The startup ecosystem in Brazil faces a persistent paradox: while promoting innovation as a growth engine, regulatory and fiscal measures create significant barriers. The increase in Financial Operations Tax (IOF), instituted by Decree 12,466 of May 22, 2025, is a clear example of this contradiction. With high rates on credit operations, international remittances and other financial instruments, the measure increases capital and increases legal uncertainty, directly impacting startups in critical phases of development.More than a fiscal adjustment, the increase in IOF represents an obstacle to the dynamism of the economy, requiring innovative and innovation.
The changes in the IOF have direct implications for the financing of startups. The fixed rate on credit operations between legal entities went from 0.38% to 0.95%, while the annual ceiling jumped from 1.5% to 3%, according to Decree no. 12.466/2025. For companies of Simples Nacional, the IOF in operations of up to R$ 30 thousand now reaches 1.95% per annouce, an increase in relation to the previous rate of 0,881 term, to increase in the foreign currency, in the purchase of consumption, in the final effect, in the amount of the total amount of the total of the total of the total amount of the total amount of the total.
For startups that use convertible mutuals or seek international contributions, the cost of raising has become higher, discouraging investors and complicating investment rounds. The attempt to tax investments abroad at a rate of 3.5%, although repealed by Decree 12.467/2025, has generated mistrust in the market. This unpredictability affects long-term contracts, especially those without rebalancing clauses, which can become costly. The increase in the Tax on Financial Operations (IOF) will cost up to R$ 19.9 thousand dollars to each foreign company referred to XPT100 million dollars via an XPM10.
Compliance with the new rates requires complex adjustments, such as the reconfiguration of accounting systems and the review of international contracts, increasing operating costs. For startups outside the large centers, access to credit is already more difficult and the increase in IOF aggravates this situation. The combination of higher costs and legal uncertainty creates a hostile environment, in which fiscal and regulatory risk becomes as challenging as market validation.
In this challenging scenario, some legal and structural solutions can mitigate the effects of the increased tax burden. One of the outputs is in attracting individuals investors, who, in certain contractual structures, can still operate with a lower tax burden than that imposed on transactions between legal entities. Another alternative is the diversification of financing instruments and the strategic use of corporate structures that guarantee greater legal and tax flexibility, always with adequate legal support.
Therefore, the increase in IOF is more than a fiscal adjustment, it is a setback that compromises the market in general and especially the startup ecosystem in Brazil. For these companies, which operate with tight margins and depend on agility, the cost of fiscal and regulatory risk is a critical obstacle. Brazil must decide whether to be a pole of innovation or continue penalizing risk taking with short-term measures. In 2025, the challenge is evident: the barriers for those who undertake only increase. Instead of creating an environment favorable to innovation, the state system itself has contributed to instability and insecurity.