Brazilians living abroad send more money to Brazil

In recent years, Brazilians living abroad are sending more money to Brazil, and the central bank has recorded a record number of transfers from abroad since it began monitoring such transactions, nearly 30 years ago.

At the end of the 1990s, Brazil received more or less 1 billion US dollars annually, while Brazil closed this account at the end of last year with 4.7 billion US dollars.

This is the highest value in this historical series, which began in 1995, and in the last year alone the increase was 22%, an increase that was already on an increasing scale.

This figure shows several distinct phenomena, for example the number of Brazilians who leave our country in search of better opportunities in other countries and also shows how the families who continued to live in Brazil needed outside help to continue paying the bills of the day.

We can also see the effect of the exchange rate, when the dollar here in Brazil is high it is better to send money from abroad.

For example, in dollars or euros for Brazil, when the transfer is made, those who receive the money here in Brazil end up receiving more.

Where do these resources come from?

The main source comes from the United States with more than $2 billion, an increase of 11% in the last year. In the UK, the country that has recently experienced all the confusion related to Brexit (the UK’s exit from the European Union), volume is down 31%.

There are many Brazilians who have dual European citizenship and before Brexit they can live normally in England in the United Kingdom, now it is more difficult, some Brazilians left the country and went to other European countries.

Portugal for example, there was an increase of almost 72%, Switzerland 66%, Spain 52% increase and Germany 124% increase, 128% in France the second largest economy in the Eurozone, 48% in Italy, 37% in Japan and 58% in Canada.

Among these countries, the amounts sent are registered: the United States, Portugal, Switzerland, Spain, France, Canada, as well as the Netherlands.

The number of Brazilians abroad

In times of globalization, the number of Brazilians has grown by 35% between 2010 and 2020 according to an IBGE survey. Thousands of Brazilians live and work abroad, either because they have more citizenship, or because they have a job when they arrive.

Some of the professions that are on the rise abroad cover areas such as technology and engineering as there are not as many professionals abroad as there are here in Brazil.

So professionals are sought here in Brazil, some companies pay for all the movement of these professionals out of the country, due to the lack of professionals.

By law, Brazilians staying outside the country for more than a year must make a declaration of final departure from the country, and this tax liability represents the last income tax the beneficiary needs to declare in Brazil.

This Thursday, the Central Bank also announced that Brazilians’ spending abroad will double in 2022 and reach R$60 billion.

Brazilians’ spending abroad is influenced by factors such as the level of economic activity and the rate of dollars used in international transactions.