Countries › Brazil › Guide › 14. Disputes › Disputes in Brazil: courts, arbitration and enforcing foreign judgments and awards

Disputes in Brazil: courts, arbitration and enforcing foreign judgments and awards

Last verified: 2026-10-26 · Status: Stable

Brazil is arbitration friendly: a 1996 law makes awards final with no appeal, enforceable like court judgments and open to annulment only on listed grounds within 90 days, and the public administration may arbitrate. Foreign awards (under the New York Convention) and foreign court judgments must first be homologated by the Superior Court of Justice and are then enforced in federal court; Brazil is not an ICSID member. In court, the loser pays 10 to 20 percent in fees, unpaid judgments attract a 10 percent fine, and default interest runs at Selic minus inflation.

USD figures use the Banco Central do Brasil PTAX selling rate of R$5.0377 per US dollar for 23 October 2026, the last business day before verification. Conversions are for orientation only.

Key facts

Deadline to file an action to set aside an arbitral award	90 daysLei nº 9.307/1996 art. 33 § 1 as worded by Lei nº 13.129/2015, as of 2015-05-26 · in force
Default deadline for the arbitral award when parties set none	6 monthsLei nº 9.307/1996 art. 23, as of 1996-09-23 · in force
New York Convention in force in Brazil (promulgating decree date)	2002-07-23 dateDecreto nº 4.311/2002, as of 2002-07-23 · in force
Party to the ICSID Convention	No ICSID/3 list of 17 July 2026, as of 2026-07-17 · in force
Court that recognizes foreign judgments and awards	Superior Tribunal de Justiça (STJ) CF art. 105 I i; CPC arts. 960 and 961; Lei nº 9.307/1996 art. 35, as of 2015-03-16 · in force
Minimum court awarded attorney fees payable by the losing party	10 %CPC art. 85 § 2, as of 2015-03-16 · in force
Maximum court awarded attorney fees payable by the losing party	20 %CPC art. 85 § 2, as of 2015-03-16 · in force
Deadline to appeal a court decision	15 daysCPC art. 1.003 § 5, as of 2015-03-16 · in force
Fine added if a money judgment is not paid within 15 days	10 %CPC art. 523 § 1, as of 2015-03-16 · in force
São Paulo state court filing fee (share of the value of the claim)	1.5 %Lei Estadual SP nº 11.608/2003 art. 4 I as worded by Lei nº 17.785/2023, as of 2024-01-03 · in force
São Paulo state court fee ceiling per charge in 2026 (3,000 UFESPs at R$38.42)	115260 BRLLei Estadual SP nº 11.608/2003 art. 4 § 1; Comunicado DICAR nº 88/2025, as of 2026-01-01 · in force
General limitation period for civil claims	10 yearsCivil Code art. 205, as of 2002-01-10 · in force
Limitation period to collect liquid debts in a written instrument	5 yearsCivil Code art. 206 § 5 I, as of 2002-01-10 · in force
Limitation period for civil liability (damages) claims	3 yearsCivil Code art. 206 § 3 V, as of 2002-01-10 · in force
Default legal interest rate	Selic minus IPCA, floored at zero Civil Code art. 406 §§ 1 and 3 as worded by Lei nº 14.905/2024; Resolução CMN nº 5.171/2024, as of 2024-08-30 · in force

The rule

1. Anyone with capacity to contract may use arbitration to resolve disputes over disposable property rights (direitos patrimoniais disponíveis), and since the 2015 reform the direct and indirect public administration may too. The arbitration clause is binding; in standard form (adhesion) contracts it only works if the adhering party starts the arbitration or expressly agrees to it in writing, in a separate document or in bold type with a signature or initials specifically for that clause.
Cost to do it: No state fee to agree an arbitration clause; arbitration costs are the institution's administrative fee and arbitrators' fees under the chosen rules, plus counsel, all negotiated or set by the institution.Lei nº 9.307 of 23 September 1996 (Arbitration Law), as amended by Lei nº 13.129 of 26 May 2015, Art. 1 caput and § 1; art. 4 § 2, 2015-05-26 official text · verified 2026-10-26 · changed: Lei nº 13.129 of 26 May 2015, in force 60 days after publication, added art. 1 § 1 allowing the public administration to arbitrate, replaced art. 32 item I, revoked art. 32 item V, set the 90 day annulment deadline in art. 33 § 1 and moved recognition of foreign awards from the Supreme Federal Court to the Superior Court of Justice (arts. 35 and 39).

