Throughout the Portuguese colonial era, between 1763 and 1822, Rio de Janeiro was the capital of Brazil. During this period, in part due to its status as capital, and in part for being a vital center of commerce, Rio attracted people from many parts of the world. Immigrants from various parts of Europe, Asia, and the Middle East established activities in the city and in the surrounding areas, giving origin to the culture of assimilation that still now is characteristic of Rio.

In the late 18th Century, an economic crisis struck the city, as other countries in South America were competing with Brazil in the production of sugarcane. The changing tides and fortunes would transform Rio de Janeiro significantly in the following century.