More You Need to Know About Scams

1. What are the most common types of scams and how can I recognize them?

The most common scam types include phishing emails, fake websites, phone and text message scams, government agency impersonation, subscription traps, and gift cards scams. Recognizing these scams involves being cautious of unsolicited requests for personal information, checking the legitimacy of websites and emails, examining caller ID details, and being skeptical of offers that seem too good to be true.

2. What methods do scammers use to obtain my personal information?

Scammers use a variety of methods to obtain your personal data. These include phishing emails, malware, fake websites that mimic legitimate ones, phone calls with spoofed caller ID information, and social security number theft, among others. They often use emotional manipulation or scare tactics to get victims to reveal sensitive information.

3. How can I protect myself from scam calls and emails?

The best way to protect yourself from scam calls and emails is to never provide your personal information or online payment details to unknown sources. Be cautious of unsolicited calls or emails, especially if they ask for sensitive information. Verify the contact information of any government agency or business before sharing any information and don’t rely on caller ID alone, as it can be spoofed.

4. Should I send money or provide account details to people I don’t know and trust?

No, you should never send money or provide your account, bank’s, or site’s details to people you don’t know and trust. Scammers often create fake profiles or impersonate someone you know to trick you into sending money or revealing financial details that can be used by scammers for identity theft or other illegal activities.

If you enjoyed this article about scam methods, here are a few other travel tips and reading suggestions for you:

The 7 Countries With The Worst Work-Life Balance in The OECD

The Best Cities for Remote Workers in 2023

Levi Borba is the founder of The Expatriate Consultancy, creator of the channel The Expat, and best-selling author. Some of the links in this article may be affiliate links, meaning that the author will have a commission for any transactions

Brazil

10 Tips to Study in Brazil for International Students

An outside author wrote this article with tips to study in Brazil for international students. No statement made below should be interpreted as representing expatriateconsultancy.com‘s views or recommendations.

In the last decade, Brazil has taken deliberate steps to boost the internationalization of its higher education sector. This means that it is happy to have foreign students come to its universities and colleges to study.

Brazil has both public and private universities. Public colleges are funded by state governments, while private universities are both for-profit and nonprofit. There are quite a few scholarship opportunities, so you should do your due diligence to find an appropriate opportunity and apply for funding.

Despite having 7 universities among the best in the world, other factors like violence let Brazil out of the list of the best countries to study.

Check also: The Most Helpful Books to Read Before Moving Abroad.

While Brazil may look like a great destination to many (especially coffee lovers), life there can be fraught with all sorts of challenges. So, nothing should be taken for granted if you plan to travel and study there. That’s why we came up with 10 tips for you to consider before you land in this amazing country.

Moving Out, Working Abroad and Keeping Your Sanity Cover — Recommended book: Moving Out, Working Abroad, and Keeping Your Sanity

1. Application Process

notebook, hand, pen. Application process to Study in Brazil for International Students — Image from Pixabay

Brazil has its own application portal, and it is called SISU. You need to register there to get your registration number. This number is important because you will use it to track your application.

Many universities in Brazil also have their own selection processes, like Fuvest from the University of São Paulo, or the Processo Seletivo Seriado, used by the Federal University of Santa Maria (Rio Grande do Sul) and a few others.

You’ll need to submit a copy of your passport, academic transcripts, a letter of motivation, up to two recommendations, and Celpe-Bras test results (in case you want to study in Portuguese). Responses usually come back pretty quickly, so once you have been admitted, you can start planning your trip.

No matter which college you enroll in, you will need to write lots of essays. It can be quite daunting, so there is the alternative to hire services like Grab My Essay to get some of the burden off your shoulders. Let professional writers edit your essays on time, at reasonable rates, and to the best academic standards.

2. Visa

You will most likely need a visa to enter Brazil. If you are already there, you can request for your status to be changed to in-country, but since you are going to stay there for a lengthy period of time, you still need to apply for a long-term student visa. Unfortunately, bureaucracy and weird laws are still a thing in Brazil…

If out of Brazil, submit the following documents to the nearest embassy: passport and 2 photos, proof of enrollment, proof of residence, paid the fee of $180, and police certificate. Once issued, your student visa is valid for your entire stay in Brazil.

3. Living Expenses

Brazil is not an expensive country. If you have ever lived and studied in Europe, you will appreciate the difference. You should be able to rent a decent 1-bedroom apartment in a major city for about $400 per month. Food and transportation are not that expensive either. There are lots of coffee houses and bars in every city. You might also want to keep some cash on you at all times because not all places accept electronic payments.

If your Portuguese is not good enough, you might need to translate some of your documents and papers. For that, you will need to find a reliable translation service. But you should check out TranslationReport reviews first to identify a trustworthy company with a good track record of performance.

Certain everyday expenses like water are really cheap in Brazil, but sophisticated items like computers may be expensive.

4. Tuition and Scholarships

Schools set their own tuition fees. Overall, the range is from about $2,000 to $10,000 per year. You should pay your tuition fee before the start of the academic year. Some schools accept payments in U.S. dollars. The government runs an exchange program that grants scholarships to students from developing countries.

Book: Budget Travelers, Digital Nomads & Expats: The Ultimate Guide: 50 Tips, Tricks, Hacks, and Ways to Free Stuff & Cheaper Flights — Recommended book: Budget Travelers, Digital Nomads & Expats: The Ultimate Guide: 50 Tips, Tricks, Hacks, and Ways to Free Stuff & Cheaper Flights

5. Learning Plan

Before your academic year starts, make sure to develop a learning plan. Studying in a foreign country can be a tall order. With lots of different challenges, it is easy to get distracted. So, it always makes sense to have a plan with clear targets. As long as you stick with it, you should be fine.

It is highly unlikely that you will be able to tackle all your essays with the same level of dedication and quality. Here you can find some essay editing companies with decent academic standards.

6. Safety

police, policeman, mask — Image from Pixabay

You should be cognizant of crime levels all the time. Certain parts of major Brazilian cities are really dangerous to go to. Do your due diligence before you decide to enter any particular part of a city. Constantly watch your belongings and try to blend in all the time.

Cities like Rio de Janeiro (a place where levels of safety improved lately) or São Paulo (the safest capital in Brazil) concentrate some of the best Brazilian universities and still have some considerably dangerous regions. However, they are generally safer than cities in states like Alagoas or Maranhão. Other places have fewer options in terms of universities but a remarkable quality of life, like Florianopolis (which is also one of the best cities in the world for digital nomads).

7. Culture

Brazil is renowned for its vibrant lifestyle and culture, so you will never have time to get bored. The country is very diverse, and even relatively close cities and university centers like São Paulo or Rio de Janeiro are tremenduously different from each other.

Locals are welcoming and easy-going. If you make friends, that friendship is likely to last for good. Just be careful to avoid local gangs and ubiquitous criminals in some areas.

8. Nature and Wildlife

felipe bueno, toucan, bird — Image from Pixabay

Brazil boasts some of the best and most picturesque scenery in the world. Try to explore this beautiful country as much as you can. You can turn every weekend into an unforgettable experience by taking trips to various towns and villages. There is a lot to see and experience, so plan your trips in advance. No wonder Brazil has so many spectacular places for photographers.

9. Cuisine

Local cuisine is quite diverse. Whether it is tapioca, feijoada, or farofa, you should find something that satisfies your taste buds. There are lots of regional dishes too. Meat dominates the local cuisine, so take this into account if you are a veggie. Make sure to relish the variety.

10. Sport and Leisure

Brazil’s love for soccer is no secret to anyone. Generally, locals look fit and athletic. You should not have a problem finding a nice fitness center to work out and stay in shape. If you fancy it, you can always play football or volleyball on the beach. This is one of the most popular pastimes of locals there.

Final Thoughts on Study in Brazil for International Students

Studying in Brazil can be fun. This is an enormous country with huge resources, a diverse culture, and lots to see and do. With proper preparations, you should not have a problem entering the country, where you will find your tuition and living expenses quite affordable.

The local culture has lots to offer, and you should fully embrace it. That said, you must be aware of the crime rates to avoid dangerous areas. Otherwise, it’s all for you to enjoy!

If you still need more info, check our article Moving to Brazil in 2023? Here Is What You Must Know.

William Fontes is a long-time writer, student coach, and commentator. He enjoys exploring various countries and cultures and advising students on the dos and don’ts in every specific context. He spent 6 years teaching in Sao Paulo; he speaks Portuguese, so he knows the country upside down.

Brazil

5 Amazing Locations To Take A Family Photo While…

The Most Beautiful Locations in Brazil for a Photo

Traveling opens you up to the world. It expands your knowledge and sometimes your outlook on life. However, at times, it also ignites a wanderlust that can be difficult to quench even years later.

