Foreign Investor Visa - Changing in the investment amount

In the end of 2015, the National Council of Immigration, motivated by the Real devaluation, increased significantly the required investment value for the application for investor’s permanent visa by foreign investors, private person.

Previously, the investment in foreign currency should be equal or superior to BRL 150,000.00 (approximately € 36,000.00).

With the new regulation, valid as of 2016, Brazil allows foreign investors to require permanent visa upon the investment of BRL 500,000.00 (approximately € 120,000.00) in new or existing Brazilian Company.

Investing in Brazil is the first requirement. Furthermore, it is required that the Company receiving the investment undertake the generation of employment and revenue in the country.

These are innovative concepts brought in by the American legislation. In the United States, the investments shall be made in BONA FIDE ENTERPRISE, defined as real, active and with commercial and economic substance Company, having an entrepreneurial motivation and producing goods or services aiming at the profit. Therefore, it shall not be a Company whose purpose is the speculation of its valuation, such as investments in shares or non-built lands.

Another concept imported from the American legislation is the MARGINAL ENTERPRISE, upon which a Company shall not focus solely on the generation of minimum income, capable of minimally sustain the investor and his/her family.

According to the Brazilian legislation, to invest in Brazil, the receiving Company of the investment is required to have a business activity nature, i.e., be directed and organized aiming at the profit and that it have real economic substance that normally leads to revenue and employment generation.

  

Such investment may be exceptionally reduced to a value between the minimum of BRL 150,000.00 and BRL 500,000.00, provided that it be applied in an innovation, basic research or applied research activity, having scientific or technological nature, besides other basic conditions set forth in the appropriate legislation.

The permanent visa shall be issued and have initial term of three (03) years. After such period, the foreigner shall demonstrate to the Brazilian Federal Police that he/she remains being an investor in the Company and file his/her Income Tax Return.

At this moment, the Federal Police shall verify the physical existence of the Company and of the activities that the company and the investor perform in the country, which shall be in accordance with the investment plan presented upon the initial application for permanent visa.

The foreign capital invested in Brazil shall be registered in the electronic system of the Brazilian Central Bank (Electronic Declaratory Registry – Foreign Direct Investment) within the maximum term of thirty (30) days to be counted as of the entry date of the capital in Brazil.

The lack of registration shall make the investment void for legal and immigration purposes and shall subject the violator to a fine of two percent (2%) on the declaring value, limited to one hundred thousand reais (BRL 100,000.00).

Once in possession of the permanent visa and elapsed at least four years of continuous residence in the national territory, the foreigner may apply for his/her Brazilian ordinary naturalization.

This minimum term of residence in Brazil, required for the application for Brazilian naturalization, may be reduced or waived if the foreigner’s situation comply with some conditions permitted by the law. For example: if the foreigner was born in a Portuguese language country, the minimum term shall be of just one year; if the foreigner has a Brazilian son or spouse, the term shall also be of one year; if the foreigner is the owner of a property which value is equal or superior to one thousand times the standard value (BRL 82,800.00), the minimal term shall be of three years.