Countries › Brazil › Guide › 3. Investing › Foreign investment in Brazil: an open regime, a short list of restricted sectors and regional tax incentives

Foreign investment in Brazil: an open regime, a short list of restricted sectors and regional tax incentives

Last verified: 2026-10-25 · Status: Stable

Brazil has no general foreign investment approval or screening law: foreign capital gets the same legal treatment as domestic capital and money moves through the FX market without amount limits. Restrictions are sector specific and set mostly by the Constitution: media, rural land, the 150 km border zone, mining, health care and financial institutions. The main federal incentive for new projects is a 75 percent income tax reduction for ten years in the Northeast and Amazon regions, for projects approved by 31 December 2028.

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; the rate on the day of each FX contract will differ.

Key facts

Foreign capital receives legal treatment identical to national capital	Yes Lei nº 14.286 art. 9, as of 2026-10-25 · in force
Maximum foreign share of total and voting capital in newspaper, radio and TV companies	30 %Constituição Federal art. 222 § 1, as of 2026-10-25 · in force
Maximum share of a municipality's area held by foreign persons	25 %Lei nº 5.709 art. 12, as of 2026-10-25 · in force
Maximum share of the municipal foreign limit held by one nationality	40 %Lei nº 5.709 art. 12 § 1, as of 2026-10-25 · in force
Maximum rural land per foreign individual	50 modules of indefinite explorationLei nº 5.709 art. 3, as of 2026-10-25 · in force
Width of the border zone with ownership restrictions	150 kmLei nº 6.634 art. 1, as of 2026-10-25 · in force
Minimum Brazilian capital for listed activities in the border zone	51 %Lei nº 6.634 art. 3, as of 2026-10-25 · in force
Income tax reduction for approved projects in SUDENE and SUDAM areas	75 %Medida Provisória nº 2.199-14 art. 1, as of 2026-10-25 · in force
Duration of the SUDENE and SUDAM income tax reduction	10 yearsMedida Provisória nº 2.199-14 art. 1 § 3, as of 2026-10-25 · in force
Deadline to file and obtain approval of SUDENE and SUDAM projects	2028-12-31 dateMedida Provisória nº 2.199-14 art. 1, wording of Lei nº 14.753, as of 2026-10-25 · in force

The rule

1. Foreign capital in Brazil receives legal treatment identical to that given to national capital under equal conditions. There is no general prior approval of foreign investment; the investor's duties are registration and Central Bank reporting (see Start here).
Cost to do it: No approval fee is set by the law; the cost is compliance: a CNPJ for the foreign parent, a resident representative and SCE-IED reporting.Lei nº 14.286 (FX and foreign capital framework), Art. 9, 2021-12-29 official text · verified 2026-10-25

2. The Constitution leaves foreign capital to ordinary law: a law, based on the national interest, governs foreign capital investment, encourages reinvestment and regulates profit remittances.Constituição Federal de 1988, Art. 172, 1988-10-05 official text · verified 2026-10-25

3. Newspapers, radio and television: ownership is reserved to native Brazilians, Brazilians naturalized for more than ten years, or companies incorporated under Brazilian law with head office in Brazil. At least 70 percent of total and voting capital must belong, directly or indirectly, to such Brazilians, who must manage the business and set programming. Foreign capital is therefore capped at 30 percent.
Cost to do it: A ceiling rather than a fee: foreign investors may hold at most 30 percent of total and voting capital.
Example: Media company with R$50,000,000 of capital: foreign holders may own at most R$15,000,000; R$35,000,000 must sit with qualifying Brazilians. / About US$9.93 million of capital: foreign cap about US$2.98 million, Brazilian portion about US$6.95 million.Constituição Federal de 1988, wording of Emenda Constitucional nº 36, Art. 222, caput and § 1, 2002-05-28 official text · verified 2026-10-25

4. Mining and hydropower: mineral resources and hydropower potential belong to the Federal Union. Prospecting, mining and hydropower development need federal authorization or concession and may be carried out only by Brazilians or by a company incorporated under Brazilian law with head office and management in Brazil. A foreign investor can own that Brazilian company; it cannot hold the title directly.
Cost to do it: Requires a Brazilian incorporated company with head office and management in Brazil to hold the title.Constituição Federal de 1988, wording of Emenda Constitucional nº 6, Art. 176, caput and § 1, 1995-08-15 official text · verified 2026-10-25

5. Rural land: a law must regulate and limit the purchase or lease of rural property by foreign individuals and companies. Under that law, a Brazilian company whose majority capital is held by foreigners resident or headquartered abroad is treated as foreign. Foreign companies may buy rural land only for agricultural, livestock, industrial or colonization projects tied to their corporate purpose, approved by the Ministry of Agriculture. Foreign individuals may not exceed 50 modules of indefinite exploration; up to 3 modules the purchase is free of authorization.
Cost to do it: Public deed is mandatory for any rural purchase by a foreign person (art. 8); larger purchases need a project approved by the Ministry of Agriculture.Constituição Federal de 1988 art. 190; Lei nº 5.709, as amended by Lei nº 13.986 of 7 April 2020, Lei nº 5.709 art. 1 § 1, art. 3 and art. 5, 1971-10-07 official text · verified 2026-10-25 · changed: Lei nº 13.986 of 7 April 2020 added art. 1 § 2: the restrictions do not apply to inheritance, to the grant of security interests including fiduciary transfer to a national or foreign company, or to receipt of the land when enforcing such security or taking it in payment.

