Popular investment vehicles in Brazil

Updated on January 2026

• Equity investment fund (FIP)
• Infrastructure investment fund (FI-INFRA)
• Joint-Stock Company (Sociedade Anônima)
• Limited Liability Company (Sociedade Limitada)
• Investment fund in agribusiness production chains (FIAGRO)
• Real estate investment fund (FII)
• Credit Rights Investment Fund (FIDC)

• Contractual, without legal personality, structured as a condominium of a special nature and under a closed regime, with no redemptions before its end. Aimed at qualified investors (minimum R$1 million) or professionals (minimum R$10 million), it allows up to 33% of assets to be invested abroad. Sub-categories: Seed Capital (revenue up to R$ 20M), Emerging Companies (up to R$ 400M), Infrastructure, PD&I (R&D) and Multistrategy.

• Contractual, without a legal personality, characterized as a condominium of a special legal nature.
  • Closed-ended or open-ended fund, depending on the redemption policy established in the fund’s bylaws.
  • Structured to finance infrastructure projects, including investments in energy, transportation, telecommunications, basic sanitation and urban mobility.

• Corporate

• Corporate

• Contractual structure without legal personality, characterized as a condominium of a special legal nature. It must include “Fundo de Investimento nas Cadeias Produtivas do Agronegócio” or “FIAGRO” in its name. It is intended for investment in agribusiness, including rural real estate, shares in companies in the sector, financial assets, credit rights, securitization bonds (CRAs, CRIs,), FIAGRO shares, carbon credits and CBIOs.

• Contractual, without a legal personality, configuring itself as a condominium of a special legal nature for investment in the real estate market. It must include “Real Estate Investment Fund” (FII) in its name. It can invest in real estate rights, securities of companies registered with the CVM, shares in companies in the sector, CEPACs, shares in real estate FIPs and FIAs (shares investment funds), other FIIs, CRIs, FIDCs in the sector, as well as LH, LCI and LIG.

• A contractual structure without legal personality, characterized as a condominium of a special legal nature aimed at securitizing credits. It must include “Fundo de Investimento em Direitos Creditórios” (FIDC) in its name. It can acquire credit rights from a variety of activities, including trade bills, checks, promissory notes, credit card installments, rental contracts, leases, financing, energy, telecommunications and services.

• Foreign investors are fully exempt from IRRF on income and capital gains from the sale of FIP shares, provided they are not residents of tax havens. For individuals in Brazil, a 15% IRRF is levied on redemptions and liquidations, and a 15% IR applies to gains from the sale of shares on the secondary market. For resident legal entities, the same rules apply as for individuals.

• Exemption: Individuals and foreign investors (not located in tax havens) are exempt from tax on income received and capital gains.
• Legal Entities: A 15% withholding income tax (IRRF) applies to income earned.
• IOF:
  • The IOF is charged at the time of sale according to a regressive table. After 30 days, the IOF rate is reset to zero.
  • IOF does not apply to share transfers or trading on the secondary market.

• Corporate taxes will generally be charged on profits (or presumed profits) in accordance with the following rates:
  • Income tax (IRPJ): 15%-25%
  • Social contribution on net profit (CSLL): 9%
  • PIS contribution: 1.65%
  • COFINS contribution: 7.6%
• After Brazilian taxes are paid, profits can be repatriated by way of dividends, which are not taxed in Brazil under Brazilian law.

• Corporate taxes will generally be charged on profits (or presumed profits) in accordance with the following rates: 
  • income tax (IRPJ): 15%-25% 
  • social contribution on net profit (CSLL): 9% 
  • PIS contribution: 1.65% 
  • COFINS contribution: 7.6%
•  After Brazilian taxes are paid, profits can be repatriated by way of dividends, which are not taxed in Brazil under Brazilian law.

• Exemption: Individuals are exempt from tax on distributed income, provided the fund has at least 100 shareholders and the individual holds no more than 10% of the shares or receives no more than the distributed profits.
• Legal Entities & Foreign Investors: A 15% withholding income tax (exclusive final taxation) applies to accumulated earnings.
• Capital Gains & Income: Capital gains and income from the sale or redemption of FIAGRO shares are subject to a 20% income tax.