Brazil is a country of great variety, with something for everyone. As a Brazilian myself I must admit that crossing it to take photos can be a challenge. Transportation can be time-consuming and remote locations can be difficult to find.

But more than photos, you are invited to a good time!

(Besides, after the World Cup 2014 and the Summer Olympics 2016, the infrastructure of the country improved. It is not ideal, but it is much better and the largest airports can even be considered up to international standards).

In the next paragraphs, I will invite you to some of the most splendid places in this enormous, gigantic country. Not only to take pictures but to create some of the best memories of your life.

Ready?

Check also: Discover how a cashback program can help you recover some of your holiday spending on flight tickets or Booking.com on our WayAway review.

Book recommended: Budget Travelers, Digital Nomads & Expats: The Ultimate Guide: 50 Tips, Tricks, Hacks and Ways to Free Stuff & Cheaper Flights

Paraty, State of Rio de Janeiro: A Stunning Historical Location in Brazil

A picture I took during an evening walk in Paraty. One of the most stunning historic locations in Brazil for a photo.

One of the most well-known attractions in the State of Rio de Janeiro is the city of Paraty! But why this old colonial city is so captivating to people? Why does everyone who visits it want to return?

The Historic Center, a group of harmonious colonial buildings, is without a doubt the most responsible for the enchantment that the city awakens.

Portuguese-style architecture is present. The houses were constructed close to the streets, with their white and joined facades. The doors and windows, which are stunning and so distinctive and come in an infinite variety of colors, make the entire area joyful.

Another example of the Portuguese influence are the various churches that are still located in the Historic Center. Hiring a city tour is a great way to discover more about the area’s history and find spots worthy of holiday cards.

There is nothing more enjoyable than hearing a resident of the city describe the city. These two-hour tours visit the most interesting locations, including some that you might not have found on your own like the charming Rua do Fogo.

While in the past Rio (both the state and the capital) were considered very dangerous, things are improving.

Not far from Paraty is Ubatuba, where you can find one of the most beautiful beaches in the country, called Praia do Cedro.

MASP and Avenida Paulista, São Paulo

São Paulo city’s most well-known street, Avenida Paulista, has amassed a lot of history over the course of its nearly 130-year existence. Today, the street hosts over 1.5 million visitors each day and serves as the city’s commercial and cultural hub. The three kilometers of the avenue are never the same twice.

The MASP, the most significant museum in the Southern Hemisphere, as well as cafes, bars, restaurants, other cultural centers, movie theaters, parks, shopping areas, and book stores are all located there. There are also many universities nearby, therefore you can also find locals and foreigners that chose Sao Paulo for their studies.

While São Paulo may not be an example of a safe city, it is the safest capital in Brazil.

Parque da Independência and Museu do Ipiranga, São Paulo.

The Parque da Independencia, or “Independence Park,” opened in 1989. It is called “Independence Park” because it has important historical pieces for the history of Brazil’s independence, which have been listed by agencies at the municipal, state, and federal levels in charge of preserving history.

There, you can see the famous Ipiranga Museum, the beautiful gardens that were inspired by Versailles, the Independence Monument, and the Casa do Grito, which is close to where D. Pedro shouted “independence or death!” to declare the country’s independence.

Cataratas do Iguaçu (Iguazú Waterfalls), Foz do Iguaçu, State of Paraná.

Located in the state of Paraná, one of the most stunning natural sights in the world may be found in the city of Foz de Iguaçu and the surrounding Iguaçu Falls.

The length of the wooded trails and the size of the waterfalls are famous all over the world. The falls thrill visitors and offer experiences that no other location can. It’s understandable why the place was recently named one of the world’s new seven wonders.

There, you’ll discover a setting with clean air, gentle scents, delectable food, and even information about the Natural Heritage of Humanity.

**Jardim Botânico de Curitiba (Curitiba’s Botanical Garden), Curitiba, State of Paraná**

The Jardim Botânico de Curitiba, opened since 1991, is a glass-enclosed greenhouse surrounded by diverse varieties of plants.

A picture I took in 2019 in front of the botanical gardens of Curitiba,, one of the most beautiful locations in Brazil for a photo.

French gardens served as inspiration for their design, and the first thing you notice is a carpet of flowers. Additionally, the greenhouse we previously discussed contains botanical species that are important in Brazil.

The Botanical Garden is known as the “garden of senses” because visitors can experience various plant scents and textures.

This is a wonderful area to go to if you want to take a peaceful and lovely walk. Besides, since December is summer in Brazil, it is a perfect place to produce (custom-made) one of the best Christmas cards for 2022, or at least a very exotic one 🙂

Amazing Locations To Take A Family Photo While In Brazil: Conclusion

Maybe by now, you are thinking why I didn’t include places that are always in these rankings about Brazil like Lençóis do Maranhão or the Blue Lake in Bonito. Here is the answer: because I have never been there, and I don’t want to advertise places that I never visited yet 🙂

So here is my tip of 5 incredible places to visit and take memorable pictures in Brazil (not in order):

Centro Histórico de Paraty, State of Rio de Janeiro
MASP and Avenida Paulista, São Paulo
Parque da Independência and Museu do Ipiranga, São Paulo
Cataratas do Iguaçu, Foz do Iguaçu, State of Paraná
Jardim Botânico de Curitiba, Curitiba, State of Paraná

If you enjoyed this article about the most beautiful locations in Brazil for a photo, here are a few other reading suggestions for you:

Things That Brazilians Buy for Much Less Than You

3 Reasons You Should NOT Move to Brazil (and 4 Reasons to Go)

The best place for Digital Nomads in Brazil and entire South America

A Little Sample of Bizarre Brazilian Laws

Levi Borba is the founder of the Expatriate Consultancy, creator of the channel The Expat, and best-selling author. Some of the links of this article may be affiliate links, meaning that the author will have a commission for any transaction.

Brazil

Is Rio de Janeiro Safe?

The reality about how safe is Rio de Janeiro is not what you imagine.

Rio is often in the spotlight for negative and film-like violent situations. From a police helicopter downed by gangsters to celebrities kidnapped, the dangers from Rio are as famous as the natural beauty of its panoramic landscapes. So, is Rio de Janeiro safe?

Personal advice: Always read and watch the news with a pinch of salt. The truth is that Rio de Janeiro is one of the world’s most beautiful cities, and with a little care and attention, it can be one of the most beautiful trips of your life!

Is Rio Really That Dangerous?

Depending on what you are comparing with. If your basis of comparison the Europan continent (what explains the enormous amount of Brazilians in Portugal), yes, Rio is dangerous. Many South-American capitals, like Buenos Aires, are also safer than Rio (making Argentina a good place to retire if you earn in dollars) But if you consider cities American cities like Baltimore, Detroit, or New Orleans, Rio de Janeiro is far safer.

In 2020, Rio had a homicide rate (20.4 per 100 000 inhabitants) even lower than Chicago, the 3rd largest city in the United States (24.3 murders per 100 000 residents).

And the finest news: the violence is decreasing quickly in Rio (almost as quickly as in São Paulo, a case that I explore in detail in this article). In the last section of this article, I will prove that to you with solid numbers.

How Safe Is Rio de Janeiro?

Our Infographic with the answer to the question Is Rio de Janeiro Safe? (Feel free to share, as long as you give the proper credit 🙂 ) — Our infographic with the answer to the question, “*Is Rio de Janeiro Safe?”* (Feel free to share, but please give proper credit by linking back to this article 🙂 )

One of the most striking aspects of Brazil is inequality, and just like in all its nuances, violence also does affect everywhere in the same way.

There are regions in Rio that are indeed violent, while others are far safer.

When discussing violence, it is essential to identify shared elements that can help us understand why it is widespread in a particular country, just as we did in this article when examining the most dangerous cities in Mexico.

That is important when we talk about Brazil and Rio too.

First of all, remember that Rio de Janeiro has two meanings: it can be one of the 26 Brazilian states, or also the capital of the homonymous state. In this article, I will talk mostly about the capital, but if there is any city you would like to know more about in particular, feel free to ask about it in the comment section.

The safest areas of Rio are in the South Zone. The tourist-friendly beaches of Copacabana (a beach praised in this article) and Ipanema are considered safe during the day. At night there are issues with criminality as with most large cities, but nothing abnormal. Take the usual precautions (listed at the end of this article) and you should be fine.

If you are into beaches, check some of the best family beach vacations in the world.

The wealthy areas of São Conrado and Barra da Tijuca, where many expatriates live, are also relatively safe during the day. However, both areas can be dangerous at night, so you should be careful at all times when in these areas.

I would not advise any tourist (unless it is for a very specific purpose) to travel to the West Zone since it holds most of Rio’s gang conflicts. This region is famous for its favelas (though some are tourist-friendly)and should generally not be visited due to safety concerns. After dark, it is wise to avoid the favelas completely, as well as national parks (unfortunately, differently than Vancouver in Canada, camping in a park in Rio is not a good idea).