6. Rural land caps per municipality: land held by foreign individuals and companies may not exceed one quarter of the municipality's area, and persons of the same nationality may not own more than 40 percent of that quarter. Exceptions include purchases under 3 modules and buyers with a Brazilian child or married to a Brazilian under community property. A purchase that breaches the law is null and void.
Cost to do it: A ceiling rather than a fee; a registry certificate based on the special foreign acquisitions book proves headroom in the municipality.
Example: Municipality of 100,000 hectares: all foreign holdings together may total at most 25,000 ha, and holders of any single nationality (for example Argentine investors) at most 10,000 ha. / Not a monetary limit; the cap is measured in area.Lei nº 5.709, Art. 12, §§ 1 and 2; art. 15, 1971-10-07 official text · verified 2026-10-25

7. Border zone: the 150 km strip along Brazil's land border is an area indispensable to national security. Without prior consent of the National Security Council (now the National Defense Council), it is forbidden there to transfer rural land rights to foreigners, for foreigners to hold any stake in a company that owns rights in rural land, or to set up mining (other than construction materials) and rural colonization companies. Companies in those activities in the strip must have at least 51 percent Brazilian capital, at least two thirds Brazilian workers and management mostly by Brazilians.
Cost to do it: Prior consent procedure with the opinion of the federal agency controlling the activity (art. 2 § 3); for listed activities, at least 51 percent Brazilian capital.Lei nº 6.634, as amended by Lei nº 13.986 of 7 April 2020, Art. 1, art. 2 items IV to VI and § 4, art. 3, 1979-05-02 official text · verified 2026-10-25 · changed: Lei nº 13.986 of 7 April 2020 rewrote art. 2 § 4: granting security over rural land, including fiduciary transfer, to national or foreign companies, and receiving the land when enforcing it, no longer need prior consent.

8. Health care: the Constitution bars direct or indirect participation of foreign companies or capital in health care except where a law allows it. The Organic Health Law allows foreign participation, including control, in general and specialized hospitals (including philanthropic ones), polyclinics and general or specialized clinics, family planning, nonprofit in house services for a company's employees, and other cases in specific laws.
Cost to do it: No foreign ownership ceiling for hospitals and clinics; ordinary health licensing still applies.Constituição Federal de 1988 art. 199 § 3; Lei nº 8.080, art. 23 as worded by Lei nº 13.097, Art. 23, items I to IV, 2015-01-19 official text · verified 2026-10-25 · changed: Lei nº 13.097 of 19 January 2015 rewrote art. 23 to permit foreign participation, including control, in hospitals and clinics.

9. Banks and other financial institutions: new branches of foreign financial institutions and any increase in foreign shareholding in Brazilian financial institutions are barred unless they result from international agreements, reciprocity or the interest of the Brazilian Government. Since 2019 the Central Bank itself may recognize that interest, under requirements set by the National Monetary Council and the Central Bank, applying where possible the same conditions as for residents.
Cost to do it: Handled inside the Central Bank authorization process for the institution; no separate presidential decree.ADCT art. 52 (wording of Emenda Constitucional nº 40); Decreto nº 10.029, Decreto nº 10.029 art. 1, caput and §§ 1 and 2, 2019-09-26 official text · verified 2026-10-25 · changed: Decreto nº 10.029 of 26 September 2019 moved recognition of the Government's interest from presidential decree case by case to the Central Bank, as part of its ordinary authorization process.

10. Airlines: a concession or authorization for air services is granted only to a company incorporated under Brazilian law with head office and management in Brazil. The former nationality conditions on capital and management in art. 181 were repealed, so a foreign investor may own the Brazilian airline company.
Cost to do it: Requires a Brazilian incorporated operating company; no foreign capital ceiling in art. 181.Lei nº 7.565 (Brazilian Aeronautics Code), art. 181 as worded by Lei nº 13.842, Art. 181; Lei nº 13.842 art. 3, 2019-06-17 official text · verified 2026-10-25 · changed: Lei nº 13.842 of 17 June 2019 (conversion of Medida Provisória nº 863 of 2018) repealed items I to III and §§ 1 to 4 of art. 181 and arts. 182, 184, 185 and 186 of the Code.

11. Regional incentive: companies with a project filed and approved by 31 December 2028 to install, expand, modernize or diversify in a priority sector in the SUDENE (Northeast) or SUDAM (Amazon) areas get a 75 percent reduction of corporate income tax and additional tax computed on exploitation profit. The benefit starts in the calendar year after the project begins operating, on the basis of an official report, and lasts ten years.
Cost to do it: Project filing with SUDENE or SUDAM and an official report after start of operations; the saving is 75 percent of income tax and additional on exploitation profit.
Example: Exploitation profit of R$10,000,000 in a year: income tax 15 percent R$1,500,000 plus 10 percent additional on the excess over R$240,000, R$976,000, total R$2,476,000. The 75 percent reduction saves R$1,857,000, leaving R$619,000. / About US$1.99 million of profit: income tax and additional about US$491,500, saving about US$368,600, residual about US$122,900.Medida Provisória nº 2.199-14, art. 1 as worded by Lei nº 14.753 of 12 December 2023, Art. 1, caput and §§ 1 and 3, 2023-12-12 official text · verified 2026-10-25 · changed: Lei nº 14.753 of 12 December 2023 extended the deadline for filing and approving projects from 31 December 2023 to 31 December 2028.

