A guide for businesses hiring in Brazil and expats looking for a career move
The fifth largest country in the world and the largest economy in Latin America, Brazil is an attractive destination for hiring global talent. Highly skilled professionals abound here, plus setting up shop in Brazil allows employers to tap into the country's huge market.
For Brazil expats, the country can also be the ideal combination of access to new opportunities, a developing but robust economy, and a vibrant new lifestyle in the heart of Latin America.
However, as with any global hiring or living, it’s important to consider the cross-cultural differences you might encounter when managing a Brazilian team or working here.
Here are some things you need to know about Brazilian business culture and how to make a smooth transition into Brazil.
Why Hire or Move to Brazil from the US?
First things first — why should employers hire in Brazil? And why would top talent choose to move to Brazil on a temporary or long-term assignment?
Strong, Growing Economy
Brazil isn’t just the largest economy in Latin America, it also represents the 12th largest economy in the world. Like everyone else, the Brazilian economy struggled during the COVID-19 pandemic, but saw rapid growth in Q1 2023 thanks to good crop yields. This growth has enabled a decline in inflation, which has thus far proven to stabilize the economy and promises slow but stable growth for the year.
This bodes well both for businesses looking to hire in Brazil and expats looking to move here. A stable economy is an important factor in protecting companies and individuals from risks associated with international operations.
Extensive Technological Hub
One of the main drivers for Brazil’s economic stability is its agricultural sector. However, technology and innovation have also been important drivers for the country. Last year, Brazil ranked as the country in Latin America with the best ecosystem for startups.
A stone’s throw away from Brazil’s largest city Sao Paulo is Florianopolis, dubbed the local Silicon Valley. It’s home to tech giants like IBM and Lucent, but companies like Google and 16 unicorns have set up shop across Brazil as well.
For companies, this offers access to top innovative talent that has experience working alongside the best in the industry. For expats, Brazil is an opportunity for professional growth and development as expansion continues.
Cost Efficiency
Of course, saving money is a key advantage of both hiring and living in Brazil. While it’s not the cheapest place in Latin America, the salaries in Brazil are significantly lower than in the US and Canada as is its cost of living.
Businesses can offer a high standard of living to their talent in Brazil while saving on their bottom line. Meanwhile, expats tend to receive comfortable remuneration packages that allow for savings and financial stability while in Brazil.
Cultural Richness and Diversity
Brazil's population is known for its rich cultural and ethnic diversity. Hiring talent from Brazil can bring a range of perspectives and creative solutions to your team, enhancing innovation and problem-solving.
For expats, living in Brazil offers a unique opportunity to immerse yourself in a rich blend of cultural influences. From the lively Carnival celebrations to the diverse culinary scene, you'll experience a truly dynamic and colorful way of life.
Top Destinations for Expats in Brazil
Spanning a large portion of South America, Brazil offers a diversity of locations for companies and expats to choose from. Home to stunning beaches, the Amazon rainforest, and some of the world’s largest cities, it’s all about finding the right place that suits your unique needs.
São Paulo
With a population of about 12 million, Sao Paulo is Brazil's largest city and economic hub. The city offers a bustling urban lifestyle with a rich cultural scene. It's a melting pot of cultures, making it easier for expats to find familiar communities.
São Paulo has a strong job market, particularly in finance, technology, and business sectors. Salaries here tend to be higher as are the networking opportunities. However, for some, Sao Paulo can be a little overwhelming as it is one of the most densely populated cities in the country.
Rio de Janeiro
Known for its stunning beaches, Rio de Janeiro offers a unique blend of natural beauty and urban vibrancy. The city is a bit more laid-back than Sao Paulo, although, with a population of seven million, it remains quite metropolitan.
Those looking for a more outdoorsy lifestyle and vibrant nightlife will find Rio to be the perfect choice. Its expat community is also well-established, making it easier to connect with fellow foreigners. Plus, work opportunities still abound here for expats and international hires.
Brasília
As the capital city of Brazil, Brasília stands out for its unique urban planning and modern architecture. It offers a quieter pace of life compared to larger cities, making it an appealing choice for expats seeking a more serene environment.
Brasília hosts a diverse expat community due to its role as the political and administrative center of the country. Typically, expats working in the government of not-for-profit sectors settle in Brasilia.
Curitiba
An alternative option to the hustle and bustle of Brazil’s largest cities, Curitiba is only home to 1.8 million people. Located in Southern Brazil, the city enjoys a mild, spring-like climate all year round.
Ideal for digital nomads and remote workers, the city is known as the sustainability capital of Brazil. Curitiba boasts parks, cultural events, and a strong focus on education. With a lower population density compared to other major cities, Curitiba offers a more tranquil urban experience.
Work Culture Nuances in Brazil
Whether you are looking to hire in Brazil or make the country your home, there are always cultural differences to consider. Managing and working alongside a Brazilian team will take some adaptation, but don’t worry, it will also be fun and insightful.
Here are some things to keep in mind to make a smooth professional transition.
Individual Relationships Matter
At the cornerstone of all business transactions in Brazil are individual relationships and trust. It’s not enough to have a great proposal, you need to work on getting to know the people you work with.
If you are used to keeping a strict line between friendships and work, it can be counterintuitive to build such relationships with coworkers. But even small talk can go a long way. The key is to show sincerity and warmth.
