Sweet Home Floripa, Florianópolis, Brazil

Dr. Carlos Zoéga Coelho

In our most recent interview, Carlos Zoéga discussed the exciting, new service offered by his law practice. Carlos will now offer a full-service business consultancy that allows foreign investors the opportunity to perform thorough due-diligence investigations on Brazilian businesses. 

This new consultancy service, Carlos told me, “examines all the non-legal aspects of investing in a Brazilian company.  For example, we can now help foreign investors evaluate the financial records of the company.  We can also prepare the necessary reports to provide the investor with a clear understanding of the risks and returns their investments should command.”

Carlos is offering this consultancy service to his clients, whether they are interested in investing in Brazil–today one of the top two BRIC economies–or investors who seek an investor’s visa in Brazil through investment.

Carlos assists foreigners wishing to living permanently in Brazil to obtain a permanent resident status through an investor’s visa.  In our interviews on this subject, Questions about Brazil’s Investor Visa?  Ask Dr. Zoéga. and More Questions about Brazil’s Investor Visa?  Ask Dr. Zoéga. we learned that foreign nationals who invest R150,000 in a Brazilian business can obtain the right to live permanently in Brazil.  Those articles described how to go about setting up your own business from scratch.  But not all clients wanted to build up a business from the ground up.

In fact, several clients asked if Carlos wouldn’t be willing to try and connect them up with already-existing Brazilian businesses so that they could act as partners or investors.  Carlos explained that “in many cases, my clients tell me that they would prefer to become a partner of a business that is already running, that is already successful, that is already making profits, than to start from zero in a new country, in a completely different cultural and economic environment.”

Some of these clients have special areas of expertise that they can offer Brazilian businesses.  Others just want to make an investment and be silent partners.  Investing in a Brazilian business, however, can be almost as complicated for an uninformed foreign investor as starting a Brazilian business from scratch.  That’s why Carlos is now offering a specialized business consultancy in addition to his legal services.  Those who wish to invest in an already-existing business can make sure that the business is profitable, honest, and following Brazil tax and other guidelines.  The first step is “due diligence in researching the prospective company in order to understand exactly what the situation is regarding its debts, especially labor and tax debts.”

Through this consultancy, prospective investors can assess whether a Brazilian company is worth investing in, how much of a return they should receive on investments, and assess its track record.

Carlos added that he is now equipped to offer his consultancy service to both individuals and businesses as well.  In fact, his services are available to any investor, whether they want to live in Brazil or not.  In addition to assessing the value of partnerships with individual companies, Carlos can also help to set up holding companies that control partnerships in a variety of Brazilian companies in order to diversify investments among different industries or markets.

Once clients have decided that a partner business is a good investment, Carlos can also negotiate “the percentage of the shares that will be sold against the amount that will be invested, including the preparation of all legal documents involved.”  So, for those individuals and businesses who want to come to Brazil and invest in an already-existing and profitable business, Zoéga Coelho & Advogados now offers a way to do it in a way that is fully informed and with proper due diligence.

Dr. Carlos is Senior Partner at ZOÉGA COELHO & ADVOGADOS  Rua Adolfo Melo, n.38, sala 202 – Centro 88015-090 Florianópolis/SC – Brasil Telefone: (55 48) 3223-4729  Fax: (55 48) 3322-0483

SKYPE: carloszoegacoelho

Any foreign resident of Florianópolis who has tried to include documents from their home country in a Brazilian legal process will know how frustrating it can be to have their foreign documents translated by an official translator.  As we’ve mentioned before, all foreign documents must be translated by an official translator before they become valid in Brazil.  Previously, residents of Florianópolis had to endure long waits before their documents were translated.  In the case of real estate deals—which require marriage certificates—a sale could fall apart before the translation was completed.

Adriana Maciel, Official Translator

The good news is that there is now a new translator in town:  Adriana Maciel, who works out of Lagoa de Conceição.  Now anyone who needs a translation can obtain one—WITH NO LONG WAIT TIMES!

