At the beginning of 2026, the European Commission adopted a decision which may seem purely technical but which actually has very practical implications for many businesses: Brazil has been recognised as a country with an adequate level of personal data protection under the GDPR.
In other words, personal data transfers from Europe to Brazil are now, legally-speaking, much easier to carry out.
And this is far from a minor detail. In a world where digital services, outsourcing, cloud computing and technological development are increasingly global, international data transfers are part of the normal operations of many companies, including SMEs that may not even be fully aware that they are transferring personal data internationally.
Written by Abigail Sked
Data Protection Specialist
In January 2026, the European Commission adopted an adequacy decision recognising that Brazil’s data protection system offers a level of protection essentially equivalent to that provided under the EU’s GDPR.
This decision is based primarily on Brazil’s data protection law (the Lei Geral de Proteção de Dados (LGPD)) and on the existence of an independent supervisory authority.
Notably, the decision is reciprocal: Brazil has also recognised the European Union as an adequate jurisdiction for receiving personal data.
The practical result is that personal data can now circulate between the EU and Brazil almost as if the transfers were taking place within the European Economic Area.
Until now, if a European company wanted to transfer personal data to Brazil it would generally have to rely on supplementary mechanisms to ensure adequate data protection such as:
Thanks to the adequacy decision, these additional safeguards are no longer required, which reduces administrative burden and provides greater legal certainty.
In practical terms, this can affect, for example:
In short: less bureaucracy and greater ease of international operation.
Adequacy decisions are not just privacy-driven; they are also strategic, economic moves.
The tech market in Brazil is growing rapidly, and the EU has highlighted that this agreement helps to create one of the largest areas of secure data flows in the world, facilitating digital trade and business cooperation between both regions.
This is particularly significant because:
Without personal data, there is no digital economy.
Adequacy decisions are a mechanism provided for in Article 45 of the GDPR.
In essence, they allow the European Commission to declare that a third country offers a sufficiently high level of data protection to permit transfers without additional safeguards.
When an adequacy decision is in place:
It is important to note that these decisions are not permanent; the Commission periodically reviews whether a country continues to maintain an adequate level of protection.
Brazil is not the first, but it is one of the most significant recent decisions.
Currently, the European Commission recognises the following jurisdictions as adequate:
Entry onto this list is not straightforward. It requires a legal framework and institutional safeguards compatible with European standards.
Not exactly.
The adequacy decision greatly simplifies transfers, but it does not eliminate the company’s GDPR compliance obligations.
Businesses still need to comply with:
What the decision removes is the need to justify the transfer as an international transfer per se, not the requirement to comply with general data protection law
Decisions like this reflect a broader trend: data protection is becoming a tool for international cooperation.
The EU is creating a network of countries with compatible standards that facilitates digital trade with partners that share a similar view on privacy.
Transferring data internationally without an adequate legal basis can lead to significant penalties. The GDPR provides for fines of up to €20 million or 4 % of global annual turnover, and may also result in orders to suspend the transfers.
This means that, beyond financial penalties, you could potentially be forced to stop working with key service providers at short notice.
The adequacy decision with Brazil is good news for international businesses because it simplifies data transfers and reduces compliance costs, making collaboration between EU and Brazilian companies more attractive.
It’s also a reminder that data protection is not only a legal issue, but also a strategic and commercial one.
If you work with international providers, use cloud services or operate outside the EEA, it may be a good moment to review whether your data transfers comply with the GDPR.
Contact us and we’ll review your case.