Listen to “Is Rio de Janeiro Safe? (It is NOT what you imagine!)” on Spreaker.

Is Rio de Janeiro Safe for Tourists?

Here is the thing: most of the violence in Rio is associated with gangs and the dispute for drug-selling points.

If you are not involved with these matters, you will avoid a large part of the risks. Still, gangsters in Rio have military-grade, long-range weapons and it is not uncommon that, in the vicinity of the favelas, during large conflicts, innocent people are hit by stray bullets. In 2021 alone 100 people died in Rio due to random stray bullets.

To put it into perspective, Madrid, the capital of Spain, a city with over 3 million residents, had only 34 homicides in 2021. On the other hand, however, certain districts of European capitals like Athens may present a prevalence of petty crimes higher than the safe districts of Rio. So in the end, location is an important factor.

Other than the favelas and stray bullets, there are two other places where tourists could have bad experiences in Rio.

The beaches. Tourists love the beaches in Rio; however, this is one of the places most attractive to groups of petty criminals since they have very few guards and there have been several incidents of robbery during the daytime. The beaches are the place of the famous arrastão, when groups of thieves rob multiple tourists in a matter of a few minutes and then rush out of the scene. Follow the advice at the end of this article and you will be safe.

The other place where you may face undesirable situations related to crime in Rio is the historical center. Unfortunately, it is also one of the regions that most deserve your visit since districts like the Lapa, with its restaurants, bars, and attractions like the Arcos da Lapa.

Check also: Beware of fraudsters in Brazil – Discover the latest scam techniques

Is Lapa in Rio de Janeiro Safe?

Lapa, which is located in the Tijuca neighborhood of Rio de Janeiro, is a fun neighborhood, full of bars and restaurants, and one of the more popular places to party in Rio.

But Lapa is also an area of town that can be considered a bit sketchy. There are lots of beggars, homeless people, drug dealers, and all-around shady characters.

It’s not unusual to see drunks passed out on the sidewalk or people who seem like they might want to take advantage of you.

However, as long as you don’t wander into any dark corners late at night and walk with a considerable group, you should be just fine.

Always keep your valuables locked up tight in your hotel room, or if you do bring them with you when you venture out for an evening, be sure to secure them in one of those money belts that all tourists seem to wear. (One of the many valuable tips taken from the book Budget Travelers, Digital Nomads & Expats: The Ultimate Guide)

Budget Travelers Digital Nomad and Expats Book — Budget Travelers, Digital Nomads & Expats: The Ultimate Guide: 50 Tips, Tricks, Hacks and Ways to Free Stuff & Cheaper Flights

The Safest Areas in Rio de Janeiro

(Those are the safest areas in the city of Rio, not the state, which also includes splendid historical cities like Paraty that deserve their own article).

Ipanema

Ipanema is a popular neighborhood immortalized by Tom Jobim and Vinicius de Moraes. The neighborhood has many high-end properties and is in Rio’s South Zone’s prime location. Next to Copacabana, it’s one of the best-known areas in the city.

This neighborhood’s view is charming and beautiful. Lagoa Rodrigo de Freitas on one side, Ipanema beach on the other, it’s a movie-worthy landscape! Ipanema has also plenty of bars, theaters, restaurants, and other cultural and leisure options. Pedra do Arpoador is also in Ipanema, where tourists gather to watch the sunset. This region’s properties are highly valued due to their prime location.

Ipanema, one of the safest areas in Rio de Janeiro

Copacabana

Rio’s Copacabana needs no introduction, right? Next to Ipanema, this is a famous neighborhood where is located Copacabana Beach. This beach hosts one of Brazil’s biggest New Year’s Eve shows. It is an area with excellent infrastructure.

Copacabana, in Rio’s bohemian South Zone, offers many leisure and entertainment options. It has bars, restaurants, clubs, and two subway stations. It is also a perfect place to have a carioca coffee (and this is one of these items that are remarkably inexpensive in Brazil.

The region also has supermarkets, shops, public transport, banks, and other daily essentials.

The boulevard close to the beach is a great place for healthy people to exercise outdoors. You can walk, ride a bike, or run, and there are also excellent open-air gyms. It is also popular among international students in Brazil.

There are some excellent and (surprisingly!) inexpensive hotels in Copacabana. You can find them below.

Leblon

Leblon’s picturesque beaches make it one of the city’s most beautiful postcards. Leblon, also in Rio’s South Zone, surrounds Lagoa Rodrigo de Freitas.

The neighborhood has lively nightlife, as well as cultural and leisure options. As a small neighborhood with few buildings, Leblon’s property prices are high. This neighborhood is worth investing in if you want a high quality of life, a safe neighborhood, and a fair share of luxury.

Barra da Tijuca

Barra da Tijuca is a prestigious neighborhood in the city’s West Zone that has grown dramatically thanks to its wide streets, subway, and bus lines. It has many schools, colleges, and a very, very large shopping mall.

This neighborhood is ideal for beach lovers because it has a busy, open-sea beach and a large number of green spaces, such as Bosque da Barra. Outdoor activities include walking or cycling on the boardwalk and swimming. Barra’s gated communities are mini-cities with full infrastructure and security.

Top 5 popular tours in Rio de Janeiro on a Budget (Below $99)

🚋Go back in time on a historical tram tour through the heart of Rio, visiting among other places one of the most famous staircases in the world: the Selaron steps.
🏞️Visit the largest urban rainforest on the planet and get dazzled by marvelous waterfalls on a tour that will pick you up directly at your hotel.
🏖️ Visit the bluest waters of Brazil in what is one of the most spectacular beaches that you will ever see on this boat tour with lunch to Arraial do Cabo.
🇧🇷 See the most iconic symbol of Brazil, the Christ Redeemer, and other widely recognized sports of the city like the Sugarloaf Mountain in this tour of 6 stops with lunch.
🏟️ Visit the stadium that is recognized as the temple of Football and be mesmerized by this giant that hosted two world cup finals and where myths like Pelé and Maradona played.

How to Be Safe in Rio de Janeiro

To make your trip to Rio as safe as possible, here are some tips:

1st – Buy travel insurance that also covers theft-related expenses. Although it is often very inexpensive to purchase such insurance in Europe (even in the most dangerous cities of some European countries), many people ignore this small precaution and end up disappointed. I recommend the company Ekta, which provides some of the most innovative solutions for travelers, allowing you to relax and enjoy your vacation without worry.

2nd – Areas surrounding airports and train stations can be dangerous. Book a transfer in advance from the Galeão or Santos Dumont airport (or from any station) to your destination and vice versa, so you can avoid scammers and criminals. I often used Get Transfer for that and it always worked fine.

3rd – Avoid walking around with your luggage. Radical Storage is a website that shows safe locations where you can leave your luggage, pay a small fee, and pick it up after touring the city.

4th – If you are visiting places like the city center (and there is SO MUCH to visit there!) or Tijuca Park, but prefer it without the risk of getting lost (or worse), hire a guide. You can find some amazing and reliable guides and tours at Viator. They will give you insider information about historical facts and curiosities, and also warn you of risky areas and keep you safe.

5th- (Personal opinion) If you are young (or feel young), stay in hostels in regions like Copacabana, Ipanema, or Leblon. People working in these hostels are used to foreign guests and can offer both safety advice and some great tips on places to sightsee. When looking for hostels, I visit Hostelworld and filter for those above grade 7.

6th – Use a money belt to carry your credit card, documents, etc. In your pocket, leave a dummy wallet with expired cards and small money, in case a robber attacks you (something that shouldn’t happen if you follow all the recommendations above).

Avoid walking around after dark in areas with not many people around. Violent crimes are more likely to occur at night than during the day.
Do not go out alone or with a small group after dark. Stay in groups for safety; the larger the group, the safer it is (although an arrastão may still affect your group no matter how large it is).
If you go out alone, stay on well-lit streets where there are plenty of people walking around and avoid using parks or beaches alone at night.
Be aware that police officers may stop you on the streets and ask for an ID. Do not resist giving them your ID even if they are acting rudely; otherwise, you could be arrested.
Do not carry or wear flashy jewelry or expensive-looking electronics around town since these can attract unwanted attention from robbers. For example, do not flash your brand new iPhone off while walking down a street in the Lapa district.
Avoid carrying large amounts of cash with you anywhere in Brazil, especially Rio de Janeiro.

Remember: Be aware of where you’re going and what you’re doing. Be aware of your surroundings, especially in areas you are not familiar with. It’s also a good idea to let someone know where you are at all times, so if something does happen they will know where to look for you.

Uber in Rio de Janeiro: Safe? (Also Valid for 99Taxis)

The rise of Uber in Rio has been met with challenging times. Taxi drivers have protested against the company, sometimes violently.

