Brazil often feels like a “close” market to Italian companies: cultural affinities, a large community of Italian descent, widespread appreciation for Made in Italy. Yet this very familiarity sometimes leads companies to underestimate its complexity. Here are the ten mistakes we see most often, and how to avoid them.
1. Underestimating the final price
Duties, cascading consumption taxes, logistics costs and distribution margins can push a product’s price far above the Italian list price. How to avoid it: before entering, calculate your landed cost and the final price to the Brazilian customer, and compare it with local and international competitors.
2. Treating Brazil as a single market
With 26 states and the Federal District, Brazil has huge differences in income, industrial specialisation, logistics and even local taxes. How to avoid it: start in one or two states where your sector is concentrated, build references, then expand.
3. Assuming you can work in English (or Spanish)
Brazil speaks Portuguese, and English is less widespread in business than in other markets. Approaching Brazilian partners in Spanish is a common and poorly received mistake. How to avoid it: prepare catalogues, website, quotes and contracts in Portuguese and make sure you have Portuguese-speaking contacts.
4. Ignoring tax complexity
Brazil’s tax system, with federal, state and municipal taxes, is among the most complex in the world, and it is going through a major reform that will gradually introduce a dual VAT (CBS and IBS) by 2033. How to avoid it: work with local tax advisers from the start and factor transition periods into your pricing plans.
5. Signing representation agreements without knowing local law
Brazilian law strongly protects commercial representatives: if the relationship is ended without just cause, compensation is due based on the commissions earned over the entire relationship. How to avoid it: define territory, exclusivity, targets and exit clauses with a local lawyer before you start.
6. Underestimating bureaucratic timelines
Import registrations, approvals from bodies such as ANVISA, INMETRO or MAPA, company incorporation and opening bank accounts can take longer than expected. How to avoid it: build approval times into your business plan and start the paperwork early.
7. Overlooking payment terms and currency risk
Brazilian customers are used to deferred and instalment payments, and the real can fluctuate significantly against the euro. How to avoid it: check customers’ creditworthiness, set clear payment terms, consider hedging tools and take the most common local payment methods into account.
8. Forgetting to protect your trademark
Brazil generally follows a “first to file” principle: whoever registers a trademark with the INPI first owns it. How to avoid it: file your trademarks and, where relevant, patents before entering the market or sharing information with potential partners.
9. Managing relationships only remotely
Business in Brazil is highly relationship-driven: face-to-face meetings, availability and quick responses (including via WhatsApp, widely used for business) make a real difference. How to avoid it: visit customers and partners regularly and provide a local contact who is easy to reach.
10. Expecting quick results and not staying the course
Brazil rewards companies with a steady presence. Attending one trade fair and waiting for orders rarely works, and neither does leaving the market at the first economic slowdown. How to avoid it: set a plan of at least 2-3 years, with realistic targets and a consistent presence on the ground.
Key takeaways
Brazil offers great opportunities to Italian companies, but it requires preparation: pricing correctly, respecting tax and contractual rules, speaking the customer’s language and investing in relationships. Avoiding these mistakes saves time and money and helps build a solid, lasting presence.
How Gen Brasil can help
Gen Brasil supports Italian companies at every stage: from market analysis and feasibility studies to setting up and managing your branch in Brazil, through to developing sales with distributors, agents and outsourced sales offices. To find out more, read How to enter the Brazilian market and Distributor, branch or subsidiary?.
Considering Brazil? Contact us to request a no-obligation visit to your company.
This article is for information purposes only and does not constitute legal or tax advice. Regulations change frequently: always check the current requirements for your specific case.