2. The arbitrator is judge of fact and law, and the award is not subject to appeal or to court approval. Unless the parties agree otherwise, the award must be issued within six months from the start of the arbitration. An award produces the same effects between the parties and their successors as a court judgment and, when it orders payment, is an enforcement title; the Civil Procedure Code lists the arbitral award among judicial enforcement titles, so it goes straight to the enforcement phase in the competent court.
Cost to do it: Enforcing a domestic award follows the court enforcement phase: in São Paulo state courts a 2 percent fee on the amount to be collected applies, within the 5 to 3,000 UFESP floor and ceiling (see the court fee rule).
Example: A domestic award orders payment of R$1,000,000. If the debtor does not pay within 15 days of being summoned in the enforcement phase, R$100,000 fine and R$100,000 attorney fees are added (CPC art. 523 § 1), for R$1,200,000. / About US$198,503 award; about US$238,204 with the fine and fees.Lei nº 9.307 of 23 September 1996 (Arbitration Law); Lei nº 13.105 of 16 March 2015 (Civil Procedure Code, CPC), Lei nº 9.307 arts. 18, 23 caput and 31; CPC art. 515 item VII, 1996-09-23 official text · verified 2026-10-26

3. An award can be set aside only on the grounds listed in the Arbitration Law: a void arbitration agreement, an arbitrator who could not act, missing formal requirements of art. 26, an award beyond the limits of the agreement, award obtained through prevarication, extortion or passive corruption, award issued late, or breach of due process principles (adversarial process, equal treatment, impartiality, free conviction). The annulment action must be filed within 90 days of notice of the final or partial award or of the decision on a request for clarification.
Cost to do it: Court filing fee on the annulment action under the rules of the state court where it is filed; in São Paulo 1.5 percent of the value of the claim within the UFESP floor and ceiling.Lei nº 9.307 of 23 September 1996 (Arbitration Law), as amended by Lei nº 13.129 of 26 May 2015, Art. 32 items I to IV and VI to VIII; art. 33 § 1, 2015-05-26 official text · verified 2026-10-26

4. Brazil applies the 1958 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards, promulgated by Decreto nº 4.311 of 23 July 2002 after congressional approval by Decreto Legislativo nº 52 of 25 April 2002. A foreign award is recognized or enforced under the treaties in force and, only failing them, under the Arbitration Law, and it is subject solely to homologation by the Superior Court of Justice (STJ). Recognition may be refused only if the defendant proves one of the grounds listed in art. 38 (the Convention's Article V(1) lists incapacity or an invalid agreement, lack of proper notice or opportunity to defend, an award beyond the submission, an irregular tribunal or procedure, and an award not yet binding or set aside), or on the grounds the STJ checks itself under art. 39, which include offense to national public policy. Serving a party resident in Brazil as provided in the arbitration agreement or the law of the seat, including by mail with unequivocal proof of receipt, is not a public policy breach if the Brazilian party had adequate time to defend.
Cost to do it: STJ court costs under the STJ fee table, a sworn translation by a translator registered with a commercial registry (junta comercial), and Brazilian counsel, who must file electronically.Decreto nº 4.311 of 23 July 2002 (New York Convention); Lei nº 9.307 of 23 September 1996, as amended by Lei nº 13.129 of 26 May 2015, Decreto nº 4.311 art. 1 and Convention arts. III and V; Lei nº 9.307 arts. 34, 35, 38 and 39 caput and sole paragraph, 2002-07-23 official text · verified 2026-10-26