Still, there are no reports of Uber drivers robbing or hurting passengers. Ride-sharing apps may not have the best security, but you don’t hand a total stranger your credit card and cash.

You can use the app to see the driver’s name, car model, and license plate number before getting in the car. It also has a feature that lets you share your ETA with friends and family via text message or email.

Rio has more than its fair share of criminals preying on tourists and locals, but there are no reports of an Uber or 99Taxis driver being involved in a crime against a passenger so far.

Despite the safety concerns, Uber (or 99Taxis) is still popular because it’s more convenient than hailing a taxi off the street or waiting for a radio taxi to drive by. It’s a great option when you’re trying to get somewhere quickly and don’t want to walk or pay for a taxi ride from.

Later, take a look at: The 8 safest major cities in the US at present.

Conclusion: How Violent is Rio de Janeiro?

The violence in Rio de Janeiro is decreasing, especially in the South Zone, which includes Copacabana, Ipanema, and Leblon.

The city’s southern area is still a safe place, but tourists should avoid walking alone at night and avoid areas close to favelas. Tourists are advised to stay away from isolated places after dark and exercise caution at all times because of the high rate of crime. Also, if you want to travel to a large, lusophone city to learn Portuguese, maybe Lisbon in Portugal is a safer choice.

Most of the bad fame of Rio is still a reflection of former decades when it was one of the most dangerous regions in the world. By the way, since we discussing safety, we also wrote an article with tips on what to do in case of war.

In the chart below, you can see that Rio had a 61% decrease in violence during the last 20 years. Today, it has violence rates comparable to Puerto Rico, an autonomous region from the USA.

It is still far from ideal, and there is a lot to improve. However, it is not as bad (and violent) as it once was.

State	Homicide Rate in 2000	Homicide Rate in 2010	Homicide Rate in 2020	Difference between 2000 and 2020	Country with similar homicide rate.
Pernambuco	56.17	39.48	33.8	-40%	Nigeria
Bahia	9.46	41.69	44.9	375%	Jamaica
Minas Gerais	12.06	18.6	12.7	5%	Uruguay
Rio de Janeiro	52.75	35.44	20.4	-61%	Puerto Rico*
Sao Paulo	42.89	14.64	6.96	-84%	Russia
Parana	18.85	34.33	18.37	-3%	Namibia
Rio Grande do Sul	16.55	19.5	15	-9%	Botswana

Homicide rates in the 6 most populous Brazilian states, and comparison with other countries. Source: IPEA and Government agencies.

Check also:

The Most Dangerous Cities in Europe

Save Money on Travel — 4 Travel Hacks to Give You Peace of Mind

Best Place to Visit in Europe on Each Month of the Year

Subscribe to my articles (for free) and receive the digital book 20 Essential Hacks for Saving Money While Travelling.

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Levi Borba is the CEO of expatriateconsultancy.com, creator of the channel The Expat, and best-selling author. Subscribe to my articles (for free) and receive (also for free) a special gift.

Brazil

Where Do Most Brazilians Live Abroad in 2023?

The list of the countries with the most Brazilian Immigrants has some surprises

Recently the ministry of foreign relations from Brazil (also known as Itamaraty, a peculiar name for one of the most prestigious institutions in that country) released a list of countries answering the question where do most Brazilians live outside Brazil?

It is a quite curious list even for me, born and raised in Brazil.

The Brazilian Diaspora

Here are the top 10 countries where most Brazilians live (outside Brazil):

The USA: 1 775 000 Brazilians.
Portugal: 276 200
Paraguay 240 000
The UK: 220 000
Japan: 211 138
Italy: 161 000
Spain: 156 439
Germany: 144 120
Canada: 121 950
Argentina: 89 020

The high number of the Brazilian population in the US should not come as a shock, since this is a normal thing in most Latin American countries.

But the second and third places may be unexpected. When we compare the number of Brazilian immigrants to the population of the country as a whole, we get even more surprised.

Country	Number of Brazilian residents	Total Population	Brazilians per each 1000 people
The USA	1,775,000	329,000,000	5
Portugal	276,200	10,310,000	27
Paraguay	240,000	7,133,000	34
The UK	220,000	67,220,000	3
Japan	211,138	125,800,000	2
Italy	161,000	59,550,000	3
Spain	156,439	47,350,000	3
Germany	144,120	83,240,000	2
Canada	121,950	38,010,000	3
Argentina	89,020	45,380,000	2

Countries with most Brazilian immigrants according to the Itamaraty (Brazilian Ministry of Foreign Affairs).

Things get even more dramatic when we consider in which cities are those crowds of Brazilians in Portugal (a country facing one of the worst fertility declines in the world) and Paraguay. According to the same source (the Itamaraty):

180 thousand Brazilians live in the region of the Lisbon consulate in Portugal.
98 thousand Brazilians live in the region of the Ciudad Del Este consulate in Paraguay.

Lisbon has a population of roughly half a million people.

That means a European capital with a shocking 35% of the population non-European and from a single, South-American country.

Recently, one of the 3 largest influencers in Brazil, the economist Ricard Amorim, shared on Facebook a table that showed this information, raising comments about how Lisbon had become 1/3 Brazilian.

How is that possible?

Simple: it is not, and here I will tell you why.

Also read: the ultimate European destinations to visit every month.

Why there are so many Brazilians in Portugal

It is not new for Brazilians to move to Lisbon (which is also one of the prettiest capitals in Europe).

Even one of the Portuguese kings, Dom Pedro IV, was a Brazilian emperor before assuming the crown on the European side of the Atlantic. The colonizers went to South America and built a nation from the scratch, and some of the most splendid Brazil historical towns, like Paraty, are also gems of Portuguese architecture. They also share many characteristics, like the language and a passion for coffee.

Still, much more common until a few decades ago was for Portugal’s former colonies in Africa and Asia to send their citizens to Lisbon.

Brazilian immigration to Portugal has its roots in centuries of common history.

But then came a sequence of economic crises in Brazil, culminating with a presidential impeachment in 2014. Violence erupted (although not equally everywhere, since places like São Paulo are far safer than Northeastern capitals), the economic crisis was rampant, and everything became expensive (although Brazil still boasted some very low prices for a few items).

Brazilians started to flee in droves owing to the economy and crime (I was one of them).

But less than 2% of the Brazilian population is fluent in English. Therefore, except for this minority, anyone willing to move abroad needed to face a language barrier.

The solution was to move to another Portuguese-speaking country. And in this case, they are plenty of options: Angola, Cape Verde, East Timor, Guinea Bissau, Mozambique, Portugal, São Tomé and Príncipe, and so on.

However, among all of them, only Portugal is a developed nation, and a pleasant place to live for many people (a Portuguese city is even among the best retirement destinations in Europe). Lisbon is also one of the safest capitals in Europe.

Is that the reason that made turned Lisbon into a city with 35% of all the inhabitants from Brazil?

No, because this is simply not true.

The Consulate Jurisdiction Problem

The number of Brazilians in Lisbon is way overestimated because the Brazilian diplomatic mission in Portugal only has three consulates in the whole country. The other two are in the northern city of Porto and the southern city of Faro.

This number is lower than the number of Brazilian consulates in China (4), Canada (4), and Argentina (5), all of which have fewer Brazilian immigrants than Portugal.

Therefore, the numbers of Lisbon are inflated by other cities and even Brazilians that reside in different provinces in central Portugal.

18.6% of the people in Lisbon are foreigners, according to the Portuguese census. This number includes individuals who came from other parts of the world, not just Brazil.

What about Paraguay?

Where do most Brazilians live? A Surprise.

While in absolute numbers, the US has the largest Brazilian diaspora, proportionally to the population, it is Paraguay.

Brazilians residing in neighboring Paraguay are known as “Brasiguaios”. In some areas of the country, especially near the border, Brasiguaios make up 10% of the population. Ciudad del Este, a border city with almost 100 thousand Brazilians mentioned a few paragraphs above, has a population that is almost 30% Brazilian.

Brazilians have migrated to Paraguay due to a combination of factors, including cheap land and real estate, and more favorable tax and labor laws. (Brazil has one of the most chaotic legal codes in the world). It is a different profile of the Brazilian immigrant to Argentina, which is often seeking safety (check here our article about violence in Buenos Aires) or an inexpensive place to live (and Argentina is an interesting retirement destination).

Land prices in Brazil are among the highest in Latin America. In rural areas, a hectare (2.47 acres) can cost close to US$15,000. As such, many Brazilian farmers are attracted to cross the border to Paraguay to buy larger patches of land. Often they also bring Brazilian workers to their ventures, increasing the immigration numbers.

The increasing land purchases by foreign farmers even created conflicts in the region that demand government intervention.

