Brazil Ranked Third Most Complex Country for Business in 2026 Amid Rising Bureaucracy and Tax Challenges
Brazil rises to the third position on the Global Business Complexity Index in 2026 due to heightened bureaucracy, tax reforms, and regulatory challenges that increase operational costs and risks for businesses and investors.
- • Brazil is ranked the third most complex country globally for doing business in 2026, up from sixth place last year.
- • Complexity arises from overlapping tax systems at federal, state, and municipal levels, alongside frequent regulatory changes.
- • Recent tax reforms intended to simplify the environment have introduced additional operational challenges.
- • Despite digitalization advances, structural bureaucratic hurdles and regulatory insecurity continue to raise costs and risks for businesses.
Key details
In 2026, Brazil has climbed to become the third most complex country globally for doing business, according to the Global Business Complexity Index (GBCI) published by TMF Group. This marks a significant rise from sixth place last year and places Brazil behind only Greece and Mexico. The ranking reflects heightened bureaucratic hurdles, a multifaceted tax system, and frequent regulatory changes that complicate operations for companies and investors alike.
TMF Group's study assessed 81 jurisdictions responsible for over 90% of the global economy, evaluating key business areas such as accounting, tax requirements, labor laws, and legal entity management. Brazil’s complexity stems largely from overlapping federal, state, and municipal tax obligations combined with strict compliance regulations, which have been intensified by recent tax reforms. These reforms, aimed at simplification, paradoxically introduce new challenges and layers of fiscal adaptation, particularly impacting foreign businesses.
The country’s operational costs and structural complexity remain high, driving caution among investors who now weigh not only market size but also regulatory predictability and ease of doing business when making investment decisions. Moreover, frequent regulatory shifts have increased operational insecurity and indirect costs.
Despite these challenges, Brazil has made strides in digitalization, incorporating electronic signatures and digital record systems to enhance efficiency. However, these technological advancements have not fully resolved the fundamental bureaucratic and structural issues that persist.
Santiago Ayerza, Country Head of TMF Group in Brazil, highlighted that the complexities signal both obstacles and positive transformations in the market. Amid global economic fragmentation and uncertainties, improving transparency and regulatory alignment is seen as crucial for facilitating international business operations in the future.
As Brazil contends with its tough business environment, efforts to align regulations and streamline processes remain essential to attract investments and improve productivity in the years ahead.
This article was translated and synthesized from Brazilian sources, providing English-speaking readers with local perspectives.
