Brazil is the largest economy in Latin America, with more than 200 million consumers, a diversified industrial base and long-standing ties with Italy: millions of Brazilians have Italian roots and “Made in Italy” enjoys great prestige. For Italian companies it is a market full of opportunity, but also a complex one, especially when it comes to tax and bureaucracy. Companies that succeed in Brazil rarely get there by chance: they follow a clear, step-by-step path.
In this guide you will find the main stages of entering the Brazilian market, the key decisions to make along the way and the mistakes to avoid.
Step 1: assess whether Brazil is right for you, and when
Before investing time and resources, answer a few basic questions:
- Is there real demand for your product or service? Look at import data, the presence of local and international competitors and the needs of your target customers.
- Are you competitive on the final price? In Brazil, import duties and taxes can push the shelf price far above the Italian one. Calculating your landed cost is the first real test of competitiveness.
- Do you have the internal resources? Entering Brazil takes management time, a dedicated budget and patience. Results usually come over years, not months.
A preliminary market analysis helps you answer these questions with data rather than impressions, and avoids costly false starts.
Step 2: choose your target states and regions
Brazil is a country of continental size: 26 states plus the Federal District, each with different levels of development, industrial specialisations and local tax rules. São Paulo accounts for a large share of GDP and industrial output; the South (Paraná, Santa Catarina, Rio Grande do Sul) has a strong manufacturing base and close ties with Italy; Minas Gerais and Rio de Janeiro have their own profiles, from mining and steel to energy.
Rather than trying to cover the whole country from day one, it is usually more effective to start in one or two states where your sector is concentrated, build your first references there and then expand.
Step 3: understand the rules for your sector
Brazil’s tax and regulatory system is among the most complex in the world. Depending on what you sell, you may need to consider:
- import duties, based on the Mercosur Common External Tariff, and the correct customs classification (NCM) of your products;
- consumption taxes (currently IPI, ICMS, PIS/COFINS and ISS), which are added on top of duties and also vary from state to state;
- the importer’s registration with the customs system (Siscomex/RADAR);
- product registrations and certifications with the relevant authorities (for example ANVISA for food, cosmetics and medical devices, INMETRO for many technical products and MAPA for agri-food products);
- labelling and documentation in Portuguese;
- trademark and patent protection with Brazil’s INPI.
The rules are also changing. Since 1 May 2026 the trade agreement between the European Union and Mercosur has applied provisionally, gradually reducing or removing duties on many European products, in several cases over 10 years. At the same time, Brazil’s tax reform is progressively replacing the current consumption taxes with a dual VAT (CBS and IBS), with a transition running until 2033. Checking the latest rules for your products is an essential step, not a formality.
Step 4: choose your entry model
This is one of the most important decisions. The main options are:
- direct export to Brazilian customers, managed from Italy;
- a sales representative or distributor acting for you locally;
- a Brazilian subsidiary, usually a sociedade limitada (LTDA);
- a branch of your Italian company, possible but rarely used because it requires government authorisation;
- a joint venture with a Brazilian partner.
Each model offers a different balance of cost, control and risk. We look at them in detail in Distributor, branch or subsidiary? Choosing the right structure in Brazil.
Step 5: find and vet the right partners
Whether you are looking for a distributor, a joint venture partner or simply your first customers, the quality of your partners will largely determine your results. Before signing any agreement:
- check the company’s history, financial strength and reputation (the CNPJ number lets you verify basic company data);
- meet the people in person, ideally at their premises;
- ask for references from other foreign brands they work with;
- agree targets, territories and exclusivity terms in writing, bearing in mind the protection Brazilian law gives to commercial representatives.
Step 6: set up your presence and operations
Once you have chosen your model, it is time to make it operational: incorporating the company, appointing a resident administrator, registering foreign capital with the Central Bank, bank accounts, tax registrations, accounting and payroll, contracts, logistics and customs. This stage involves a lot of paperwork, and it is where on-the-ground support saves the most time. Alternatively, you can rely on existing operational facilities to get started without investing in offices and staff straight away.
Step 7: launch, monitor and adapt
Entering the market is not the end of the journey. Plan your commercial launch (trade fairs, buyer meetings, digital marketing in Portuguese), then monitor results closely. Be ready to adjust prices, product range, payment terms or your partner network based on what you learn in the first 12-24 months.
Indicative timeline
Every project is different, but as a rough guide:
| Stage | Indicative timing |
|---|---|
| Market analysis and strategy | 1-3 months |
| Partner search and first meetings | 3-6 months |
| Company incorporation and registrations (if needed) | 2-4 months |
| First significant results | 12-24 months |
Key takeaways
- See Brazil as a long-term investment, not a quick sales opportunity.
- Start from the data: analyse demand, competition, duties and taxes before committing.
- Focus on a few states first, then expand.
- Choose your entry model carefully: it is easier to start right than to change later.
- Invest in relationships and a local presence: in Brazil trust is built in person, and in Portuguese.
How Gen Brasil can help
Gen Brasil supports Italian companies at every stage of this journey, from the initial market analysis and feasibility study to setting up and managing your branch in Brazil, through to sales via distributors, agents and outsourced sales offices. With offices in Italy, Brazil, Switzerland and the USA, we combine an understanding of Italian companies with first-hand experience of the Brazilian market.
Thinking about entering the Brazilian market? 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.