But not only cheaper farmland attracts Brazilian immigrants. The favorable investment policies from the Paraguayan government and the far less complicated labor laws generated a flow of Brazilian industries moving their manufacturing plants to Paraguay. In another article, I explained how this country became the new Latin-American paradise for investors

If you like this article about where do most brazilians live, check also:

Save Money on Travel — 4 Travel Hacks to Give You Peace of Mind

4 Tips for Flying (From an Airline Insider)

Why Coffee is Flying from Brazil to Europe?

If you wish to become a Medium member and have access to articles like this, check this link. It is only $5 per month.

Levi Borba is the CEO of expatriateconsultancy.com, creator of the channel Small Business Hacks, and best-selling author. Subscribe to my articles (for free) and receive (also for free) the ebook “The Blueprint for First-Time Business Owners”.

Brazil

Shipping Crisis: Why Coffee is Flying from Brazil to Europe?

Why is there a shipping crisis?

With difficulties to transport coffee because of the shipping crisis, Brazilian exporters have resorted to another, much more expensive modal: Airplanes

For example, in the first week of October, Labareda Agropecuária, located in Franca (SP), exported around 9 tonnes of coffee to London. Usually, coffee is exported by ship, on an operation that takes weeks. Companies like Labareda and many others, however, are opting to send it by plane.

The transport cost increase from this change is gigantic. For Worse.

As informed by Labareda, the cost to ship the product by sea, in the current scenario, without urgency, has been around US$ 2,000 per shipment, and under normal conditions before Covid, the value would be lower. Boarding by plane had a cost of US$ 11,000.

More than a 400% price increase.

But why companies are opting to send basic, agricultural products like coffee by air instead of by sea?

Because of the shipping crisis.

A crisis that will have deep effects on your pocket in the months, or even years, to come.

Why the world is in a shipping crisis?

Since the middle of 2020, maritime transport suffers from a lack of capacity and high prices, because of the crisis generated by Covid-19, causing tons of cargo to be stopped at ports all over the world.

As you may guess, an explosion in demand caused the high prices.

This demand surge began when governments created emergency income programs, such as the stimulus checks in the USA, to revive markets and help people who were unemployed.

People spent an enormous share of the stimulus money on online shopping — as you can guess, stuff transported by ship.

Why Are Shipping Containers Delayed?

Put the surge in demand together with the fact that most ports started to operate according to new sanitary rules and reduced staff, and you have the recipe for multiple bottlenecks in global logistics.

To put it into perspective:

On a normal day — meaning pre-pandemic — the port of Los Angeles had a waiting line between zero to 1 ship waiting to dock. The shipping crisis increased this number to over 60.
Before the pandemic, the waiting time to dock at the Los Angeles port was on average 12 hours. Now it is 8 days and 12 hours.

Similar scenarios repeat in every continent, from Rotterdam in Europe to Yantian in China.

Problems like the Suez Canal obstruction in March of 2021 by the Ever Given container ship only made the already chaotic situation worse.

As a result, companies like the Coffee exporter from the first paragraph are resorting to other ways of transportation, less efficient or more expensive.

Here is where things get ugly for all of us — even those that don’t drink coffee.

The Effects of the Shipping Container Crisis

The shipping crisis is not a single-cause event, but it has multiple origins, resulting in a perfect storm:

A shortage of workers — because of the reopening economy but also due to COVID19 sanitary rules.
Massive traffic jams at important ports.
Lack of shipping containers available (since most of them are in the gigantic waiting lines at major ports).
Growing demand for imported goods — a result of stimulus checks and money-printing.

The shipping obstacles are driving shortages of multiple products from semiconductors used by car manufacturers, to coffee beans and food ingredients — Mcdonald’s pulled out Milkshakes from the menu, and Nando’s temporarily closed 50 stores in Britain due to lack of ingredients.

One of the first things learned during my economics major (just before I drop out of it since I am suspicious of economists) is that scarcity prompts price hikes.

According to the Drewry World Container Index, shipping containers cost nearly four times as much as they did this time last year.

Exporters will transfer higher freight costs to industries and industries to consumers. In such a scenario, even mortgages — often indexed to Inflation indexes — tend to increase.

That is why we are already experiencing the highest inflation of the last 40 years.

On the enduring effects of this crisis (worsened by the war in Eastern Europe), Volker Wieland, an economics professor at Frankfurt’s Goethe University in Frankfurt, told to Business Insider:

Even if the order of magnitude is smaller than estimated, the dynamic builds over a year and has significant effects. That means there’s a danger we’re underestimating the impact.

For some industries that benefit from high inflation, this may be a new golden era. For unsuspecting citizens willing to enjoy a daily takeaway coffee, this is bad news.

Why Does Norway Have So Many Electric Cars?

Retirement Crisis: Why Most of Us Will Work to Death

The Best Countries for Coffee in The World

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Levi Borba is CEO of expatriateconsultancy.com, creator of the channel Small Business Hacks, and best-selling author. You can check his books here, his other articles here, or his Linkedin here.

Brazil

3 Rules for Buying a House, a Car, or…

Rules to Buying a Car and Not Regret Later.

Some context about how I came with these rules about buying a house, a car, or a smartphone: Brazil is not a rich place. It has plenty of natural resources, but in terms of per capita wealth, it is far from the first tier.

According to the latest IMF report, the Brazilian annual GDP per capita (or annual income per capita) is $7011. It is in the same category as Turkey, Peru, Thailand, or China. Among the 195 countries present in the IMF report, Brazil has only the 87th highest per capita income.

It may surprise you to know, however, that Brazil is also one of the major markets for luxury goods and expensive vehicles on the planet.

It is one of the 10 largest markets for the luxury SUV manufacturer Jaguar Land Rover. Their most sold car, the Range Rover Evoque, costs R$280 950. More than 54 000 dollars. This is the equivalent of 92 months of Brazil’s average income.
Despite having the highest iPhone prices in the world (in good part thanks to extremely high taxes and bizarre laws), still Brazil is one of the 6 largest markets for Apple.
60% of all the smartphones sold in Brazil have a price tag at least as high as the national monthly income (1380 Reais). 21.6% of all the phones marketed in Brazil cost more than 2500 Reais.
Louis Vuitton Moët Hennessy — the world’s leading manufacturer and retailer of luxury products — considers Brazil one of its main sources of growth.

How is it possible that in a relatively poor country, luxury brands find so many potential customers? One could say that inequality plays a big role: billionaires and multi-billionaires in cities like São Paulo or Rio de Janeiro are rich enough to afford all these luxuries.

But they are not that numerous to justify the almost 100 thousand cars that Jaguar Land Rover alone sold in the last few years. They are not that significant to explain why LVMH considers Brazil one of its strongest markets.

The truth about how Brazilians purchase such a sizeable amount of luxury items resides in another thing.

Consumer Credit

In Brazil, people take loans to buy stuff. It may not surprise you that someone takes credit to buy a house or even a car. But what I mean is a general custom of taking credit to buy anything: clothes, cell phones, laptops, even whiskey — Brazil is the largest consuming market of Johnnie Walker’s Red Label.

This could lead you to believe that credit in Brazil is cheap. Otherwise, why people would use it to purchase superfluous items?

Wrong conclusion. Credit is expensive in Brazil. The average interest rate for a vehicle loan is 21% per year. Credit for durable goods like cellphones and laptops has even higher rates.

While credit is expensive, it is also widely available. Therefore, people enter a debt circle where they are always paying installments for their phones — swapping it for a new model when they finish the previous loan — cars, etc.

So Why Brazilians Don’t Buy Cheaper Things?

That is a good question. I would bet it is cultural. If you are a middle manager or a self-employed professional (lawyer, stockbroker, etc), riding an old car can be seen as a sign that you are not good at what you do.

So people purchase things way over their reality because of a desire to show status and success. That explains why the average age of the Brazilian motor vehicle fleet is only 9.7 years. Brazilian have newer cars than people from richer countries like Sweden (10 years of average car age), France (10.2), Norway (10.7), or Italy (11.4).

The place where I live, Poland, has a per capita income over two times higher than Brazil. Still, Poles drive cars on average 14.1 years old. My wife, a professional with 5 years of experience in global banks, has a 10-year-old car. Meanwhile, in Brazil, most of my friends with similar experience drive vehicles for 5 years or less. While my wife paid for her car with part of her savings, my Brazilian friends buy their vehicles using bank loans.

Because they don’t want to drive old cars. Instead, they prefer to live indebted.

Once I was discussing this topic with my friends from the University of Sao Paulo. They asked me “So, what would be your rules for buying a car, or a house, or a cellphone, Mr. Frugal?”

Below is what I told them. Rules that certainly I will teach my kids. Not only do they serve as a basis to adapt your consuming habits to the available resources, but also to avoid debt and have a decent financial life — instead of jumping from loan to loan.

Who Can Use These Rules Buying a House, a Car, or a Smartphone?

