Buy More, Pay Less

It’s a fact. Brazilians love to shop in the US. And now, it’s even easier for them - and everyone else for that matter - to enter Brazil with purchases from abroad.

In the past, travelers to Brazil, whether residents or visitors, were allowed to enter with up to US$500 worth of merchandise tax free per month. Now, after 26 years without any change, the government has increased the limit to US$1,000. The change took effect on January 1, 2022.

Similar changes apply to purchases made at duty free shops. Travelers entering by land can now bring up to US$500 in merchandise from duty free shops. The previous limit was US$300. And as of January 2020, the duty free limit for those entering by air was increased from US$500 to US$1,000.

There are a couple of things to remember though.

First, the limits apply only to tax free operations. You can always enter the country with merchandise above these limits; you just have to declare them and pay an import tax of 50%.

Second, the limits don’t apply to personal items used while traveling. This includes, for example, a cell phone or watch. But be careful because if you have two phones or two watches, the new one will get taxed.

Finally, gifts are also exempt to the extent they’re truly gifts. The underlying test, as it is for personal items, is whether the quantity, nature and variety suggest a commercial intent. Just keep it “personal” and you’ll be good to go.