• For individuals:
  • Income tax exemption on distributed income, provided that: (i) The fund has at least 100 shareholders. (ii) The individual investor does not hold more than 10% of the fund's shares or receives income in excess of their proportional share.
• For legal entities: 15% Withholding Income Tax (IRRF) on income and capital gains.
• Capital Gains: The sale of shares is subject to a 20% on capital gains, for both individual and corporate investors.

• Individual and foreign investors are taxed according to the regressive IR table, between 22.5% and 15%, depending on the term.
• Foreigners follow the rules for fixed-income funds, which may be reduced or exempted by international agreements.
• For legal entities, there is a 15% withholding tax on income and capital gains.
• Open-ended FIDCs are subject to a semi-annual taxation ‘come-cotas’ (15% to 20%); and closed-ended FIDCs were included in this rule by Law 14.754/2023.
• IOF applies to redemptions within 30 days.

• No

• No

• No

• No

• No

• No

• FIP can be listed on B3, but only for trading among qualified investors.

• Yes

• Yes

• No

• Yes

• Yes

• Yes

• Exclusively a closed-end fund, i.e. investors cannot redeem shares before maturity.

• Maybe opened or closed-ended

• Opened or closed-ended

• Closed-ended

• May be opened or closed-ended, depending on the characterization of the fund according to the nature of the assets in its portfolio.

• Closed-ended 

• May be opened or closed-ended.

• Requires registration and supervision by the Brazilian Securities and Exchanges Commission (“Brazilian SEC”)
• Must be managed jointly by a fund administrator and by a portfolio manager, both approved by the Brazilian SEC
• When publicly offered, the Brazilian SEC’s explicit approval of its offer may or may not be required, depending on the characteristics of the issuer, the investors’ investment profiles and other fund characteristics.

• Requires registration and supervision by the Brazilian Securities and Exchanges Commission (“Brazilian SEC”). 
• Must be managed jointly by a fund administrator and by a portfolio manager, both approved by the Brazilian SEC. 
• When publicly offered, the Brazilian SEC’s explicit approval of its offer may or No may not be required, depending on the characteristics of the issuer, the investors’ investment profiles and other fund characteristics.

• Opened-ended companies are subject to the Brazilian SEC’s regulations.

• No

• Requires registration and supervision by the Securities and Exchange Commission (“SEC”).
• Must be managed jointly by a fund administrator and a portfolio manager, both approved by the Brazilian SEC.
• When offered publicly, the explicit approval of the Brazilian SEC for its offering may or may not be necessary, depending on the characteristics of the issuer, the investment profiles of the investors and other characteristics of the fund.

• Requires registration and supervision by the Brazilian Securities and Exchanges Commission (“Brazilian SEC”). 
• Must be managed jointly by a fund administrator and by a portfolio manager, both approved by the Brazilian SEC. When the fund’s investment policy requires that at least 95% of its assets are not securities, but real estate assets, the fund administrator may also manage its portfolio, rendering the portfolio manager dispensable. 
• When publicly offered, the Brazilian SEC’s explicit approval of its offer may or may not be required, depending on the characteristics of the issuer, the investors’ investment profiles and other fund characteristics.

• Requires registration and supervision by the Brazilian Securities and Exchanges Commission (“Brazilian SEC”).
• Must be managed jointly by a fund administrator and by a portfolio manager, both approved by the Brazilian SEC.
• When publicly offered, the Brazilian SEC’s explicit approval of its offer may or may not be required, depending on the characteristics of the issuer, the investors’ investment profiles and other fund characteristics.

• Restricted to qualified investors, with investments of more than BRL 1 million, and professional investors, with more than BRL 10 million, including financial institutions, portfolio managers and investment funds. The FIP can invest in shares, subscription warrants, simple debentures, commercial notes, convertible bonds, credit agreements, as well as shares in other FIPs and Equity Funds - Access Market.

• No

• No

• No

• FIAGRO is accessible to any type of investor, including professional, qualified and retail investors, with no minimum equity requirement.
• Income tax exemption for individuals, provided that:
• The fund has at least 100 shareholders.
• The investor does not hold more than 10% of the shares.
• The investor does not receive more than the corresponding proportion of the profits distributed by the fund.

• No

• Open to institutional, qualified and retail investors, provided they meet regulatory requirements.
• Funds that invest in non-standardized credit rights may have restrictions on qualified investors.

• Ideal instrument for private equity and active participation in companies.
• Tax exemption for foreigners, making it an attractive vehicle for international capital.
• Allows investment in strategic assets such as infrastructure, innovation and business expansion.
• Possibility of geographical diversification, allowing investments abroad (up to 33%).

