The Brazilian rose through the youth ranks at Palmeiras in his homeland, and made his first-team breakthrough in 2010.
Head coach Jorge Jesus has now added the 23-year-old to his squad ahead of the 2014-15 campaign, in which Benfica will attempt to defend the league title, as well as the Taca de Portugal and Taca da Liga.
Luis Felipe is excited by the challenge and believes the Portuguese game is ideal for his attributes.
"I'm a strong footballer," he told Benfica's official website. "The style of Portuguese football suits me.
"Portuguese football is [similar] to Brazil. It is a strong championship.
"It is played at great speed and strength, but I think I will adapt quickly."
And having completed his move to Europe, Luis Felipe is now hoping to break into the Brazil squad.
He added: "Europe brings everything, including the possibility of playing in the Brazilian national team."
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