Is it worth investing in Brazil in 2023?

This is a question that hovers in the minds of different international fund companies and brokerages. At this moment, it can be said that yes, the country is worth paying attention to.

Endowed with an almost continental dimension, Brazil has gone through different changes. From technical recessions to political crises, today the country is moving towards political stability. Especially in the state of São Paulo, the richest in the country, expectations are on a high.

The Lula’s Minister of Finance, Fernando Haddad, has defended an update of the complex tax system. The promised tax reform for the coming months should unify taxes through the IVA (Value Added Tax) model, which are adhered to by the main OECD countries, such as Norway, Japan and Germany.

In this article, our specialists point out the reasons why it is worth investing in Brazil in 2023 and clears up doubts about how to open a business in the country.

Why is it worth investing in Brazil in 2023?

From a more rational point of view, there are different points of view that justify investing in Brazil this year. Like other developing countries, there are opportunities and markets that are not yet consolidated. In this way, the implementation of processes already consolidated abroad can work, as long as it is aligned with the Brazilian public.

Other than that, there are different topics that show how opportune it can be to bring investments to Brazil. Among the few factors, Gescon uses its expertise and points out why it is worth investing in Brazil in 2023!

1. Tax Reform must adopt the VAT

The Tax Reform should be divided into two parts and the first stage is promised for this year. In it, the expectation is that at least two taxes, ICMS and ISS, are unified into a single rate.

In the second part of the reform, VAT will take industry into account. That is, a fine-tooth comb will be carried out on the rates in order to relieve industries based in the country, with the expectation of generating more competition.

If your business has its eye on Brazil, but is far away due to the cost of Brazil, the new tax reform has everything to bring you!

2. Real is devalued against the Dollar

Another factor that shows how worth investing in Brazil in 2023 is the devaluation of the Real against the dollar. Due to a long period of technical recession in PT governments and the unexpected global pandemic, Brazil lost its accelerated pace of growth. As a result, inevitably the currency was among the least valued.

Today, it is not uncommon to see days where depreciation is among the highest in the world. This makes investments even easier and more attractive for those who have dollarized capital.

3. State of São Paulo has a pro-market government

With the 2018 election, Brazil experienced a disruptive shift in power, with policies more in line with fiscal responsibility and economic growth. Even the richest state in the country, São Paulo, now has a pro-market government.

On different occasions, the current governor of São Paulo, Tarcisio de Freitas, has already defended practices that reduce the cost of Brazil. In practice, the idea is to reduce bottlenecks and insecurities that keep companies away from the state.

How to invest in Brazil in 2023?

To invest in Brazil in 2023, you need to know how to reduce the famous Brazil cost and adopt tax avoidance practices that will make a difference in the future.

Today, Gescon has all the necessary knowledge when it comes to bringing your business to Brazil and avoiding higher expenses than necessary. If you want to know how to invest in the country and perform the best accounting management possible, get in touch!