5. A foreign court judgment has no effect in Brazil until the STJ homologates it, unless a law or treaty provides otherwise; the Constitution gives the STJ this power since Constitutional Amendment nº 45 of 2004. Homologation requires a decision issued by a competent authority, preceded by regular service of process (even if the defendant defaulted), effective in the country of origin, not offending Brazilian res judicata, accompanied by an official translation unless a treaty waives it, and with no manifest offense to public policy. Once homologated, the decision is enforced in the competent federal first instance court under the rules for domestic judgments. Homologation of foreign arbitral decisions follows treaties and the Arbitration Law, with these CPC rules applying in a subsidiary way.
Cost to do it: STJ court costs under its fee table, sworn translation of the judgment and supporting documents, and counsel; enforcement then runs in the federal court under the domestic enforcement rules.Constituição Federal of 5 October 1988, as amended by Emenda Constitucional nº 45 of 2004; Lei nº 13.105 of 16 March 2015 (CPC), CF art. 105 item I letter i; CPC arts. 960 caput and § 3, 961 caput, 963 items I to VI and 965 caput, 2015-03-16 official text · verified 2026-10-26

6. Brazilian courts have jurisdiction when the defendant, of any nationality, is domiciled in Brazil, when the obligation must be performed in Brazil, or when the claim arises from a fact or act in Brazil, and they have exclusive jurisdiction over actions on real estate located in Brazil. A case pending abroad does not prevent a Brazilian court from hearing the same case. Brazilian courts decline jurisdiction when an international contract has an exclusive foreign forum clause and the defendant raises it in the defense. For domestic forum choices, since 2024 a forum selection clause only works if it is in writing, refers to a specific transaction and is pertinent to the domicile or residence of one of the parties or to the place of the obligation (consumer clauses favorable to the consumer excepted).Lei nº 13.105 of 16 March 2015 (CPC), as amended by Lei nº 14.879 of 4 June 2024, Arts. 21 items I to III, 23 item I, 24 caput, 25 caput and 63 § 1, 2024-06-04 official text · verified 2026-10-26 · changed: Lei nº 14.879 of 4 June 2024 rewrote CPC art. 63 § 1 to require that a forum selection clause be pertinent to a party's domicile or residence or to the place of the obligation.

7. A plaintiff, Brazilian or foreign, who resides outside Brazil or leaves during the case must post security sufficient to pay court costs and the other side's attorney fees, unless it owns real estate in Brazil that secures payment. No security is required where an international agreement or treaty to which Brazil is party waives it. Under the Mercosur Las Leñas Protocol, no security or deposit may be required because a party is a citizen or permanent resident of another State Party (Argentina, Paraguay or Uruguay), and this also covers legal persons.
Cost to do it: The security amount is set by the judge to cover costs and the opponent's fees, which in turn are 10 to 20 percent of the award or economic benefit (CPC art. 85 § 2).
Example: A US company with no property in Brazil sues for R$10,000,000: the defendant can ask for security covering costs and potential fees, which at 10 to 20 percent could reach R$1,000,000 to R$2,000,000. / Claim about US$1,985,033; potential fees about US$198,503 to US$397,007.Lei nº 13.105 of 16 March 2015 (CPC); Decreto nº 2.067 of 12 November 1996 (Las Leñas Protocol on Jurisdictional Cooperation), CPC art. 83 caput and § 1 item I; Las Leñas Protocol arts. 3 and 4, 2015-03-16 official text · verified 2026-10-26

8. Loser pays: the court awards the winning side's counsel fees of 10 to 20 percent of the award, of the economic benefit obtained or, if that cannot be measured, of the updated value of the claim. Most civil cases begin with a mandatory conciliation or mediation hearing scheduled at least 30 days ahead; unjustified absence is contempt punished by a fine of up to 2 percent of the economic benefit sought or of the value of the claim. The deadline to appeal and to answer an appeal is 15 days (except for motions for clarification). At the enforcement phase the debtor is ordered to pay within 15 days; if not, a 10 percent fine and 10 percent attorney fees are added.
Cost to do it: Adverse fee exposure of 10 to 20 percent of the amount at stake, plus up to 2 percent for skipping the conciliation hearing.
Example: Losing a R$10,000,000 case exposes the loser to fees of R$1,000,000 to R$2,000,000 to the winner's counsel. / About US$198,503 to US$397,007 on a claim of about US$1,985,033.Lei nº 13.105 of 16 March 2015 (CPC), Arts. 85 § 2, 334 caput and § 8, 523 caput and § 1, 1.003 § 5, 2015-03-16 official text · verified 2026-10-26