And for those of you who live outside of Floripa, Adriana can accept and return documents for translation through the regular mail if you don’t live in on the island.

I recently met with Adriana in her home near the center of Lagoa to talk about her training, her work, and her life.   Originally from São Paulo, Adriana speaks perfect English.  She studied both Portuguese and English at the University of São Paulo, where she earned separate BA degrees in each language.  Adriana also studied at Bishop’s University in Canada, where she lived for a year.  She has also studied and lived in Portland, Oregon.

I asked Adriana why there are so few people working as official translators in Florianópolis.  The reason, she explained, is that the Junta Commercial—the governmental board that sanctions official translators—only chooses new translators once every twenty years or so.  Adriana was chosen as one of only two new translators from a pool of nearly 200 candidates after a rigorous—and apparently nerve-wracking—examination.   Her presence in Lagoa will be much appreciated both by foreigners and by Brazilians who need official translations.

More than just a translator, Adriana lives with one foot in the English-speaking world and travels regularly to South Florida to visit her sister, who lives there.  She has called Florianópolis her home since 2007.

You can contact Adriana via e-mail at macieladri@ig.com.br or reach her by telephone at: (48) 3879-7472 or mobile at: (48) 9163-8336.

SHF:  I heard somewhere that you have to have a Brazilian partner—or buy into an existing Brazilian business—in order to get an Investor’s Visa.  Is that true?

Dr. Carlos Zoéga, Senior Partner at Zoéga Coelho & Advogados

CZC:  No, that’s not true.  What you do have to have, though, is a person who is a Brazilian citizen or a permanent resident to be what’s called an “administrator.”  The administrator has to be Brazilian or a (foreign) permanent resident because the government requires someone with a permanent Brazilian address to receive documents on behalf of the company.  An administrator must be appointed when the documents are filed to open the company.  So, someone besides the person opening the business will have to be an officer of the company—at least at first.

SHF:  Well, six months after filing the articles of the company the visa holder will become a permanent resident.  Can he or she them become the administrator?

CZC:  Yes, they can and that sometimes happens.

SHF:  Do visa applicants feel nervous about appointing an administrator to run a company in possession of R150,000 of their cash?

CZC:  Usually the decision to open a business is taken among friends.  People rarely just appoint a stranger or an acquaintance to be their administrator.  Usually it’s an important contact or connection in Brazil.  It’s usually a person that the investor knows well. It can’t be just anyone.

SHF:  Now, let’s talk about once the visa process is completed.   What are the investor’s responsibilities?  I once spoke to a person who has an Investor’s Visa.  I asked him how his business was going and he shrugged, grinned and then confessed that he wasn’t doing much business.  Instead, he was just lying on the beach and drawing the interest on his investment each month. He seemed quite pleased to be getting a steady return. Is that okay?  Or is there some oversight to make sure that you really are running a Brazilian business?

CZC:  No, that’s a problem.  When you take out the Investor’s Visa you have to explain the nature of your business.   Later, the Polícia Federal, which monitors all visas, will ask you to prove that you have been engaged in the type of business stated on your application.  If you have not been involved in business of that nature then you will be asked to leave the country.

SHF:  How long before you have to report to the Polícia Federal and show that you are running a business?

CZC:  It used to be five years.  But now it’s only three.  Many people don’t know about that, but it’s important to know because the police WILL check your economic activity.  It’s not clear yet whether people who received their Investor’s Visas when the period was five years will be checked after only three years, but it is possible.

SHF:  Why did the law change?

CZC:  The law was actually changed as a result of efforts on the part of the Ministry of Labor.  You see, the Investor’s Visa is supposed to give foreigners the right to live in Brazil in exchange for creating jobs in Brazil.  It’s not just a formality, it’s a real policy goal.  The amount a person had to invest in Brazil used to be much higher, but the government lowered it in order to attract investors.  They are working with the assumption that people will bring in their investment money, open businesses, and then hire Brazilians to work for them.  The Ministry of Labor wanted to make sure that these jobs would really appear.  So they shortened the time limit.

