Brazil—cross-border banking and finance guide
Produced in partnership with Ramos e Zuanon Advogados
Brazil—cross-border banking and finance guide

The following Banking & Finance practice note produced in partnership with Ramos e Zuanon Advogados provides comprehensive and up to date legal information covering:

  • Brazil—cross-border banking and finance guide
  • Loan market and developments
  • Please provide a brief overview of the current state of the loan markets in your jurisdiction and any significant recent market developments
  • Please provide a brief overview of forthcoming changes to the law or other matters that may affect the loan markets or the responses to the questions below.
  • Lending
  • Is it necessary to obtain any consents or licenses in order to lend in your jurisdiction or enforce rights under a loan agreement and if so what is the process for obtaining the consent or license? Are there any other restrictions on lending that foreign lenders should be aware of?
  • Are there any taxes, duties or other charges associated with making loans to entities that are incorporated in your jurisdiction?
  • Are there any restrictions, controls, fees, taxes or charges on foreign exchange in your jurisdiction?
  • How is debt normally transferred in your jurisdiction?
  • Security and guarantees
  • More...

Brazil—cross-border banking and finance guide

Loan market and developments

Please provide a brief overview of the current state of the loan markets in your jurisdiction and any significant recent market developments

Cross-border loan transactions in Brazil are generally governed by Brazilian Law nr. 4,131/62, and are also subject to the rules enacted by the Brazilian Central Bank, especially by means of the Circulars nr. 3,689/2013 and 3,691/2013 enacted by the Brazilian Central Bank in late 2013.

In accordance with such rules, cross-border transactions with Brazilian parties are generally subject to registration with the Brazilian Central Bank (such registration being known as 'ROF') and, as detailed below, tax over foreign exchange transactions and withholding income tax over interests, fees and commissions.

As for the registration of cross-border loan transactions with the Brazilian Central Bank, it is important to point out that it shall be effected by the Brazilian borrower (Resolution nr. 3,844, Annex II, Chapter I, Article 4) prior to the remittance of funds into Brazil (please note that a late registration may also be effected and, in this case, the Brazilian borrower may be subject to a penalty applied by the Brazilian Central Bank).

The registration of the loan transaction with the Brazilian Central Bank is a condition for the remittance of payment of principal, interests and fees by the Brazilian borrower to the lender domiciled abroad, notwithstanding the

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