Brazil

Brazil entered 2024 grappling with a delicate mix of political turbulence and economic recalibration. The early months were overshadowed by the lingering fallout from the 2022 presidential election, as former president Jair Bolsonaro faced investigations over alleged attempts to overturn the results. In February, the Federal Police launched Operation Tempus Veritatis, targeting his associates with evidence suggesting coup plans. While Bolsonaro retained a loyal base, the investigations set in motion a legal trajectory that would culminate in his 2025 conviction, reshaping the political landscape and weakening the right-wing opposition ahead of local elections. Against this backdrop, President Luiz Inácio Lula da Silva’s administration sought to safeguard social gains and advance economic reforms, even as rising fiscal pressures and declining approval ratings highlighted the challenges of governing a divided nation.

Economic pressures tested Brazil throughout 2024 and into 2025. High interest rates, persistent inflation, and a volatile currency created challenges. Yet the government achieved measurable successes: formal employment reached record levels, social programmes expanded, and the minimum wage rose, underscoring a continued commitment to inclusion. Structural concerns persisted, with public debt approaching 78.6% of GDP by October and global trade tensions, especially with the United States, threatening growth. By mid-2025, these pressures were expected to reduce GDP by 0.2–0.3%, impacting agriculture, manufacturing, and key commodities.

Despite uncertainty, dealmaking proved resilient. M&A activity fell in volume but surged in value, reflecting a shift toward fewer, larger transactions. Energy, technology, real estate, oil and gas, healthcare, and financial services led the way, with domestic companies dominating and US and European investors active in inbound deals. Early 2025 suggested the trend would continue, bolstered by strong interest from Chinese investors seeking geographic diversification and undervalued assets. Strategic planning increasingly reflected tax reforms and regulatory changes, while high interest rates encouraged distressed deals and asset sales.

Capital markets, by contrast, remained subdued. Fixed-income instruments dominated, while equity markets stayed largely dormant—Brazil has not seen a single IPO since 2021, and follow-on offerings were limited. Regulators tightened rules on securitisation vehicles, particularly CRIs and CRAs, restricting related-party transactions and expanding collateral requirements. These measures reduced flexibility for issuers but strengthened market integrity, addressing concerns over opaque or riskier structures.

At the same time, fintechs, challenger banks, and embedded finance platforms expanded rapidly under Open Finance regulations and new licensing frameworks. Private credit and securitisation grew as corporate funding sources, while updates to the SCFI framework and oversight of virtual assets aimed to strengthen stability, particularly after Operation Carbono Oculto exposed illicit flows through digital platforms.

Competition and antitrust enforcement intensified in parallel. CADE opened dozens of investigations across traditional industries and digital sectors, while lawmakers are advancing the Digital Fair Competition Bill to regulate systemically important platforms—though critics caution it could overreach and stifle innovation.

Energy and infrastructure also remained central to Brazil’s strategic priorities. Renewable sources accounted for nearly 90% of electricity generation in 2024, while biofuel, carbon capture, and forest-carbon initiatives advanced ahead of COP30 in Belém. Efforts to accelerate environmental licensing sparked debate over Indigenous rights and ecological protections, underscoring the persistent tension between growth and conservation.

Meanwhile, arbitration continued to gain traction as the preferred forum for complex commercial disputes, including international cases, as Brazil’s courts grapple with a backlog exceeding 84 million pending cases. Labour policy saw targeted changes, with affirmative action expanded in federal employment, while the phased rollout of the tax reform simplified multiple legacy levies into a dual VAT system and aligned Brazil with global minimum tax rules.

Brazil’s legal market continues to evolve, hosting a diverse range of firms that advise both domestic and international clients. Prominent full-service firms include BMA Advogados, Cescon Barrieu, Demarest Advogados, Lefosse Advogados, Machado Meyer Sendacz e Opice Advogados, Mattos Filho, Pinheiro Neto Advogados, TozziniFreire, and Veirano Advogados.

While the Brazilian Bar Association limits close collaboration between domestic and international firms, several notable alliances have taken shape. These include Trench Rossi Watanabe with Baker McKenzie LLP, Tauil & Chequer Advogados with Mayer Brown, Vella Pugliese Buosi e Guidoni Advogados with Dentons, and FAS Advogados in cooperation with CMS. In a significant move, DLA Piper ended its partnership with Campos Mello Advogados in July 2025, and the Brazilian firm quickly strengthened its platform by bringing Schmidt Valois (known for its expertise in the natural resources sector) into the fold.

Specialist boutique firms also remain key market players, offering expertise in areas like dispute resolution, intellectual property, competition, environmental law, and white-collar crime. Leading boutiques include Ferro, Castro Neves, Daltro & Gomide Advogados, Bermudes Advogados, Dannemann Siemsen Advogados, Kasznar Leonardos Intellectual Property, Gusmão & Labrunie, Davi Tangerino Advogados, Iokoi, Paiva, Jonasson e Scalzaretto Advogados, Grinberg Cordovil Advogados (GCA), and Milaré Advogados.

Legal 500 rankings continue to highlight the depth and diversity of Brazil’s legal market. National firms in São Paulo and Rio de Janeiro remain dominant, showcasing expertise across a wide range of sectors and practice areas, from corporate law to dispute resolution. Yet beyond these dominant centres, regional markets are gaining prominence. Our City Focus coverage underscores this evolution, capturing the increasing influence of local practices, from Manaus in the North, to Porto Alegre and Curitiba in the South, as well as Brasília, Belo Horizonte, Recife, Salvador, Fortaleza and Campinas. This year, the scope expanded further to include Belém, Goiânia, and Florianópolis, reflecting the growing importance of these cities in Brazil’s legal and economic fabric.

In a notable development, Legal 500 has launched the Brazil Elite – Rio de Janeiro, a dedicated ranking designed to recognise leading lawyers at regional and local firms in one of the country’s most dynamic legal hubs. The initiative shines a light on high-calibre professionals who operate outside Brazil’s largest national firms, often leading complex, high-stakes work that shapes the local market. Research drew on interviews with practitioners, written submissions, and an extensive editorial review that began with a broad pool of candidates. Unlike traditional firm-based rankings, this series focuses on individual excellence, spotlighting standout partners across key practice areas within Rio de Janeiro. Together, this expanded and more granular coverage offers a more detailed and balanced picture of Brazil’s legal market, illustrating both the enduring strength of its major centres and the rising influence of regional talent.