Offshore Investment: Where are Brazilian Fortunes Going?
Offshore investment, that is, Brazilian applications in foreign assets, has grown significantly in recent years as a means of asset protection, diversification, and seeking more stable markets.
Data from the Central Bank indicates that, between January and September 2024, the balance of these operations exceeded $9.25 billion, more than double that of 2023. Furthermore, Brazilians already own about 809 thousand offshore companies, which together total €136 billion, according to a survey by ICIJ.
The preferred destinations continue to be the United States, due to the strength of the financial market and the currency, but Europe and Switzerland are also gaining ground. Offshores are legal in Brazil, as long as they are declared, and are used for succession planning, tax optimization, and asset diversification.
The typical profile of the Brazilian offshore investor is high income, seeking to preserve wealth and family succession. According to specialists, there are two main behaviors: the more conservative one, focused on fixed income, and the bolder one, with investments in stocks, private equity, and hedge funds abroad.
Even with a focus on developed countries, interest in emerging economies is growing, driven by expectations of dollar depreciation and downward revisions in U.S. growth, as pointed out by the OECD.
Experts warn that investing abroad should not be treated merely as a currency operation or a bet on the dollar. It requires planning, diversification in different markets, and a long-term focus, avoiding mistakes such as concentrating investments in a few assets or being unaware of international tax rules.
Source: Forbes Brazil