SHF:  So, what would happen if you go to the authorities after three years and they see that you have no economic activity to speak of and you say, “Well, I meant to run my business, but one thing led to another, there were so many sunny days, I took up surfing.  I’m very sorry.  I’ll try harder next time.”

CZC:  Well, then you’ll be asked to leave the country.  The police will say that you are obviously a tourist and not a businessman at all.  So you are to leave and return on a tourist visa, which allows you to stay in the country for six months every year.

SHF:  Well, what if you haven’t done any business, but you hire a maid and a gardener?  Does that count?  Will the authorities ask you to leave and take away those jobs?

CZC:  No, that doesn’t count.  Domestic jobs are out of the immigration policy focus. You will be asked to leave the country, because your visa will not be renewed.

SHF:  So, I guess that means that you can’t take your investment cash and buy a house with it?

CZC:  No.

SHF:  Well, what about a hotel?  What if you build a hotel and your house is part of the hotel?

CZC:  In that case it might be okay, but you would have had to list “Hotel” as the nature of your business when you filed the original documents for the Investor’s Visa.

SHF:  What about if you open a business, do regular commerce, but don’t hire anyone.  For example, what if you open a translating business and work it yourself.   Or if you open a consultancy business where you are the only employee.  In other words, the nature of your work excludes Brazilians.  What then?

CZC:  When you are applying for an investor visa, you need to attach to the application form a document showing your investment plan, the number of jobs that will be generated, the type of earnings your business will provide, the increase of productiveness, etc. If you declare that your business will not generate a single job, it is very probable that the authorities will not grant you the investor’s visa.

SHF:  Lastly, what about if you open a business and you just can’t make any money.  You hire people, you advertise, you do whatever you can do, but the business just doesn’t cut it?  Can you lose your visa?

CZC:  You don’t have to make a profit.  You don’t have to make a big success.  But  you do have to show that you were engaged in the type of economic activity described on your application.

SHF:  Dr. Zoega, on behalf of Sweet Home Floripa, I want to thank once again for helping our readers understand Brazilian law.

CZC:  My pleasure.  See you next month.

Dr. Carlos is Senior Partner at ZOÉGA COELHO & ADVOGADOS Rua Adolfo Melo, n.38, sala 202 – Centro 88015-090 Florianópolis/SC – Brasil Telefone: (55 48) 3223-4729  Fax: (55 48) 3322-0483

SKYPE: carloszoegacoelho

I met Dr. Nascimento in her office just off the Beira Mar and around the corner from the Polícia Federal.  I had been to her office many times and and her signature and stamp mark many of my documents, but this was the very first time I had actually met Dr. Nascimento in person. It turns out that Dr. Nascimento is not only trained as a lawyer, but also earned a doctorate from UFSC. She did part of her doctoral studies at the University of Massachusetts and did research at the University of Massachusetts Translation Center.

 “Why,” I asked her, “did the government set up a translation industry in the first place?”

“In order,” Dr. Nascimento responded in the measured phrases of a university professor, “to comply with the law.  First, in order to be valid in Brazil all foreign documents must be translated into Portuguese.  How can the government know that these documents, which will become valid in the Brazilian legal system, have been translated correctly?  That’s where we come in.   

“At the same time, we are self-employed professionals, and not paid or employed by the state.  We work for ourselves and we are responsible for our translations.  Once I sign a translation I am responsible for all legal ramifications if there is a problem with the translation.”  

In fact, she told me, “If I see evidence that any alterations have been made to the document that may indicate that it has been tampered with I am obliged to report the fact using a translator’s note.”

Dr. Nascimento’s duties extend beyond translation and she also works as an interpreter in legal cases.  If you get into trouble with the law while in Brazil you should be sure to contact an authorized translator to make sure you are heard accurately by the judge. 

