Taxation of foreign direct investment in Brazil

Summary

Foreign direct investment must be recorded with the Brazilian Central Bank. Tax treatment varies by the type of return: dividends, interest on net equity and capital gains follow different rules, and accurate registration is essential for remitting funds abroad.

Central Bank foreign investment registration

Capital entering Brazil as foreign direct investment must be recorded in the Central Bank system. Without proper registration, remittance of dividends and repatriation of capital may be delayed or blocked.

Frequently asked questions

Who records the foreign direct investment?

The investor acts through its Brazilian resident legal representative, who operates the relevant Central Bank registrations on the investor's behalf.