A short disclaimer: these are rules from a middle-class individual. The super-rich will not count money in terms of months to buy their favorite car but in hours. In the other extreme, a student with a part-time job may think I am telling him to not have a smartphone at all.

No, this is not what I am saying. These rules may not work for extreme cases. These rules are for middle-income people — sorry for the lack of inclusivity, but I would not dare to establish numbers for situations that I am not familiar with.

In other words: these are rules for buying a house or a car that I use for myself and they have worked so far. For you, it may be different.

How Much Should I Pay For a Phone Or Laptop?

My principle is to never spend on a laptop or cellphone more than 10% of the value of a monthly net salary, considering that we change these things on average every 2 years.

A friend of mine — the economist with whom I often make some bets — prefers to pay higher prices for smartphones that, in his opinion, resist longer, which makes sense too. Despite that, you should be able to pay for your phone with your own money, never take credit just to boast the last Apple super-expensive device.

How Much Should I Pay For A Car?

For many people, including me, a car is simply a transport mean. So the first question you should ask is: do you really need a car? Do you need something that certainly will lose value with time while requiring maintenance and taxes to pay?

If the answer is yes, then think about how much you use a car, and for which purposes. A family with kids has completely different requirements than a bachelor’s.

My personal rule is that a car should not correspond to more than 4 times my monthly income. This is a command that I obey since I was a teenager, driving a 10-year-old budget Corsa with no AC, but paid with my own salary as a trainee. No debt.

How Much Should I Pay For A House?

Here, the question is more complex, and, differently than the other examples, it is acceptable to take a loan to buy a home. In fact, it is often even desirable to get credit for this purpose, as I explained in this article about when to buy a house.

Mortgages have far lower interests than any type of consumer credit — not because the banks want you to have a roof, but because the risk for them is reduced since they use the real estate as a guarantee in case of insolvency.

Still, you should not buy a castle if your pockets are not deep enough. My advice for a bachelor or couple with no dependents is to look for properties whose price is at most the equivalent to 48 times their net monthly income.

By following these simple rules for buying a house, a car, or a smartphone, you will not enter the credit loop that consumes entire decades of hard work and turn people into slaves of their debts.

What to do with the rest of the money? Save for early retirement, because the public pension system is an illusion.

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Brazil

When to Buy a House? How to Answer It…

Renting vs Owning a House: Compare it to Answer When to Buy a House

The question of when to buy a house is not alone among the few major decisions with the potential to change our paths.

When we are still teenagers or in the early 20s, picking careers and (if any) academic degrees.
When we decide to marry and have kids, or not.
If we will rely on public pensions (hint: don’t) or private savings for retirement.

It is difficult — it not impossible — to decide about the first two listed above based on calculations. But the answer to the dilemma between buying or renting a house is easier to get.

Don’t worry, it is not complicated math — I am not an engineer or a physicist myself, so even my own mathematical resources are limited.

In this article, however, I will approach the decision between renting and buying a house from a financial point. Of course, there are other advantages and disadvantages on both sides. Eg: in the case of an invasion by a foreign power, the renter can escape without caring if insurance covers mortar explosion. Sorry for the weird example. I live in Poland.

In ordinary times, people praise real estate ownership as an investment that may build equity and tax deductions. To rent, on the other side, gives flexibility with no maintenance headaches.

Still, there is a common belief that buying a house is a more financially sound decision. Not always this is true, and here you will learn how to discover if this is your case.

The Costs of Buying A House

The first step is to gather all the costs from both sides (buying and renting).

We will not consider some expenses, like furnishing for two reasons: first, because they often exist regardless if you are a renter or a homeowner. Second, because onetime costs are diluted over the years and are of little significance over long periods of time.

So what are a homeowner’s yearly, recurring costs?

Loan interests (L)
The opportunity cost of the money spent(O)
Property taxes (P)
Maintenance costs (M)

Loan Interest (Mortgage) Costs of Buying a House

First of all, the loan costs are not the same as the total mortgage, but only the interests. Most of the value of your mortgages will add to your equity (meaning, the house), except for the interest you pay to the bank.

To calculate the loan costs, we use the effective APR (annual percentage rate). It includes fees and compound interests. Be aware that the effective APR is always equal to or higher than the nominal interest rate, and not everywhere banks disclose these values — here in Poland a law obligates them to do so.

During this exercise, I will use two countries: Poland, where I live, and Brazil, which is where I came from.

The effective rate for a mortgage contracted by a middle-class couple with no dependents in Poland is somewhere around 2% to 4%. To make it simple, let’s consider an effective rate of 3% per year. In Brazil, it is between 6% to 12%, so we will consider 9%.

In both cases, the values are net of inflation — remember that mortgage rates often have a variable, indexed component, so they may fluctuate over time.

The Opportunity Cost of the Money Used

In most mortgage loan contracts, the bank demands a down payment from the buyer. Usually around 20%.

Some loans don’t demand this 20%, but they have higher interest rates. It is a matter of calculated risk for the bank: your down payment reduces their exposure, therefore the higher the down payment, the lower the interest rates.

Imagine if you invested this 20% in high-yield fixed-income in your country. How much it would pay you per year? In Poland, around 1%. In Brazil, somewhere near 5%. Again: both are net of inflation.

But when you buy a house, you will not earn this 1% or 5% over your down payment because you spent the money to buy a house. This money you don’t earn is the opportunity cost. As defined by Investopedia:

Opportunity costs represent the potential benefits an individual, investor, or business misses out on when choosing one alternative over another.

Since your down payment is only 20% of the total house value, this means that the opportunity cost in Brazil is 1% and in Poland is 0.2% of the total house value.

If the house value is $200 000, the 20% down payment is $40000. In Brazil your cost of opportunity is 5% of 40000, meaning $200 per year. In Poland, it is 1% of 40000, resulting in $400.

One crucial thing to consider: if the house you bought appreciates more than the inflation, you should subtract this extra appreciation from the opportunity cost. But if your house appreciated less than the inflation, or even depreciated, this increases the opportunity cost.

In most situations, real estate prices will not depreciate but also not spike, except in rare cases like someone finding oil in his backyard. In our exercise, we consider that real estate prices just follow inflation.

Property Taxes and the Maintenance Costs of Buying A House

Except for unusual rental contracts, the responsibility to pay the property tax is from the landlord or homeowner, not from the renter.

In Europe, property taxes vary drastically. From 0.09% in Austria to a painful 1.93% in Great Britain. In Poland, it is 0.91%. In Brazil, 1%.

There are also maintenance costs. Things that homeowners pay, but renters don’t.

Roof, pipes, and other structural repairs
Pest control
Air-condition or heating filters
Leaky faucets
Lender-required insurances (flood, fire, earthquake, etc.)
Period inspections and permits, when and if required by the local authorities

According to the expert Maurie Backman, writing for MillionAcres, you should expect to spend between 1% and 4% of your home’s value each year for maintenance. Newer homes usually are in the lower range of this interval. In our exercise, we will consider maintenance costs representing 1.5% per year of the total home value.

Explained all the annual costs, here is a summary of them for both countries (Poland and Brazil) we will use in our exercise of when to buy a house:

Loan interests (L): Poland = 3%, Brazil = 9% of the total house value per year.
The opportunity cost of the money used (O): Poland = 1%, Brazil = 5% of the value used as down payment OR Poland = 0.2% and Brazil = 1% of the 20% used as down payment, per year.
Property taxes (P): Poland = 0.9%, Brazil = 1% of the total house value per year.
Maintenance costs (M): For Both Countries, 1.5% of the total house value per year.

The Costs of Renting A House

The monthly cost of renting a home is simple. It is:

The rent you pay (R). Both in Brazil and Poland, this on average corresponds to 6% of the total house value.

Expenses like utilities are not considered because we need to pay them regardless if we are renting or buying.

One could also argue that renters have the additional cost of contracts adjusted annually by an inflation index. However, most mortgage loan contracts also have inflation adjustments — at least mine has. Since these things affect both sides almost equally, it does not make sense to consider them, unless you managed to rent a house or take a mortgage with no inflation adjustment (if this is the case, congratulations).

There are double-edged benefits to renting a house. From one side, it allows you to move without penalty each time your contract finishes. However, it also means your landlord may not accept to renew your contract.

A renter also may face unpredictable rent increases every time he needs to renew his contract. In districts with rising popularity, rent hikes can be steep. In contrast, the only increase in mortgage payments will be due to inflation.

The “Buying a House” Equation (Please don’t be scared, it is easier than it looks)

The decision if renting is better or worse than buying a house will come from a simple calculation:

If the annual cost of buying a house (ACB) is bigger than the annual cost of renting a house (ACR), for the same house value (HV).

ACB = (HV*L) + (HV*O) + (HV*P)+(HV*M)

ACR = (HV*R), or ACR = Annual Rent

If ACB > ACR, it is better to rent a house. If ACB < ACR, it is better to buy a house.

