Brazil is the 3rd most complex country to do business in the world

Brazil is the third most complex country to do business in the world, according to the Global Business Complexity Index (GBCI), conducted by TMF Group, an international provider of administrative and compliance services. Ahead are France and Greece. The study covers 78 countries responsible for 92% of global GDP and 95% of foreign direct investment (FDI) flows.

One of the main factors that make Brazil a complex country in which to do business is tax and accounting issues. The Brazilian tax system is composed of three instances – federal, state and municipal –, which contributes to a highly regulated environment.

Another problem is the frequent changes in tax legislation. “Corporations entering the Brazilian market need to understand the demanding structure”, highlights the company.

Despite this, measures have been taken in the country to simplify the operations of companies. In the last 12 months, exchange control rules have been simplified, cites the group, which makes life easier for foreign investors.

The challenging geopolitical environment is causing difficulties for businesses around the world, but countries like Brazil have become more attractive to investors. According to the Central Bank, in the 12 months ended in April, US$ 82 billion in direct investment (IDP) entered the country, 60.2% more than in the previous 12 months. Net portfolio investments totaled US$ 10.3 billion in the period.

Many companies that cannot operate in Russia, because of the war against Ukraine, expanded their operations in Brazil. “The country is full of opportunities for long-term investments. Short-term initiatives will be even more impacted due to Brazilian complexity and bureaucracy”, says Rodrigo Zambon, general director of TMF Group Brasil.

The 10 most complex countries to do business (source: TMF Group)

1. France
2. Greece
3. Brazil
4. Mexico
5. Colombia
6. Türkiye
7. Peru
8. Italy
9. Bolivia
10. Argentina

The 10 least complex countries to do business (source: TMF Group)

1. Malta
2. Jersey
3. New Zealand
4. UK
5. british virgin islands
6. Hong Kong
7. Netherlands
8. curacao
9. Denmark
10. Cayman Islands