Good news for the foreign investor: capital invested in Brazil by foreigners receives the same legal treatment as domestic capital. Discriminations not provided for by law are prohibited.
However, there are important restrictions in specific sectors. Knowing them before investing is essential to avoid unpleasant surprises.
Sectors restricted to foreign capital:
- Healthcare services
- Atomic energy
- Ownership and management of newspapers, magazines, radio and television networks
- Rural property and commercial activities in border areas (within 150 km of international borders)
- Domestic air transport
- Postal and telegraph services
- Aerospace industry
- Lotteries
Foreign-capital companies may participate in the exploration and extraction of mineral resources and hydroelectric energy, subject to federal government authorization or concession.
How to register foreign capital?
All inflows of foreign capital into Brazil must be registered with the Brazilian Central Bank (BACEN). The same applies to remittances of profits abroad, repatriation of invested capital, and reinvestment of earnings.
Three ways to invest:
- Equity participation in an existing or newly formed company
- Loan to a Brazilian company
- Technology transfer to a Brazilian company
BACEN registration is not optional — it is mandatory, and it is what guarantees the investor the right to repatriate capital and remit profits abroad in the future.
Important: Quinquennial Foreign Capital Census 2026
In 2026, companies with foreign participation must comply with an additional obligation: the Quinquennial Foreign Capital Census in Brazil, conducted by the Central Bank. The filing deadline is March 31, 2026, based on the 2025 calendar year. Failure to submit may result in the suspension of the company’s registration with BACEN, blocking the receipt of new foreign capital and the remittance of funds abroad. Companies with foreign participation at or above certain thresholds must verify their reporting obligations with BACEN and, if necessary, regularize their situation promptly.
If your company has a foreign shareholder and has not yet filed the 2026 Census, the deadline is approaching. Consult a specialist immediately.
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