I know it still may look complicated, but it is not. Just look at the two examples below, both considering house values (HV) of $200 000.

Is It a Good Idea to Buy a House In Poland?

HV = $200 000

Loan interests (L): 3% * 200 000 = $6000 per year

Opportunity cost of the money used: 0.2% of 200 000=$400 per year

Property Taxes: 0.9% of 200 000= $1800 per year

Maintenance Costs: 1.5% of 200 000 = $3000 per year

The total cost of buying a house: 6000+400+1800+3000 = $11 200 per year.

The total cost of renting a house = Annual Rent: 6% of 200 000 = $12 000 per year.

Therefore, considering the parameters we used, buying a house will save you $1000 per year in Poland. That is almost a monthly average salary in Poland. In this case, it is a good idea to buy a house there.

Is It a Good Idea to Buy a House In Brazil?

HV = $200 000

Loan interests (L): 9% * 200 000 = $18000 per year

Opportunity cost of the money used: 1% of 200 000=$2000 per year

Property Taxes: 1% of 200 000= $2000 per year

Maintenance Costs: 1.5% of 200 000 = $3000 per year

The total cost of buying a house: 18000+2000+2000+3000 = $25 000 per year.

The total cost of renting a house = Annual Rent: 6% of 200 000 = $12 000 per year.

Therefore, considering the parameters we used, buying a house will make you spend an additional $13 000. In this case, it is a bad idea to buy a house in Brazil.

Shocked by the result? There are a few things that are cheap in Brazil, but that does not include mortgage loans. The lack of Brazilian legal stability adds to the high costs.

If, in My Case, It Is a Bad Idea to Buy a House, What Should I Do?

A better alternative (from the financial point of view) is to do what a friend of mine — head economist of a local bank — does: he saves his money and invests it in high-yield fixed-income titles. The risk of these titles is mitigated by the FGC (a device that covers any loss caused by banks defaulting until a certain value).

The interest paid by his investments covers his rent.

Remember, however, that all these are purely financial calculations.

Not always the decision of buying a house is about the money. It may also depend on your life plans or family requirements. Just avoid point-blank statements like X or Y is always better.

Instead, do the math.

The formula I already gave you, so all you need is to change the numbers I used (taxes, cost of opportunity, etc) for the figures of your circumstance and location.

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Brazil

Is Brazil Cheap? 4 Things Incredibly Cheap for Brazilians…

Is Brazil Cheap? From water to a popular vice, yes.

Tell a Brazilian that his country has some good-quality stuff for ridiculous prices, and it is likely that he will disagree or expect a joke involving bribes and crime. But there is something curious about the living cost in Brazil.

As a Brazilian myself, for long I held this belief that in my country, almost everything is overpriced and overtaxed (like iPhone or PlayStations), or has a lower standard of quality — like some Brazilian basic car models that cannot be sold in Europe due to safety concerns).

Electronics and industrial goods can be costly in Brazil, but this is not valid for many utilities and staples.

Things that are often more necessary than a new Xbox

Prices in Brazil that May Surprise You

Water

Brazilians seldom notice that they are paying peanuts for things like water. It is a shock that many of us have when moving abroad. Eg: I always heard during my childhood that in Europe people don’t take multiple showers per day because it is cold or because they use a lot of perfume to disguise body odor.

The truth, however, is that bathing in Europe is expensive, while countries in South America at least can boast of having cheap water.

Some simple math:

Cost of a cubic meter (1000 liters) of water and sewage in São Paulo: R$4.54 (if you live in social housing, it is even cheaper). That is USD$0.87.

Water used in a 10-minute shower, with a modern showerhead: approx. 90 liters.

The average cost of water for a 10-minute shower in São Paulo: (90/1000)*0.87 = Approx. 8 cents of dollar per shower.

In Poland, the same shower almost 3 zlotys, meaning 77 cents of US dollar.

If I kept my Brazilian habits in Poland, I would spend 47 dollars per month on shower water only. The price of a shower in Warsaw is almost 10 times higher than in São Paulo or Rio de Janeiro. In richer European countries like Denmark, it is even worse.

Lower water prices also decrease other components of the living cost in Brazil, like the price of flushing the toilet (something harder than baths to reduce the frequency) or having a swimming pool in your backyard. Even washing your car in Brazil is cheaper than nearly anywhere else because of the inexpensive water.

Garbage Collection

If you tell someone from the city where I was born that the garbage collection is crazy cheap there, they will think you are fooling them.

For a simple reason: it is not cheap. It is free (free meaning paid by taxes).

You can generate as much domestic garbage as you want and you will not pay a single cent for a truck to collect it. I could put “free” garbage collection in my list of bizarre Brazilian laws, but since most people don’t complain about it — instead, they complain about their taxes — , I left it out.

In other cities, like São Paulo, there was once a cost for this service, but it was canceled, and now the current mayor is trying to bring it back. In places where there is a charge for garbage collection, the values are often modest. Curitiba, the capital of Paraná state, has a price for domestic garbage considered expensive: R$275 (US$52.7) per year. 4.4 dollars per month.

For comparison, for the same service in Warsaw, Poland — a country that is rich by any means — I pay close to 50 zlotys (12.9 USD), per month. Garbage collection is on my list of the 5 things unusually expensive in Poland.

One curious thing is that when you have bills like water or garbage so cheap in Brazil, this also contributes to lower prices in other things, like hotel rooms, street food, and so on.

Coffee

Inexpensive coffee should come as no surprise since Brazil is the largest coffee-producing country in the world.

The largest difference, however, is not in the grains per se but in the coffee consumed at cafeterias. In the Brazilian long-distance bus stations (rodoviárias) it is common to find places selling a cup of coffee for 2 or 3 reais — around 50 cents of a dollar.

A good café de rodoviária (literally “bus station coffee”), in my opinion, is at least as good as a Costa black coffee sold for 3 euros or more in Europe. Even a traveler in a shoestring budget can afford a nice cup of cafezinho in cities like Rio or São Paulo.

Other coffee-derived beverages also have favorable price tags in the Brazilian territory. Maybe they are not a game-changer in the living cost in Brazil if you prefer tea, but for the lovers of the black, bitter liquid, it is a tremendous plus.

The portal Numbeo examined the cost of a Cappucino in 589 cities around the world, on all continents. Belo Horizonte, Rio de Janeiro, Brasilia, and São Paulo are all among the cities with the lowest price for this hot beverage.

A Cappucino in Finland or the United States will cost over 300% of what it costs in Brazil. That is why Brazil is among the best countries for a cup of coffee.

Cigarette Prices in Brazil

A friend of mine always carries an extra pack of cigarettes for personal use when he travels out of Brazil. This is a sure way to save money.

It would be unfair to compare São Paulo with richer cities like London ($17.2 for a pack of Marlboro) or Boston ($12), but even considering countries in an income bracket similar to Brazil, the difference is considerable.

A pack of Marlboro in São Paulo will cost between 10 to 12 Reais, a bit more than USD$2. Similar prices are only seen in countries like Ukraine, Iraq, or Paraguay.

The same Marlboro 20-cigarette pack is $5.5 in Guayaquil, Ecuador, $5.23 in
Santiago, Chile, and $4.76 in Bangalore, India.

Of 482 cities researched by the portal Numbeo, São Paulo is only the 446th in the ranking of cigarette prices.

The low prices, however, do not increase tobacco popularity. Brazil is one of the countries with the lowest proportion of smokers in the world: only 15% of the population is addicted to nicotine.

Other things that are relatively inexpensive in the living cost in Brazil.

Uber is comparatively cheap in São Paulo, despite the high prices of gasoline. Likely this is related to the high amount of people interested in driving for ride-sharing apps.

Beef, even considering the recent price increases, is still cheaper than in most other middle-income countries.

Brazilians can also buy oranges — another product where Brazil is the largest global producer — for a fraction of the price that people from colder countries pay. In general, natural food prices (we are talking about vegetables, fruits, meat, and so on) are very affordable in Brazil.

And, needless to say, it is very easy (and free) in Brazil to take pictures of splendid natural scenes.

Putting it all together, it is easy to see that in one way or another, all prices in Brazil that are cheap, are linked to the privileged natural characteristics of this gigantic country. Meanwhile, nearly everything that is expensive is affected by the precarious infrastructure and questionable government tax policies.

How Much Does It Cost to Live in Brazil

The cost of living in Sao Paulo, Florianopolis and Brasilia are the 3 highest in Brazil — The cost of living in São Paulo, Florianopolis and Brasilia are the 3 highest in Brazil

On average (and considering prices all over Brazil), in the year 2022, a single person will need R$4886 per month to live in Brazil with a good standard of living. A family of four requires R$11.510. On the other hand, those that travel to Brazil for studies may have cheaper living expenses due to multiple discounts offered for students.

