New resolution brings changes for foreign investors visas

IMPACT – HIGH

What is the change? The Brazilian Ministry of Labour has published a resolution that increases the required investment for obtaining a Permanent Visa for Foreign Investors.

What does the change mean? Foreign investors interested in applying for a permanent visa must invest 500,000 Brazilian reals (about US$130,000) to be eligible for the visa. The ministry will accept smaller investments (150,000 reals) in some instances when the investments are for tech companies participating in the government’s incentives program for start-ups.

• Implementation time frame: Immediate.
• Visas/permits affected: Permanent Visas for Foreign Investors
• Who is affected: Foreign nationals interested in investing in Brazil by creating a new company or investing in an existing Brazilian company.
• Business impact: Foreign investors must be prepared to make a larger investment when applying for a permanent visa.

Background: Normative Resolution No. 118 took effect today, revoking NR No. 84, which regulated foreign investors’ visas. Under the old resolution, the minimum investment threshold was 150,000 reals. Under both the old and new resolutions, applicants are also required to develop a business plan demonstrating how their investment will help a Brazilian company expand its business to benefit the local economy and the Brazilian workforce.

BAL Analysis: Since Brazil’s currency has lost significant value compared to the U.S. dollar, Brazilian authorities determined that investment thresholds for foreign investors should be reviewed. In addition to increasing the required size of the investment, Brazilian authorities will evaluate applicants’ business plans to determine how they will help expand services, create jobs and boost the local economy.

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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