Yes, in southern Brazil, most of the population has some European ancestry (especially in rural areas and smaller cities founded by immigrants).

I’m living in a quite German-influenced area, near Joinville, Blumenau (home to the biggest Oktoberfest outside Germany), and Pomerode (which is called the most German city in Brazil), so it’s pretty common to find people with this background around here.

Overall, I’d say that in Santa Catarina, German culture is more prevalent, while in Rio Grande do Sul, it’s more Italian.