Corporate Immigration 2023

Last Updated June 27, 2023

Brazil

Trends and Developments


Authors



Machado Meyer seeks the most appropriate legal solutions tailored to each client's needs. The firm fosters enduring relationships, grounded in a culture of dedication and collaboration, the development of exceptionally skilled teams, and the continuous assimilation of legal and business knowledge. The firm’s ambition is to earn client recognition for its ability to challenge conventional thinking while seeking truly innovative solutions to unique problems. The firm’s mission is to provide legal intelligence that leverages opportunities and helps create value for clients' businesses.

Introduction

Brazil is well known for its welcoming approach to immigrants. Its vibrant culture, easy-going way of life, beautiful landscape, and burgeoning employment opportunities, have made Brazil a coveted destination for international professionals and immigrants alike.

According to information on the Brazilian government’s official website, from 2011 to 2020 over 1,000,000 immigrants arrived in Brazil. A portion of this number consists of immigrants hailing from Venezuela and Haiti, who were granted humanitarian visas. Now such visas are being granted to war refugees from Afghanistan and Ukraine. However, the volume of corporate immigration visas issued is also significant.

Although the immigration rates dropped significantly during the pandemic, the economy’s signs of recovery, coupled with the crises affecting countries in South America and in Europe, mainly due to the Russia-Ukraine conflict, have drawn multinational companies back to Brazil. In fact, government data confirms a steady uptick in visa issuance since January 2021.

The applicant profiles for visas, which were traditionally dominated by certain demographics, have now been expanded to include digital nomads. The labour shortage in Europe and Brazil across various professions could potentially boost cooperation between Brazil and European countries. In line with this, Brazil and Germany signed a declaration of intent in early June 2023 aimed at mutually capitalising on the services and skills of highly qualified workers.

Corporate Immigration

Law 13,445/2017 (the “Migration Law”), in effect since November 2017, is the main legislation governing the different types of visas and work permits that allow foreign citizens to enter, live and work in Brazil.

In addition to the Migration Law, several normative resolutions and ordinances have been issued outlining the procedures and requirements for the issuance of the different categories of visas and residence permits.

As a rule, foreigners intending to work in Brazil must be sponsored for a work visa, either by a Brazilian firm or a Brazilian subsidiary of an overseas company. To employ foreign labour, companies are required to apply for a work permit through the General Immigration Coordination Office, accompanied by the necessary documents from both the sponsoring company and the foreign citizen.

Under the Migration Law, business visas can be broadly classified into two categories: temporary visas and resident permits. These, in turn, are subdivided into several subcategories, outlined below.

Work visas and residence permits associated with employment within a Brazilian company or a Brazilian subsidiary of a foreign company

To apply for this type of visa, foreign citizens must demonstrate education, qualifications, and professional experience that align with their prospective role in the Brazilian organisation.

This evidence typically takes the form of diplomas, certificates, statements, and letters of experience from overseas companies or previous employers. While in Brazil, foreign citizens are protected by Brazilian labour laws to the same extent as Brazilian nationals.

Note that in this case, the Brazilian company must adhere to the “two-thirds rule”, stipulating that two-thirds of employees are Brazilian citizens and two-thirds of the total payroll is paid to Brazilian employees.

The visa will be valid for a maximum period of two years. However, after the end of the second year, it can be converted into a residence permit for an indefinite term. This conversion is contingent upon several factors, most notably the development of the company's workforce since the initial visa application, the need for the services provided by the foreign citizen, and the individual's stated intent to settle in Brazil.

Work visas and residence permits for officers

These apply if a Brazilian entity intends to appoint a foreign citizen as an administrator, manager, officer, or director with managerial powers to represent the company. In this case, the residence permit is issued for an indefinite term. However, residency will always be linked to the officer’s continuation in the services of the sponsoring company. 

