Taxes and Bureaucracy Accelerate Company Exits and Impact the Logistics Market

Since 2021, 81 foreign companies have reduced or shut down logistics operations in Brazil, freeing up 918,000 sq m of warehouse space amid high operating costs, tax burdens, and structural challenges.

Martin Galdeano, President of Ford Motor Company in Latin America

By: SiiLA News

04/27/2026

The Brazilian market is experiencing a series of contradictions: on one hand, consumption continues to grow; on the other, companies are leaving the country. Whether due to tax burdens, legal or economic uncertainty, lack of demand, or other barriers, the exit of companies — or the reduction of their operations — has become increasingly common.

In 2025, five companies delisted from the B3, although this does not necessarily mean they ended operations in the country. One recent case is Gol Linhas Aéreas, which is ending its listing on the exchange following a restructuring and bankruptcy protection process.

Another example is Ford Motor Company, which shut down its manufacturing operations in Brazil while maintaining vehicle imports. During this transition, the company vacated 95,000 sq m of logistics space, excluding its manufacturing plants.

Data from Market Analytics by SiiLA show that since 2021, 81 foreign companies have either stopped occupying logistics warehouses or reduced their leased footprint. In total, 918,000 sq m of space has been vacated by these firms.

One of the most recent cases occurred in January 2026, when the U.S.-based FedEx announced the closure of its domestic operations in Brazil to focus on international transportation and more profitable business segments.

Industrial properties are often among the first indicators of corporate retrenchment. Before shutting down operations, companies typically reduce inventory, consolidate distribution centers, or exit regional markets — moves that quickly become visible in warehouse occupancy contracts.

The impact extends beyond vacancy rates. The downsizing of these operations reduces demand for warehousing, transportation, and labor, affecting a supply chain that depends directly on the physical presence of companies across the national territory.

Brazil Cost

The so-called “Brazil Cost” is one of the main drivers pushing companies out of the country. High operating expenses combined with structural inefficiencies lead firms to reassess their physical footprint in the Brazilian market.

Bureaucracy and tax burdens make Brazil’s operating environment more expensive for companies. In 2025, Brazil’s tax burden represented 32.4% of GDP, approximately 21% higher than the Latin American average.

Taxes levied on consumer goods and service sectors account for 13.7% of GDP. By comparison, income tax represents 9.1%.

Retailer Forever 21, which ended its operations in Brazil in 2022, cited high operating costs — driven by taxes and import expenses — along with difficulties adapting to the Brazilian market and mounting debt as reasons for its exit. As a result, 5,300 sq m of logistics space became vacant.

Similar justifications were cited by Ford Motor Company, Walmart, Mercedes-Benz, and Makro. In the case of Carrefour, the French retailer sought to improve profitability and reorganize its portfolio, while high interest rates reduced Brazilian consumers’ purchasing power. The company also delisted from the B3.

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