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Being from Argentina (next to Brasil) we use both without distinction. I can't assure you that's common outside South America (meaning the rest of Latin America and Spain), but I reckon Spanish speakers from all around will understand both without a problem.
Now if you are writing for a newspaper or your PhD I'd suggest to use Brasileño, which is the former ...
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I think because of the many similarities that spanish and portuguese language have, it was added to the spanish language the word brasilero, because the word for the citizen of brasil in portuguese is brasileiro.
Your quotation says that the countries close to Brazil, are the ones saying brasilero, so that makes a lot of sense, because they are more in ...
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En España "brasilero" no se usa nunca, o al menos yo nunca lo he escuchado de boca de alguien nacido en este lado del charco.
Es más, creo que si a los españoles nos piden usar otra palabra en lugar de "brasileño", seguro que a la mayoría se nos vendría a la mente de forma espontánea "brasileiro","brazilian", o incluso "brésilien" pero no "brasilero".
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