9. State court fees vary by state. In São Paulo, the largest commercial venue, the court fee (taxa judiciária) is 1.5 percent of the value of the claim at filing (also for counterclaims), 4 percent of the value of the claim for an appeal, 2 percent at the filing of an enforcement action on an out of court enforcement title, and 2 percent of the amount to be collected when the judgment enforcement phase starts. Each charge has a floor of 5 and a ceiling of 3,000 UFESPs, using the UFESP value on the first day of the month of payment; the UFESP is R$38.42 for 2026, so the floor is R$192.10 and the ceiling R$115,260. The 2023 law applies to taxable events from 3 January 2024.
Cost to do it: Filing 1.5 percent, appeal 4 percent, enforcement 2 percent; each within R$192.10 and R$115,260 in 2026.
Example: Claim of R$10,000,000 in São Paulo: 1.5 percent would be R$150,000, so the R$115,260 ceiling applies. Claim of R$1,000,000: R$15,000. / Ceiling about US$22,879 on a claim of about US$1,985,033; R$15,000 is about US$2,978 on about US$198,503.Lei Estadual de São Paulo nº 11.608 of 29 December 2003, as amended by Lei nº 17.785 of 3 October 2023; Comunicado DICAR nº 88 of 17 December 2025 (UFESP 2026), Lei nº 11.608 art. 4 items I to IV and § 1, 2023-10-03 official text · verified 2026-10-26 · changed: Lei nº 17.785 of 3 October 2023 raised the São Paulo filing fee from 1 percent to 1.5 percent of the value of the claim, set the appeal fee at 4 percent and added a 2 percent fee at the start of judgment enforcement.

10. When interest is not agreed, is agreed without a rate, or arises from law (as in most judgments), it runs at the legal rate, which equals the Selic rate minus inflation measured by the IPCA; a negative result counts as zero. Monetary correction, if not agreed or set by a specific law, follows the IPCA. The National Monetary Council set the method: the monthly legal rate is the Selic factor of the prior month divided by the IPCA 15 factor of the prior month, minus 1, never below zero, accrued as simple interest and published by the Banco Central do Brasil.Lei nº 10.406 of 10 January 2002 (Civil Code), as amended by Lei nº 14.905 of 28 June 2024; Resolução CMN nº 5.171 of 29 August 2024, Civil Code art. 389 sole paragraph and art. 406 caput and §§ 1 to 3; Resolução CMN nº 5.171 arts. 2, 5, 6 and 8, 2024-06-28 official text · verified 2026-10-26 · changed: Lei nº 14.905 of 28 June 2024 replaced the old default rate with Selic minus IPCA and IPCA correction, effective 60 days after publication (the rule delegating the method to the CMN took effect on publication); Resolução CMN nº 5.171 of 29 August 2024 set the method.

11. Limitation periods: the general period is 10 years when the law sets no shorter one; claims for civil liability (damages) and for unjust enrichment prescribe in 3 years; and claims to collect liquid debts recorded in a public or private instrument prescribe in 5 years.Lei nº 10.406 of 10 January 2002 (Civil Code), Art. 205; art. 206 § 3 items IV and V; art. 206 § 5 item I, 2002-01-10 official text · verified 2026-10-26

