Foreign Investment In Brazil Update: 2013 Annual Census Of Foreign Capitals

Brazil is one of the countries that most attracts foreign investment. However, it has historically imposed controls over cross-border currency transactions. In addition to requiring foreign investors to process their capital through financial institutions authorized to operate in foreign exchange and to register their direct investments with the Brazilian Central Bank's ("Bacen") electronic system, Brazil also requires Brazilian companies to declare to the Bacen the amount of equity owned by foreign investors. This declaration is called "Census of Foreign Capitals in Brazil".

What is the Purpose of this Census?

The Census of Foreign Capitals in Brazil has been carried out since 1996 by the Bacen in order to collect statistical information and confirm Brazil's International Investment Position (IIP), as required by the International Monetary Fund (IMF). The information collected is kept confidential and published as consolidated data, without identifying individual situations.

Who Must File the Report?

For the 2013 Annual Census of Foreign Capitals in Brazil, all legal entities registered in Brazil (investment funds, corporations and partnerships incorporated under Brazilian law) and owned by foreigners who had more than US$100 million in net assets on December 31, 2012 are required to report the amount equivalent in shares or quotas held by foreign investors, regardless of the amount or percentage owned.

Brazilian legal entities with outstanding short-term (up to 360 days) foreign accounts...