Doing business in Brazil
To truly understand Brazil, you must recognize its strategic position in the central-eastern part of South America. It is flanked to the east and northeast by the Atlantic Ocean.
To the north, Brazil shares borders with French Guiana, Suriname, Guyana, and Venezuela; to the northwest, it adjoins Colombia; to the west, it interacts with Peru, Bolivia, and Paraguay; to the southwest, it is bordered by Argentina; and to the south, it meets Uruguay.

Why starting a business in Brazil?
Brazil is the world's fifth-largest country and the seventh most populous, holding a distinguished position as the largest economy in Latin America and the Southern Hemisphere. As one of the world's biggest agricultural producers, Brazil plays a significant role as an agri-environmental strength, preserving more than 60% of its territory while reaching record production.
The Action Plan of the last Lula Da Silva government (2023-2026) is betting on a foreign trade policy that leans towards the protection of local production and internal added value, (II) favors the improvement of the commercial regulatory space, through simplification and facilitation measures, (III) encourages sustainable production, and (IV) encourages exports (both from a quantitative and diversification perspective, particularly concerning advanced industrial goods and services).
Why Invest in Brazil?
Brazil is one of the largest economies in Latin America and the Caribbean, according to the gross domestic product (GDP) recorded in 2023. In that year, the value of goods and services produced in Brazil reached an estimated $2.12 trillion USD, based on current values.
The country boasts a diverse and robust economy driven by key industries such as agribusiness, where it leads global production and exports of soybeans, sugarcane, and coffee; mining, as the largest exporter of iron ore and a significant producer of gold, aluminum, and oil; and renewable energy, with hydropower as its main energy source and growing investments in wind, solar, and ethanol production.
This economic strength, combined with abundant natural resources and opportunities for growth, makes Brazil a prime destination for investment.
Brazilian Economy
Brazil in Figures
Population: 212,3 million inhabitants
Urban Population: 192,9 million inhabitants (91%)
Curious facts: Brazil's population is equivalent to 2.6% of the total world population and the total land area is 8,358,140 Km2 (3,227,095 sq. miles)
Currency: Brazilian Real – BRL Official
Language: Portuguese
GDP per capita: US$9,032 (2023)
Main Cities: Sao Paulo (12 million inhabitants), Rio de Janeiro (6,7 million inhabitants), Belo Horizonte (2,7 million inhabitants), Brasilia (3 million inhabitants), Manaus (2 million inhabitants), Curitiba (1.7 million inhabitants), Porto Alegre (1.3 million inhabitants), Campinas (1.1 million inhabitants), Recife (1.6 million inhabitants), Salvador (2,7 million inhabitants)
Political regime: A federal presidential representative democratic republic.
Tax Treaty: Brazil signed tax treaties to avoid double taxation with the following countries: Argentina, Austria, Belgium, Canada, Chile, China, Colombia, Czech Republic, Denmark, Ecuador, Finland, France, Hungary, India, Israel, Italy, Japan, Luxembourg, Mexico, Netherlands, Norway, Paraguay, Peru, Philippines, Portugal, Russia, Singapore, Slovakia, South Africa, South Korea, Spain, Sweden, Switzerland, Trinidad & Tobago, Turkey, Ukraine, United Arab Emirates, Uruguay, and Venezuela.
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International Tax
Brazilian resident companies are taxed on worldwide income. Non-resident companies are generally taxed in Brazil through a registered subsidiary, branch, or PE, based on income generated locally. Also, companies can be subject to withholding tax (IRRF) on income derived from a Brazilian source. In Brazil, corporate taxation is defined by two primary types: the Corporate Income Tax (IRPJ), which ranges from 15% to 25%, and the Social Contribution on Net Income (CSLL), which typically imposes an additional 9%. The country employs four corporate income tax systems: the Presumed Profit Method, the Real Profit Method, the Arbitrated Profit Method, and the SIMPLES (a streamlined tax regime). Among these systems, the two main regimes for calculating income tax are the Real Profit Regime (RPM or APM) and the Presumed Profit Regime (PPM). This framework delineates how businesses are taxed in Brazil.
Tax structure
Corporate Income Tax: Corporations are subject to tax on worldwide income at a nominal rate of 15%, but the tax rate is 34% with surtax and social contribution.
Personal Income Taxation: Brazil's personal income tax is progressive with rates from 0% to 27.5%, and it is collected by the federal government.
Federal VATs (PIS/COFINS): Generally, a combined rate of 3.65% (cumulative) or 9.25% (non-cumulative).
State VAT (ICMS): normally between 17% and 20%. Municipal Service Tax (ISS): 2% to 5% (cumulative).
Technology
On the technological front, Brazil's key sectors in the digital economy include artificial intelligence (AI), cybersecurity, the Internet of Things (IoT), edge computing, cloud services, and digital government, especially as it relates to building a trustworthy and inclusive digital public infrastructure (DPI).
Cybersecurity: the cybersecurity market in Brazil is projected to reach US$3.34 billion in 2024 and US$ 5.46 billion by 2029, growing at a CAGR of 10.3%.
Human Capital
Employment trial period: In Brazil is 90 days, which can consist of two separate periods totaling 90 days. If an employee starts with a 45-day probation, it may be extended for an additional 45 days.
Types of Leave: Employees are eligible for seven paid national holidays and five religious or municipal holidays. They are also eligible for three days' paid leave upon marriage, two days' paid leave for a period of mourning, and fifteen days' paid leave (annually) for illness. Paternity leave (Licença Paternidade) is paid for five days, and maternity leave is paid for 120 days. For every 12 months of service provided to the company, the employee receives 30 days of paid vacation.
