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I am located in Germany (EU), and my Brazilian customers say that for importing my services they have to pay 52% of taxes on top of my invoices. Previously, they assumed it's 24%, but that turned out to be wrong. Apparently, there are strong protectionist measurements by the Brazilian government, hoping to stimulate the domestic market.

Is there any way to bring down these taxes? Could I, as a German citizen, found a company in Brazil?

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The closest thing I know is a friend of mine who is from Southern Europe who founded a company in Chile or Peru I think. After 1 or 2 years of good business, he got their citizenship. He also told me that he's very satisfied with their tax policy, they returned him a lot of money in the end of a year.

Maybe you try to investigate a solution to establish a company in any of such countries?!

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  • Interesting story, thanks! However, the situation in Brazil most likely is very different from Peru. My customer said: "In the best case, we could recover around 15% of those taxes, but only in the conjunction of specific circumstances, that we don´t fit in." He also pointed me to an article in The Economist.
    – feklee
    Oct 17, 2013 at 13:53
  • Well if this client is very important to you then you should read their Tax law. I am confident that English version exists (if not, google translate will translate it from Portuguese for you) and you should see it for yourself. There is always a chance that the client is mistaken by accident or on purpose ;). In the end, search for Brasilian forums and ask the questions there. Also, you can find good lawyers on odesk and elance and hire them for this reply. I think they will charge you small money for this.
    – Peter MV
    Oct 17, 2013 at 16:13

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