In July 2024, the Central Bank of Brazil (BCB) initiated the Foreign Capital Census in the Country, with the final submission deadline set for August 15, 2024.

The declaration is mandatory for legal entities domiciled in Brazil that have direct participation from non-resident investors in their capital stock, regardless of the amount, and that have net equity equal to or greater than US$ 100 million (one hundred million US dollars) on the reference date of December 31, 2023.

Investment funds with non-resident investors and net equity equal to or greater than US$ 100 million (one hundred million US dollars) on the reference date of December 31, 2023 must also declare through their administrators.

Legal entities domiciled in Brazil with only outstanding short-term commercial credits (up to 360 days) granted by non-residents are exempt from the declaration, following the revocation of Law No. 4,131/62 and its regulatory framework. Additionally, individuals, federal, state, and municipal government agencies, and non-profit entities funded by non-residents are exempt from the declaration.

Failure to meet the deadline or submitting incorrect or incomplete information may result in fines of up to R$ 250,000.00. The declaration is submitted directly through the Central Bank of Brazil’s website in the Financial Stability > Exchange and International Capital > International Capital > Census section.

Therefore, it is crucial for local legal entities and investment funds that meet the above requirements comply with this requirement to avoid penalties and ensure the accuracy of Brazil’s economic statistics.

The team at Gasparini, Nogueira de Lima, Barbosa e Freire Advogados is available to assist and address any questions regarding the declaration.