New rules from the Central Bank and CVM benefit non-resident investors in Brazil

Among the key points, the measures simplify the investment environment for individuals who have moved abroad but wish to continue investing in Brazil.

The publication of Joint Resolution No. 13/2024 by the Central Bank and CVM introduces important changes that warrant the attention of non-resident investors interested in maintaining investments in Brazil. The new rules came into effect on January 1, 2025.
The regulation governs flows, stock positions, investor registration, and the provision of information related to investments in the financial market and the securities market, including through the Depositary Receipts mechanism.
With this change, maintaining financial investments in Brazil becomes more attractive for non-resident taxpayers. Under previous regulations, permanently leaving the country entailed several impacts for investors.
Below, explore key aspects of the new legislation, which also includes provisions for corporate investors:

Waiver of representatives and registration registration with CVM

The new rules waive the requirement for the appointment of representatives and investor registration with the CVM in certain cases, simplifying procedures:

End of RDE-Portfolio Registration

In the same spirit of simplification, the regulation exempts from updating the registrations made with the Central Bank through the RDE-Portfolio. These registrations will remain available for consultation for one year after the resolution comes into effect.

Obligation to Retain Supporting Documents

The minimum retention period for supporting documentation has been extended to ten years, including individualized control of inflows and remittances made, proof of compliance with contractual obligations and financial transactions, and documentation of the parties involved in the operation.

Change in Residency Status

The investor must inform the institution with which they have a relationship whenever there is a change in their residency status from resident to non-resident and vice versa, complying with the requirements applicable to the new status. An important point that provides security for the investor is that investments can be maintained under the established conditions, even if there is a change in tax residency.

Investment Account

Until December 31, 2024, Brazilian tax non-residents had two types of accounts available for holding funds in the country, depending on the investment modality: the Non-Resident Account (CNR) and the so-called "4,373 Account." From now on, a single CNR can be used for this purpose.

Support for Individuals

Domingues e Pinho Contadores has a dedicated team for assisting individuals, helping with tax calculations and compliance with all reporting requirements before regulatory authorities, including the Final Departure Tax Return. Rely on this support to ensure compliance: dpc@dpc.com.br.