Work visas and residence permits linked to a technical assistance agreement without an employment contract with a Brazilian company

These apply to technicians coming to Brazil under a technical assistance contract or a co-operation agreement between a Brazilian company and a foreign company. The foreign citizen will remain an employee of the foreign entity and shall not receive compensation from the Brazilian company. The visa and work permit are valid for one year, and renewable for a further year.

Work visas and residence permits linked to a technology transfer agreement without an employment contract

These apply to foreign citizens coming to Brazil to work under a technology transfer agreement or technology transfer co-operation between a Brazilian and a foreign company. The foreign citizen will remain an employee of the foreign entity and shall not receive compensation from the Brazilian company. The visa and residence permit are valid for one year, and renewable for a further year.

Work visa and residence permit for investors and entrepreneurs

Foreign citizens may apply for a temporary visa and residence permit if they want to invest their own capital in Brazil either in productive activities or in start-up companies. A minimum investment must be evidenced, which may range from BRL150,000 to BRL500,000 for start-ups, and at least BRL500,000 for other productive activities. Also, a certain number of job positions shall be created in accordance with the information to be provided during the application process.

Although the residence permit is indefinite, the identity card issued for the foreign national is valid for nine years, after which it must be renewed. This is to verify the individual’s continued investor status and ascertain if the business plan and job creation indicated during the application process have been implemented.

Temporary visas and residence permits can also be granted under other specific circumstances provided for in the Migration Law and its relevant normative resolutions and ordinances, such as for research, teaching or academia, religious activities, representation of non-profit entities, journalists working as international press correspondents, and internships.

Additionally, international treaties and conventions may simplify the requirements for visa and residence permit applications. For instance, the Agreement on Residency for Nationals of the States Signatories of the Mercosur Agreement (Decree No 6975 of 7 October 2009). According to this decree, foreign nationals from countries that are signatories or associates of the Mercosur Agreement (Argentina, Brazil, Paraguay, Uruguay, Bolivia, Chile, Colombia, Ecuador, and Peru) can apply for temporary residency, which can potentially be converted into a permanent residency permit after two years. Such individuals are permitted to work in Brazil.

Changes and Developments

The Migration Law introduced important changes to immigration scenario in Brazil. First, it introduced an electronic visa system to streamline the application process and expedite visa issuance. Second, the law prioritises humanitarian objectives, providing simplified procedures for issuing visas and residence permits to refugees, political asylum seekers, individuals seeking medical treatment, and stateless individuals. Finally, two different types of work visas were introduced: a visa for highly qualified workers, and a visa for digital nomads.

Visas for highly qualified workers

According to the Migration Law, highly skilled professionals who have a university degree can apply for a temporary visa and residence permit without having a visa sponsor in Brazil or a pre-existing job offer. This visa category is designed to address the shortage of skilled manpower in certain sectors, as identified periodically by the Brazilian government. However, the regulation of this visa type is still pending with the Brazilian immigration authorities.

Digital nomads

Driven by technological advances and the need for social distancing measures during the COVID-19 pandemic, remote work not only emerged as a viable response to emergency situations but also as an innovative method of hiring and attracting talent. Companies have recognised the desire for improved work-life balance and flexibility among the younger generations, finding remote work to be a critical tool for attracting and retaining talent by allowing employees to work from anywhere in the world.

These global shifts have consolidated a recruitment model that enables companies worldwide to seek out highly qualified professionals who align with their business models and objectives unimpeded by geographical and bureaucratic constraints.

In Brazil, Resolution No 45/2021 of the National Immigration Board governs the granting of temporary visas and residence permits to digital nomads. “Digital Nomads”, as defined in the Migration Law, are foreign workers who wish to live in Brazil temporarily and can carry out their professional activities remotely for a foreign employer by using information and communication technologies. The digital nomads do not have a Brazilian visa sponsor, nor develop activities for Brazilian companies. For those purposes a different visa and residence permit would be necessary. These workers are not considered employees under Brazilian laws while providing services to a foreign company. The temporary visa for digital nomads is valid for one year, and renewable for a further year.

