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gargoyle
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Quote gargoyle Replybullet Topic: Negotiating compensation package for a job
    Posted: 09 July 2010 at 16:37
I am negotiating for a job in Sao Paulo.  How much money should I be asking for if I want a lifestyle that $135,000 can provide in a suburb of Chicago. 
 
Do companies often provide cars, and or houses in Brazil?
 
Also, what is the standard practice for retirement benefits?  
 
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sven
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Quote sven Replybullet Posted: 09 July 2010 at 17:20
Expat or Brazilian Contract ?
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gargoyle
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Quote gargoyle Replybullet Posted: 09 July 2010 at 17:27
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suzaries
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Quote suzaries Replybullet Posted: 10 July 2010 at 01:52
Originally posted by gargoyle

I am negotiating for a job in Sao Paulo.  How much money should I be asking for if I want a lifestyle that $135,000 can provide in a suburb of Chicago. 
 
Do companies often provide cars, and or houses in Brazil?
 
Also, what is the standard practice for retirement benefits?  
 
Depends on the company you work for - expat packages vary widely.  To have the equivalent of 135k lifestyle in the Chicago Suburbs (we came here from Chicago), you would need to make a hefty amount of money indeed.  I would say easily over 350k R / year. 
 
Here are some things to consider
 
taxes here are 27% flat on world-wide income (including any reimbursements such as housing allowances, education allowances, etc) unless you can get a tax equalized contract or one where the company pays your taxes for you.  You will receive absolutely nothing for the taxes you pay here (no retirement for example).  You will still be responsible for medicare and social security in the US unless your company will pay it for you.  If they pay some of this for you, you will also be taxed on it.  Taxes and how they worked were one of the biggest surprises for us and we definitely pay more in taxes here than we did in the US.
 
Many companies will pay a housing allowance.  Depending on your company, this can be very generous or not.  Find out how the taxes will work on your housing allowance before you find a place to live.  Regarding housing, people here mostly live in high-rise buildings for security and convenience.  There are not many houses with yards.  I pay in the 4k R range for a 110 m2 apartment in a good neighborhood that is close to my husband's office.  This is one of the cheapest expat apartments that I know of (although Brazilians live much more frugally in smaller spaces or have a long commute).  Most of my friends spend upwards of 10k R per month (paid by the company).
 
Some companies will give you a car or a car allowance.  Cars are a necessity here and very expensive.  Get as much paid for by the company that you can.
 
If you have children, you will need an education allowance.  Private schools can range from reasonable (1500/m) to expensive (7000/m) with steep enrollment fees.  Again, make sure you understand how you will be taxed on these items.
 
You will most likely be given international health insurance.  We have Cigna International and find it to be good.  It allows us access to the best facilities and we get a decent amount reimbursed.
 
Companies will generally cover shipment of your goods to and from Brazil.  Unless you have a large apartment, you may find your Brazilian apartment too small for American furniture.
 
Most expat contracts have a return flight home once a year for the family.  Again, check on how you will be taxed on this.
 
Any sort of emergency leave home should be covered (illness/death of family, etc).
 
We still contribute to our 401k at home.   My husband's salary is paid in the US and Brazil, so they deduct the 401k out of his US salary based on his 'home based salary'.  This salary is what he made before we moved to Brazil. 
 
Make sure the company hires a company to help you with the apartment finding and settling in process.  LATAM is horrible.  Emdoc was pretty good.  We experienced both and our experience with LATAM made me want to return to the US pretty  much immediately. 
 
See if you can get your company to pay for language lessons.  Not many people here speak english.
 
When you negotiate your salary, make sure they tell you if it includes the 13th month salary.  Brazilians receive an extra paycheck every year.  We are paid this money in our Brazilian account to comply with Brazilian law and then it is deducted from our US account.  I am not very pleased with that.
 
See if you can get a trip down here for you and your family before you sign a contract.  If your spouse is not happy, this will not be a good time for anyone.
 
That's all I can think of for now.  Let me know if you have any other questions.
 
 
 
 
 


Edited by suzaries - 10 July 2010 at 12:44
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Steven
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Quote Steven Replybullet Posted: 10 July 2010 at 11:49
Hi Gargoyle,
 
The advice from Suzaries was right on the money. 
 
I think the key point in your question was how much money is needed to live an equivalent lifestyle to a Chicago suburb.  R$350K should do it.
 
Try to get an executive medical plan.  It lets you go to the best hospitals in São Paulo such as Einstein, São Luiz, and others.
 
The issue of tax equalization is important because Brazil's tax rate is higher than the U.S.  Tax equalization would have your company pay you the difference between Brazilian and U.S. taxes.
 
She also mentioned getting the company to pay for a "despachante", an expeditor.   I also used Emdoc to handle my stuff and they were very good.  It will likely cost your company R$5K for Emdoc to handle everything for you and your wife but they take care of all the documents you will need and also your driver's license. 
 
I can't add much to the other items on Suzaries list.  It is pretty complete and all very worthwhile to help you maintain your lifestyle. 
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Quote CNAZ Replybullet Posted: 28 July 2010 at 18:23
Very interesting. I am looking at moving to Rio in a few months and also coming from Chicago and in the $130k salary range. Thanks.
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