12. Brazil has not signed the ICSID Convention: it does not appear among the 166 signatory states on ICSID's official list of 17 July 2026, so investor state arbitration under ICSID rules is not available against Brazil on that basis. Investors usually rely on contract arbitration under the Arbitration Law and, for public contracts, the administration's power to arbitrate disposable property disputes. Argentina, by contrast, signed on 21 May 1991 and the Convention entered into force for it on 18 November 1994.Convention on the Settlement of Investment Disputes between States and Nationals of Other States (ICSID Convention), not signed by Brazil, ICSID/3 List of Contracting States and Other Signatories of the Convention (as of 17 July 2026), 2026-07-17 official text · verified 2026-10-26

13. Among Mercosur members (Argentina, Brazil, Paraguay and Uruguay), the Las Leñas Protocol gives citizens, permanent residents and companies of each State Party free access to the courts of the others on equal terms, and covers recognition and enforcement of court judgments and arbitral awards in civil, commercial, labor and administrative matters. Requests travel by letter rogatory through the Central Authority, and a judgment or award has effect in another State Party if it is authentic, translated, issued by a competent court or arbitral body, after proper service, final or enforceable where issued, and not manifestly contrary to public policy.
Cost to do it: No security for costs based on Mercosur nationality or residence (art. 4); translation and Brazilian counsel remain needed.Decreto nº 2.067 of 12 November 1996 (promulgates the Protocol on Jurisdictional Cooperation and Assistance in Civil, Commercial, Labor and Administrative Matters, signed at Las Leñas on 27 June 1992), Protocol arts. 3, 4, 18, 19 and 20 letters a to f, 1996-11-12 official text · verified 2026-10-26

Title you hold	Where it goes	Prior recognition needed	Main grounds to resist	Key deadline or cost
Brazilian court judgment	State or federal court that issued it (enforcement phase)	No	Payment, defects in enforcement	Pay in 15 days or add 10 percent fine and 10 percent fees (CPC art. 523)
Award from an arbitration seated in Brazil	Competent first instance court (enforcement phase)	No (Lei nº 9.307 arts. 18 and 31)	Annulment on art. 32 grounds	Annulment action within 90 days of notice (art. 33 § 1)
Foreign arbitral award	STJ, then federal court	Yes, STJ homologation only (Lei nº 9.307 art. 35)	New York Convention art. V grounds (Lei nº 9.307 arts. 38 and 39)	Sworn translation, STJ costs, counsel
Foreign court judgment	STJ, then federal court (CPC art. 965)	Yes, STJ homologation (CPC art. 961)	CPC art. 963 requirements, public policy	Official translation unless a treaty waives it
Mercosur judgment or award (Argentina, Paraguay, Uruguay)	Letter rogatory via Central Authority, then STJ	Yes (CF art. 105 I i)	Las Leñas Protocol art. 20 conditions	No security for costs based on Mercosur nationality (art. 4)

Routes to enforce a claim against a Brazilian counterparty (sources in the rules above). USD at PTAX R$5.0377.

Act	Rate	On a R$1,000,000 claim	On a R$10,000,000 claim
Filing the claim	1.5 percent of the value of the claim	R$15,000 (US$2,978)	R$115,260 ceiling (US$22,879)
Appeal	4 percent of the value of the claim	R$40,000 (US$7,940)	R$115,260 ceiling (US$22,879)
Starting judgment enforcement	2 percent of the amount to be collected	R$20,000 (US$3,970)	R$115,260 ceiling (US$22,879)

São Paulo state court fees in 2026 (Lei Estadual nº 11.608/2003 art. 4; UFESP R$38.42). Floor R$192.10 (US$38.13), ceiling R$115,260 (US$22,879) per charge.

