Brazil Country Profile

Snapshot of the Brazil Country Profile


Brazil has long been open to and encouraged foreign investments, which is why it remains among of the world's leading investment destinations. The government advocates for both state participation in the economy and respect for the contractual rights of investors. However, despite a formally well-functioning business environment, several studies indicate that corruption and bribery are serious obstacles to doing business in Brazil.

Positive developments in relation to corruption and investment:

  • Brazil is often cited for its strong legal framework aimed at curbing corruption, and the country is occasionally used as a role model when establishing legal anti-corruption frameworks in developing countries. However, effective enforcement of laws is a problem.
  • Although the fight against corruption faces obstacles in terms of implementation and lack of political support, anti-corruption initiatives in Brazil are formally strong and well-developed.

Risks of corruption:

  • Companies operating in Brazil have to deal with a wide range of regulatory agencies due to the federal structure of the political system, which may increase the likelihood of demands for bribes by public officials.
  • Public procurement is an area of business where companies are likely to experience demands for bribes or other irregularities, although the Brazilian procurement law is well-developed and often cited as one of the more comprehensive laws of its kind.
  • The Brazilian tax system is complex and reportedly prone to corruption. It is reported that tax collectors frequently ask for bribes to relax assessments and inspections, to refrain from pursuing acts of tax fraud or to give advice on the legal possibilities of reducing tax obligations.