A new guide aimed at international investors compiles information on accessing and operating in Brazil’s financial and capital markets. The Non-Resident Investors Guide for Investing in the Brazilian Financial and Capital Markets outlines the main regulatory, operational, and tax requirements applicable to investors domiciled abroad.
The publication, created by the Brazilian Financial and Capital Markets Association (Anbima), brings together the main instruments available in the country and addresses features of the Brazilian market that may differ from practices adopted in other jurisdictions.
The release comes following changes to Brazilian foreign exchange and foreign investment rules. In recent years, regulations governing non-resident investors have undergone modifications aimed at “enhancing legal certainty, aligning local rules with international standards, and eliminating redundant requirements.”
The guide outlines the structure of Brazil’s financial and capital markets and the role of key regulatory bodies. It also details the framework applicable to non-resident investors and specific rules for foreign portfolio investment—a regime covering investments in marketable securities, financial assets, and federal government bonds.
Among the practical guidelines are details regarding eligible assets, hiring local service providers, registrations with Brazilian authorities, and customer identification and Know Your Customer (KYC) procedures. Requirements may vary based on investor profile, investment type, and the method of capital entry.
Additionally, the publication includes a matrix summarizing scenarios in which appointing a local representative and registering with the Securities and Exchange Commission of Brazil (CVM) are required.
According to the document, the current framework relaxes certain representation and registration requirements under specific circumstances. The guide explains how non-resident accounts denominated in reais can be used to invest funds already held in Brazil, and under what conditions investors accessing the market through eligible foreign intermediaries can utilize simplified registration procedures.
Investments and Taxation
The guide presents the instruments available to international investors, including stocks, corporate bonds and other debt securities, investment funds, derivatives, financial assets, and federal government bonds. The document also addresses product characteristics, trading and settlement rules, risks, and tax treatment.
In the tax section, the publication details rules applicable to foreign portfolio investors and differences that may arise based on investor jurisdiction and asset type.
Certain instruments feature specific incentives. This is the case with incentivized debentures, where yield may be subject to a “zero percent income tax rate” for eligible non-resident investors not domiciled in a favored tax jurisdiction (tax haven).
The publication was developed as a practical reference rather than an exhaustive legal or tax manual. Given variations in requirements and exceptions depending on the investment and investor profile, the guide recommends seeking professional advice when evaluating specific decisions.