The devaluated exchange rate of the Brazilian real makes this value look really attractive when you convert it to US dollars or Euros.

Since Brazil is a country with a continental size and enormous economical differences between the states, the prices vary drastically from one part to the other. Considering the average cost of living as 100, researchers from CustodeVida arrived at the following breakdown per capital:

141	Brasília – DF
132	Florianópolis – SC
118	São Paulo – SP
111	Recife – PE
100	Belo Horizonte – MG
99	Cuiabá – MT
97	Porto Alegre – RS
92	Curitiba – PR
90	Rio de Janeiro – RJ
89	Belém – PA
86	Fortaleza – CE
85	Manaus – AM
81	Boa Vista – RR
80	Maceió – AL
75	Campo Grande – MS
74	Natal – RN
70	Porto Velho – RO
69	Aracaju – SE
67	Salvador – BA
65	Goiânia – GO
64	João Pessoa – PB
64	Palmas – TO
64	Rio Branco – AC
62	Teresina – PI
56	Vitória – ES

Prices in Brazil and cost of living in each state capital (Brazilian average = 100).

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If, living in Brazil, you can save money enough to invest, here is a list (in Portuguese) of the melhores livros sobre investimentos.

Brazil

Weird Laws in Brazil That Surprise Foreigners in 2023

Unusual and Weird Laws in Brazil

Since 1988, Brazilian authorities have created 5 million new norms and laws. This article about weird laws in Brazil shows just a small sample of them.

There is not a single book with all Brazilian laws. A lawyer tried to compile all the tax legislation in one volume. It became a behemoth of 41 266 pages printed in A0 paper (the largest type existent). The weight of the publication was 7 tons—more than an elephant.

In case the sheer absurdity of the size made you forget: the entire book was only about tax law.

It also affects entrepreneurs daring to venture in to Brazil:

Labor law
The Civil Code
Consumer rights
Corporate and business law, etc.

All of them are among the most complex codes in their areas on the entire planet. This is the reason Brazilian subsidiaries of global companies often have legal departments larger than their headquarters.

Brazilian firms spend, on average, 1958 hours per year only calculating their tax obligations. A time better used to develop new products or improve their services, but it is wasted untangling the odd game rules.

The World Bank compiles the Ease of Doing Business rank. It measures business regulations and how they affect small and medium-sized companies in 190 countries. New Zealand has the first position.

Brazil is in 124th place, below much poorer nations like Papua New Guinea, Eswatini, Lesotho, and Senegal. Yes, it is a good country to drink a cup of coffee, but the legal system is a headache.

Why is Brazilian Tax Law So Complex?

The average answer to this question is better than what most economists would say.

Laws are complicated because the Brazilian government is always hungry for money. The quickest and easier way to satiate this hunger is by creating new taxes.

In 1966, the national tax burden was 15% of the GDP. Only 35 years later, in 2001, this number jumped to 33%. It took less than a generation for the government to double the amount taken from everything produced in the country. Of all this money, 40% is used to pay debts, 40% goes for public payroll, and 18% for social security. The remaining 2% is shared by the rest — education, healthcare, infrastructure, etc.

Brazilian laws are expensive, obscure, and even ridiculous. Since you are not an entrepreneur there — if you are, you have my admiration — below are some examples of weird laws in Brazil to laugh about.

Weird Laws in Brazil Creating Jobs That Do Not Exist Nearly Anywhere Else

Brasília, the national capital, is the source of many of the existing stupid laws in Brazil

Imagine if in your country a law turned mandatory to employ an attendant in every elevator. His function would be only to press the floor buttons.

It sounds absurd, right?

Not in Brazil, where there is something similar. Not with elevators, but with gas stations. There, you cannot refuel your own car without help. Even if there are 4 pumps available and only one busy attendant (called frentista), you need to wait in line.

I traveled to 51 countries during the last decade and I saw nothing like it. It is literally illegal for you to pump gas into your vehicle because of a law created in 2000 and sanctioned by president Fernando Henrique Cardoso. The reason for it? To preserve the health of drivers and keep the jobs of gas station attendants.

If the law’s purpose was to keep a job that makes little sense and instead increases the costs of fueling a car, congrats! Your idea succeeded, Mr. Rebelo.

Another profession that only exists in Brazil is the despachante de trânsito.

What does he do? He ensures your car documents, inspections, and fees are up to date.

Why would someone hire an expert for something so trivial?
Because dealing with the local traffic departments (DETRAN) is falling into a limbo of bureaucracy, winding corridors, and hours, maybe days, wasted.

Weird Laws in Brazil That Prohibit the Importation of Used Vehicles

One of the many weird laws in Brazil makes challenging to import used cars, increasing the prices of second-hand vehicles.

In Brazil, for most purposes, only imports of zero-km vehicles are allowed.

As a Brazilian that lives in Poland, that creates an extraordinary discrepancy for me. In Poland, a middle-class citizen can buy a used, but in good state, BMW or Mercedes — imported from neighboring Germany — for affordable prices.

This makes the average age of registered cars in Poland (14 years) much higher than in Brazil (10 years). Since Brazilians cannot import used cars from richer countries, they need to use only local models, often ripped from accessories available in Europe or the USA. Some of the economical cars available in Brazil, like the Renault Kwid or Fiat Mobi, would not be even sold in European countries because of safety concerns.

This prohibition, however, affects more than the market for second-hand cars. It also hits the industry and agriculture.

A Brazilian farmer has a restricted second-hand market of agricultural vehicles such as combines and tractors. Either he finds the money to purchase expensive new vehicles or resorts to agricultural cooperatives, where consortiums member purchase equipment and share it between their farms.

Congressman Marcel van Hattem filed for regulatory changes to liberalize vehicle imports.

The Weird Law Establishing That an Hour Has 52.5 Minutes

They compiled the Brazilian labor legislation in something called CLT, an acronym for Workers Law Consolidation in Portuguese.

Sounds like stuff created by collectivist bureaucrats during the 40s, right?

Because this is exactly what it is. The CLT is from 1943, conceived by the dictator Getulio Vargas. It has 922 articles and over 500 binding legal precedents.

It is a gold mine of odd stuff.

Article number 71, for example, provides that between 22:00 and 05:00, each hour has 52 minutes and 30 seconds. The intention behind this norm is to ensure that employees with night shifts earn an additional 7 minutes and 30 seconds per hour worked.

The collateral effects are prone-to-error procedures and complicated processes to calculate salaries.

Check also: Is Lisbon (Portugal) Safe?

Two-Years of Prescription for Labour Lawsuits + In Dubio Pro Operario

The period of prescription is the maximum time after an event that legal proceedings based on that event may be initiated. In other words, how long after an event you can sue (or be sued by) someone.

In most western countries, the period of prescription for labor lawsuits is a matter of weeks. Germany, for example, has fourteen days.

The Brazilian labor law, on the other side, establishes two years. This forces firms to keep documents, vouchers, receipts, timesheets, and even CCTV recordings for this entire time. The cost of keeping such a vast archive is considerable.

Considerable, but necessary. The Brazilian labor law uses an exotic inversion of the universally accepted principle of In Dubio Pro Reo (meaning guilty until proven otherwise). There, it becomes In Dubio Pro Operario(the employee is always right until proven otherwise).

If a firm suffers a lawsuit in the two years after a particular event (eg: employee termination), it is the company that should present all the documents to prove innocence. Otherwise, they are guilty.

Check also: Tips to Study in Brazil for International Students

Conclusion about Weird Laws in Brazil

I use the laws mentioned above as an example when someone asks me:

Why did you decide to open a business in Eastern Europe instead of in your home country?

But they are just drops in an ocean. The Brazilian labor law has almost 1000 articles. A book compilation of the tax legislation weighs 7 tons.

Since 1988, Brazilian legislators have created, on average, 4163 new laws or norms —

Per Day.

Some affected people I know — people brave enough to start a business in Brazil. One example is the (former) owner of the only cinema in my hometown. He received a fine for not exhibiting enough national movies. The product of a law created to favor Grupo Globo, a media giant that produces over 80% of all national films and has enormous influence among politicians.

However, national films are such a public failure that is often better to pay the fine.

One day he, as well as thousands of small business owners, just gave up doing business in Brazil. Some leave for other places far more attractive for entrepreneurs. Others become employees at large corporations.

Do you have any other examples of weird laws in Brazil? Tell us in the comments!

If you are an entrepreneur or are planning to start a business, here are some other articles that may be useful to you:

5 Books Every Entrepreneur Must Read This Year

The 7 Best Business Channels on YouTube in 2021

How to Rank Website on Google First Page

The 5 Top Fiverr Gigs for New Entrepreneurs and Creators

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Levi Borba is CEO of expatriateconsultancy.com, creator of the channel The Expat, and best-selling author. You can check his books here, his other articles here, or his LinkedIn here.