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Favorable treatment of foreign capital in Brazil

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          Like many Latin American countries, Brazil has always attached great importance to foreign capital for its economy.

          Traditionally, it depends on it for its balance of payments, but it also depends on it for the diversification of its economy and for the acquisition of know-how.

          Thus, the Brazilian Federal Constitution, a source of fundamental law, grants an identical status between Brazilian companies with national capital and Brazilian companies with foreign capital (i.e., Brazilian subsidiaries of foreign investors), except for some strategic sectors (airlines; acquisition of rural properties; journalism).

          Capital is subject to very specific advantages, favoring investment over imports. Thus, there is no tax on dividends in Brazil. It is interesting to note that, even after 15 years of left-wing government under Lula and then Dilma, this rule has never been questioned.

          There is also no minimum capital required to put a Brazilian company into operation. This makes it possible to invest as little as $100.00 of share capital, distributing millions of dollars in dividends.

          Foreign capital only needs to be registered with the Central Bank of Brazil to allow any repatriation of dividends, or assets in the event of the company's liquidation.

          It is worth remembering that the Brazilian currency has been very stable for over 30 years, regardless of the governments that have followed one another and international crises, such as 2008.

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