• Tax exempt for individuals or foreign investors (not located in tax-havens) on income received and capital gains
• Investment aimed at infrastructure, with the potential for stable and predictable returns.
• Possibility of listing on the stock exchange, increasing liquidity for investors.

• Allows the use of more sophisticated investment structures not directly related with equity (ex: debentures, subscription bonuses, etc.).

• Simpler to be incorporated. 
• Requires one sole investor to be incorporated.
• The most common corporate vehicle adopted in Brazil.

• Tax benefits for individual investors who meet CVM requirements.
• Diversification in the agribusiness production chain.
• Access to different financial instruments, including rural real estate and agribusiness bonds.
• Financial statements must be audited annually.

• IR exemption for individuals on distributed income, provided regulatory requirements are met.
• Possibility of investing in real estate assets in a diversified manner and with greater liquidity than traditional real estate.

• Fixed income with potentially higher returns than other products on the market.
• Anticipation of receivables for companies, improving cash flow.
• Portfolio diversification and regulatory transparency.
• Possibility of access to qualified and retail investors.

• Limited liquidity, as it is a closed-end fund.
• Requires active governance and participation in the strategic decisions of the investees.
• Complex regulatory process, with auditing and compliance requirements.

• In the case of a closed-ended fund, the investor is not allowed to redeem the fund’s shares before the fund's established duration period has elapsed. 
• Investment concentration limit of 20% of the fund’s assets per issuer. 
• The fund’s financial demonstrations must be annually audited by independent auditor registered with the CVM.

• Requires the foreign investor to keep an attorney-in-fact in Brazil.
• Needs at least two shareholders to be incorporated.
• Incorporation process is more bureaucratic (requires deposit of 10% of the corporate capital, publishment of incorporation documents, etc.).
• Must publish minutes of all shareholders meetings and some Board of Directors meetings.
• Must publish financial statements yearly.
• Need to keep corporate books up-to-date.
• Exploration of mining activities (as real assets) is subject to approval.
• There are some restrictions for the acquisition of rural real estate properties, real estate properties located near boarders / roads / railroads and land located near the coasts in case the company is majorly held by foreign investors.

• Requires the foreign investor to keep an attorney-in-fact in Brazil.
•  Exploration of mining activities (as real assets) is subject to approval. 
• There are some restrictions for the acquisition of rural real estate properties, real estate properties located near boarders / roads / railroads and land located near the coasts in case the company is majorly held by foreign investors.

• Taxation rules may be changed, as it is still under discussion.
• Limited redemption of shares in closed-end funds, as the investor must wait until the end of the fund’s term.
• Investments require strict regulatory monitoring, with specific requirements for assets.

• No early redemption of quotas before the fund closes.
• Investment subject to real estate market volatility.

• Risk of default, as the fund's return depends on payments from the debtors of the credit rights acquired.
• Reduced liquidity in closed-end funds, which require permanence until the end of the fund’s term.
• Impact of the “come-cotas” on closed FIDCs since 2023, reducing tax efficiency.

• Private Equity: Acquisition and management of stakes in private companies.
• Infrastructure: Financing energy, sanitation and transportation projects.
• Business expansion: Capitalization of emerging and innovative companies.
• Portfolio internationalization: Participation in Brazilian assets and up to 33% abroad.
• Long-term strategies: Ideal for institutional investors with a long-term vision.

• Long-term infrastructure operations.
• Foreign and institutional investors interested in assets with tax incentives and predictable cash flow.
• Sovereign wealth funds and institutional investors seeking exposure to the Brazilian infrastructure sector with tax benefits.

• Long-term investments.

• Long-term real estate investments

• Investors interested in passive income with tax exemption for distributed income.
• Funds focused on agribusiness, including investments in farmland, companies in the agricultural sector and financial assets linked to rural production.
• Financial institutions and institutional investors seeking diversification in the Brazilian agricultural sector.

• Investment in real estate developments, such as: Acquisition of rental properties. Development of real estate projects. Real estate securities such as LCI, LH, CRI and shares in other FIIs.

• Companies that need immediate liquidity through the anticipation of receivables.
• Investors looking for diversification and higher returns than traditional fixed-income instruments.
  Management of assets backed by credit rights, enabling debt securitization.
• Access to the private credit market with different risk and return profiles.