Gulf capital into Brazil and Colombia: where the treaties stand in 2026

UAE investors looking at Latin America often start with Brazil and Colombia. The legal footing in each is very different. Brazil and the UAE have an investment agreement and a tax treaty in force. Colombia and the UAE have signed an investment treaty, a tax treaty and a Comprehensive Economic Partnership Agreement, and on the sources we reviewed none of the three was in force on 26 October 2026. This brief sets out where each side of the corridor stands, and the points that usually need attention at the structuring stage.

Brazil: a corridor with treaties in force

Investment protection

The Cooperation and Facilitation Investment Agreement between Brazil and the UAE, signed in Brasília on 15 March 2019, entered into force for Brazil on 30 August 2023 and was promulgated by Decree 11,696 of 11 September 2023. It follows Brazil's own treaty model, which concentrates on preventing disputes through national focal points and a joint committee of the two governments. It does not give an investor a direct investor-state arbitration claim against the host state, which is a significant difference from the treaties many Gulf investors are used to.

Tax

The Brazil–UAE agreement for the avoidance of double taxation on income, signed on 12 November 2018, has been in force since 15 March 2021 and was promulgated by Decree 10,705 of 26 May 2021. Separately, Normative Instruction RFB 2,265 of 9 May 2025 removed the UAE from the Brazilian list of countries with favoured taxation kept under Normative Instruction RFB 1,037/2010. While the UAE was listed, the stricter Brazilian rules for listed jurisdictions could apply to payments and structures involving UAE counterparties. The removal may change the Brazilian tax analysis for some UAE-linked structures, but privileged tax regime, transfer pricing, beneficial ownership and anti-avoidance rules still have to be assessed on the facts.

Registering the capital

Law 14,286 of 29 December 2021 set Brazil's current foreign exchange framework and took effect on 31 December 2022. Central Bank Resolution BCB 278 of 31 December 2022 governs foreign capital in Brazil, including reporting of foreign direct investment through the Central Bank's SCE-IED system. Whether a transaction or a periodic declaration must be reported, and by whom, depends on the thresholds and deadlines in force at the time. Those points should be identified before funds move, because incomplete records can delay later regulatory and transaction steps.

Colombia: signed, not yet in force

Colombia and the UAE signed a bilateral investment treaty and a double taxation agreement on 12 November 2017. On the sources we reviewed, neither had entered into force by 26 October 2026. The two countries announced the signing of a Comprehensive Economic Partnership Agreement in April 2024. The sources reviewed for this brief did not establish that the Comprehensive Economic Partnership Agreement had entered into force by 26 October 2026.

Until they take effect, these agreements give a UAE investor neither corridor-specific investment protection nor tax treaty relief in Colombia, unless another instrument or rule applies. Some groups invest through a third country that has a treaty in force with Colombia. Any such structure has to meet the eligibility terms of that treaty, as well as substance, beneficial ownership and anti-abuse rules.

Decree 1496 of 13 December 2024 updated Colombia's list of non-cooperative, low and no-tax jurisdictions, and the UAE does not appear on it. Being off that list does not settle how a particular entity or arrangement is treated under Colombia's preferential tax regime, free zone or anti-abuse rules.

Foreign investment within Colombia's exchange regime is subject to registration requirements administered by Banco de la República. For an investment channelled through the foreign exchange market, the exchange declaration can serve as the registration if it is completed correctly. Decree 1044 of 5 August 2026 amended parts of this framework, and its transitional rules and timing should be checked before relying on it.

The return route: Latin American groups in the UAE

The corridor runs both ways. UAE company law, now Federal Decree-Law 32 of 2021, allows 100% foreign ownership for many mainland activities, subject to licensing and to restrictions on activities of strategic impact. Corporate tax under Federal Decree-Law 47 of 2022 generally applies to financial years starting on or after 1 June 2023, at 0% on taxable income up to AED 375,000 and 9% above it, subject to the law's exemptions and special regimes. Free zone status, qualifying income conditions, substance requirements and the UAE's global minimum tax rules each need separate review on the group's facts.

Points we raise at the outset

• Check whether a treaty applies to the entity that makes the investment, and then look separately at its ownership, control and beneficial owners.
• In Brazil, identify any SCE-IED reporting obligation, who is responsible for it and what triggers it before the first transfer.
• In Colombia, do not assume protection or relief under the Colombia–UAE agreements until the relevant agreement is in force and applies to the investment.
• Confirm the exchange-control registration route in each country before any funds move.
• Review UAE free zone, qualifying income and substance positions alongside the Latin American side, not after it.

Sources

1. Brazil, Decree 11,696 of 11 September 2023 (promulgating the Brazil–UAE Cooperation and Facilitation Investment Agreement). Source
2. Brazil, Decree 10,705 of 26 May 2021 (promulgating the Brazil–UAE double taxation agreement). Source
3. Brazil, Normative Instruction RFB 2,265 of 9 May 2025 (amending IN RFB 1,037/2010). Source
4. Brazil, Law 14,286 of 29 December 2021. Source
5. Banco Central do Brasil, Resolution BCB 278 of 31 December 2022. Source
6. UNCTAD Investment Policy Hub, Colombia–United Arab Emirates BIT (2017). Source
7. Cancillería de Colombia, bilateral relations with the United Arab Emirates. Source
8. Cancillería de Colombia, signing of the Colombia–UAE Comprehensive Economic Partnership Agreement (April 2024). Source
9. Colombia, Decree 1496 of 13 December 2024. Source
10. Colombia, Decree 1044 of 5 August 2026. Source
11. UAE Government portal, full foreign ownership of commercial companies. Source
12. UAE Ministry of Finance, Federal Decree-Law 47 of 2022 on the Taxation of Corporations and Businesses, with amendments. Source

Not legal advice. This brief gives general information based on sources reviewed as of 26 October 2026. It is not legal advice, it does not create a lawyer-client relationship, and it should not be relied on for any particular transaction. Treaty status and tax rules change. Obtain advice from suitably qualified counsel on your own circumstances before acting.