Dr. Nascimento told me of one case in which a foreigner was accused of both a civil and a criminal offense.  “The judge listened to him and decided that his Portuguese was good enough. Then this foreigner lost his civil case.  When it came time to try his criminal case he hired me to go to the courthouse to help him.  However, the secretary told me that I was not needed. I told her, ‘OK, but my client was the one who hired me to come here today, so please tell the judge that if he is dismissing me I would like the record to reflect that I was here today and he was the one who dismissed me.’ 

“So they let me in.  I sat quietly and listened and my client asked me to step in whenever he needed help.  And it turned out he did need it, because at one point he explained that something had occurred in the “Parking,” which the judge understood as the “Park.” The real word of course was estacionamento.  So it was very important to have an independent, but authoritative, translator present.”

Dr.  Nascimento has also attended weddings and made sure the foreign bride or groom knew what they were promising their soon-to-be spouse:  “If you are going to utter those vows, you’d better know what they mean!”  

After hearing all this I was willing to acknowledge that there was much more to the translator/interpreter’s work than I had understood, but Dr.  Nascimento was intent on dispelling the idea that, “Brasileiro adora carimbo,”or “Brazilians love bureaucracy.” 

“In the United States,” she said, “it’s sometimes much worse.” Taking care not to jeopardize her client’s confidentiality, she gave the example of an American document that she had translated.  The document had been signed and made official by a notary in New York City.  Then she pointed to another document attached to it which was the clerk of the Supreme Court of New York certifying that the notary was, in fact, a notary.  On top of this document was yet a third document, this one certified by the office of none less than Condoleeza Rice, certifying that the clerk was, in fact, the clerk.  “We have nothing like this in Brazil.” 

“The only one they left out was George Bush,” I quipped and we both laughed.

At the end of each translation Dr. Nascimento states the price and how it was reached so that customers understand her fee basis.

So, be aware that whenever you present a foreign document—whether a driver’s license, a marriage certificate, a birth certificate, or anything else—it will need to be translated by someone like Dr. Nascimento in order to be recognized by the Brazilian legal system.

Dr. Lucia Nascimento’s office can be found at Rua São Vicente de Paula, 240 in Agronomica, Florianópolis.  She can be reached at:  (48) 3228-2332 or via email at: traducaojuramentada@gmail.com 

Many foreigners living illegally in Brazil were heartened recently by an amnesty declaration that provided a way for all undocumented foreign nationals to become permanent residents of Brazil.   Recently I spoke to Dr. Carlos Coelho Senior Partner at Zoéga Coelho & Advogados to better understand the ins and outs of Brazil’s new immigration policy. 

 “The amnesty was really part of a larger move by the Brazilian government to distinguish its immigration policies from those of the United States and the European Union,” Coelho told me. “Those governments typically try to restrict the flow of foreign immigration.  Brazil, on the other hand, wants to show the world that it’s a people-friendly country.”   

“On the same day that Lula declared the amnesty,” Dr. Carlos continued, “a new Lei do Estrangeiro (Foreign Immigration Law) was submitted to Congress.  The new laws would guarantee a broad range of basic rights for foreigners.  It would also facilitate their absorption into Brazilian society.”  Read the rest of this entry »

Photo by Huan Gomes

You stand ankle deep in the warm sea.  It’s sunset in late February.  The sky has turned from pink to purple.  Just as the sun is about to set behind you, you see it floating up from beyond the horizon:  the moon, full and ripe. You are dazzled, entranced, captivated by the beauty of Florianopolis. You vow never to leave.  You fantasize about buying that perfect piece of land, that dream house you knew you would find someday.

Perhaps it is this bedazzled vision, full of hope and wonder, that have led so many foreigners —and others—to fall prey to the real estate cons and land swindles that occur so frequently on the island.  So before you sign, take a look at the top five.  Read the rest of this entry »

Read the rest of this entry »