Investing Abroad: A Complete Guide on Profitability and Security

In recent years, the number of Brazilians seeking to diversify their investments beyond borders has grown significantly. But before starting this journey, it is essential to understand not only how to invest abroad but also the real benefits and risks involved in this strategy.

The Growth of Brazilian Investment Abroad

Official data from the Federal Revenue reveal an impressive scenario. In 2023, approximately 816,100 Income Tax declarations included assets abroad, totaling R$ 1.1 trillion. Compared to 263,500 declarations five years ago, this represents a growth of about 200% over the period.

However, this number is only the tip of the iceberg. Official statistics do not capture less conventional investments, such as cryptocurrencies and other digital assets. The reality is that the actual volume of Brazilians with international assets and the total invested amount significantly surpass these public figures.

This exponential growth demonstrates a shift in mindset among Brazilian investors, especially in times of economic instability. The pursuit of asset protection in more stable currencies and markets has become an increasingly common strategy.

What Options Are Available for Those Who Want to Invest Abroad?

The variety of available instruments allows investors with different profiles to find suitable alternatives:

International Stocks and Indices: Direct access to companies listed on exchanges like NYSE and Nasdaq, or through funds that replicate market indices. This approach allows participation in the growth of global leaders.

Investment Funds: Professional management provides access to complex markets with less bureaucracy, especially useful for beginners.

International Fixed Income: Government and corporate (bonds) in developed markets offer predictable cash flows with exposure to strong currencies.

Foreign Exchange Market: Forex allows speculation on exchange rate fluctuations but requires deep knowledge due to high volatility and leverage.

Digital Assets: Bitcoin, Ethereum, and other cryptocurrencies represent an innovative investment class, but are highly volatile and speculative.

Real Estate: International properties can generate rental income and capital appreciation, although they require significant capital and local legal knowledge.

How to Start Investing Abroad

For beginners, the most straightforward path is through investment platforms that offer international access. The basic process follows these steps:

1. Choose a reliable platform: Look for brokerages and platforms that offer regulated access to international markets
2. Open an account: Complete compliance procedures and identity verification
3. Transfer funds: Send money via international transfers
4. Select your assets: Choose from the options available on the platform
5. Monitor regularly: Track performance and rebalance as needed

This approach eliminates the bureaucratic complexity of registering directly on foreign exchanges, making investing abroad more accessible.

Investing Abroad vs. Local Investments: A Practical Comparison

The comparison between the (S&P 500) index of the largest American companies and the (IBOVESPA) index of the Brazilian stock exchange is revealing. Historically, the American index shows higher returns with significantly lower volatility.

Beyond pure performance, there is an additional factor: the appreciation of the dollar against the real. Investments denominated in strong currencies not only benefit from the appreciation of the underlying asset but also from exchange gains.

However, it is necessary to account for actual costs: brokerage fees, currency spreads, and other operational expenses. Even considering these factors, historical evidence shows that developed markets offer risk-adjusted returns superior to the Brazilian market.

The Main Advantages of Investing Abroad

Genuine Diversification: Reduces exposure to systemic risks of the Brazilian economy by spreading investments across multiple geographies and sectors.

Currency Protection: Currencies like the dollar and euro have historically maintained purchasing power better than the real, protecting assets against local inflation.

Access to Innovation: Sectors such as technology, biotechnology, and renewable energy offer opportunities for accelerated growth often unavailable in Brazil.

Institutional Stability: Developed markets have more robust regulation, lower political risk, and more reliable institutional frameworks.

Is It Really Worth Investing Abroad?

The answer is not universal, but for most investors, the answer tends to be yes. The key is understanding your own risk profile, long-term objectives, and diversification needs.

Historically, incorporating a portion of investments abroad into a diversified portfolio reduces overall volatility and increases resilience against localized economic crises. While international markets also suffer from global crises, their geographic and institutional diversification provides greater solidity.

The most prudent strategy is not to choose between domestic or international investments but to combine both. A well-structured portfolio with investments abroad acts as an anchor of stability, while local opportunities can offer additional growth.

For Brazilians seeking patrimonial security and long-term profitability, investing abroad is no longer a luxury but an increasingly essential financial strategy.