Tax havens rank among the main sources of investment
The latest Foreign Capital Census from the Central Bank of Brazil (BC), released in Brasília, provides a detailed overview of the origin and distribution of direct investment in Brazil. According to the report, the United States — which in August imposed tariffs of up to 50% on Brazilian exports — remains the largest source of productive capital entering the country.
In 2024, the total stock of foreign direct investment in Brazil reached USD 1.141 trillion, equivalent to 46.6% of the Gross Domestic Product (GDP). This represents the highest share ever recorded in Brazilian economic history and underscores the country’s growing relevance as a destination for foreign capital. The result reflects the continued interest of international companies in entering the Brazilian market, which offers a combination of scale, sectoral diversity, and growth potential.
Composition of Foreign Investment
The Central Bank classifies direct investment in Brazil into two main categories. The first corresponds to participation in the equity capital of national companies, totaling USD 884.8 billion — the most significant portion of total investment. This amount is distributed among roughly 19,000 companies with foreign ownership. The second category, amounting to USD 256.4 billion, refers to intercompany operations, meaning loans made between subsidiaries and their parent companies abroad.
These figures show that direct investment in Brazil is not limited to stock purchases or speculative capital flows. It is strongly tied to productive activities, technology transfer, job creation, and integration into global value chains.
The United States Leads the Way
When examining the origin of the USD 884.8 billion invested in the equity of Brazilian companies, the United States stands out as the single largest investor, with USD 244.7 billion — approximately 28% of the total. The strong U.S. presence reinforces the historic economic ties between the two nations. It highlights the Brazilian market’s importance to multinational companies in the technology, energy, financial services, and manufacturing sectors.
Following the U.S. are the Netherlands (USD 145.5 billion, or 16%), Luxembourg (USD 79.2 billion, or 9%), France (USD 63.3 billion, or 7%), and Spain (USD 61.0 billion, or 7%). The United Kingdom, Japan, Germany, Canada, and the Cayman Islands complete the top ten.
This concentration demonstrates that direct investment in Brazil primarily comes from developed economies, especially European countries, which use their financial centers — often located in tax havens — as gateways for investment flows.
The Role of Tax Havens
Fernando Rocha, head of the Statistics Department at the Central Bank, explained that the list reflects the country of the “immediate investor,” that is, the location from which the funds directly originated. However, this approach does not always represent the country that ultimately controls the capital.
“Often, a foreign company has its origins in one country but maintains its headquarters in another for tax reasons,” Rocha explained. “These are the so-called tax havens, places where companies send their funds and centralize their financial operations because they pay fewer taxes. From there, the money flows into Brazil.”
This dynamic explains why Luxembourg and the Cayman Islands appear among the primary sources of investment, even though they do not have major industrial economies. Indeed, when the Central Bank identifies the controlling country — the one that ultimately owns the investments — the ranking changes.
Final Controlling Countries of Investment
When the Central Bank analyzes direct investment in Brazil by controlling country, the United States remains in the lead, with USD 232.8 billion (26% of the total). France ranks second, with USD 69.3 billion (8%), followed by Uruguay (USD 58.4 billion, or 7%), Spain (USD 50.0 billion, or 6%), and the Netherlands (USD 48.6 billion, or 5%).
Uruguay’s position is noteworthy, as the neighboring country serves as a regional financial and logistics hub for international firms operating in Brazil. The strengthening of economic ties with these nations demonstrates that Brazil’s business environment remains attractive despite challenges such as tax complexity and regulatory bureaucracy.
Sectors That Attract the Most Foreign Capital
The Central Bank’s data also reveal which sectors of the Brazilian economy attract the most direct investment in Brazil. The services sector leads by a wide margin, accounting for 59% of total investment, followed by industry (29%) and agriculture and mineral extraction (12%).
Among specific activities, financial services and related operations take first place, with 22% of all foreign investment. They are followed by oil and natural gas extraction (8%), trade excluding vehicles (7%), electricity, gas, and other utilities (5%), and the chemical and automotive industries (each with 4%).
These figures reflect the growing importance of Brazil as a destination for long-term investments in strategic sectors, particularly infrastructure, clean energy, and industrial technology.
The Profile of U.S. Investments
The Central Bank’s data also identifies where American investors channel their capital. For the United States, as the final controlling country, 25% of investments are concentrated in the manufacturing industry — which transforms raw materials into finished or intermediate products — and 22% go to financial, insurance, and auxiliary service activities.
This distribution indicates that U.S. interest in Brazil extends well beyond financial speculation. American capital contributes significantly to strengthening Brazil’s industrial and technological base, as well as modernizing the national financial system.
Conclusion: Brazil Remains a Key Destination for Global Investors
The Central Bank’s report confirms that direct investment in Brazil remains strong, diversified, and concentrated in strategic sectors. Despite global trade tensions and market volatility, the country continues to stand out as one of the most attractive emerging economies in the world, benefiting from a dynamic domestic market, abundant natural resources, and a well-established industrial base.
With record levels of investment and an increasing focus on production and innovation, direct investment in Brazil represents not only a vital source of financial resources but also a powerful driver of economic development, job creation, and technological modernization.