Foreign Investor visa rules requiring greater proof

IMPACT – MEDIUM

What is the change? Brazil has implemented new rules for proving the minimum investment under the Foreign Investors and Foreign Administrators visa categories, according to a normative resolution published Thursday by Brazil’s National Immigration Council.

What does the change mean? Applicants must now present a screen shot from the Brazilian Central Bank’s system (SISBACEN) confirming the Brazilian entity’s current corporate chart, and a currency exchange rate contract issued by the bank that received such foreign investment.

• Implementation time frame: Immediate.
• Visas/permits affected: Foreign Investor and Foreign Administrator visa categories.
• Who is affected: Foreigners investing in a Brazilian company and applying for visas under the Foreign Investors or Foreign Administrators routes.

Business impact: The minimum investment amounts have not changed; only the proof required has changed.

Background: The Foreign Investor visa is available to foreign shareholders or members of Brazilian companies who intend to invest a minimum of 500,000 reals (about US$159,400) in a Brazilian entity (150,000 reals for innovative start-ups under the government incentive program). The visa is valid for three years, during which time the foreign national may not recoup the investment or transfer the shares.

The Foreign Administrators visa is available to foreign directors or administrators of a commercial or civil organization in Brazil, where the company has invested a minimum of 150,000 reals and committed to creating at least 10 jobs (or a minimum investment of 600,000 reals if no new jobs will be created). The visa is valid for five years.

Before the change in policy, applicants could prove their investments by presenting an “Electronic Registration Declaration of Direct Foreign Investment in Brazil” from SISBACEN. With the new rules, however, applicants are also required to provide screen shots confirming the Brazilian entity’s corporate chart and currency exchange rate, as described above.

BAL Analysis: Companies and individuals applying for visas under the Foreign Investors or Foreign Administrators visas should make sure that they present the additional proof of their investments.

This alert has been provided by the BAL Global Practice group in Brazil. For additional information, please contact brazil@bal.com.

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