Make sure you have a solid documentation to support your transfer and that you are comfortable with the seller being fully paid before you get legal title to the property (or another asset) you are buying. If you need to send an amount higher than USD10,000, traditional banks may work as long as you are willing to endure the severe red tape and friction involved. 2) Higher Amounts – Everyday Banks in Brazil If you are transferring small payments to family, friends, or even a small downpayment upon signing a property purchase contract, you may want to check how to transfer amounts of up to USD10,000 through apps to Brazil. Learn the three main ways to send money to Brazil, their pros, and their cons. The more time you have, the higher the chances you will get your ducks in a row to successfully transfer the necessary funds while retaining the right conditions for a safe closing.Īnd, it is within this context that we explore the different ways to send money to Brazil, their pros, and their cons. Second, allow yourself a long time between signing the contract and the closing date. You should not assume that cross-border transactions work the same way they work in your country. So, what can I do to avoid these issues?įirst, educate yourself by learning how things work in Brazil. What about title insurance when buying a property? Can’t I simply send my payment to the title agency? Escrow accounts are not part of the culture in Brazil. What about an escrow account? Can’t I simply send my payment to the escrow holder? But, this will destroy any leverage you have to make the seller attend the closing and transfer title to what you are buying. This is the dilemma: the main banks in Brazil, such as Bradesco, Itau, and Banco do Brasil, will always push for large payments to be made directly to the selling party. Paying a seller directly may be concerning since you cannot time the release of the funds to match with the closing. For instance, if you are buying a property, they think you should send the money to the seller – not someone else! The underlying concern is that you may pretend to purchase a property just to send a lot of money to Brazil at once. The Brazilian bank wants to be the most conservative possible. The Brazilian bank wants me to wire the funds to the seller instead of (my account / my wife’s account / my attorney’s account / etc.). We Can Help You Click Here for our Money Transfer Service for Large Sums The problem is that most transactions involving large sums are not interpreted as “straightforward” by the banks. We can tell you that for the most straightforward and well-supported transactions, the recipient bank will almost always end up releasing the funds. So, if I get the paperwork right, is the release of my wire transfer guaranteed? Although it doesn’t take you more than 10 minutes to send a wire transfer from the USA, the transfer will not be of any good unless the recipient actually gets the money! It is not uncommon for Brazilian banks to return wire transfers to the USA after the recipient party fails to satisfy the bank’s requirements. Why should I care? Isn’t sending a wire transfer my only obligation as a buyer? There is also a substantial disconnection between the bank back-office and the branch personnel and the fact that most bank employees are not fluent in English, bringing more friction to the mix. No! Currency exchange departments in traditional Brazilian banks take a long time to review the documents and approve the transaction. Is the government bureaucracy the only reason for the complexity? What is the timeline for a bank wire transfer to be released in Brazil?īrazilian banks may take several days or even weeks to release large amounts (e.g.: over R$200,000), requiring that the receiving party provide many documents and get registered with their currency exchange departments. Don’t forget to check our FAQ section located at the end of this page. You can also read this page in Portuguese. So, it is not a surprise that in case of doubt, Brazilian banks will always be overzealous. Banks in Brazil face fines in the hundreds of thousands of reais if such wire transfers are not heavily scrutinized and documented. Brazil has a history of extreme regulation of money entering and leaving the country. Sending money to Brazil is way more complex than most foreign citizens expect. How to Send Money to Brazil in 2023 – The Definitive Guide
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