Whether for a job opportunity or to undertake, every year, thousands of people leave Brazil and one of the biggest doubts is how to invest while living abroad. Could asset tokenization be an option?
Unfortunately, it is very common for investors to keep their investment positions as they were when they left Brazil.
This action stems from the idea that investment portfolios are balances that require care only when there is an interest in redeeming and, therefore, there is no care to be taken even when the person becomes a non-resident investor.
However, this decision can bring unnecessary damage and headache with the Federal Revenue.
Why do you need to declare yourself as a non-resident investor?
Do I need to close investment accounts before leaving the country?
Can investment tokens be an option to invest while living outside Brazil?
BLOCKBR, a native web 3.0 company, will talk about opportunities and precautions to invest while living outside Brazil safely and with great returns!
CAN THOSE WHO LIVE ABROAD INVEST IN BRAZIL?
Yup.
Brazilians residing abroad can invest in the Brazilian capital market. However, to make the investment with legal and tax security, you need to follow some steps.
MAKE THE DEFINITE EXIT DECLARATION
The DSDP (Declaration of Definitive Departure from the Country) is a document similar to the DIRPF and which is intended for the Federal Revenue Service to communicate that the person is leaving Brazil permanently and, therefore, he/she becomes exempt from declaring the Income Tax while living abroad.
It must be done within the legal deadline of the DIRPF in the year following the departure from the country.
WHAT DOESN’T HAPPEN IF YOU DON’T DECLARE DEFINITELY LEAVING THE COUNTRY?
If you leave Brazil permanently and do not make the DSDP, you will still be obliged to declare the IRPF and will still have to include income from work, goods and investments acquired abroad and result in tax payable in Brazil.
Depending on the country of residence, there will be double taxation – the collection of income tax in both countries. The DSDP prevents possible taxation in Brazil.
CVM regulation: what impact does it have on tokenization?
CONVERT CURRENT ACCOUNTS
The DSDP must be given to all banks and brokerages with investments in order for them to be converted to non-resident investor accounts.
They have a movement value limitation: from R$ 10,000, an exchange contract must be entered into for the amount to be sent abroad.
The lack of this procedure prevents the redemption and sending of values abroad and also the use of the account to make investments in Brazil.
As we can see, there is a bureaucratic process for you to invest in Brazil while residing abroad. These requirements apply to all traditional investments, such as precatorios, receivables funds and shares.
On the other hand, you find many other financial products, such as prepayment of receivables, in the token market, which are not regulated by the DSDP, and account conversion.
TIPS FOR INVESTING WHEN LIVING ABROAD
1 – VERIFY IF THE PLATFORM ACCEPTS INVESTORS FROM ABROAD
This is an important first precaution, as it is necessary to leave Brazil with the guarantee that investment sites in Brazil accept non-resident investors, such as token sales platforms.
2 – CHECK THE INCOME TAX CONDITIONS
This should be an important concern, as carelessness can cause considerable losses in investments. The incidence of Income Tax changes according to the financial product when the investment is made by a non-resident investor.
In several assets, such as the CDB, the investor must pay the difference between the percentage of IR that is applied in the resident country and in Brazil.
Therefore, check the conditions of incidence of IR in the desired applications and monitor changes that arise over time.
3 – FOLLOW THE BRAZILIAN INVESTMENT SCENARIO
Information is the basis of investments and, in the Brazilian economy, regulations on each financial product can change quickly and require quick decisions.
In the case of business tokens, for example, staying informed is even more important, as it is a recent innovation that has received a lot of attention from regulators and legislators.
Between 2021 and 2022 alone, several positive news about tokenization emerged:
- Cryptocurrency Law (which reinforces the legality of tokens);
- Digital Real (the tokenization of the Real);
- Implementation of CVM’s regulatory Sandbox;
- Creation of the Tokenization Study Group.
4 – EVALUATE THE PERFORMANCE OF THE ECONOMY SECTORS
Legislation and regulation changes in financial assets can happen with a certain frequency, but it is also important to follow the movements of the economy. The growth of some dictates the pace of attractiveness of various roles.
The best examples are Bonds – debentures issued abroad by Brazilian companies – and ADRs – shares traded on the American stock exchange.
The initiatives with the regulation of tokens will dictate, in the very short term, the participation of tokens in the economy, creating opportunities and consolidating their presence in sectors such as the tokenization of real estate.
5 – USE THE CONDITION OF RESIDENT IN BRAZIL TO INVEST
With your CPF in good standing with the Federal Revenue Service and proof of residence in Brazil, you can open an account at a tokenizing company, such as BLOCKBR, and invest in tokens even if you live abroad.
One of the main features of application tokens is precisely the possibility of choosing tokenized investments from anywhere in the world and without tax and legal barriers.
Discover the different types of tokens for you to invest safely!
HOW TO INVEST WITH BLOCKBR LIVING ABROAD
Tokenization is a way of doing business without physical and legal borders. You will be able to invest in digital assets from various sectors of activity in Brazil from the comfort of your home abroad and at any day and time.
And buying tokens is not complicated if you invest with someone who makes it easy!
You just need to have an account with a qualified asset tokenization company like BLOCKBR, presenting your CPF and proof of residence in Brazil and create a digital wallet to store your applications.
Afterwards, just access our token marketplace, discover the many offers and choose the ones that match your investment perspectives – you can start investing in tokens from 50 reais!
When moving abroad, you can keep the token investment account at BLOCKBR to invest in tokens!
BLOCKBR Digital Assets is a native fintech web 3.0 that brings technological innovation and digital knowledge to transform physical assets into digital ones, in the tokenization process.
The supply of tokenized assets is democratic and decentralized, which makes the way of investing safe, simpler and more efficient.
We enable, structure, issue and offer tokens on our platform and beyond. Be aware that tokens depend on feasibility and regulatory factors.
Do you want to tokenize your business or part of it? Do you have a business solution and does it make sense to issue your own token ?