Cost of Living in Brazil in 2026: A Practical Guide for Expats

São Paulo, Brazil — Anyone planning to live in Brazil in 2026 should be prepared for a country that combines economic stability with relatively high everyday costs. While inflation is easing and interest rates are expected to decline, the cost of living remains a key factor for expatriates considering relocation or long-term residence.

This report breaks down what expats need to know about inflation, housing, income, and daily expenses in Brazil in 2026, based on official data and market expectations.

Inflation in Brazil: What Expats Should Expect in 2026

According to projections compiled by the Central Bank of Brazil’s Focus Report, consumer inflation (IPCA) is expected to remain close to 4.0% in 2026, near the upper limit of the official inflation target range.

For expats, this means that prices for essentials — including groceries, utilities, transportation, and personal services — are likely to continue rising, though at a slower and more predictable pace than in previous years. Inflation is no longer accelerating, but it is still high enough to affect monthly budgets.

Interest Rates and the Cost of Credit

Brazil continues to operate with one of the highest interest rates in the world. After ending 2025 with the Selic rate at 15%, economists expect gradual cuts throughout 2026, with the benchmark rate likely to finish the year between 12.0% and 12.25%.

For expatriates, this has direct implications:

• Mortgages and personal loans remain expensive

• Credit card interest rates are extremely high

• Financing property or vehicles locally can be costly

Many expats rely on foreign savings or international financing to avoid Brazil’s high domestic borrowing costs.

Housing Costs: Rent and Property Prices

Housing remains the largest expense for most expats living in Brazil’s major cities such as São Paulo, Rio de Janeiro, Brasília, and Florianópolis.

Market projections indicate that housing prices and rents may rise between 6% and 10% in nominal terms in 2026, driven by:

• Limited housing supply in prime neighborhoods

• Inflation-adjusted rent contracts

• Strong demand in urban centers

Expats renting in desirable areas should expect housing to consume a significant share of their monthly income, particularly in cities with strong job markets or tourist appeal.

Monthly Cost of Living in Brazil for Expats

While official government agencies do not publish a single “cost of living” figure, widely used private estimates suggest the following averages:

• Single expat: around US$19,000–20,000 per year

• Family of four: over US$40,000 per year, depending on lifestyle and city

• In local currency, monthly expenses for a middle-class family in large cities can exceed R$13,000

These figures typically include housing, food, transportation, utilities, healthcare, and leisure, but exclude international school tuition, which can significantly raise costs for families.

Income, Jobs, and Purchasing Power

Brazil’s economy is expected to grow by 1.7% to 1.8% in 2026, reflecting modest but stable expansion. Analysts project real household income growth of close to 4%, supported by a relatively strong labor market.

For expats earning in foreign currency — such as US dollars or euros — Brazil can remain attractive, especially if the exchange rate stays around R$5.50 per US dollar. However, those paid in local currency may still feel pressure from high prices in housing and services.

Fiscal Risks and Long-Term Outlook

Brazil’s fiscal situation continues to influence the cost of living. Public debt is expected to remain above 70% of GDP, limiting the government’s ability to stimulate the economy without increasing inflation or interest rates.

For expats, this reinforces a key reality:

Brazil in 2026 is economically stable, but structurally expensive, particularly for services and credit.

Bottom Line: Is Brazil Affordable for Expats in 2026?

Brazil offers a high quality of life, diverse cities, and a vibrant culture — but affordability depends heavily on income source and location.

Key takeaways for expats:

• Inflation is stable but still noticeable

• Interest rates remain high

• Housing is the main cost pressure

• Foreign-currency earners are better positioned

• Careful budgeting is essential

For expats planning a move in 2026, Brazil remains an attractive destination — but not a low-cost one.