10 Key Reasons For Investing In Brazil

1. 10 Key Reasons For Investing In Brazil Furriela Advogados Dr. Fernando Nabais da Furriela

2. Summary 10 Key Reasons For Investing in Brazil • Leading Regional Economy • Global Destination For Investment • Resilient Domestic Market • Diversified Economy • Energy Powerhouse • Large Pool of Workers • Extensive Raw Materials • Capacity to Endure • Global Player, the B In Brics • Gateway to Latin America

3. 1. Leading Regional Economy Brazil is a global powerhouse, ranking among the top 10 economies worldwide, being the largest in Latin America, with a GDP of USD 1.8 trillion dollars (2016) and an average GDP growth rate of 2.6% since 2000.

4. 2. Global Destination for Investments Brazil is among the top recipients of Foreign Direct Investment (FDI) worldwide and the only Latin American country on the list. FDI flows to Brazil summed over USD 590 billion from 2010 to 2016. Brazil keeps attracting leading and innovative international businesses due to its profitable opportunities underpinned by domestic investor protection rules enforced by an independent judiciary power. Brazil has a trustworthy judicial and regulatory system, providing a secure environment for investors. The country also offers several tax-related incentives and special tax regimes in order to support and stimulate foreign investments. Coporate Income Tax (IRPJ), Social Contribution Taxes levied on gross revenue (PIS, Pasep, Cofins) and Tax on Manufactured Products (IPI) are the most common eased taxes by the government.

5. 3. Resilient Domestic Market Brazilhasoneofthebiggestconsumermarketsworlwide – over 207 millioninhabitants. Nowadays, povertyisat its lowestlevels (accordingtotheWorld’s Bank latest data). Duetoseveralgovernmentassistanceprogramsand a forcedincrease in theminnimunwage, millionsofcitizenshavebeenlifted out of extreme poverty.

6. Diversified Economy Due to its huge growth potential, Brazil is home to a competitive industrial sector, including Latin America’s largest aerospace, automotive, oil and gas, mining, capital goods, medical equipment and chemical industries. Brazil is also home to world-class service industries, mainly in construction, engineering and financial areas.

7. 5. Energy Powerhouse Brazilian petroleum reserves are among the largest ones in the world, especially after the recent discovery of ultra-deepwater oil reserves in the country’s southeastern coast – “pre-salt” oil. Brazil is one of the top producers and exporters of ethanol biofuel in the world and a leading country on the development of green technologies. Renewable sources are now responsible for over 40% of Brazil’s energy matrix. With Brazil’s large supplies of water, hydroelectric power provides over 60% of Brazil’s electricity needs. Wind, biomass and solar energy continue to grow in importance.

8. 6. A Large Pool of Workers Brazil’s domestic market offers good opportunities for companies seeking to hire, due to an active working age population (15 – 64 years old) of around 70%. Brazilian adults with advanced education make up almost 20% of the total, and the gross enrolment ratio at universities and technical schools is constantly rising – from 18% of people finishing secondary education (2011) to 50% (2014) – Brazil is ahead of countries such as China (43%) and India (25%). Businesses may count on government professional training programs in order to find young and dynamic workforce.

9. 7. Extensive Raw Materials Brazil’snatureresources are abundant, beeing a major player in providingrawmaterials. It is a largeproducerandexporterofagriculturalproductsand mining products (especiallyiron ore). Its forests are a vastsourceofwealth. The coutryisalsowater-rich, holding thebiggestfreshwater reserves in the world.

10. 8. Capacity to Endure Brazil is resilient and steadfast, capable of withstanding major adverse international economic scenarios. In 2010, Brazil became a net external creditor, paying off its debt to the International Monetary Fund, being able to accumulate international reserves ever since – USD 370 billion (2017). Sovereign credit rating: BB (Fitch), Ba2 (Moody’s), BB/B (S&P).

11. 9. Global Player – The “B” in BRICS Brazil is a relevant global players, being active and engaged in international politics, coordinating trade policies and human rights advocacy, and earning the respect of its peers. With such a large economy, democratic political system and a sound and independent judiciary, the country plays an important role in the international community.

12. 10. Gateway to Latin America Brazil’s largest cosmopolitan centers are consolidating their positions as global investment head-quarters not only for the country itself, but for the entire Latin American continent. Brazil is a founding member of Mercosur – the South American Common Market – which is a free trade area and progressively consolidating customs union among Argentina, Brazil, Paraguay and Uruguay, based on trade bylaws (such as the free circulation of goods and major democratic principles). According to recent data (2016), Mercosur had a combined gross domestic product of USD 3.2 trillion, becoming – as a group – the 5th largest economy in the world.

13. Sources IPEA Data – http://ipeadata.gov.br/Default.aspx Foreign Direct Investment Manual – Brazilian Central Bank – http://www.bcb.gov.br/ftp/infecon/RDE/ManualRDE-IED.pdf Central Bank’s IDP data – https://www3.bcb.gov.br FDI report 2016, UNCTAD – http://unctad.org/en/publicationslibrary/webdiaeia2017d1_en.pdf Brazilian Trade and Investment Promotion Agency (APEX Brasil) - Investment Guide to Brasil 2017 – http://www.apexbrasil.com.br/en/home Trade Promotion Sections (SECOM) – http://www.investexportbrasil.gov.br/?l=en

14. Furriela Advogados Thank You! ffurriel@furriela.adv.br www.furriela.adv.br Av. das Nações Unidas, 10.989 – 10º andar - 04578-000 - São Paulo/SP - Brasil 1701 PennsylvaniaAvenue NW Suite 200, 20006 Washington/DC – USA