According to Resolution No 45/2021, to apply for a digital nomad visa and residence permit, the foreign citizen shall present evidence of the relationship with the foreign entity either by means of a declaration or a copy of the employment/services agreement; proof of means of living in Brazil evidencing a regular monthly income of at least USD1,500 or bank funds of at least USD18,000; and health insurance cover in Brazil.

According to information provided by the Ministry of Justice, up to January 2023 (one year after the digital nomad visa was governed by Resolution No 45/2021), over 400 digital nomad visas have already been issued, indicating an average of at least one new visa per day.

One crucial consideration is that Brazilian-based companies should not derive benefits from services provided by foreign citizens with a digital nomad temporary visa. Although labour and employment laws do not apply to individuals holding a digital nomad temporary visa under the assumption that the services are performed for a foreign company, the opposite holds true if the individual works locally for a company based in Brazil.

In other words, if a foreign citizen holding a digital nomad temporary visa in Brazil works on behalf of a Brazilian company, they will be entitled to all labour and employment rights available to Brazilian nationals . Besides potential labour liabilities, the company could face administrative fines and sanctions for violating immigration laws.

Trends and Conclusions

Technological advancement, coupled with the growing internationalisation of economies, has spurred employment mobility worldwide.

While developed countries leverage immigration programmes to attract qualified professionals and foreign investors to bolster national development, such robust and structured programmes are not yet fully implemented in Brazil

Despite the recent and welcome changes and improvements in the immigration landscape brought about by the Migration Law, Brazil still does not have solid immigration programmes or policies designed to support its national development strategy.

However, a coordinated understanding of the opportunities presented by the global mobility of qualified professionals and international investors is currently under examination and discussion, and some measures have been introduced.

Significant measures include the issuance of normative resolutions permitting residency permits for foreign entrepreneurs and start-ups, qualified professionals sponsored by Brazilian companies, foreign investors (including those in real estate), and digital nomads. Additionally, the declaration of intent signed by Brazil and Germany in June 2023 aimed at mutually capitalising on the services and skills of highly qualified workers signals Brazil's openness to seize opportunities arising from global mobility, thereby incentivising the inflow of human and financial resources.

Data from the Ministry of Justice indicates that from 2011 to 2022, 56,580 visas were granted to qualified workers with an employment contract with locally based companies. Although these numbers declined during the pandemic, they have regained momentum since 2021 and continue to grow. Most of these workers come from Europe and Asia, primarily from the United Kingdom, Germany, Italy, China and Japan.

Residency permits granted to foreign investors in the real state sector are also growing in, and were issued mainly to investors from the United States, France and Germany.

After a period of caution in the run-up to the presidential elections in the second half of 2022, the Brazilian economy is showing concrete signs of recovery and stability. New foreign investments have emerged, and there is a rekindled interest from foreign corporations in the Brazilian market. In this landscape, the demand for skilled labour is projected to rise significantly.

Moreover, job opportunities span across various industries, such as technology, oil and gas, infrastructure, and renewable energy. This positions Brazil as an appealing hub for those seeking to temporarily or permanently reside in the country.

Machado Meyer

Av. Brigadeiro Faria Lima
3200
5° andar
Itaim Bibi
São Paulo
Brazll

+55 (11) 3150 7000

machadomeyer@machadomeyer.com.br machadomeyer.com.br
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Trends and Developments

Authors



Machado Meyer seeks the most appropriate legal solutions tailored to each client's needs. The firm fosters enduring relationships, grounded in a culture of dedication and collaboration, the development of exceptionally skilled teams, and the continuous assimilation of legal and business knowledge. The firm’s ambition is to earn client recognition for its ability to challenge conventional thinking while seeking truly innovative solutions to unique problems. The firm’s mission is to provide legal intelligence that leverages opportunities and helps create value for clients' businesses.

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