Brazil now taxes all crypto profits at a flat 17.5% with no exemption for small investors.
Self custody and overseas crypto holdings are also taxed under the new Brazilian tax rule.
Investors must report crypto profits every quarter and can offset past losses for up to five quarters.
The Brazilian government has removed all tax exemptions for cryptocurrency profits, enforcing a flat 17.5% capital gains tax. This change took effect on June 12 under Provisional Measure 1303. The new rule targets all crypto gains, regardless of transaction volume or wallet type.
https://twitter.com/CoinsPaid_Media/status/1934501027467956711 Flat Tax Replaces Tiered Structure
Previously, investors could sell up to R$35,000 (around $6,300) in crypto per month without paying income tax. Larger gains followed a tiered tax model, beginning at 15% and climbing to 22.5% for those earning above R$30 million annually. Now, the 17.5% rate applies uniformly, offering relief for high-volume traders but raising the burden on casual users.
Self-Custody and Overseas Wallets Now Covered
The tax applies not only to local exchange holdings but also to self-custody wallets and foreign-stored digital assets. Investors must declare their crypto profits quarterly. They may offset losses from the previous five quarters, though this period will shorten beginning in 2026.
Under the prior system, hobbyist investors who kept trades below the monthly threshold paid no tax. That benefit is gone. Now, every gain triggers the 17.5% rate. A trader who sold R$30,000 in assets last month and paid nothing will now owe R$5,250 in tax.
Corporate Rules Remain the Same
Businesses under Brazil’s real and presumed profit regimes still face unchanged crypto tax treatment. These companies cannot deduct crypto-related losses under existing frameworks.
At the same time, Brazil is expanding its regulatory stance on digital assets. In March, lawmakers proposed Bill PL 957/2025. The bill would allow companies to pay part of salaries in cryptocurrency. At least 50% of wages must still be paid in reals. Foreign remote workers and expatriates could receive full payment in crypto.
Employers using crypto payrolls must issue reports and educate employees on asset risks, fraud, and conversion procedures. This measure is under Central Bank oversight.
Proposal for Bitcoin Reserve Gains Momentum
Lawmakers are also reviewing Bill PL 4501/2024. The proposal allows up to 5% of Brazil’s national reserves to be held in Bitcoin. The goal is to diversify assets and hedge against currency volatility. If passed, Brazil would become the first G20 country to adopt Bitcoin as a strategic reserve through legislation.
The government also added a 5% tax on profits from fixed-income products. These include Agribusiness Credit Letters, Real Estate Credit Letters, and various Receivables Certificates. Meanwhile, online betting operators will face an increased tax rate of 18% on revenues. Taxes on bettors' prizes remain unchanged.
