Paranhos was born on 16 March 1819 in Salvador, Bahia, at a time when Brazil was a kingdom united with Portugal. His parents were Agostinho da Silva Paranhos and Josefa Emerenciana de Barreiros.[2][3] Agostinho Paranhos, along with his two brothers, migrated to Brazil during the first decade of the 19th century.[4] He became a wealthy merchant and married Josefa, the Brazilian-born daughter of one of Bahia's long-established families. Her family had roots in Porto, where Agostinho's own family had originated.[5] Agostinho remained loyal to Portugal at the time of Brazil's Independence in 1822, which resulted in his ostracism and the collapse of his business.[6][7]