How much do you lose by being in Brazil? We did the math - and you might not want to see the result

Imagine the following experiment: you have an identical twin. Same income, same lifestyle, same quirks, even the same questionable taste in relationships. But there's one detail that changes everything: he was born in Paraguay - a country with an income tax of 10% - and you were born in Brazil.

Done. A single variable. Now let the numbers do their job.

What happens to your assets over 40 years?
When could everyone retire?
And how much do they both accumulate at the end of their lives?

Let's take a look at the scenario.

The experiment: two brothers, two taxes

They both start working at the age of 20.
Both win R$ 15 thousand a month, adjusted for inflation, and achieve a real return of 5% per year in investments.

The discipline is identical: each one keeps 30% of the money left over after taxes. The only difference is the passport.

The Paraguayan brother

With income tax of 10% and an average load of 14% per year:

Annual earnings: R$ 180.000,00
Post-tax value: R$ 154.800,00
Annual investment: R$ 46.440,00

Accumulated equity:

At the age of 30: R$ 584.275
At the age of 50: R$ 3,087,000
At 65 (retirement): R$ 7,410,000

It's the kind of asset that guarantees a peaceful retirement - and still has enough left over to leave a legacy.

The Brazilian twin

Now we come to the national territory, where the average tax is 33.33% per year, with IR of 27.5%.
And here's a warning: we're being generous. In the real world, the bites are bigger.

Annual earnings: R$ 180.000,00
Post-tax value: R$ 120.006,00
Annual investment: R$ 36,001.80

The result?

At the age of 30: R$ 452.787
At the age of 50: R$ 2.392.117
At the age of 65: R$ 5,749,493

The difference with his Paraguayan brother at the age of 50 is R$ 694.883 - the price of a middle-class house in much of Brazil.

How much does it cost to be Brazilian?

Over 40 years, you would have left more than R$ 7 million in taxes for the Brazilian state. Some of this money could have improved his quality of life and allowed him to spend more than R$ 1 million, such as going out with friends, playing video games or traveling.

See the comparative table on the cost of living in Brazil vs. Paraguay:

Comparative table between the costs of living in Brazil and Paraguay

Is living in Paraguay “better” and worth it?

The question is not whether living in Brazil is better than in Paraguay. It's about how much of your life Brazil consumes to give you a homicide rate higher than Paraguay's, a precarious infrastructure and immense levels of corruption.

And yet, if you prefer to live in Brazil, we have a way out for you. Our lawyers, tax experts and accountants can guarantee you Paraguayan tax residency, allowing you to spend most of your time in Brazil.

Be Sovereign, stop wasting your time and money on a country that doesn't give you a return. Get in touch with us: