General Information

Brazil has once again become a key investment destination, due to:

·       Its weight in the world economy: its GNP is now the 10th largest in the world, it is the engine of Latin America.

·       The size of its domestic market, relatively well protected, which makes it one of the top 5 in the world for many sectors.

·       The middle class represents 50.1% of the population (2024).

·       Its natural resources: the country is also distinguished by its vast natural resources, comprising 13% of the planet's fresh water, 30% of the tropical forests and the largest biodiversity on the planet.

·       Iron ore alone accounts for nearly 8.9% of national exports, second only to soybeans. But other minerals are also attracting attention, such as niobium, which is essential in sectors such as technology and aerospace. Brazil has 90% of the world's reserves. It is also the third largest exporter of graphite, an important component of electric car batteries

·       In 2024, renewable energy was responsible for 88.2% of Brazil's electricity production. In the same sector, hydropower remains the main player, but wind and solar power are on the rise.

·       Although the potential of the domestic market makes the country highly attractive, Brazil remains relatively protected. It is therefore often recommended to consider local implantation.

From a purely cultural point of view, Brazilians are very warm, open and caring towards the French, who generally do not encounter problems of adaptation. France shares with Brazil several cultural elements in art, architecture, literature and gastronomy, which are recognised by Brazilians. Brazil is the only Portuguese-speaking country in Latin America. It is also the language used in the business community, with English to a lesser extent. Spanish is quite often understood by the Brazilian population, especially in the south of the country. However, learning Portuguese is still essential to establish contacts and facilitate integration into professional and social life.

In order to cope with the bureaucratic burden, the foreign client will have to be very patient in his administrative procedures; it is therefore common – and highly recommended – to use the services of an experienced legal and tax firm, even for simple cases.

During business meetings, it should be remembered that punctuality is highly appreciated. In order to create a climate of trust, before any negotiation, it is customary to exchange very informally about family, travel, sport or lifestyle in general. Moreover, it is not uncommon for certain familiarities to be established in the subsequent commercial relationship (mutual contact, etc.). Finally, it is often frowned upon to emphasise the differences between the French and Brazilian approach to trade, as this could be felt badly by the Brazilian partner.

Means of Payment & Banking Specificities

At the end of 2021, Law 14.286/2021 was sanctioned, and a New Exchange Rate Framework (“Novo Marco Cambial”) was set. The measure unifies and modernises a set of rules on foreign exchange transactions and promises to simplify these transactions, in line with OECD best practices with the aim of developing real convertibility in the long term. The law eventually provides for the possibility for natural and legal persons to hold foreign currency accounts in Brazil, as well as the opening of deposit accounts abroad, and facilitates the opening of accounts in Brazil by non-residents. The new legislation entered into force in 2023. Slight improvements are already being observed, such as the lifting of the requirement to register with a Central Bank system inter-company loans sent from abroad in foreign currencies below USD 1 million.

The aim of this law is to modernise the system, make it more efficient and faster, but also attract more foreign investment to Brazil. Today, the Brazilian currency is partially convertible but not transferrable. In order to carry out foreign exchange transactions, companies must make mandatory declarations and justifications in order to exchange currencies. Finally, foreign currency accounts in Brazil are very exceptional.

When issuing a transfer to Brazil it is recommended to indicate, in addition to the beneficiary's account number (no IBAN reference in this country), the full name of the beneficiary according to Portuguese language standards, his address as well as information on the economic reason in English or Portuguese, etc.).

On the other hand, for payments in Brazil, the introduction of PIX, a 24/7 instant digital payment method in Brazil in 2020, has really changed the business environment in Brazil. Today, there are more than 928 million registered accounts for 159.9 million legal entities that have a PIX account and more and more companies (15.6 million 06/2025).

As of 06/06/25, the new record for one-day transactions was broken, accounting for ~280 million transactions for 135.6 billion reais.

Finally, the financial system is also involved in ESG initiatives, notably with financial envelopes from public banks such as “Caixa Econômica Federal” or state development agencies, as well as the participation of large private banks in ESG-related projects. The “Amazon Plan”, for example, idealised by Itaú, Bradesco and Santander, proposes to the sector, 10 measures that have been designated in favour of the conservation of the biome, the development of the bio-economy, the investment in a sustainable infrastructure and the guarantee of human rights in the Amazon.