Entity Management
The entire process of incorporating a new entity in Brazil can take 60-90 days, excluding the time needed to open a bank account. Brazil offers several legal structures for business operations. Some of the most common include:
- Sociedade Limitada (Ltda): This structure limits liability to company assets and is the most suitable option for small and medium enterprises.
- Sociedade Anônima (S.A.): This is a corporation with stricter regulatory requirements, suitable for larger enterprises and those intending to raise capital through public offerings.
- Individual Microentrepreneur (MEI): This designation simplifies the regulation for small businesses, allowing for reduced taxes and simplified compliance.
It is required for foreign companies to designate a legal representative (Representante Legal). This individual must be a Brazilian resident, serving as the point of contact for local authorities and ensuring compliance with Brazilian law.
Brazil Inside
We offer a more general overview of Brazilian customs and places to visit in the country.
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Brazilian business etiquette
Brazilian business etiquette
Language: Portuguese is the official language. English is spoken in business settings, but knowing some Portuguese is highly appreciated.
Greeting: Handshakes are common; for women, a light kiss on the cheek (or two) might occur after familiarity is established.
Formality: Brazilians value a mix of formality and warmth. Usually, people are called by their first name without “Mr.” and “Ms.” even at their first meetings or round tables.
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Punctuality and Scheduling
Punctuality and Scheduling
Punctuality: Being on time is polite but meetings may not always start on time. Allow for flexibility.
Business Hours: Most offices operate from 9 AM to 6 PM with a break for lunch.
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Experience in the business environment
Experience in the business environment
São Paulo as a Hub: It’s Brazil's financial and corporate capital, hosting Latin America’s largest stock exchange (B3) and numerous multinational headquarters.
Dress Code: Ties are rarely worn in Brazil; although suits are acceptable, business casual is usually the style of dress.
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Local Insights
Local Insights
Holidays and Festivities: Be mindful of major holidays, like Carnaval, which can affect business operations. Visit on a day off: Parque do Povo, Sao Paulo Zoo, Ipiranga Museum, Art Gallery, a Soccer game (Morumbi or Allianza Park stadiums are close to downtown), Farol Santander Building, Terraço Italia, Unique Hotel rooftop, or Lunch at Pinheiros or Vila Madalena neighborhood for more alternative options.
Information about Museums: You can check the TripAdvisor website to see all of them. Diverse Food Scene: Brazil hosts one of the largest Japanese descent communities outside Japan. Also, fusion cuisine and Brazilian barbecue are very popular as well.
Weather: São Paulo has a subtropical climate, and although average temperatures are around 20 degrees Celsius (68°F) most of the year, in the winter months (July, August and September) they can reach 15 degrees Celsius.
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Currency and Payments
Currency and Payments
Currency: The Brazilian Real (BRL) is used. Credit cards are widely accepted, but having some cash for small vendors is advisable.
Tipping: The tip percentage is usually included in the total bill.
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Transportation
Transportation
São Paulo is notorious for its traffic. Plan your commute carefully and allow extra time.
Ride-Sharing: Apps like Uber are more popular for businesspeople and it is advised to always try to select a driver with a decent number of trips and a high score ranked. "Uber Black" tends to be the best option as it is a category where cars are typically well maintained.
Public Transport: For beginners, it is not advised to ride buses, metro, or trains since it could be complex to get around and you could be exposed to "pickpockets".
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Ways of communication
Ways of communication
Directness: Brazilians are expressive and may use gestures while speaking. Discussions can be lively but are rarely confrontational.
Emails: Maintain a professional yet friendly tone in emails. For quick communication, phone calls and WhatsApp are often preferred.
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Legal and Financial Considerations
Legal and Financial Considerations
Bureaucracy in Brazil is known for its complex tax and legal systems, making it advisable to consult local experts or accountants.
Exchange Rates: Currency exchange rates can fluctuate, so you should pay attention to them if you plan to budget in foreign currency. Using a prepaid card is recommended as a good option to avoid carrying banknotes; however, if you need physical banknotes, most shopping malls have exchange offices where you can safely access cash.
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Accommodations in Brazil
Accommodations in Brazil
These are some hotels near the financial district: Itaim Bibi, Vila Olimpia, Moema, Vila Nova Conceição, Jardins, and Jardin Paulistano are some of the best regions to stay for business meetings since most of the corporate headquarters are hosted around Faria Lima.
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Where to have a business lunch?
Where to have a business lunch?
Figueira Rubaiyat (steakhouse, Maní (Brazilian modern food), Due Couchi - Italian food (Shopping Cidade Jardim), Fazenda Churrascada, Myk (Greek Food), Banzeiro (Brazilian/Amazon region modern cuisine), Imakay (Asian cuisine), Nakka (Japanese), Fogo de Chão (steakhouse), Barbacoa (steakhouse).
If you are looking for an informal meeting with a relaxed drink, we recommend visiting Skye, Banana Café, Moeda (in the basement of Farol Santander), Terraço Itália, Tatu Bola, Boteco São Paulo, Subastor, Seen, Dhomus, Coco Bambu, Vaca Veia, and Candem House.
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Embassy and Consulate
Embassy and Consulate
There are 71 diplomatic missions based in the city of Sao Paulo. You can see at https://embassies.net/brazil/sao-paulo
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