FDI in figures

In 2008, Brazil broke its FDI appeal record. Additionally, it became the 4^th internatioal investor amongst emerging countries, and the 1^st in Latin America. This country's appeal to international investors is due to different factors:
- A market of almost 200 million inhabitants;
- A booming economy;
- Easy access to raw materials; and
- A diversified economy.

Additionally, undeniable progress was made on the plan for poverty reduction and income inequality in Brazil, largely due to the policies implemented during the last fifteen years.

Why you should choose to invest in Brazil

Strong points

Brazil has Universities that perform just as well as their counterparts in the OECD and a very big manpower reserve educated to all levels.  It also has extensive raw material resources. A number of sectors offer good business opportunities. The Brazilian economy is diversified and more and more manufactured goods are produced and exported. The potential of the Brazilian domestic market as well as the low cost of labor are elements which may attract foreign investors.

Weak points

Despite being open to world trade, several administrative barriers cripple international trade. Valuing the real against the dollar automatically reduces the country's competitiveness against Asian competitors in some sectors. The Labor laws are very onerous, involving substantial costs to foreign companies and keeping a good part of the local business in the informal sector.

Government measures to motivate or restrict FDI

The Brazilian government encourages and promotes FDI. Most of the barriers to foreign investor activity have been removed particularly on the stock market. A very large number of public companies have been privatized and many sectors deregulated over the last fifteen years.

Bilateral investment conventions signed by Brazil

Brazil has signed bilateral agreements for the protection of foreign investment with 14 countries, but 7 of them have not been ratified by the Congress.
To see the list of countries, click here.
To see the conventions, click here.

Procedures relative to foreign investment

Freedom of establishment

Guaranteed.

Acquisition of holdings

The investment regime in Brazil is a liberal regime which allows foreign investors to have a majority share in the creation of their company.

Obligation to declare

The agency for the promotion of foreign investment in the country gives information about the authorizations necessary for setting up. All inflows of capital must be declared to the Central Bank.

Competent organization for the declaration

Central Bank of Brazil

Requests for specific authorizations

Foreign investment is restricted and requires special authorization in the nuclear, health, land ownership, fishing, post office, telegraphs, aviation, aeronautics and media sectors.

Finding assistance for further information

Investment aid agency

BNDES
Agency for the promotion of investment in Brazil
FINAME

Other useful resources

Central Bank of Brazil