Decision on the adequacy of personal data protection in Brazil

On 26 January 2026, Brazil and the European Union formalised a milestone in personal data protection by mutually recognising the adequacy of their respective regulatory frameworks as a level of adequate equivalence.

This recognition is articulated through the adequacy decision mechanism, envisaged in both the Brazilian General Data Protection Law (LGPD) and the European General Data Protection Regulation (GDPR), which allows for international transfers of personal data between territories that offer equivalent levels of protection without the need for additional safeguards, such as standard contractual clauses or other complementary legal mechanisms.

The European Commission thus concluded that the Brazilian data protection system guarantees a level of protection substantially equivalent to that required by the GDPR. At the same time, the National Data Protection Agency (ANPD) acknowledged that the European framework complies with the standards established by the LGPD of Brazil, having been adopted in a coordinated manner by both authorities, even though they are autonomous resolutions.

From a practical perspective, mutual recognition of adequacy significantly simplifies international data transfers between Brazil and the Member States of the European Economic Area, allowing organisations operating in both legal spaces to benefit from a significant reduction in the administrative burdens needed to carry out international transfers of personal data between both jurisdictions, while increasing legal certainty by being able to base their data processing operations on a stable regulatory framework recognised by both parties.

This effect is particularly relevant in data-intensive sectors such as digital services, scientific research, technological innovation, and the development of solutions based on artificial intelligence.

These agreements not only represent a step forward in the privacy and protection of personal data of citizens from both territories but also have a very significant effect, as they will promote digital trade between both territories in an area where more than 670 million people reside. personal data of citizens from both territories, but also have a very significant effect, as they will promote digital trade between both territories in an area where more than 670 million people reside, which will benefit businesses of all sizes and, in the words of Michael McGrath, Brazil's Commissioner for Justice, the Rule of Law, and Consumer Protection, "sends a clear message: fundamental rights do not stop at borders, which gives consumers confidence that their data is respected and protected".

From an institutional and strategic perspective, this recognition positions Brazil as a leading actor in the international data protection scene, demonstrating the maturity and robustness of its regulatory framework. At the same time, it consolidates the European Union as the central axis of the world's largest area of secure personal data flow, promoting economic and regulatory cooperation with third countries that share equivalent standards.

This decision takes on even greater importance in the current geopolitical context, given the recent approval of the trade agreement between the European Union and Mercosur, involving these same countries, which represents a step forward that opens up a great number of opportunities and facilities for entities operating in both territories.

Information note prepared by the Data Protection Department of ECIJA Madrid.