Sector	Limit	Rule
Newspapers, radio and TV	At least 70 percent of capital with qualifying Brazilians; foreign cap 30 percent	Constituição Federal art. 222
Mining and hydropower	Title only to a company incorporated in Brazil with head office and management in Brazil; foreign ownership of that company allowed	Constituição Federal art. 176 § 1
Rural land	Foreign controlled companies treated as foreign; project approval; 25 percent per municipality; 40 percent of that per nationality	Lei nº 5.709 arts. 1, 5, 12
150 km border zone	Prior consent for rural land and listed activities; 51 percent Brazilian capital for mining and rural colonization companies	Lei nº 6.634 arts. 1 to 3
Health care	Foreign control allowed in hospitals and clinics and other listed cases	Constituição Federal art. 199 § 3; Lei nº 8.080 art. 23
Banks and financial institutions	Entry or increased stake only if recognized as of Government interest, now by the Central Bank	ADCT art. 52; Decreto nº 10.029
Airlines	Brazilian incorporated company with head office and management in Brazil; no foreign capital ceiling	Lei nº 7.565 art. 181, as worded by Lei nº 13.842

Where Brazil limits foreign investment, by sector, with the governing rule. Sectors not listed have no foreign ownership ceiling in these texts.

Worked example

A foreign group plans a R$10,000,000 per year manufacturing operation (about US$1.99 million of exploitation profit) and compares Bahia (SUDENE area) with São Paulo. In Bahia, with a project in a priority sector approved by 31 December 2028, income tax and additional of R$2,476,000 (about US$491,500) fall by 75 percent to R$619,000 (about US$122,900) for ten years from the year after start up: a saving of R$1,857,000 (about US$368,600) a year (Medida Provisória nº 2.199-14 art. 1; Lei nº 9.249 art. 3 for the 15 percent rate and the 10 percent additional above R$20,000 a month).
If the same group wants a farm to supply the plant, its Brazilian subsidiary counts as foreign under Lei nº 5.709 art. 1 § 1, needs an approved project (art. 5) and must check the municipal caps (art. 12). If the farm lies within 150 km of the border with Argentina, Paraguay or any other neighbour, prior consent is also needed (Lei nº 6.634 art. 2).

Step by step

1. Map the activity against the restricted list above. If none applies, foreign ownership can be 100 percent and the path is the ordinary one: CNPJ for the foreign parent, resident representative, incorporation, SCE-IED reporting (see Start here).
2. If the target owns or will lease rural land, run a land diligence: location against the 150 km border strip, municipal foreign ownership headroom via registry certificate, and whether the buyer is majority foreign controlled (Lei nº 5.709 arts. 1 and 12; Lei nº 6.634 art. 2).
3. For media, mining, hydropower, airlines and financial institutions, structure the investment through a Brazilian incorporated company with head office and management in Brazil, and for media keep at least 70 percent of capital with qualifying Brazilians.
4. For banks, insurers and other financial institutions, file the entry or stake increase with the Central Bank, which recognizes the Government's interest within its authorization process (Decreto nº 10.029).
5. If the project is in the Northeast or Amazon, file the SUDENE or SUDAM project before 31 December 2028 and obtain the report after start of operations by the last business day of March of the following year so the ten year benefit starts on time (Medida Provisória nº 2.199-14 art. 1 §§ 1 to 3).
6. Check the tax treaty position of the investor's home country before choosing the holding route (see Tax treaties).

Common traps

Assuming a Brazilian subsidiary escapes the rural land rules. A Brazilian company majority owned by foreigners resident or headquartered abroad is subject to them (Lei nº 5.709 art. 1 § 1), and a purchase in breach is null and void (art. 15).
Overlooking the border zone. The strip is 150 km wide along every land border, and foreign participation in any company holding rural land rights there needs prior consent (Lei nº 6.634 art. 2 item VI).
Reading the media cap as voting only. The 70 percent Brazilian requirement applies to both total and voting capital, directly or indirectly, and Brazilians must run management and programming (Constituição Federal art. 222 § 1).
Holding a mining or hydropower title through the foreign parent. Only Brazilians or a Brazilian incorporated company with head office and management in Brazil may hold it (Constituição Federal art. 176 § 1).
Missing the incentive calendar. Projects must be filed and approved by 31 December 2028, and a late operating report pushes the start of the benefit to the year the report is issued (Medida Provisória nº 2.199-14 art. 1 § 2).
Treating health care as open across the board. The constitutional ban still applies outside the cases listed in Lei nº 8.080 art. 23.

Sources

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