Worked example

Enforcing a London award. A US investor wins a R$10,000,000 (about US$1,985,033) ICC award seated in London against a Brazilian distributor. It files for homologation at the STJ with a sworn Portuguese translation (Lei nº 9.307 art. 35; CPC art. 963 V). The distributor can resist only on New York Convention grounds such as lack of notice or the award going beyond the clause (arts. 38 and 39); service by courier with proof of receipt is not a public policy bar (art. 39 sole paragraph). After homologation the investor enforces in the federal court (CPC art. 965); if the debtor does not pay within 15 days, a 10 percent fine and 10 percent fees, R$1,000,000 each (about US$198,503), are added (CPC art. 523 § 1).
Suing in São Paulo instead. The same investor without an arbitration clause sues in the São Paulo state court. Filing costs 1.5 percent, capped at R$115,260 (about US$22,879) in 2026 (Lei Estadual nº 11.608 art. 4 I and § 1). Because it has no real estate in Brazil, the defendant may demand security for costs and fees (CPC art. 83), and if the investor loses it pays the defendant's counsel 10 to 20 percent, R$1,000,000 to R$2,000,000 (about US$198,503 to US$397,007) (CPC art. 85 § 2). An Argentine company in the same position would be exempt from that security under the Las Leñas Protocol art. 4.
Domestic award. A São Paulo seated award orders a Brazilian buyer to pay R$1,000,000 (about US$198,503). There is no appeal (Lei nº 9.307 art. 18); the buyer has 90 days from notice to seek annulment on art. 32 grounds only (art. 33 § 1). The creditor starts the enforcement phase, paying a 2 percent São Paulo fee of R$20,000 (about US$3,970), and the debtor has 15 days to pay before the 10 percent fine and fees apply, taking the debt to R$1,200,000 (about US$238,204).

Step by step

1. When drafting, choose arbitration for disposable property disputes and name the seat, institution, language and number of arbitrators; in adhesion contracts put the clause in bold with a specific signature or in a separate document (Lei nº 9.307 art. 4 § 2).
2. If you prefer foreign courts, use an exclusive foreign forum clause in an international contract (CPC art. 25), but remember Brazilian courts keep exclusive jurisdiction over real estate in Brazil (art. 23) and any resulting judgment needs STJ homologation before it bites on Brazilian assets (art. 961).
3. For a Brazilian court forum, make sure the clause is pertinent to a party's domicile or the place of performance (CPC art. 63 § 1 as amended in 2024).
4. Track limitation: 3 years for damages, 5 years for written liquid debts, 10 years otherwise (Civil Code arts. 205 and 206).
5. Before suing in Brazil from abroad, budget for security for costs (CPC art. 83), state court fees (in São Paulo 1.5 percent within the UFESP ceiling) and adverse fees of 10 to 20 percent.
6. On receiving a domestic award you want to challenge, calendar the 90 day annulment deadline from notice (Lei nº 9.307 art. 33 § 1).
7. To enforce a foreign award or judgment, obtain the original or certified copy, a sworn translation by a translator registered with a junta comercial and Brazilian counsel to file electronically at the STJ; then enforce in the federal court and locate assets.
8. Claim interest at the legal rate (Selic minus IPCA) plus IPCA correction unless the contract sets its own (Civil Code arts. 389 and 406).

Common traps

Assuming ICSID is available. Brazil has not signed the ICSID Convention, so contract based arbitration clauses carry the weight of investor protection.
Skipping STJ homologation. Neither a foreign judgment nor a foreign award can be enforced against assets in Brazil before the STJ homologates it (Lei nº 9.307 art. 35; CPC art. 961).
Missing the 90 day annulment window, after which an award can no longer be attacked on the art. 32 grounds (Lei nº 9.307 art. 33 § 1).
Boilerplate arbitration clauses in adhesion contracts without the bold type or specific signature required by Lei nº 9.307 art. 4 § 2.
Choosing a Brazilian court forum with no link to the parties or the transaction; since Lei nº 14.879 of 2024 such clauses have no effect (CPC art. 63 § 1).
Ignoring parallel proceedings: a case pending abroad does not stop a Brazilian court from hearing the same dispute (CPC art. 24).
Underestimating loser pays exposure of 10 to 20 percent of the amount at stake (CPC art. 85 § 2) and the security for costs demanded from foreign plaintiffs without Brazilian real estate (art. 83).
Skipping the opening conciliation hearing, which can cost up to 2 percent of the claim (CPC art. 334 § 8).

Sources

← Business regulation in Brazil: competition, data protection, anti corruption, AML and environmental rules