Cost of Living in Brazil

In comparison to most major European or North American destinations, the cost of living in Brazil is fairly low. Out of 209 destinations worldwide, São Paulo ranked 130th and Rio de Janeiro ranked 160th in the 2020 Mercer Cost of Living Survey.

In reality, many expats are surprised to learn that in relation to salaries the cost of living in these cities is actually pretty high. The dream of lying on a beach sipping drinks from a coconut without a care in the world is quickly replaced by the reality of high prices, especially if expats aren't earning in a foreign currency. Of course, expats will find it less expensive to live in rural areas than in the cities. However, some costs may still be fairly high.

Expenses vary widely across categories. In general, accommodation, transportation and manufactured goods are expensive. Food costs vary based on whether expats decide to eat out or cook at home. Services are relatively inexpensive because labour costs are low throughout the country.

Brazil has made significant strides in moving people out of extreme poverty over the past decade and in decreasing income inequality. However, there are still vast disparities in wealth between the richest and the poorest. Expats earning an international salary will be among the wealthy, and even those getting a local salary will likely find that they are firmly upper-middle class. While Brazil remains well behind the US and Western Europe in terms of overall development, expats living in a city and earning a good salary have access to most of the conveniences they can expect to find anywhere in the world.

Cost of accommodation in Brazil

Renting accommodation is pricey and will likely be an expat’s biggest expense. Expats on assignment from international companies may have a housing allowance to help offset the high cost. Expats can save on accommodation by living in a less central location, although they may find that transportation costs increase as a result.

Cost of eating out in Brazil

Food costs in Brazil vary. Restaurant meals are fairly expensive, while basic groceries are more moderately priced. Expats who choose to eat at home can manage food costs more easily. Major cities have upscale grocery stores that carry a wide range of imported items.

Shopping at local markets for basics, such as bread, grains, produce and meat, yields the lowest grocery prices. Locally-produced food is almost always less expensive. So, in cities on the coast, seafood will be less expensive, while beef and pork will cost less in inland farming regions.

Brazilians are lovers of beer and cachaça, the national liquor made from sugar cane. Both are readily available, as are a wide selection of wines and liquors. Prices for beer and wine are very reasonable, but imported liquors are expensive. Expats can save money by purchasing some at duty-free on their way into the country.

Cost of transportation in Brazil

Transportation expenses in Brazil are high. Cars cost much more in Brazil than in many other countries. Parking and insurance are also rather expensive. Expats can save on transportation by making use of the extensive bus and metro systems in Brazil's major cities.

Cost of education and schools in Brazil

Expats with children will find that education costs in Brazil will rival, if not exceed, their rental expenses. Public schools in Brazil generally have a bad reputation, so expats and Brazilians with the resources to do so almost always send their children to private schools. Expats seeking to enrol their children in the highly regarded international schools, however, will find them very expensive.