Brazilian Businesses Follow a Hierarchy
Despite the friendly banter among teams, there are strict hierarchies that are followed when it comes to decision-making. Typically, the person at the very top will make the important decisions, often without consulting junior colleagues.
This is important to remember if you are managing a team. Some of your junior team members might feel uncomfortable at first if you expect them to contribute to the more strategic decision-making processes.
If you’d like to build a flatter organizational culture, then you’ll need to take it slowly. Introduce the concept to your team first and let them adjust to the new expectations.
The Culture Is Time-Fluid
Brazilian culture may view time more flexibly. This doesn’t mean that you shouldn’t expect your team to deliver according to the set timelines. But you should be patient when it comes to meetings and smaller deadlines.
Some of the major cities in Brazil are used to working with international organizations, so they are likely to respect punctuality. However, if you are working in more remote areas, timing could be a challenge.
Portuguese Is the Official Language
As their mother tongue, Brazilians speak Portuguese. It can sometimes be easy to forget this since Brazil is located on a continent that primarily speaks Spanish. Even so, locals will highly appreciate it if you address them in Portuguese rather than Spanish.
Brazilian Portuguese is very similar to the one spoken in Portugal but has a more nasal, sing-songy pronunciation.
It’s also important to remember that there could be some language barriers along the way. Of course, many professionals in Brazil speak great English, but miscommunication is still possible. Make sure to use simpler sentence structures and terminology when you first start working with your team members in Brazil.
Communication Is Often Informal
E-mail is still the go-to communication method for most businesses in North America. But in Brazil, many people turn to WhatsApp instead. It’s quite common to discuss business issues via the instant messaging platform. As such, it’s probably a good idea to set up WhatsApp before you start hiring Brazilian employees or working here.
Important Brazilian Employment Laws to Consider
As with any country, Brazil has its own nuanced business culture. If you plan to hire in Brazil or work here, you should also consider the local laws, regulations, and costs. You may need to set up a legal entity to hire Brazilian employees and must follow the regulations of the Brazilian government.
Types of Employment Contracts
In Brazil, you can either hire independent contractors or employees.
- Independent contractor: Employers have few obligations when hiring an independent contractor. Normally, they will just negotiate a payment for services and sign a contract to that effect. Despite it being easier to hire an independent worker, it also comes with the risk of misclassification. If a worker is improperly classified, the employer could face penalties and even jail time.
- Employees: When hiring an employee in Brazil, you will need to provide benefits, pay taxes, and offer paid leave. Of course, the employee will also have a higher degree of responsibility to deliver on their commitments.
Paid Leave
Employers in Brazil must provide several types of paid leave to their staff.
- Statutory holidays: These include national holidays like Good Friday and Christmas.
- Paid time off: Employees receive 30 days of annual leave after one year of service.
- Sick leave: Employers must pay the first 15 days of sick leave.
- Other leaves: There are also other types of leave, including parental, marriage, and bereavement leave.
Taxes and Mandatory Benefits
According to Brazilian law, employers in Brazil pay a range of taxes or social security contributions, which are calculated based on the employee’s gross salary. Payroll taxes in Brazil are relatively high, amounting to nearly 35% of an employee’s gross salary. They cover:
- 20.00%: Public Pension Fund (INSS)
- 8.0%: Severance Fund (FGTS)
- 5.8%: Additional Contributions
- 1-3%: Accident Insurance
Employers must also withhold income taxes and social security contributions from their employees’ salaries.
In addition to basic social contributions, most employers provide private healthcare coverage for their staff.
Work Permits and Visas for Expats in Brazil
Most expats in Brazil will hold a temporary work visa, which is tied to their employer and requires a valid job offer. This type of visa is typically valid for two years and is eligible for renewal.
In 2022, Brazilian authorities also launched a Digital Nomad Visa, which allows digital nomads to reside in the country for up to one year with the possibility of renewing for another year.
Of course, there are also other work permit and visa options depending on the person’s employment conditions and length of stay. Foreign nationals looking to obtain Brazilian citizenship will need to look for a permanent visa for their stay.
Other Things to Consider
Staying Safe
Despite the many benefits of hiring, moving, and working in Brazil, safety is a significant concern here. Ranking #132 on the Global Peace Index (GPI), Brazil sees frequent muggings and has a relatively high homicide rate. While it is not the most dangerous country in Latin America, it is important to take precautions when traveling and living here.
For example, the US government discourages visitors from using public transportation in most major cities in Brazil and to stay vigilant when using ATMs and banks throughout the country.
Keeping Informed
Whether you are a company undergoing global expansion or an individual moving to Brazil, it’s important to be aware of the latest news about the country. Follow your local Brazilian embassy as well as major news outlets to stay up to date.
Once in Brazil, make sure to register with your embassy or consulate to receive vital updates about the political, economic, and social conditions in the country.
Get in Touch with Borderless
Want to hire in Brazil or move staff there? Looking to make the shift and become an expat in Brazil? We can help you get started. Speak with our legal and HR experts today to find out how Borderless can help in Brazil and 170+ countries around the world.
Disclaimer
Borderless does not provide legal services or legal advice to anyone. This includes customers, contractors, employees, partners, and the general public. We are not lawyers or paralegals. Please read our full disclaimer here.
